Pretium Resources Inc.: Brucejack Mine 2018 Production Update
VANCOUVER, British Columbia, Jan. 09, 2019– Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”) reports full year and fourth quarter 2018 gold production results and summary for its underground Brucejack Mine.
|Full Year 2018 Production Summary
||Fourth Quarter 2018 Production Summary
- 376,012 ounces of gold produced (achieving 97% of guidance of 387,000 ounces for the full year)
- 96,342 ounces of gold produced (achieving 95% of guidance of 200,000 ounces for the second half of 2018)
- 11.9 grams per tonne gold mill feed
grade (12.9 g/t for Q2-Q4 with grade control program implemented)
- 11.5 grams per tonne gold mill feed
- 1,005,603 tonnes of ore milled
- 267,048 tonnes of ore milled
- 2,755 tonnes per day ore milled
- 2,903 tonnes per day ore milled
Fourth Quarter 2018 Company Highlights
- Repurchased 100% of the construction financing 8% precious metals stream for US$237 million
- Closed US$480 million bank debt facility to refinance construction credit facility
- Received amended permits to increase production to 3,800 tonnes per day
- Ended the quarter after repurchasing the stream with a cash position over US$45 million as of December 31, 2018
“We ended 2018 on a successful note with the closing of the bank debt facility, repurchase of our precious metals stream, payout of our construction credit facility, receipt of amended permits to increase production to 3,800 tonnes per day and production of over 376,000 ounces of gold, all in our first calendar year of production which included six months of ramp up,” said Pretivm President & CEO Joseph Ovsenek. “Our successes can be attributed to the hard work of our team and the consistent profitability of the high-grade Brucejack Mine – the cornerstone of our plan to build Pretivm as a Tier 1 Canadian gold producer.”
2018 Gold Production at Brucejack
Commercial production commenced at the Brucejack Mine in July 2017, with ramp-up continuing into the first half of 2018 and steady-state production achieved in July 2018. Key advances over the course of mining in 2018 have included the implementation in the first quarter of the grade control program into short-term mine planning.
Mr. Ovsenek continued “As we have discussed in the past, the high variability of the gold mineralization throughout the Valley of the Kings deposit is a key characteristic of the Brucejack Mine and gold production is managed with grade control, the sequence of the mine plan and the availability of stopes for optimal grade blending. As we continue to generate significant cash flow, we will build on what we have learned mining the gold mineralization at the Valley of the Kings over the first six quarters of production to further refine our grade control program and mining methods in order to reduce dilution and optimize grade to the mill.”
During the fourth quarter, the grade control program over-called actual mill production of 96,342 ounces of gold, resulting in the mine producing 188,983 ounces of gold for the second half of 2018, or 95% of gold production guidance of 200,000 ounces. The grade control program will continue to be refined over the coming quarters to improve short-term grade estimation and predictability. The mine produced 376,012 ounces of gold for the full year 2018, achieving 97% of gold production guidance of 387,000 ounces.
A review of mining methods is underway to potentially reduce dilution and development costs with the use of longitudinal long-hole stoping.
A specific timeline for ramp-up to the 3,800 tonnes per day production rate, along with production and cost guidance for 2019 is expected later in the quarter. Minor mill upgrades to support the production rate increase are required and will be completed during regularly scheduled mill shutdowns.
Grade reconciliation for 2018 and updated Mineral Resource and Mineral Reserve estimates for the Brucejack Mine will be provided later this quarter or early next quarter.
Lyle Morgenthaler, B.A.Sc., P.Eng., Chief Mine Engineer, Pretium Resources Inc. is the Qualified Person (“QP”) responsible for Brucejack Mine development. Warwick Board, Ph.D., P.Geo, Pr.Sci.Nat., Vice President, Geology and Chief Geologist, Pretium Resources Inc. is the QP responsible for the Brucejack Mine grade control program and the Brucejack Mine exploration drilling.
Fourth Quarter 2018 Operational and Financial Results – Webcast and Conference Call
Pretivm plans to release its fourth quarter and year-end 2018 operational and financial results after market close on Thursday, February 14, 2019. The webcast and conference call to discuss these results will take place Friday, February 15, 2019 at 8:00 am PT (11:00 am ET).
Webcast and conference call details:
|Friday, February 15, 2019 at 8:00 am PT (11:00 am ET)
|Toll Free (North America)
|International and Vancouver
Pretivm is a low-cost intermediate gold producer with the high-grade underground Brucejack Mine in northern British Columbia.
For further information contact:
President & CEO
Manager, Investor Relations & Corporate
Pretium Resources Inc.
Suite 2300, Four Bentall Centre, 1055 Dunsmuir Street
PO Box 49334 Vancouver, BC V7X 1L4