Blueprint
July 9,
2019
|
News Release
19-12
|
Pretivm Exploration and Brucejack Update
Vancouver,
British Columbia, July 9, 2019; Pretium Resources Inc.
(TSX/NYSE:PVG) (“Pretivm” or the “Company”)
reports that initial observations from the third hole drilled as
part of the 2019 deep underground exploration program continue to
indicate that Brucejack-style mineralization extends at depth below
the Valley of the Kings. Additionally, the mill modifications and
upgrades required to sustain processing at the increased production
rate of 3,800 tonnes per day are progressing on
schedule.
The
current analyst and investor mine tour presentation is available
here
(https://www.pretivm.com/investors/presentations/default.aspx)
on our website.
Testing the Continuation of Brucejack-style Mineralization at
Depth
To
follow-up on the successful results of the 2019 deep underground
exploration program carried out earlier this year (see news release dated June 5, 2019), a
third deep hole, VU-2019, was added to the program to test both the
extent of Brucejack-style mineralization and the porphyry potential
directly below the Valley of the Kings deposit. Hole VU-2019, which
is planned to reach a length of 2,000 meters, is targeting the
center of a low resistivity anomaly approximately 1,400 meters
below the Valley of the Kings deposit as identified from a CSMT
(Controlled Source Magnetotelluric) geophysical
program.
Hole
VU-2019 is being drilled from the 1130 meter level of the Valley of
the Kings underground development at an azimuth of 40 degrees and a
dip of negative 85 degrees. The orientation of Hole VU-2019 was
based on geological interpretations of key features of the
Brucejack system, including: geometry of late mineral dykes and
potential major structures, alteration patterns, results of prior
drill holes and downhole geochemical anomalies. Drilling in hole
VU-2019 is approximately 50 percent completed, and an update will
be provided following the receipt of all assay results and further
evaluation.
2019 Reserve Definition and Expansion Drilling
The
Company’s ongoing 70,000-meter 2019 underground drill program
is expected to improve reserve definition ahead of mining and to
expand on the current Mineral Reserves at the Valley of the Kings.
The first phase of the drill program, focusing on reserve
definition at depth below the 1200 meter level, is approximately
ninety percent complete. The second phase of the drill program,
focusing on reserve definition westward towards the Brucejack
fault, is now approximately fifty-five percent
complete.
Opportunities
for expansion are located at depth, to the west, to the east, and
to the north-east of the currently defined Mineral Reserve where
previous drill programs have indicated the continuation of
high-grade gold mineralization. Underground development is underway
to provide access for the third and fourth phases of the drill
program targeting reserve expansion at depth and to the east of the
current Mineral Reserves.
Warwick
Board, Ph.D., P.Geo, Pr.Sci.Nat., Vice President, Geology and Chief
Geologist, Pretium Resources Inc. is the Qualified Person
(“QP”) responsible for the Brucejack Mine exploration
and expansion drilling and has reviewed and approved the scientific
and technical information in this news release relating
thereto.
Brucejack Ramp-up Progressing on Schedule
The
modifications and upgrades required to sustain processing at the
increased production rate of 3,800 tonnes per day are progressing
on schedule. The most significant upgrade is the shift from
concentrate bagging to a bulk loading system. The bulk loading
system is now installed in its permanent location and is operating
as a fully integrated component of the concentrate process.
Modifications to the flotation circuit which include upgraded pumps
and piping and an additional cleaning cell for the process circuit
will continue during regularly scheduled shutdowns as the final
components are delivered.
Underground
development is accelerating to the targeted rate of 1,000 meters
per month, with 993 meters achieved for the month of June.
Development is expected to continue at approximately 1,000 meters
per month for the remainder of the year to ensure development
remains ahead of production requirements to achieve mining rates of
3,800 tonnes per day.
Lyle
Morgenthaler, B.A.Sc., P.Eng., Chief Mine Engineer, Pretium
Resources Inc. is the QP responsible for Brucejack Mine
development, and has reviewed and approved the scientific and
technical information contained in this news release relating
thereto.
Regional Grassroots Exploration
The
2019 grassroots exploration program on Pretivm’s Bowser
Claims is underway. The program will further evaluate several
distinct areas that have the potential to host Eskay Creek-style
VMS deposits and high-grade, epithermal related gold systems and
includes a minimum of 5,000 meters of drilling. Two drills are
currently testing the high-priority VMS targets on the northern and
central parts of the property. A third drill will be mobilized to
site in mid-July to begin testing epithermal targets on the
southern part of the property. The grassroots exploration program
will continue through the summer and also includes: sampling,
regional mapping, prospecting, airborne geophysics, ground
geophysics, and hyperspectral mapping.
Kenneth
C. McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, Pretium
Resources Inc. is the QP responsible for the regional grassroots
exploration program and has reviewed and approved the scientific
and technical information in this news release relating
thereto.
Second Quarter 2019 Operational and Financial Results –
Webcast and Conference Call
The
second quarter 2019 operational results will be released along with
the quarterly financial statements.
Pretivm
plans to release second quarter 2019 operational and financial
results after market close on Thursday, August 1st, 2019. The
webcast and conference call to discuss these results will take
place Friday, August 2nd, 2019 at 8:00 am PT (11:00 am
ET).
Webcast
and conference call details:
Friday,
August 2, 2019 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 a low-cost intermediate gold producer with the high-grade gold
underground Brucejack Mine.
