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http://finance.yahoo.com/news/Pretium-Resources-Inc-Updated-iw-3560709721.html?x=0

http://www.stockwatch.com/News/Item.aspx?bid=Z-C%3aPVG-1928594&symbol=PVG®ion=C

Pretium's Brucejack pretax NPV at $2.262-billion (U.S.)

2012-02-22 07:19 ET - News Release


Mr. Robert Quartermain reports

PRETIUM RESOURCES INC.: UPDATED PEA FOR BRUCEJACK HIGH-GRADE GOLD PROJECT

Pretium Resources Inc. has released the results from the National Instrument 43-101-compliant updated preliminary economic assessment for the high-grade gold and silver resources identified to date at its 100-per-cent-owned Brucejack project in Northern British Columbia. The PEA was prepared by Wardrop, a Tetra Tech Company (Tetra Tech).

Highlights (base case using US$1,100/oz gold, US$21/oz silver and exchange rate of US$0.93:C$1.00)

-- Base Case pre-tax Net Present Value (5% discount) of US$2.262 billion;

-- Mine life of 24 years producing an estimated 6.9 million ounces of gold and 17.0 million ounces of silver;

-- Average annual production of 325,000 ounces of gold over the first 12 years and 287,000 ounces of gold over the life of mine;

-- Base Case pre-tax Net Cash Flow over the proposed mine life of US$5.133 billion;

-- Base Case pre-tax Internal Rate of Return of 29.8%, with payback estimated at 4.1 years;

-- Estimated initial capital cost, including contingencies, of US$436.3 million;

-- Average operating costs of C$170.90/tonne milled over mine life.


Table 1: Summary of Brucejack High-Grade Economic Results by Metal Price

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Spot Prices
Base Case(1) at February 17, 2012
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Gold price (US$/ounce) $1,100 $1,733.60
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Silver Price (US$/ounce) $21.00 $33.46
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Net Cash Flow $5.133 billion (pre-tax) $9.467 billion (pre-tax)
$3.357 billion (post-tax) $6.185 billion (post-tax)
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Net Present Value (5.0% $2.262 billion (pre-tax) $4.330 billion (pre-tax)
discount) $1.454 billion (post-tax) $2.808 billion (post-tax)
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Internal Rate of Return 29.8% (pre-tax) 43.4% (pre-tax)
25.0% (post-tax) 36.5% (post-tax)
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Payback 4.1 years (pre-tax) 3.2 years (pre-tax)
4.2 years (post-tax) 3.3 years (post-tax)
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Exchange Rate (US$:C$) $0.93 $0.997
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(1) Tetra Tech-adopted consensus forecast metal prices from the Energy
Metals Consensus Forecast (EMCF). The same base case metals prices were used
in the June 2011 Preliminary Economic Assessment of the Brucejack Project
(see news release dated June 2, 2011).



The Brucejack high-grade project is planned to be mined as an underground operation with the Valley of the Kings and West Zone the two targeted lodes. The underground mine is planned to operate with a processing rate of 1,500 tonnes per day and mine a total of 11.8 million tonnes of mineralized material from the Valley of the Kings and West Zone with an average mill feed grade of 18.9 grams per tonne gold and 59.3 grams per tonne silver.

Gold-silver dore will be produced using a combination of conventional bulk sulphide flotation, gravity concentration and cyanidation, with gold and silver recovery by the Merrill-Crowe process. A total of 6.9 million ounces of gold and 17.0 million ounces of silver is estimated to be produced over the life of the Brucejack Project.

The total estimated initial capital cost for the Brucejack high-grade project is US$436.3 million, an increase of 55% over the June 2011 PEA estimated capital cost. The increase in capital cost is primarily due to two factors. Underground development has been brought forward almost one year in order to access higher-grade ore earlier in the production schedule. As a result, pre-production mining costs have increased from US$52 million to US$128 million. In addition, mine site power is now planned to be supplied by tying into the electrical transmission grid at an estimated cost of US$42 million. The estimated operating cost of electrical power supplied from the transmission line is C$0.06 per kilowatt hour versus C$0.33 per kilowatt hour supplied from diesel as contemplated in the previous PEA.

The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. There is no certainty that the PEA will be realized.

The Technical Report for the PEA for the high-grade gold and silver resources at the Brucejack Project has been filed on SEDAR and will also be available at www.pretivm.com.

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.


Table 2: Projected Production and Processing Summary

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Mine Type Underground
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Total Production 11.8 million tonnes
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Processing Rate 1,500 tonnes per day
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Gold Silver
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Average Mill Feed Grade 18.9 grams per tonne 59.3 grams per tonne
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Average Metal Recoveries 95.7% 75.5%
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Average Annual Production (ounces):
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Years 1-12 325,000 444,000
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Life of Mine (24 years) 287,000 710,000
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Total Production (ounces):
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Years 1-12 3.899 million 5.333 million
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Life of Mine (24 years) 6.878 million 17.030 million



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Table 3: Capital Costs Summary

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Capital Costs (US$ million)
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Direct Costs 328.3
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Indirect Costs 58.2
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Owner's Costs 11.9
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Contingencies 37.8
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Total Capital Cost 436.3



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Table 4: Operating Costs Summary

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Operating Costs (C$/t milled)
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Mining 103.6
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Processing 37.7
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General & Administrative 19.26
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Plant Services 10.29
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Total Operating Cost 170.9
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Independent Qualified Persons

The following Qualified Persons as defined by National Instrument 43-101 are independent of Pretivm and responsible for the Updated PEA of the Brucejack Project:


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Qualified Person Scope of Responsibility
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Hassan Ghaffari, P.Eng. Capital cost estimate, project
Tetra Tech execution plan
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Sabry Abdel Hafez, Ph.D.,P.Eng. Economic Analysis
Tetra Tech
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John Huang, P.Eng. Mineral processing and metallurgical
Tetra Tech testing, infrastructure, process
operating cost estimate
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Pierre Pelletier, P.Eng. Environmental considerations
Rescan Environmental Services Ltd
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Tracy Armstrong, P.Geo. Geology, property: description,
P&E Mining Consultants Inc. history, geological setting, deposit
types, mineralization, exploration,
physiography, drilling, sampling,
adjacent properties
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Caroline Vallat, P.Geo. Data verification
GeoSpark Consulting Inc.
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Fred H. Brown, CPG, Pr.Sci.Nat. Site visit and mineral resource
P&E Mining Consultants Inc. estimate
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H. Warren Newcomen, P.Eng. Preliminary geotechnical design for
BGC Engineering Inc. underground workings
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Hamish Weatherly, P. Geo. Water management
BGC Engineering Inc.
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Lori-Ann Wilchek, P.Eng. Waste management and leach plant
BGC Engineering Inc. tailings storage facility design
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Peter Mokos, MAusIMM (CP) Mining, including capital and
AMC Mining Consultants (Canada) Ltd. operating costs estimates
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