Blueprint
July 9,
2018
|
News Release
18-08
|
Brucejack Mine Q2 2018 Production Update; Steady-State Production
Achieved
Vancouver,
British Columbia July 9, 2018; Pretium Resources Inc.
(TSX/NYSE:PVG) (“Pretivm” or the “Company”)
is pleased to report second quarter gold production results and
provide guidance for the second half of 2018 for the Brucejack
Mine.
Second Quarter 2018 Production Summary
■
111,340 ounces of
gold produced
■
14.9 grams per
tonne gold mill feed grade
■
97.7% gold recovery
rate
■
236,990 tonnes of
ore milled
■
2,604 tonnes per
day ore milled
“With
more than 187,000 ounces produced in the first half of 2018, we
have delivered on our first half 2018 guidance of 150,000 to
200,000 ounces of gold,” said Pretivm President & CEO
Joseph Ovsenek. “The successful integration of our grade
control program into our mining process has resulted in increased
grade to the mill with production exceeding grade control estimates
for the quarter. Brucejack has now achieved steady-state
production, and we expect to deliver 200,000 to 220,000 ounces of
gold for the second half of 2018.”
Second Quarter 2018 Monthly Production
|
Gold Production (oz)
|
Gold Grade (g/t)
|
Recovery (%)
|
Ore Milled
(t)
|
April
|
35,891
|
16.6
|
97.8
|
73,222
|
May
|
36,978
|
14.2
|
97.4
|
81,611
|
June
|
38,471
|
14.1
|
97.9
|
82,157
|
Q2 2018
|
111,340
|
14.9
|
97.7
|
236,990
|
Grade control integration and steady state gold
production
Gold
production from March throughout the second quarter has reflected
the full integration of the operational grade control program which
comprises drilling, sampling and local modelling. Grade control is
critical for grade prediction and the refinement of stope shapes,
which results in reduced dilution and optimized grade to the
mill.
Operational grade control: Infill drilling
A
reverse circulation (“RC”) drill was introduced as part
of a trial program to improve the efficiency and productivity of
infill drilling. The RC drill has now been demobilized as it did
not deliver the expected cost savings or productivity gains. Going
forward, the infill drill program will be carried out with diamond
drills.
Mining
To
improve access and build stope inventory, the rate of underground
development was increased to 700 meters per month, up from the 420
meters contemplated in the 2014 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.
With
the results of the infill drill program now available for the
benefit of short-term stope design, the stope inventory build-up is
expected to increase to 10 to 12 stopes during the third quarter.
The increased stope inventory will improve the management of
production grades.
Steady State Production – Second Half 2018
Guidance
Production Guidance
Gold
production at Brucejack for the second half of 2018 is expected in
the range of 200,000 ounces to 220,000 ounces, for total 2018 gold
production of 387,000 ounces to 407,000 ounces.
Financial Guidance
All in
sustaining costs1 for the second half
of 2018 are expected to range from US$710 per ounce gold sold to
US$770 per ounce gold sold. As production has now reached steady
state at the Brucejack Mine, an increased focus will be placed on
operational efficiency to reduce costs.
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.
Second Quarter 2018 Production Results – Webcast and
Conference Call
Pretivm
is hosting a webcast and conference call today, July 9, 2018 at
8:00 am PT (11:00 am ET).
Webcast
and conference call details:
Monday,
July 9, 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
|
Second Quarter 2018 Operational and Financial Results –
Webcast and Conference Call
Pretivm
plans to release its second quarter 2018 operational and financial
results after market close on Thursday, August 9, 2018. The webcast
and conference call to discuss these results will take place
Friday, August 10, 2018 at 8:00 am PT (11:00 am ET).
Webcast
and conference call details:
Friday,
August 10, 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 emerging as the premier low-cost intermediate gold producer with
production at the high-grade underground Brucejack Mine in northern
British Columbia now at steady state.
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.)
(1)
All-In Sustaining
Costs
All-in
sustaining cost (“AISC”) is a non-IFRS performance
measure calculated as the sum of total cash costs, sustaining
capital expenditures, accretion on decommissioning and restoration
provision, treatment and refinery charges netted against revenue,
site share-based compensation, and corporate administrative costs,
all divided by the gold ounces sold to arrive at a per ounce
amount. The Company believes that this measure, in addition to
measures prepared in accordance with IFRS, provide investors an
improved ability to evaluate the underlying performance of the
Company and to compare it to information reported by other
companies. The non-IFRS measures are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. These measures do not have any standardized meaning
prescribed under IFRS, and therefore may not be comparable to other
issuers.
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 mining, exploration and development activities; capital and
operating cost estimates; production and processing estimates; the
future price of gold and silver; the adequacy of our 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
and development; results of future exploration and drilling;
capital and operating cost estimates; timelines and similar
statements relating to the economic viability of the Brucejack
Mine, including mine life, total tonnes mined and processed and
mining operations; completion of ramp-up to steady state production
and positive cash flow; timing and receipt of approvals, consents
and permits under applicable legislation; our relationship with
community stakeholders; litigation matters; environmental matters;
and statements regarding USD cash flows currency fluctuations 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”,
“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 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
statements. Forward-looking statements are 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 statements are 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.