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 Information
This
news release contains “forward-looking information” and
“forward looking statements” within the meaning of
applicable Canadian and United States securities legislation
(collectively herein referred to as “forward-looking
information”). 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
information. 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 information may
include, but is not limited to, information with respect to:
results, analyses and interpretations of exploration and drilling
programs; our planned mining, expansion, exploration and
development activities, including our infill, expansion and
underground exploration drill programs and our grassroots
exploration program, and the results, costs and timing thereof; the
estimation of Mineral Reserves and Resources, including the updates
thereto; realization of Mineral Reserve and Resource estimates; our
estimated life of mine and life of mine plan for the Brucejack
Mine; production and processing estimates; capital, sustaining and
operating cost estimates and timing thereof; estimated economic
results of the Brucejack Mine, including net cash flow and net
present value; the expected grade of gold and silver production;
predicted metallurgical recoveries for gold and silver; geological
and mineralization interpretations; development of the Brucejack
Mine; the Brucejack Mine production rate and the ramp-up to 3,800
tonnes per day production rate; capital modifications and upgrades,
underground development, and estimated expenditures and timelines
in connection therewith, including with respect to the ramp-up to
3,800 tonnes per day production rate; timelines and similar
statements relating to the economic viability of the Brucejack
Mine, including mine life, total tonnes mined and processed and
mining operations; production and cost guidance; our operational
grade control program, including plans with respect to our infill
drill program and our local grade control model; grade
reconciliation, updated geological interpretation and mining
initiatives with respect to the Brucejack Mine; our operational
strategy; our future operational and financial results, including
estimated cash flows, and the timing thereof; payment of our debt
and other obligations, including the source of funds and timing
thereof; the future price of gold and silver; our liquidity and the
adequacy of our financial resources; our intentions with respect to
our capital resources; timing, receipt, and anticipated effects of,
and anticipated capital costs in connection with approvals,
consents and permits under applicable legislation; litigation
matters; environmental matters; our effective tax rate and the
recognition of our previously unrecognized income tax attributes;
and statements regarding United States dollar cash flows, currency
fluctuations and the recurrence of foreign currency translation
adjustments. 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 materially differ from those
expressed or implied by the forward-looking information, including,
without limitation, those related to: uncertainty as to the outcome
of legal proceedings; the effect of indebtedness on cash flow and
business operations; the effect of restrictive covenants in our
agreements; our ability to satisfy commitments under our Offtake
Agreement; assumptions regarding expected capital costs, operating
costs and expenditures, production schedules, economic returns and
other projections; our production and production cost estimates,
including the accuracy thereof; commodity price fluctuations,
including gold price volatility; the accuracy of our Mineral
Resource and Reserve estimates (including with respect to size,
grade and recoverability) and the geological, operational and price
assumptions on which they are based; our ability to maintain or
increase our annual production of gold at the Brucejack Mine or
discover, develop or acquire Mineral Reserves for production;
dependency on the Brucejack Mine for our future operating revenue;
the development of our properties; general economic conditions; the
inherent risk in the mining industry; and significant governmental
regulations, including environmental regulations; and such other
risks, uncertainties and factors as are identified in our Annual
Information Form dated March 28, 2019, Form 40-F dated March 28,
2019, Management’s Discussion and Analysis for the years
ended December 31, 2018 and 2017 (“MD&A”) and other
applicable disclosure documents as filed in Canada on SEDAR at
www.sedar.com and in the United States through EDGAR at the
SEC’s website at www.sec.gov (collectively, the
“Pretivm Disclosure Documents”).
This
list is not exhaustive of the factors that may affect any of our
forward-looking information. Our forward-looking information is
based on the assumptions, beliefs, expectations and opinions of
management on the date the statements are made, many of which may
be difficult to predict and beyond our control. In connection with
the forward-looking information contained in this news release, we
have made certain assumptions about, among other things: our
business and that no significant events will occur outside of our
normal course of business; planned exploration and development
activities and the costs and timing thereof; future prices of gold
and silver and other metal prices; the accuracy of our Mineral
Resource and Mineral Reserve estimates; the geology and
mineralization of the Brucejack Project; operating conditions;
capital and operating cost estimates; production and processing
estimates; the results, costs and timing of future exploration and
drilling; timelines and similar statements relating to the economic
viability of the Brucejack Project; timing and receipt of
governmental, regulatory and third party approvals, consents,
licenses and permits; obtaining required renewals for existing
approvals, consents, licenses and permits; the adequacy of our
financial resources and our ability to raise any necessary
additional capital on reasonable terms; our ability to satisfy the
terms and conditions of our debt obligations; commodity prices;
currency exchange rates and interest rates; political and
regulatory stability; requirements under applicable laws;
market competition; sustained
labour stability and availability of equipment; positive relations
with local groups; favourable equity and debt capital markets;
stability in financial and capital markets; and such other factors
and assumptions as are set out in the Pretivm Disclosure Documents.
The foregoing list of assumptions and factors is not exhaustive.
Although we believe that the assumptions inherent in the
forward-looking information are reasonable, they are subject to
significant business, social, economic, political, regulatory,
competitive and other risks and uncertainties, contingencies and
other factors that could cause actual actions, events, conditions,
results, performance or achievements to be materially different
from those projected in the forward-looking information.
Forward-looking information is not a guarantee of future
performance. There can be no assurance that forward-looking
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. We do not assume any obligation to update
forward-looking information, whether as a result of new
information, future events or otherwise, or to explain any material
difference between subsequent actual events and such
forward-looking information, other than as required by applicable
law. For the reasons set forth above, readers should not place
undue reliance on forward-looking information. Neither the TSX nor
the NYSE has approved or disapproved of the information contained
herein.