Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”)
remains committed to the safety and health of our workforce and
neighbouring communities in northwest British Columbia. The
Brucejack Mine continues to operate under the strict guidance and
directives of federal, provincial and regional health authorities.
There are no confirmed cases of COVID-19 at Brucejack.
Brucejack Mine Operations
Brucejack Mine Personnel
A significant number of steps have been taken to
protect the site workforce and limit the risk of COVID-19 exposure
for crews, and in turn their families and communities. In
order to minimize the number of individuals on site at Brucejack,
only personnel necessary to support gold production will continue
to work at the mine. Consequently, all capital projects and
expansion drilling have been placed on hold and crews have been
demobilized. In order to decrease the frequency of crew changes and
travel required, crew rotations for most departments have been
increased to three weeks on and three weeks off (or potentially
three weeks on and one week off, pending Ministry approval) from
two weeks on and two weeks off.
As Brucejack is a remote mining operation, the
risk to operations from travel restrictions can be
significant. Contingency plans are in place should the number
of employees available for operations be limited. Mine
operations will prioritize gold production over development, and
the mill will operate at reduced production rates should the ore
supply be insufficient to operate at 3,800 tonnes per day on a
continuous basis. Safety is and will remain the number one
priority.
Enhanced health checks by qualified health
professionals are being conducted for all personnel prior to
boarding transportation to and from Brucejack, and additional crew
buses are in service to ensure social distancing during transit.
Social distancing protocols are in force at all site
facilities, and “high-touch” surfaces are being disinfected with
increased frequency.
Supplies and Inventory
At present interruptions to the supply chain are
not anticipated. Grinding media is currently the limiting factor
for Mill consumables, and there is an approximately two-month
supply on hand with additional grinding media on order. For
mining, emulsion for blasting is the limiting factor as on site
storage is limited to approximately five to seven days of product
depending on usage levels. Deliveries are made on a scheduled basis
to Brucejack from a supplier located within British Columbia.
Supply chains are being monitored and increased inventory levels
have been established with supplies on order accordingly.
Dore and Concentrate Sales
Doré and flotation concentrate sales are
proceeding as planned without any disruptions to date. With
multiple off-takers for both doré and flotation concentrate, no
sales disruptions are anticipated at this time.
COVID-19 Preparedness and Site Health
Protocols
Brucejack’s medical staff include remote-care
nurses and advanced-care paramedics under the guidance of two
off-site physicians; physicians are on-call to provide guidance or
instruction to on-site staff as needed. The site is equipped for
emergency medical evacuation, including cases suspected to be
contagious. Brucejack’s camp facilities support self-isolation. If
any individual experiences symptoms suggestive of COVID-19 (sore
throat, fever, sneezing, or coughing), the individual will remain
in quarantine for a proscribed duration and under the evaluation of
medical staff. An evacuation plan has been established
to respond to cases when directed by Northern Health (British
Columbia), the regional authority.
Clinic staff are monitoring the COVID-19 crisis
and are engaged with Northern Health to continuously discuss and
manage Pretivm’s operational protocols.
Finance Update
At March 31, 2020, cash on hand was
approximately $40 million, with an additional $16 million remaining
undrawn on the revolving credit facility. As a precautionary
measure, a request was submitted to draw down the remaining $16
million from the revolving credit facility subsequent to the end of
the quarter.
At this time Pretivm has $183.3 million
outstanding on the term credit facility and, following the draw of
$16 million, will have $200 million drawn and committed on the
revolving credit facility. For the remainder of this year,
three quarterly payments of approximately $16.7 million remain to
be made on the term credit facility and interest remains payable on
the outstanding amounts of the term and revolving credit
facilities.
COVID-19 Impact on
Production
COVID-19 did not impact first quarter gold
production. Looking ahead, COVID-19 may have a significant impact
on production if the Company is not able to maintain operations.
The Company currently expects a modest impact on costs should
operations continue with enhanced safety measures in effect.
