Marketwired
Pretium Resources Inc.: Positive Feasibility Study Completed for Brucejack High-Grade Gold Project
Marketwired

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 11, 2013) - Pretium Resources Inc. (PVG.TO)(PVG) ("Pretivm") is pleased to announce a positive National Instrument 43-101-compliant Feasibility Study for the high-grade gold and silver resources identified to date at its 100%-owned Brucejack Project ("Brucejack" or the "Project") in northern British Columbia. The Feasibility Study was prepared by Tetra Tech.

Highlights (base case using US$1,350/oz gold, US$20/oz silver and exchange rate of US$/C$: 1)

  • Valley of the Kings Probable Mineral Reserves of 6.6 million ounces of gold (15.1 million tonnes grading 13.6 grams of gold per tonne) and West Zone Proven and Probable Mineral Reserves of 700,000 ounces of gold (3.8 million tonnes grading 5.8 grams of gold per tonne);

  • Average annual production of 425,700 ounces of gold over the first 10 years and 321,500 ounces of gold over the life of mine;

  • Base Case pre-tax Net Present Value (5% discount) of US$2.7 billion;

  • Base Case pre-tax Internal Rate of Return of 42.9%, with payback estimated at 2.1 years;

  • Mine life of 22 years producing an estimated 7.1 million ounces of gold;

  • Estimated project capital cost, including contingencies, of US$663.5 million;

  • Average operating costs of C$156.46/tonne milled over mine life.

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

Alternative
Case

Base Case
(1)

Spot Prices
at June 06, 2013

Gold Price (US$/ounce)

$

800

$

1,350

$

1,415.70

Silver Price (US$/ounce)

$

15.00

$

20.00

$

22.70

Net

$

1.41 billion (pre-tax)

$

5.28 billion (pre-tax)

$

5.90 billion (pre-tax)

Cash Flow

$

964.1 million (post-tax)

$

3.50 billion (post-tax)

$

3.91 billion (post-tax)

Net Present Value(2)

$

602.3 million (pre-tax)

$

2.69 billion (pre-tax)

$

3.01 billion (pre-tax)

(5.0% discount)

$

383.7 million (post-tax)

$

1.76 billion (post-tax)

$

1.98 billion (post-tax)

Internal Rate

16.6% (pre-tax)

42.9% (pre-tax)

47.0%(pre-tax)

of Return

13.7% (post-tax)

35.7% (post-tax)

39.2% (post-tax)

Payback (from start of

4.7 years (pre-tax)

2.1 years (pre-tax)

1.9 years (pre-tax)

production period)

4.8 years (post-tax)

2.2 years (post-tax)

2.0 years (post-tax)

Exchange Rate (US$:C$)

1.00

1.00

0.98

(1) Tetra Tech-adopted consensus forecast metal prices from the Energy Metals Consensus Forecast (EMCF).

(2) NPV is discounted to the beginning of 2013.

Project Mineral Reserves

The Mineral Reserves resulting from the Feasibility Study for the Brucejack Project are based on the November 2012 Mineral Resource estimates for the Valley of the Kings and the West Zone (see news release dated November 20, 2012). The Mineral Reserve estimates by zone and Reserve category are summarized below.

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