Pretivm Resources Inc. (PVG)

[silver100]

Pretium makes strong case for Brucejack in feasibility study

http://www.mineweb.com/mineweb/content/en/mineweb-exploration?oid=193908&sn=Detail

HALIFAX, NS (MINEWEB) -

Pretium Resources released details of a feasibility study of its high grade Brucejack gold project on Tuesday.

As Pretium sees it, a 2,700 tonne per day mine would produce 7.1 million ounces gold over a 22 year mine life. Grades would be especially high early on, benefiting quicker payback on what Pretium estimates would be a $664 million mining project to build.


Running the project through an economic scenario at $1,350 gold and $20 per ounce silver Pretium said Brucejack yielded a $2.7 billion net present value (discounted at five percent and before tax). Pretium also included economics at $800 gold, which you don't often see these days. Here the results are notable still, with Pretium estimating net present value at $602 million.



The strength in Brucejack lies especially in grade. Over life of mine gold grade would be 12 g/t gold but 14 g/t gold in the first ten yeas. Grades would top 17 g/t gold in year five of mining, according to a table published by Pretium.



Pretium forecast all-in cash costs $508 per ounce gold.



As it stands, Pretium is in the midst of preparing to submit permitting documents to Canadian regulatories. Meantime it is excavating a 10,000 tonne bulk sample that will serve as an important test of Pretium's high grade Valley of the Kings deposit, the core of the proposed Brucejack gold project.





RECENT RAMP PIC







Ramp accessing Valley of the Kings deposit.





VALLEY OF THE KINGS STOCKWORK MINERALIZATION



Valley of the Kings stockwork mineralization, known to host high grade gold at Brucejack. (Image source: Pretium)





Pretium is drilling some 190 drillholes from underground stations having driven a ramp into the heart of the Valley of the Kings deposit earlier this year.




Assuming permitting and project funding go smoothly, Pretium has said it hopes to start building Brucejack in late 2014, with first production in 2016.