Local Communities
Pretivm realizes that the remote and dispersed
communities of northwest British Columbia are at particular risk as
a result of the COVID-19 pandemic, as access to healthcare can be a
geographical challenge. Pretivm is committed to mitigating the risk
of exposure to its staff, their families and neighboring
communities in the region. Pretivm is engaging with local
communities to address concerns as well as to share and develop
strategies to address the challenges posed by COVID-19.
Lyle Morgenthaler, B.A.Sc., P.Eng., Chief Mine
Engineer, Pretium Resources Inc. is the Qualified Person as defined
in NI 43-101 responsible for Brucejack Mine development, and has
reviewed and approved the scientific and technical information
contained in this news release relating thereto.
About Pretivm
Pretivm is an intermediate gold producer with
the high-grade gold underground Brucejack Mine.
For further information contact:
Joseph Ovsenek |
Troy Shultz |
President & CEO |
Manager, Investor Relations &
Corporate Communications |
Pretium Resources Inc. Suite 2300, Four Bentall Centre, 1055
Dunsmuir Street PO Box 49334 Vancouver, BC V7X 1L4 (604) 558-1784
invest@pretivm.com (SEDAR filings: Pretium Resources Inc.)
Forward-Looking Information
This news release contains “forward-looking
information”, “forward looking statements”, “future oriented
financial information” and “financial outlook” within the meaning
of applicable Canadian and United States securities legislation
(collectively herein referred to as “ “forward-looking
information”), including the “safe harbour” provisions of Canadian
provincial securities legislation and the U.S. Private Securities
Litigation Reform Act of 1995, Section 21E of the U.S. Securities
Exchange Act of 1934, as amended, and Section 27A of the U.S.
Securities Act of 1933, as amended. The purpose of disclosing
future oriented financial information and financial outlook is to
provide a general overview of management’s expectations regarding
the anticipated results of operations including cash generated
therefrom and costs thereof and readers are cautioned that future
oriented financial information and financial outlook may not be
appropriate for other purposes.
Wherever possible, words such as “plans”,
“expects”, “guidance”, “projects”, “assumes”, “budget”, “strategy”,
“scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”,
“intends”, “modeled”, “targets” and similar expressions or
statements that certain actions, events or results “may”, “could”,
“would”, “might” or “will” be taken, occur or be achieved, or the
negative forms of any of these terms and similar expressions, have
been used to identify forward-looking information. Forward-looking
information may include, but is not limited to, statements with
respect to: anticipated operational and financial impacts from the
COVID-19 pandemic; our COVID-19 response and contingency plans and
anticipated effects thereof; production and cost guidance, and our
expectations around achieving such guidance; our future operational
and financial results, including estimated cash flows (including
free cash flow forecasts) and the timing thereof; expectations
around grade of gold and silver production; the Brucejack Mine
production rate and gold recovery rate; capital modifications and
upgrades, underground development and anticipated benefits thereof,
and estimated expenditures and timelines in connection therewith,
including with respect to achievement of steady state production
of, 3,800 tonnes per day production rate; payment of debt,
operating and other obligations and commitments including timing
and source of funds; our mining (including mining methods),
expansion, exploration and development activities, including
longitudinal longhole stoping initiatives, the reverse circulation
drill program, our infill, expansion and underground exploration
drill programs and our grassroots exploration program, and the
results, costs and timing thereof; our operational grade control
program, including plans with respect to our infill drill program
and our local grade control model; grade reconciliation, updated
geological interpretation and mining initiatives with respect to
the Brucejack Mine; our management, operational plans and strategy;
capital, sustaining and operating cost estimates and timing
thereof; the future price of gold and silver; our liquidity and the
adequacy of our financial resources (including capital resources);
our intentions with respect to our capital resources; capital
allocation plans; our financing activities, including plans for the
use of proceeds thereof; the estimation of Mineral Reserves and
Resources including any updates thereto; realization of Mineral
Reserve and Resource estimates; our estimated life of mine and life
of mine plan for the Brucejack Mine; production and processing
estimates; estimated economic results of the Brucejack Mine,
including net cash flow and net present value; predicted
metallurgical recoveries for gold and silver; geological and
mineralization interpretations; development of our Brucejack Mine
and timing thereof; results, analyses and interpretations of
