VANCOUVER, BRITISH COLUMBIA--(Marketwire -08/02/12)- Pretium Resources Inc. (PVG.TO)(PVG) ("Pretivm") is pleased to report the following highlights from the second quarter of 2012 and updates for its Brucejack Project in northern British Columbia.
Second Quarter 2012 Highlights and Significant Events
-- Announced on April 2, 2012 the adoption of a shareholder rights plan;
-- Announced on April 3, 2012 a high-grade Mineral Resource estimate for
Brucejack's Valley of the Kings and West Zone;
-- Completed a marketed offering of our common shares on May 9, 2012, for
gross proceeds of $80,540,250;
-- Ended the quarter with working capital of $75,731,479;
-- Announced on July 25, 2012 the highest-grading gold intersection
encountered to date at the Brucejack Project, drilled in the Valley of
the Kings, of 0.5 meters with uncut grades of 41,582 grams of gold and
27,725 grams of silver per tonne (1.6 feet averaging 1,212.8 ounces gold
and 808.6 ounces silver per ton).
In late February 2012, we began mobilizing drills to our Brucejack Project to commence the 2012 Brucejack Exploration Program, with six drills mobilized to site by the end of the first quarter of 2012. In April 2012, we mobilized a seventh drill to site. By the end of June 2012, a total of 154 drill holes had been completed or were in progress comprising approximately 46,845 meters of drilling.
The initial phase of the 2012 Brucejack Exploration Program consisting of 26,230 meters of drilling in 60 holes was completed in early June. The primary objective of the initial phase of the 2012 drill program was to increase drill density at the Valley of the Kings to upgrade Inferred gold resources to the Indicated resource category in support of the feasibility study underway.
The second phase of the 2012 Brucejack Exploration Program is currently underway and is focused on high-grade definition drilling of the shallow high-grade resources at the Valley of the Kings, as well as testing extensions of the Valley of the Kings and other high-grade zones.
On July 25, 2012, we announced the highest-grading gold intersection encountered to date at the Brucejack project, drilled in the Valley of the Kings. Hole SU-452 intersected 0.5 meters with uncut grades of 41,582 grams of gold and 27,725 grams of silver per tonne (1.6 feet averaging 1,212.8 ounces gold and 808.6 ounces silver per ton), within a three meter intersection with uncut grades of 8,330 grams of gold and 5,628 grams of silver per tonne (9.8 feet averaging 243.0 ounces of gold and 164.2 ounces of silver per ton).
On July 31, 2012, we announced the bonanza-grade interval from hole SU-452 (including the record intercept) extends over 10 meters, from a downhole depth of 198.79 meters, with an average grade of 2,393 grams of gold and 1,605 grams of silver per tonne uncut over 10.71 meters (70.3 ounces gold and 46.8 ounces silver per ton over 35.1 feet). Hole SU-452 intersected a total of seven separate intervals grading over 20 grams of gold per tonne, including 0.65 meters grading 1,130 grams of gold per tonne uncut from a downhole depth of 150.79 meters. We also announced intersections grading greater than 1,000 grams of gold per tonne in four additional drill holes.
We have received the permit required to commence the underground exploration program at Brucejack. The underground contractor is mobilizing equipment to site with crews to follow later this month. The first phase will be to slash out the existing West Zone underground workings to five-by-five meters down to the 1330 meter level, a distance of approximately 500 meters. The next phase will be to advance the decline from the 1330 meter level of the West Zone to the 1314 meter level in the Valley of the Kings, a distance of approximately 450 meters. We expect to take an underground bulk sample in the Valley of the Kings in the first half of 2013.
On April 3, 2012, we announced a high-grade Mineral Resource estimate for the Brucejack Project which was completed by Snowden Mining Industry Consultants (see Brucejack Project Mineral Resources Update Technical Report dated April 3, 2012 and filed on SEDAR on April 30, 2012). High-grade gold resources in the Valley of the Kings (5.0 g/t gold-equivalent cut-off) now total:
-- 4.9 million ounces of gold in the Indicated Resource category (8.9
million tonnes grading 17.3 grams of gold per tonne); and
-- 10.4 million ounces of gold in the Inferred Resource category (12.7
million tonnes grading 25.5 grams of gold per tonne).
An updated high-grade Mineral Resource estimate to be used as the basis for feasibility study mine planning will incorporate drill results from the second phase of the 2012 Brucejack Exploration Program in addition to the results of the first phase, which was completed in June 2012. The updated high-grade Mineral Resource estimate is expected in the third quarter. The feasibility study is expected to be completed in the first quarter of 2013.
On April 2, 2012, we announced the adoption of a shareholder rights plan, subject to TSX and shareholder approval, to provide our Board of Directors and shareholders with sufficient time to fully consider any unsolicited take-over bid for us, to ensure that our Board of Directors has sufficient time to explore alternative transactions that would maximize value for our shareholders, and to encourage the fair treatment of all of our shareholders. Subsequently, both our shareholders and the TSX approved the shareholders rights plan.
During the second quarter, we completed a prospectus offering of 5,554,500 common shares at a price of $14.50 per share for aggregate gross proceeds of $80.5 million. The gross proceeds of the offering are to be used to accelerate exploration of the Valley of the Kings Zone at the Brucejack Project with infill and expansion drilling.
Pretivm's working capital as at June 30, 2012 was $75,731,479.
Pretivm's unaudited consolidated financial statements and Management Discussion and Analysis for the three months ended June 30, 2012 will be available on SEDAR and Pretivm's website www.pretivm.com.
Pretivm is creating value through gold at its advanced-staged exploration projects Brucejack and Snowfield, located in northern British Columbia. Pretivm is advancing the high-grade, underground gold opportunity at Brucejack, which hosts a significant undeveloped high-grade gold resource.
(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. Forward-looking information may include, but is not limited to, risks related to general economic conditions, our planned exploration and development activities, interpretation of drill results and geology, grade and continuity, the estimation of mineral resources and ability to upgrade natural resource estimates and establish mineral reserves, realization of mineral resource estimates, 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" 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 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 prospectus supplement to the short form base shelf prospectus dated March 19, 2012 filed on SEDAR at www.sedar.com and in the United States 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.
- Valley of the Kings