VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/05/13 -- Pretium Resources Inc. (TSX: PVG)(NYSE: PVG) ("Pretivm") is pleased to report the following highlights from the fourth quarter of 2012 and updates for the Brucejack Project in northern British Columbia.
Fourth Quarter 2012 Highlights and Significant Events
-- Announced on November 20, 2012 an updated Valley of the Kings Mineral Resource estimate for Brucejack. High-grade gold resources in the Valley of the Kings (5.0 g/t gold-equivalent cut-off) now total: -- 8.5 million ounces of gold in the Indicated Mineral Resource category (16.1 million tonnes grading 16.4 grams of gold per tonne); and -- 2.9 million ounces of gold in the Inferred Mineral Resource category (5.4 million tonnes grading 17.0 grams of gold per tonne);-- Announced on December 11, 2012 that Pretivm was selected to receive the 2013 Bill Dennis Award from the Prospectors & Developers Association of Canada ("PDAC") for advancing the Valley of the Kings;-- Completed the widening of a portion of the historical West Zone underground workings to five-by-five meters and commenced excavation of the ramp to access the Valley of the Kings underground from the historical West Zone underground workings;-- Completed metallurgical testwork for the Brucejack feasibility study which demonstrated recoveries of 98.3% for gold and 92.5% for silver;-- Ended the year with working capital at December 31, 2012 of $30.1 million;-- Completed a private placement on February 15, 2013 of 1,648,550 flow- through common shares, inclusive of the exercise of the underwriters' 80,450 flow-through share overallotment option for aggregate gross proceeds of $21 million.
The 2012 Brucejack surface exploration program was completed in mid-October with a total of 105,769 meters drilled in 306 holes. Drilling over the course of 2012 successfully demonstrated the continuity and projection of high-grade gold mineralization in Brucejack's Valley of the Kings. The Valley of the Kings now extends for over 1,000 meters along strike and remains open to the east and west along strike and at depth.
In late December, the widening of the historical West Zone underground workings was completed and excavation of the access ramp from the West Zone workings to the Valley of the Kings commenced. The widening of a portion of the existing underground workings to five-by-five meters was completed so that the historical West Zone portal and underground workings can be used for access to the Valley of the Kings with production-sized mining equipment. The current ramp alignment will allow acceleration of production development as it will be used to provide initial access to the Valley of the Kings and multiple headings for excavation of the planned production declines.
Approximately 250 meters out of the total planned length of 546 meters of the access ramp have been excavated since the turn towards the Valley of the Kings from the West Zone was initiated in December. A channel sampling program along the ramp will be conducted as work progresses, as the area is untested. Further underground sampling and drilling is planned after Valley of the Kings has been reached, which is expected in the second quarter of 2013.
2013 Bulk Sample
Access to the Valley of the Kings from underground is also designed to excavate a 10,000-tonne bulk sample representative of the deposit. The access ramp is targeting the 1345 meter level at the 426600 cross-section of the Valley of the Kings. Strathcona Mineral Services Ltd. of Toronto has been engaged as the independent Qualified Person to oversee and report on the 10,000-tonne bulk sample from the Valley of the Kings. Excavation of the bulk sample is scheduled to begin in the second quarter of 2013. Planning is continuing with Strathcona Mineral Services on the work required to be completed prior to excavating the bulk sample, the procedures for excavating the bulk sample and the sampling protocols.
A feasibility study on the high-grade gold opportunity at Brucejack is ongoing, and mine planning is now well underway based on the November 20, 2012 Mineral Resource estimate (see news release dated November 20, 2012.) During the fourth quarter a decision was made to advance the Brucejack feasibility study with an operating rate of 2,700 tonnes per day, with long-hole stoping and cemented paste backfill chosen for the mining method. Stopes will be mined using a combination of longitudinal and transverse mining, depending on zone width and orientation. Cemented paste tailings will be prepared in a paste plant located on surface near the mill and then pumped underground for distribution to the stopes.
As part of the feasibility study, we have completed locked cycle metallurgical testwork. The average locked cycle recoveries for combined gravity and flotation for the Valley of the Kings composites were 98.3% for gold and 92.5% for silver.
The feasibility study for the Brucejack Project is expected to be completed in the second quarter of 2013.
Ian I Chang, M.A.Sc., P.Eng., Vice President, Project Development, Pretium Resources Inc. is the Qualified Person (QP) responsible for Brucejack Project development.
Subsequent to the end of the fourth quarter 2012, we completed a private placement 1,648,550 flow-through common shares, inclusive of the exercise of the underwriters' 80,450 flow-through share overallotment option, for aggregate gross proceeds of $21 million (see news release dated February 15, 2013). The gross proceeds of the offering are being used to advance exploration activities at the Brucejack Project in support of the 10,000 tonne bulk sample from Valley of the Kings.
Pretivm's working capital as at December 31, 2012 was $30.1 million.
Pretivm's audited consolidated financial statements and Management Discussion and Analysis for the year ended December 31, 2012 will be available on SEDAR and Pretivm's website www.pretivm.com.
Pretivm is creating value through gold at its high-grade gold Brucejack Project, located in northern British Columbia. Brucejack hosts a major undeveloped high-grade gold resource and mineralization remains open along strike and at depth. A feasibility study for a high-grade underground mine in Brucejack's Valley of the Kings is underway and expected in the second quarter of 2013.
(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 our planned exploration and development activities, the adequacy of Pretivm's financial resources, the estimation of mineral resources, 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.
The TSX has neither approved nor disapproved of the information contained herein.
Pretium Resources Inc.
President and Chief Executive Officer
Pretium Resources Inc.
Corporate Relations Director