exploration and drilling programs; timelines and similar statements
relating to the economic viability of the Brucejack Mine, including
mine life, total tonnes mined and processed and mining operations;
updates to our Mineral Reserves and Resources and life of mine plan
for the Brucejack Mine, and the anticipated effects and timing
thereof; timing, receipt, and anticipated effects of, and
anticipated capital costs in connection with, approvals, consents
and permits under applicable legislation; our executive
compensation policy, approach and practice; our relationship with
community stakeholders; litigation matters; environmental matters;
our effective tax rate and the recognition of our previously
unrecognized income tax attributes; new accounting standards
applicable to the Company, including methods of adoption and the
effects of adoption of such standards; statements regarding USD
cash flows, currency fluctuations and the recurrence of foreign
currency translation adjustments; management and board of directors
succession plans; and the impact of financial instruments on our
earnings. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not
statements of historical fact and may be forward-looking
information.
Forward-looking information is subject to a
variety of known and unknown risks, uncertainties and other factors
that could cause actual results, actions, events, conditions,
performance or achievements to materially differ from those
expressed or implied by the forward-looking information, including,
without limitation, those related to: future impacts of the
COVID-19 pandemic and government response to such pandemic; our
ability to continue operations at Brucejack in lieu of the pandemic
and the risk of future shut downs as a result
thereof; the effectiveness of preventative actions and contingency
plans put in place by the Company to respond to the COVID-19
pandemic; escalation of travel restrictions on people or products;
uncertainty as to the outcome of legal proceedings; the effect of
indebtedness on cash flow and business operations; the effect of
restrictive covenants pursuant to the Loan Facility; assumptions
regarding expected capital costs, operating costs and expenditures,
production schedules, economic returns and other projections; our
production and production cost estimates, including the accuracy
thereof; commodity price fluctuations, including gold price
volatility; the accuracy of our Mineral Resource and Reserve
estimates (including with respect to size, grade and
recoverability) and the geological, operational and price
assumptions on which they are based; our ability to maintain or
increase our annual production of gold at the Brucejack Mine or
discover, develop or acquire Mineral Reserves for production;
dependency on the Brucejack Mine for our future operating revenue;
the development of our properties; our ability to raise enough
capital to mine, develop, expand or complete further exploration
programs on our mineral properties; our ability to generate
operating revenues in the future; failure of counterparties to
perform their contractual obligations; general economic conditions;
the inherent risk in the mining industry; the commercial viability
of our current and any acquired mineral rights; availability of
suitable infrastructure or damage to existing infrastructure;
transportation and refining risks; maintaining satisfactory
labour relations with employees and contractors; significant
governmental regulations, including environmental regulations;
non-compliance with permits that are obtained or delay in obtaining
or failure to obtain permits required in the future; increased
costs and restrictions on operations due to compliance with health,
safety and environmental laws and regulations; compliance with
emerging climate change regulation; adequate internal control over
financial reporting; various tax-related matters; potential
opposition from non-governmental organizations; uncertainty
regarding unsettled First Nations rights and title in British
Columbia; uncertainties related to title to our mineral properties
and surface rights; land reclamation requirements; our ability to
identify and successfully integrate any material properties we
acquire; currency fluctuations; competition in the mining industry
for properties, qualified personnel and management; our ability to
attract and retain qualified management and personnel; the ability
of our new executive to successfully transition into their new
roles; some of our directors’ and officers’ involvement with other
natural resource companies; potential inability to attract
development partners or our ability to identify attractive
acquisitions; compliance with foreign corrupt practices regulations
and anti-bribery laws; changes to rules and regulations, including
accounting practices; limitations in our insurance coverage and the
ability to insure against certain risks; risks related to ensuring
the security and safety of information systems, including cyber
security risks; reputational risks; future sales or issuances of
