Blueprint
November 3,
2016
|
News Release
16-28
|
Pretivm
Reports Third Quarter 2016 Results
Vancouver, British
Columbia November 3, 2016; Pretium Resources Inc. (TSX/NYSE:PVG)
(“Pretivm” or the “Company”) is pleased to
report the following highlights from the third quarter of 2016 and
updates for its high-grade gold Brucejack Project in northern
British Columbia.
Third Quarter 2016 Highlights
●
On July 21, 2016,
we announced an updated Mineral Resource estimate for the Valley of
the Kings. The program was successful in increasing the Measured
Mineral Resources in the Valley of the Kings by 58% to 1.9 million
ounces (3.5 million tonnes grading 17.0 grams per tonne gold). The
program was also successful in adding Indicated Mineral Resources
with Measured and Indicated Mineral Resources in the Valley of the
Kings now totaling 9.1 million ounces of gold (16.4 million
tonnes grading 17.2 grams per tonne gold), an increase from the
December 2013 Valley of the Kings Mineral Resource
estimate.
●
On August 10, 2016,
we announced that the development of the Brucejack Project remained
on schedule and that an updated mine plan was expected before
year-end.
●
Working capital at
September 30, 2016 was $153.2 million.
Construction and
development continued on schedule during the third quarter of 2016
with multiple key components being advanced or
completed.
The
standing of the mill building structural steel and the installation
of roof decking and wall cladding is complete. Construction of
internal structural steel and decking is ongoing in preparation for
delivery and installation of mechanical equipment. The surge bin
has been installed and enclosed, the mill substation transformers
have been positioned, the installation of the process and fire
water tanks has advanced, foundation for the concentrate stock tank
has been poured and assembly of the tailings thickener is
progressing. Most of the major components including the SAG and
ball mills are at site and initial mobilization of the remaining
mechanical equipment has begun. In addition, all major contracts
have now been awarded.
The
kitchen facility and all three dorms that make up the 330-person
camp are in operation and occupied. The roofing of the core section
which includes offices, recreation and the mine dry is now
complete. Structural interconnection work, electrical installation,
communication wiring, and water and sewer piping has also been
completed and work on the final interior finishes will be finalized
shortly.
Collaring of the
main portal access for the Valley of the Kings and the portal
building foundations have been completed. The portal will serve as
the primary access point to convey the gold ore from the
underground crusher to the mill.
Underground
development remains on schedule and crews are advancing at an
average rate of over 30 meters a day. Underground work is
focused on the headings for infrastructure with the truck dump,
crusher area and the conveyor ramp excavated. The last remaining
round in the conveyor decline will break through to surface when
the portal building is covered. Underground infrastructure work has
commenced with the transfer tower footings poured and underground
crusher footings to commence.
Transmission line
construction is also reaching completion with all towers now in
place. Construction of the Brucejack transmission switchyard has
been completed and the Knipple substation is being commissioned.
The line has been strung from interconnection with the grid near
Stewart, British Columbia to the Knipple substation. Stringing of
the final 15 kilometers of the 57 kilometer long powerline is
underway with completion of stringing the first of three phases of
that section. The connection of the transmission line to the BC
Hydro power grid remains on schedule and is expected in the fourth
quarter.
With
the US$540 million construction financing, available cash on hand
and the proceeds from the first quarter equity offering of US$146.2
million, the development costs and the first three months of
working capital for the Brucejack Project are fully
funded.
Valley of the Kings Mineral Resource Estimate Update
During
the quarter, the Valley of the Kings Mineral Resource estimate was
updated (see news release dated
July 21, 2016). Measured Mineral Resources in the Valley of
the Kings increased by 58% to 1.9 million ounces (3.5 million
tonnes grading 17.0 grams per tonne gold) and Measured and
Indicated Mineral Resources in the Valley of the Kings now total
9.1 million ounces of gold (16.4 million tonnes grading 17.2 grams
per tonne gold).
The
Mineral Resource estimate is based on the results of the
underground infill drill program designed to target stope areas in
years 1 through 3 of the current mine plan (1320-meter level to
1200-meter level). A total of 63,444 meters was drilled, at 7.5 to
10 meter centers, in 364 drillholes and returned 49 intersections
grading greater than 1,000 grams of gold per tonne. This included a
bonanza grade intercept in hole VU-722 which encountered 37,117
grams of gold per tonne uncut over 0.5 meters.
