VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/10/13 -- Pretium Resources Inc. (TSX: PVG)(NYSE: PVG) ("Pretivm") is pleased to report the following highlights from the first quarter of 2013 and updates for the Brucejack Project in northern British Columbia.
First Quarter 2013 Highlights and Significant Events
-- Completed a private placement on February 15, 2013 with a syndicate of underwriters for 361,300 Investment Tax Credit flow-through common shares of Pretivm at a price of $13.84 per share and 1,287,250 Canadian Exploration Expense flow-through common shares of Pretivm at a price of $12.43 per share for aggregate gross proceeds of $21 million;-- On March 4, 2013, during the Prospectors & Developers Association of Canada (PDAC) convention in Toronto, we were awarded the Bill Dennis Award, which recognizes a Canadian discovery or prospecting success, by the PDAC for advancing the Valley of the Kings at our high-grade gold Brucejack Project;-- Ended the quarter with working capital of $22.5 million;-- Completed a private placement on April 26, 2013 with Liberty Metals & Mining Holdings, LLC, a subsidiary of Boston-based Liberty Mutual Insurance, for 5,780,346 common shares at a price per share of $6.92 for gross proceeds of approximately $40 million;-- Announced on May 8, 2013 the completion of the ramp accessing the Valley of the Kings underground from the historical West Zone underground workings;-- On May 8, 2013, we also announced the sample tower and related equipment, which will be used for the Bulk Sample Program, had been transported to site along our recently completed all-weather exploration road. The over 75 kilometer-long exploration road with bridges has adequate load capacity for 85 tonne class permit vehicles and is expected to be suitable, with minor upgrades, for development and production.
2013 Exploration Programs
We have completed the access ramp to the Valley of the Kings from the West Zone at the targeted 1345-meter level of the 426600 cross-section, and have outlined the Bulk Sample Program and associated drilling at the Valley of the Kings beginning later this month (see news release dated May 8, 2013). In addition to targeting an area of mineralization for the bulk sample, 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 15,000 meters of underground drilling will be completed, in support of the Bulk Sample Program, at 7.5-meter and 15-meter centres along 120 meters of strike length and at 15- meter centres vertically for 60 meters above and 60 meters below the 1345-meter level of the Valley of the Kings. We will develop and install supporting infrastructure, cross cut the Valley of the Kings along section 426600, develop the north drill drift and commence the underground drill program later this month. The drill program will commence prior to excavating the bulk sample and run concurrently with the excavation of the bulk sample.
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 early June. 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. The final report on the bulk sample is expected later in the year after the compilation of all data.
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.) The Brucejack feasibility study is being advanced 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 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.
Kenneth C. McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, Pretium Resources Inc. is the Qualified Person (QP) responsible for the Brucejack Project exploration program. 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.
During the quarter, we completed a private placement of flow-through shares for gross proceeds of $21,000,910 (see news release dated February 15, 2013). Pretivm's working capital as at March 31, 2013 was $22.5 million.
Subsequent to the end of the quarter, we announced a strategic investment by Liberty Metals & Mining Holdings LLC, a subsidiary of Boston-based Liberty Mutual Insurance, and completed a private placement of 5,780,346 common shares at a price of $6.92 per common share for gross proceeds of approximately $40,000,000 (see news release dated April 26, 2013).
We believe Pretivm is well-funded to complete the planned 10,000-tonne bulk sample and underground drilling program at the Valley of the Kings, continue ongoing permitting activities, and accelerate other activities which will advance the high-grade gold Valley of the Kings into development.
Pretivm's unaudited interim consolidated financial statements and Management Discussion and Analysis for the three months ended March 31, 2013 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 this quarter.
(SEDAR filings: Pretium Resources Inc.)
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