our debt or equity securities; the trading price of our common
shares is subject to volatility due to market conditions; we are
limited in our ability to, and may not, pay dividends in the
foreseeable future; and certain actions under U.S. federal
securities laws may be unenforceable. This list is not exhaustive
of the factors that may affect any of our forward-looking
information. Although we have attempted to identify important
factors that could cause actual results, actions, events,
conditions, performance or achievements to differ materially from
those contained in forward-looking information, there may be other
factors that cause results, actions, events, conditions,
performance or achievements to differ from those anticipated,
estimated or intended. Our forward-looking information is
based on the assumptions, beliefs, expectations and opinions of
management on the date the statements are made, many of which may
be difficult to predict and beyond our control. In connection with
the forward-looking information contained in this news release, we
have made certain assumptions about, among other things: our
business and operations and that no significant event will occur
outside of our normal course of business and operations (other than
expressly set out herein); planned exploration, development and
production activities and the costs and timing thereof; future
price of gold and silver and other metal prices; the accuracy of
our Mineral Resource and Mineral Reserve estimates and related
information analyses and interpretations (including with respect to
any updates or anticipated updates); the geology and mineralization
of the Brucejack Project; operating conditions; capital and
operating cost estimates; production and processing estimates; the
results, costs and timing of future exploration and drilling;
timelines and similar statements relating to the economic viability
of the Brucejack Mine; timing and receipt of governmental,
regulatory and third party approvals, consents, licenses and
permits; obtaining required renewals for existing approvals,
consents, licenses and permits; the geopolitical, economic,
permitting and legal climate that we operate in; the adequacy of
our financial resources, and our ability to raise any necessary
additional capital on reasonable terms; our ability to satisfy the
terms and conditions of our debt obligations; commodity prices;
currency exchange rates and interest rates; political and
regulatory stability; requirements under applicable laws; market
competition; sustained labour stability and availability of
equipment; positive relations with local groups; favourable equity
and debt capital markets; and stability in financial capital
markets. Although we believe that the assumptions inherent in
forward-looking information are reasonable as of the date of this
news release, these assumptions are subject to significant
business, social, economic, political, regulatory, competitive and
other risks and uncertainties, contingencies and other factors that
could cause actual actions, events, conditions, results,
performance or achievements to be materially different from those
projected in the forward-looking information. The Company cautions
that the foregoing list of assumptions is not exhaustive. Other
events or circumstances could cause actual results to differ
materially from those estimated or projected and expressed in, or
implied by, the forward-looking information contained in this news
release.
Additional information about the risks and
uncertainties concerning forward-looking information and material
factors or assumptions on which such forward-looking information is
based is provided in our Annual Information Form and From 40-F,
each dated February 21, 2020, for the year ended December 31, 2019,
our MD&A for the years ended December 31, 2019 and 2018, and
our other disclosure documents as filed in Canada on SEDAR at
www.sedar.com and in the United States through EDGAR at the SEC’s
website at www.sec.gov (collectively, “the Pretivm Disclosure
Documents”).
Forward-looking information is not a guarantee
of future performance. There can be no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Forward-looking information
involves statements about the future and is inherently uncertain,
and our actual achievements or other future events or conditions
may differ materially from those reflected in the forward-looking
information due to a variety of risks, uncertainties and other
factors, including, without limitation, those referred to in this
news release and the Pretivm Disclosure Documents. For the reasons
set forth above, readers should not place undue reliance on
forward-looking information. We do not assume any obligation to
update forward-looking information, whether as a result of new
information, future events or otherwise, other than as required by
applicable law. For the reasons set forth above, prospective
investors should not place undue reliance on forward-looking
information. Neither the TSX nor the NYSE has approved or
disapproved of the information contained herein.
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