In
summary, the updated Mineral Resource estimate has confirmed the
geological model for the Valley of the Kings, and combined Measured
and Indicated Resources have not materially
changed. The Valley of the Kings remains open to the east and west
along strike, and at depth.
The
Valley of the Kings Mineral Resource estimate was prepared by
Pretivm under the guidance and supervision of Ivor W.O. Jones,
M.Sc., FAusIMM, CPgeo who is the independent Qualified Person
responsible for the Mineral Resource for the Brucejack Project.
Pretivm employed the same approach and methodology as was used for
the December 2013 Valley of the Kings Mineral Resource estimate.
For details see Brucejack Project
Mineral Resources Update Technical Report effective date 19
December 2013.
Mine Plan Update
With
the completion of the updated Mineral Resource estimate for the
Valley of the Kings and success in increasing confidence in the
estimate in the areas to be mined in the first three years, the
Valley of the Kings mine plan will be updated before year-end in
preparation for production development.
2016 Exploration Program
The
2016 grass-roots exploration program which concluded in October was
conducted to evaluate the broader regional exploration potential of
the Brucejack property outside the area of known mineralization.
The Bowser Regional Project area, approximately 20 kilometers
south-east of the Valley of the Kings deposit, comprises
approximately 800 square kilometers. The 2015 program included
airborne magnetic, radiometric and EM surveys over two-thirds of
the project area. The 2016 program covered the remaining areas with
airborne magnetic and radiometric surveys as well as a
hyperspectral survey, regional ground MT surveys, property scale
mapping and prospecting over the entire area. A limited drill
program was also completed to enhance geological interpretation.
Results from this year’s program are currently being analyzed
for follow up in the future.
Lyle
Morgenthaler, B.A.Sc., P.Eng., Chief Mining Engineering, Pretium
Resources Inc. is the Qualified Person (“QP”)
responsible for Brucejack Project development. Kenneth C.
McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, Pretium
Resources Inc. is the QP responsible for the Brucejack Project
exploration program.
Our
unaudited condensed consolidated Financial Statements and
Management Discussion and Analysis for the nine months ended
September 30, 2016 are filed on SEDAR and available on our website
at www.pretivm.com.
For
further information contact:
Joseph
Ovsenek
|
Troy
Shultz |
President
|
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
Statements
This
News Release contains “forward-looking information” and
“forward looking statements” within the meaning of
applicable Canadian and United States securities legislation.
Statements contained herein that are not based on historical or
current fact, including without limitation statements containing
the words “anticipates,” “believes,”
“may,” “continues,”
“estimates,” “expects,” and
“will” and words of similar import, constitute
“forward-looking statements” within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking information may include, but is not limited to,
information with respect to our planned exploration and development
activities, the adequacy of Pretivm's financial resources, the
estimation of mineral reserves and resources including the 2016
Valley of the Kings Mineral Resource estimate and the Brucejack
Mineral Reserve estimate, realization of mineral reserve and
resource estimates and timing of development of Pretivm's Brucejack
Project, costs and timing of future exploration, results of future
exploration and drilling, production and processing estimates,
capital and operating cost estimates, timelines and similar
statements relating to the economic viability of the Brucejack
Project, timing and receipt of approvals, consents and permits
under applicable legislation, Pretivm's executive compensation
approach and practice, and adequacy of financial resources.
Wherever possible, words such as “plans”,
“expects”, “projects”,
“assumes”, “budget”,
“strategy”, “scheduled”,
“estimates”, “forecasts”,
“anticipates”, “believes”,
“intends”, “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 statements
and information. Statements concerning mineral reserve and resource
estimates may also be deemed to constitute forward-looking
information to the extent that they involve estimates of the
mineralization that will be encountered if the property is
developed. 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 events or results to differ from those expressed or
implied by the forward-looking information, including, without
limitation, those risks identified in Pretivm's Annual Information
Form dated March 28, 2016 filed on SEDAR at www.sedar.com and in
the United States on Form 40-F through EDGAR at the SEC's website
at www.sec.gov. Forward-looking information is based on the
expectations and opinions of Pretivm's management on the date the
statements are made. The assumptions used in the preparation of
such statements, although considered reasonable at the time of
preparation, may prove to be imprecise. 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.