Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm") is pleased
to report the following highlights from the third quarter of 2012
and updates for its Brucejack Project in northern British
Columbia.
Third Quarter 2012 Highlights and Significant Events
-- Announced on July 31, 2012 the bonanza-grade interval from hole SU-452
which, from a downhole depth of 198.79 meters, encountered an average
grade of 2,393 grams of gold and 1,605 grams of silver per tonne uncut
over 10.71 meters (70.3 ounces gold and 46.8 ounces silver per ton over
35.1 feet), including our highest-grade intercept to date on the
Brucejack Project of 41,582 grams of gold and 27,725 grams of silver per
tonne uncut over 0.5 meters (1.6 feet averaging 1,212.8 ounces gold and
808.6 ounces silver per ton);
-- Closed a private placement on August 24, 2012 with the issue of
1,150,000 flow-through common shares, inclusive of the exercise of the
underwriters' 150,000 flow-through shares overallotment option, for
gross proceeds of $20,700,000;
-- Announced on September 7, 2012 an updated interim high-grade Mineral
Resource estimate for the Valley of the Kings;
-- Ended the quarter with working capital of $59,776,218;
-- Completed the 2012 Brucejack Exploration Program in mid-October with a
total of 105,769 meters drilled in 306 holes, with the length of the
Valley of the Kings nearly doubled to over 800 meters along strike;
-- Announced on October 25, 2012 an operating rate of 2,700 tonnes per day
for the Brucejack Project underground mine feasibility study now
underway.
2012 Exploration
Drilling over the course of the 2012 Exploration Program
successfully demonstrated the continuity and projection of
high-grade gold mineralization in Brucejack's Valley of the Kings.
A total of 41 intervals with uncut grades over 1,000 grams per
tonne gold were intersected in 2012, as compared to 25 from the
2009, 2010 and 2011 programs combined. The Valley of the Kings now
extends for over 800 meters along strike and remains open to the
east and west along strike and at depth. With our success in
defining and extending the strike length of the Valley of the Kings
throughout the 2012 drill program, it continued to be the center of
our exploration efforts. Other high-grade zones remain to be tested
and will be the focus of future exploration programs.
Resource Estimate
On September 7, 2012, we announced an interim high-grade Mineral
Resource estimate for the Brucejack Project (see Brucejack Project
Mineral Resources Update Technical Report dated September 18, 2012
and filed on SEDAR on September 18, 2012). The Resource estimate,
which incorporated drilling up to hole SU-466, was completed by
Snowden Mining Industry Consultants ("Snowden") as part of the
feasibility study now underway for the Brucejack Project.
High-grade gold resources in the Valley of the Kings (5.0 g/t
gold-equivalent cut-off) now total:
-- 5.1 million ounces of gold in the Indicated Resource category (9.9
million tonnes grading 16.2 grams of gold per tonne); and
-- 5.1 million ounces of gold in the Inferred Resource category (4.6
million tonnes grading 35.0 grams of gold per tonne).
The 2012 Mineral Resource estimate for the Brucejack Project,
which will incorporate all assays from the 2012 Brucejack
Exploration Program, is expected later in the fourth quarter of
2012 or in the first quarter of 2013.
Feasibility Study
Based on the results of a trade-off study completed during the
quarter, we decided to advance the Brucejack Project feasibility
study on the basis that the gold-silver flotation concentrate will
be sold to third parties rather than refined to produce dore on
site.
We have also decided to advance the 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.
The feasibility study for the Brucejack Project is expected to
be completed in the second quarter of 2013.
Underground
During the quarter we commenced an underground exploration
program designed, amongst other things, to access the Valley of the
Kings deposit underground and demonstrate continuity of the
high-grade gold mineralization. The first phase of the underground
program, now well underway, is to slash out the existing West Zone
underground workings to five-by-five meters then excavate a decline
from the West Zone to the Valley of the Kings, a distance of
approximately 450 meters. We are currently planning the sampling
and mining plans for the 10,000 tonne underground bulk sample,
which we expect to excavate from the Valley of the Kings in the
first half of 2013.
Other Developments
During the third quarter, we completed a private placement of
1,150,000 flow-through common shares at a price of $18.00 per share
for aggregate gross proceeds of $20.7 million. The gross proceeds
of the offering were used to accelerate exploration of the Valley
of the Kings at the Brucejack Project with infill and expansion
drilling.
Pretivm's working capital as at September 30, 2012 was
$59,776,218.
Pretivm's unaudited consolidated financial statements and
Management Discussion and Analysis for the three months ended
September 30, 2012 will be available on SEDAR and Pretivm's website
www.pretivm.com.
About Pretivm
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.
Contacts: Pretium Resources Inc. Robert Quartermain President
and Chief Executive Officer (604) 558-1784 Pretium Resources Inc.
Michelle Romero Corporate Relations Director (604)
558-1784invest@pretivm.com www.pretivm.com
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