For the month of: June 2014
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Commission File Number: 001-35393
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Exhibit
Number
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Description of Exhibit
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Date: June 20, 2014
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PRETIUM RESOURCES INC.
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By:
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/s/ Joseph J. Ovsenek
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Name:
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Joseph J. Ovsenek
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Title:
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Executive Vice President, Chief Development Officer
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Item 1
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Name and Address of Company
Pretium Resources Inc. (“Pretivm”)
Suite 1600, 570 Granville Street
Vancouver, BC
V6C 3P1
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Item 2
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Date of Material Change
June 19, 2014
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Item 3
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News Release
The news release dated June 19, 2014 was disseminated through Marketwire and filed on SEDAR.
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Item 4
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Summary of Material Change
Pretivm announced the results of an updated National Instrument 43-101-compliant Feasibility Study completed by Tetra Tech for the Brucejack Project in northern British Columbia.
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Item 5
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Full Description of Material Change
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5.1 Full Description of Material Change | |
Pretivm announced the results of an updated National Instrument 43-101-compliant Feasibility Study completed by Tetra Tech for the Brucejack Project (“Brucejack” or the “Project”) in northern British Columbia. The report, which includes updated metals prices, currency exchange rate, and costs, confirms the positive economics for a high-grade gold underground mine at Brucejack. | |
Feasibility Study Highlights
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·
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Increase in Valley of the Kings Mineral Reserve gold grade:
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o
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Valley of the Kings Proven and Probable Mineral Reserves of 6.9 million ounces of gold (13.6 million tonnes grading 15.7 grams of gold per tonne)
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o
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West Zone Proven and Probable Mineral Reserves of 0.6 million ounces of gold (2.9 million tonnes grading 6.9 grams of gold per tonne);
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·
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Gold and silver recoveries of 96.7% and 90.0% over mine life;
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·
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Mine life of 18 years producing an estimated 7.27 million ounces of gold;
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·
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Average annual production of 504,000 ounces of gold over the first 8 years and 404,000 ounces of gold over mine life;
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·
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Estimated project capital cost, including contingencies, of US$746.9 million;
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·
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Average operating costs of C$163.05/tonne milled over mine life;
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·
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Base case economics: At US$1,100/ounce gold, US$17/ounce silver and exchange rate of 0.92 US$/C$, Brucejack has a pre-tax net present value (“NPV”) at a 5% discount of US$2.25 billion (US$1.45 billion post-tax), a pre-tax internal rate of return (“IRR”) of 34.7%, and a pre-tax payback period of 2.7 years;
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·
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Alternative high case economics: At US$1,400/ounce gold, US$21/ounce silver and exchange rate of 0.92 US$/C$, Brucejack has a pre-tax NPV at a 5% discount of US$3.54 billion (US$2.28 billion post-tax), a pre-tax IRR of 47%, and a pre-tax payback period of 2 years.
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Low Case
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Base Case
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High Case
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Gold Price (US$/ounce)
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$800
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$1,100
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$1,400
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Silver Price (US$/ounce)
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$15.00
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$17.00
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$21.00
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Net Cash Flow (US$)
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$2.02 billion (pre-tax)
$1.34 billion (post-tax)
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$4.16 billion (pre-tax)
$2.72 billion (post-tax)
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$6.35 billion (pre-tax)
$4.13 billion (post-tax)
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Net Present Value(1)
(5.0% discount) (US$)
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$985 million (pre-tax)
$620 million (post-tax)
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$2.25 billion (pre-tax)
$1.45 billion (post-tax)
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$3.54 billion (pre-tax)
$2.28 billion (post-tax)
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Internal Rate of Return
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20.3% (pre-tax)
16.5% (post-tax)
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34.7% (pre-tax)
28.5% (post-tax)
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47%(pre-tax)
38.7% (post-tax)
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Payback(from start of production period)
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4.4 years (pre-tax)
4.5 years (post-tax)
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2.7 years (pre-tax)
2.8 years (post-tax)
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2.0 years (pre-tax)
2.1 years (post-tax)
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Exchange Rate (US$:C$)
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0.92
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0.92
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0.92
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Category
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Tonnes
(millions)
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Gold
(g/t)
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Silver
(g/t)
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Contained
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Gold
(million oz)
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Silver
(million oz)
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Proven
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2.1
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15.6
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12
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1.1
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0.8
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Probable
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11.5
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15.7
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10
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5.8
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3.9
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Total P&P
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13.6
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15.7
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11
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6.9
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4.6
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Category
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Tonnes
(millions)
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Gold
(g/t)
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Silver
(g/t)
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Contained
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Gold
(million oz)
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Silver
(million oz)
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Proven
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1.4
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7.2
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383
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0.3
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17.4
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Probable
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1.5
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6.5
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181
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0.3
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8.6
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Total P&P
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2.9
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6.9
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279
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0.6
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26.0
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Year
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Tonnage
(t)
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Gold grade
(g/t)
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Silver grade
(g/t)
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Gold Production
(‘000 ounces)
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Silver
Production
(‘000 ounces)
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1
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839,000(6)
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15.4
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11.7
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403
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268
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2
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995,000
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15.2
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11.7
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470
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318
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3
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995,000
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16.7
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12.8
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519
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349
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4
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984,000
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15.9
