Pretium Resources Inc TSX:PVG announced drill results from the West and Valley of the Kings zones of its Brucejack project in northern BC. Highlights include
1.95 g/t gold over 115.5 metres
1.24 g/t gold over 56 metres
1.14 g/t gold over 79 metres
1.29 g/t gold over 30.1 metres
1.03 g/t gold over 48 metres
45.1 g/t gold and 31 g/t silver over 1.5 metres
36.78 g/t gold and 261.9 g/t silver over 5.5 metres
(including uncut 13,600 g/t gold and 6,910 g/t silver over 0.6 metres)
73.7 g/t gold and 70.2 g/t silver over 1 metre
14.8 g/t gold over 7.5 metres (including 59.5 g/t gold over 1.5 metres)
9.3 g/t gold and 73.2 g/t silver over 23.5 metres
(including uncut 6,110 g/t gold and 2,220 g/t silver over 0.7 metres)
9.69 g/t gold over 10.5 metres (including 63.1 g/t gold over 1.5 metres)
2.53 g/t gold and 29.5 g/t silver over 209.2 metres
(including uncut 395 g/t gold and 435 g/t silver over 0.7 metres)
1.21 g/t gold over 125.2 metres
1.09 g/t gold over 101 metres
The Brucejack project has an NI 43-101 mineral resource estimate of 8.18 million ounces gold and 116.2 million ounces silver in the measured and indicated categories, and 12.56 million ounces gold and 151.2 million ounces silver inferred.
President/CEO Bob Quartermain tells ResourceClips.com, “These are the final assay results that we have from the Brucejack project for the 2011 drill season. We’ve now completed a total of 176 drill holes this year, with 73,000 metres of drilling. The results that we encountered today continue to be positive, in light of the fact that we continue to hit high grade. In Hole 266, we hit 13 kilograms of gold and 7 kilograms of silver over almost two feet. Which is very similar to our results a few weeks ago in Hole 269, where we hit 17 kilograms of gold. I’m very pleased considering that we picked this project up under a year ago and only did the IPO in December. It’s very impressive when you consider how far we’ve been able to go with the project in 10 months. The results to date have certainly surpassed my expectations, and it’s because we’ve been able to hit these numerous intersections of high grade gold. The top ten hole hits are all three and four kilos and higher, and we’ve had 24 intersections in this program with over one-kilogram-gold hits. And that’s among 17 drill holes, showing it’s not isolated; it occurs throughout the project, very near surface and at depth.
The results to date have certainly surpassed my expectations, and it’s because we’ve been able to hit these numerous intersections of high grade gold—Bob Quartermain
“There’ll be an updated resource this quarter,” Quartermain continues. “The data are all with our QP currently. They’re in the process of preparing that resource calculation. They go through their own scrutiny, on it and when it’s prepared we do an internal review of it, so we have checks and balances. It takes a few weeks to go through that process, so that’ll be delivered sometime this quarter. Next quarter, we’ll take that resource calculation and update the preliminary economic assessment we reported in June 2011 with the current data. That will be focused on the high grade.
“The other area we want to focus on is alluded to in [the November 10] press release. In the West zone, Hole SU-282—although it had a nice high-grade hit—was in a wide zone of over 200 metres grading 2.5 g/t gold. If you look at some of the other results in the West zone, there are other 100-metre intersections of that 1- to 2-gram material. In some of our press releases we’ve tried to address the fact that not only do we have the high-grade area at Brucejack, there’s now this larger bulk-tonnage opportunity. Not [averaging] 0.5 grams or 0.6 grams, but 1- to 2-gram material, similar to what you’re seeing with Osisko Mining Corporation TSX:OSK or at Detour Lake. So we’re very encouraged by these long, low-grade intervals hosting the high-grade material. What that means is, we’ll do a resource calculation and come out with a high-grade PEA, then we’ll want to look at the bulk-tonnage blended with the high-grade opportunity—[adding] perhaps a second component to that which would be an open-pit mine to take the low-grade material out once the high-grade has been taken out. We’d expect to get that PEA in 2Q 2012.
“There’s always the possibility that someone else may want to have the privilege of developing this spectacular high-grade opportunity,” Quartermain remarks. “We don’t have a corporate ego about the fact that we need to develop it, we just want to get the best return for our shareholders. If someone is willing to pay a significant enough premium that can entice our shareholders, then we as a board would have to support that. We’re in a good position. As we’ve seen from the PEA in June, the capital costs for a 1,500-ton-a-day operation are $300 million—less than the amount of money we raised to buy the property from Silver Standard Resources Inc TSX:SSO. Accordingly, we have the capacity as a group to develop the project. So we can move it forward along that development pipeline and build it as we think it should be built. But if there’s someone who wants to have that privilege and recognizes our shareholders’ interest, then that’s something that we certainly have to consider as a board.
“I think the market is recognizing the story. I think as we help it unfold with the resource update, the PEA and also this potential bulk-tonnage opportunity at the Brucejack area, that will allow us to continue to create value going forward. The market is valuing the stock based on its comfort level with it currently, my role is to take the data we have and try and show that there’s enhanced and more value to unlock.”
Quartermain concludes, “We’re very encouraged by the results that we had [November 10]. We had an excellent program of drilling at Brucejack this summer.”
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by Ted Niles