Thursday 27th October 2016

Resource Clips

Pretium CEO Bob Quartermain on BC gold assays of 225.85 g/t over 24.1m

Resource Clips - essential news on junior gold mining and junior silver miningPretium Resources Inc TSX:PVG announced assays from its Brucejack Project in northern BC. Results include

5.28 g/t gold and 10.04 g/t silver over 12 metres
24.7 g/t gold and 25.9 g/t silver over 1.5 metres
6.66 g/t gold over 11.4 metres
9.66 g/t gold and 407.64 g/t silver over 6.5 metres
53 g/t gold and 62.8 g/t silver over 1.5 metres
6.94 g/t gold and 10.56 g/t silver over 15 metres
29.5 g/t gold and 50.8 g/t silver over 1.5 metres
13.49 g/t gold over 4.5 metres
74.1 g/t gold and 91.1 g/t silver over 0.5 metres
23.02 g/t gold and 42.9 g/t silver over 7.5 metres
120 g/t gold and 97 g/t silver over 1.2 metres
234 g/t gold and 745 g/t silver over 0.5 metres
26.06 g/t gold and 18.23 g/t silver over 5.5 metres
(uncut) 225.85 g/t gold and 119.66 g/t silver over 24.1 metres
(including (uncut) 9,110 g/t gold and 4,030 g/t silver over 0.5 metres)
(uncut) 114.64 g/t gold and 68.58 g/t silver over 9.6 metres
(uncut) 1,490 g/t gold and 856 g/t silver over 0.7 metres
(uncut) 305 g/t gold and 239 g/t silver over 0.5 metres

I think the market is focusing more on grade with a lower capital cost in a politically safe jurisdiction—Bob Quartermain

President/CEO Bob Quartermain tells, “We just initiated the 2012 drill program with seven drills working. The results we released [yesterday] included a nine-kilo hit. We’ve had what we consider excellent results that continue to grow on and validate the drilling we did last year.”

Pretium announced April 3 a high-grade mineral resource estimate for the Valley of the Kings and West Zone of the Brucejack Project. At a 5 g/t cutoff, the project has high-grade indicated resources of 4.9 million ounces gold and 10.4 million ounces inferred. Quartermain comments, “After the resource we came up with in November 2011—which was done with median indicator kriging that was done as a sensitivity on the bulk resource—we decided we should do a new resource strictly focused on the underground. So we spoke with Snowden in December, and in January they started working on the resource. [Snowden Mining Industry Consultants] has a global reputation in resource work, particularly in this kind of more complicated high-grade, multiple-indicated kriging. That’s why we hired them, and they’ve had their best people on the file. They came to us, I guess, in the middle of [March] [to say] that we had a very favorable result which followed on and validated the work in November. But again, this one is focused strictly on the high-grade underground, and so it’s got a little more resource in it because it goes deeper and has a larger inferred component. What we’re doing with the current program is drilling the inferred to move it up into the indicated category.

“We’re doing a full feasibility study which we hope to have completed by the end of the year, and so our plan is to do 25,000 metres of infill drilling. When we have that completed, we’ll do another resource calculation. We should have that out in 3Q.”

While mining equities have had a hard year, Pretium has seen considerable gains since its initial price offering in December 2010 at $6. At press time, the company has 88.1 million shares trading at $15.91 per share. Quartermain says, “I think it’s because of the delivery that we’re getting from the project and the fact that we continue to have these high-grade hits. I think the market is focusing more on grade with a lower capital cost in a politically safe jurisdiction. We told the market that we’re going to go in and drill and continue to advance the project and to deliver on that, and the market continues to recognize that.”

Does Pretium intend to take Brucejack to production itself? “We have the capability to do that, or if someone else wanted the privilege of doing that—recognizing the efforts we and our shareholders have made to this point—that would be fine. There are two opportunities for shareholders, both with respect to us and with respect to some major that may want to add this to their own portfolio.

“We’ve been very pleased with the way the project has advanced,” Quartermain concludes. “When you think about it, it’s only been a year and change since we IPO’d, and we had 500,000 ounces in the project at that time. Now, with 16 million ounces in all categories and the high grade, it’s surpassed my expectations. We have seven drills turning, and we’re now going to be delivering results to our shareholders over the next number of months.”

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Robert Quartermain

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