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9.9
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488
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263
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5
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988,000
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16.9
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11.0
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521
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296
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6
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999,000
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17.5
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10.6
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545
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287
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7
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986,000
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17.8
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11.8
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547
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319
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8
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996,000
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17.5
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11.7
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542
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319
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9
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994,000
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14.9
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10.2
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461
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276
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10
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987,000
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15.5
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11.2
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476
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302
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Years 11-18
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6,788,000
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11.0
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124.5
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2,303
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24,630
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Life of Mine (Years 1-18)
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16,550,000
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14.1
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57.7
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7,274
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27,626
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(US$ million)
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Mine underground
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179.5
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Mine site(7)
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210.8
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Offsite Infrastructure
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89.1
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Total Direct Costs
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479.4
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Indirect Costs
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127.5
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Owner’s Costs
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71.0
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Contingency
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69.0
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Total Capital Cost
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746.9
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(C$/tonne)
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Mining
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91.34(8)
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Processing
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19.69
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General & Administrative
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30.87
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Surface Services and Others
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21.15
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Total Operating Cost
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163.05
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(US$ million)
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Total Cash Costs(9)
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2,814.5
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Reclamation Cost Accretion
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27.5
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Sustaining Capital Expenditure
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320.6
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All-in Sustaining Cash Costs
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3,162.6
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Gold Sales
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7,067
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All-in Sustaining Cash Costs per Ounce
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US$448/ounce
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·
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Increase in overall reserve gold grade and the addition of the Proven Reserves category for the Valley of the Kings;
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·
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Slightly higher metal recoveries;
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·
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Mine life decreases from 22 years to 18 years due to higher grade, lower tonnage;
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·
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Through-put of 2,700 tonnes per day unchanged;
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·
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Updated metals prices and exchange rate:
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o
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2014 study uses US$1,100 gold/US$17 silver and 0.92US$:1C$
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o
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2013 study used US$1,350 gold/US$20 silver and 1US$:1C$
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·
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Estimated capital cost has increased by 12.6% in US dollar terms, reflecting a depreciation in the Canadian dollar;
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·
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Estimated capital cost increase primarily related to power, camp size, temporary facilities, water and sewerage treatment, waste disposal, and owner’s costs;
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·
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Unit operating cost has increased nominally.
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Qualified Person
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Scope of Responsibility
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David Ireland, C.Eng., P.Eng.
Tetra Tech
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Site Infrastructure and Project Execution
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Lynn Olssen, MAusIMM (CP)
Snowden Mining Industry Consultants
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Geology and Mineral Resources
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Colm Keogh, P.Eng.
AMC Mining Consultants (Canada) Ltd.
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Mineral Reserves and Mining Methods
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John Huang, Ph.D, P.Eng.
Tetra Tech
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Metallurgy and Recovery Methods
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Ali Farah, P.Eng.
Tetra Tech
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Fuel supply and distribution
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Brian Gould, P.Eng.
Alpine Solutions Avalanche Services
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Avalanche Hazard Assessment
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Mike Wise, P.Eng.
Valard
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Transmission Line
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Pierre Pelletier, P.Eng.
Rescan
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Aspects of environmental, social, community studies, and permitting
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Wayne Stoyko, P.Eng.
Tetra Tech
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Capital Cost Estimate
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Sabry Abdel Hafez, Ph.D, P.Eng.
Tetra Tech
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Financial Analysis
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Cathy Schmid, P.Eng.
BGC Engineering Inc.
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Underground Mine Geotechnical
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Sharon Blackmore
BGC Engineering Inc.
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Geochemistry
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Hamish Weatherly, P.Geo.
BGC Engineering Inc.
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Water Management
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Trevor Crozier, M.Eng., P.Eng.
BGC Engineering Inc.
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Water Quality
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George Zazzi, P.Eng.
AMC Mining Consultants (Canada) Ltd.
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Underground Infrastructure
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Tony Grice, MAusIMM, DipCSM, MScEng
AMC Mining Consultants (Canada) Ltd.
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Paste Backfill Distribution
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Brent McAfee, P.Eng.
BGC Engineering Inc.
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Site Geotechnical
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Mike Chin, P.Eng.
Tetra Tech
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Earthworks, roads, and drainage at the mine site and at Knipple Transfer Station
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5.2 Disclosure for Restructuring Transactions
Not applicable.
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Item 6
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Reliance on subsection 7.1(2) or (3) of National Instrument 51-102
Not applicable.
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Item 7
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Omitted Information
Not applicable.
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Item 8
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Executive Officer
Joseph Ovsenek, Chief Development Officer & Executive Vice President
Phone: 604-558-1784
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Item 9
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Date of Report
Dated at Vancouver, BC, this 20th day of June, 2014.
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