Blueprint
April 11,
2018 |
News Release
18-04
|
Brucejack Mine Q1 2018 Production Update
Vancouver,
British Columbia April 11, 2018; Pretium Resources Inc.
(TSX/NYSE:PVG) (“Pretivm” or the “Company”)
is pleased to report first quarter 2018 production results and
provide an operations update as ramp-up advances at the high-grade
gold Brucejack Mine.
First Quarter 2018 Production Summary
■
75,689 ounces of
gold produced
■
96.8% gold recovery
rate
■
261,443 tonnes of
ore milled
■
2,905 tonnes per
day ore milled
■
10.9 grams per
tonne gold mill feed grade for March; average 9.1 grams per tonne
gold mill feed grade for the quarter
“Gold
production improved steadily through the first quarter, with 32,910
ounces produced in March. This result is attributed to the
successful implementation of a number of operational improvement
initiatives,” said Pretivm President & CEO Joseph
Ovsenek. “Our grade control program has now been fully
integrated into our mining process and the rate of underground
development has increased to provide for additional stopes in our
inventory. We are focused on continuing to increase grade to the
mill in Q2, and we remain on track to deliver on our H1 2018
production guidance of 150,000 to 200,000 ounces of gold at AISC of
$900-$700 per ounce of gold sold. We are building on our healthy
cash position, and expect to achieve steady-state production by
mid-to-late 2018.”
First Quarter 2018 Monthly Production
|
Gold Production
(oz)
|
Gold Grade
(g/t)
|
Recovery
(%)
|
Ore Milled
(t)
|
March
|
32,910
|
10.9
|
96.7
|
92,580
|
February
|
27,636
|
11.4
|
97.1
|
77,763
|
January
|
15,143
|
5.4
|
96.7
|
91,100
|
Q1 2018
|
75,689
|
9.1
|
96.8
|
261,443
|
Grade Control Integration and Improving Production
The
grade control program is a data-driven and iterative process that
is being used to optimize stope shapes resulting in reduced
dilution and optimized grade to the mill. The program comprises
drilling, sampling and local modelling with improved short-term
grade prediction. March production results reflect the first impact
of grade control integration into the mining process during the
month. In the second quarter, gold production results are expected
to continue to improve with the full integration of the grade
control program.
The
absence of operational grade control and limited stope optionality
contributed to low gold production for the month of January. Gold
production subsequently increased significantly in February with
stopes planned for the fourth quarter 2017 and other higher-grade
stopes coming online.
Infill Drilling
As part
of the grade control program, infill drilling is required at
5-meter to 7.5-meter centers to refine stope location and
dimensions prior to mining. Currently, three diamond drills and one
reverse circulation (RC) drill are being used for grade control
drilling, with 11,100 meters completed as of April 1st.
The RC
drill is part of a trial program for underground drilling. The RC
drilling provides a larger sample per meter and is expected to be
faster and more cost effective than core drilling, which has been
used for infill drilling to date.
Local Grade Control Model
A local
grade control model, which is based on data from drilling, is now
being implemented for stope optimisation in areas of near-term
production. The model is informed by tightly-spaced infill drilling
(with areas drilled at 7.5 meters or better) and has a resolution
of approximately 2.5 meters. The local grade control model is being
used for stope shape optimization and estimating production grade,
and will ultimately be used for medium-term planning for future
production areas.
Stope Ring Sampling
Another
component of the grade control program, stope ring sampling,
provides grade information on a ring-by-ring basis to refine the
shape of the long-hole stope prior to mining. Long-hole drill
cuttings are collected from each ring within a stope and assayed.
Assayed data from each of the rings is then fed back into the stope
design to refine short-term mine planning.
Mining
To
improve access and build stope inventory, the rate of underground
development has been increased to 700 meters per month, up from the
420 meters considered in the Brucejack Feasibility Study. The
development rate increase began in January and is expected to
remain at an average of 700 meters per month during the duration of
stope inventory build-up in 2018. A third long-hole drill is now on
site to support development and provide for back-up.
Stope
inventory is expected to increase to 10 to 12 stopes. The
availability of stopes representing a range of grades, including
multiple higher-grade stopes, allows mining operations to optimize
stope blending and provides alternative stopes for mining if
required. The increased stope inventory will improve the management
of production grades.
2018 Guidance and Mineral Resource estimate Update
Brucejack
Mine is on track to achieve H1 2018 production guidance of 150,000
to 200,000 ounces of gold at an all-in sustaining cash cost of
$900-$700 per ounce of gold sold. Guidance for H2 2018 is expected
to be given at mid-year with the full integration of local grade
control in the short-term mining cycle and optimal stope
availability for production as the mine approaches steady
state.
Annual
updating of the Mineral Resource and Mineral Reserve for the
Brucejack Mine will be initiated in the fall.
Lyle
Morgenthaler, B.A.Sc., P.Eng., Chief Mine Engineer, Pretium
Resources Inc. is the Qualified Person (“QP”)
responsible for Brucejack Mine development. Warwick Board, Ph.D.,
P.Geo, Pr.Sci.Nat., Vice President, Geology and Chief Geologist,
Pretium Resources Inc. is the QP responsible for the Brucejack Mine
grade control program.
Investor Day Operations Update – Webcast and Conference
Call
Pretivm
is hosting an Investor Day webcast and conference call Wednesday,
April 11, 2018 at 9:00 am PT (12:00 noon ET).
Webcast
and conference call details:
Wednesday, April
11, 2018 at 9:00 am PT (12:00 noon ET)
|
Webcast
|
www.pretivm.com
|
Toll
Free (North America)
|
1-800-319-4610
|
International and
Vancouver
|
604-638-5340
|
First Quarter 2018 Financial Results – Webcast and Conference
Call
Pretivm
plans to release its first quarter 2018 operational and financial
results after market close on Thursday, May 10, 2018. The webcast
and conference call to discuss these results will take place
Friday, May 11, 2018 at 8:00 am PT (11:00 am ET).
Webcast
and conference call details:
Friday,
May 11, 2018 at 8:00 am PT (11:00 am ET)
|
Webcast
|
www.pretivm.com
|
Toll
Free (North America)
|
1-800-319-4610
|
International and
Vancouver
|
604-638-5340
|
About Pretivm
Pretivm
is ramping-up gold production at the high-grade underground
Brucejack mine in northern British Columbia.
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 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: production and cost guidance; our
planned exploration and development activities, the accuracy of our
mineral resource estimates; capital and operating cost estimates;
production and processing estimates; the results, 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 Mine, 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 Mine, timing and receipt of approvals, consents
and permits under applicable legislation, Pretivm's executive
compensation approach and practice, and statements regarding USD
cash flows and the recurrence of foreign currency translation
adjustments. Wherever possible, words such as “plans”,
“expects”, “guidance”,
“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, 2018 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.