Pretium Resources (PVG:TSX) released additional assay results from its Valley of the Kings bulk sample program as well as additional non-program exploration work.  Highlights include:

  • Hole VU-168 which intersected 6.25m of 1,622g/t gold including 0.5m of 9,040g/t gold and 0.5m of 6,090g/t gold; and,
  • Hole VU-182 intersected the Cleopatra vein and hit 8.04m of 714.8g/t gold including 0.5m of 9,900g/t gold.
High-grade gold core from VOK

High-grade gold core from VOK

Of the 15 holes that hit intersections exceeding 1,000g/t gold, 11 were hit in the planned program of which 4 intersected the Cleopatra vein.  Three of the 15 holes were exploration holes exceeding 1,000g/t gold.  These results are going to be incorporated in an updated resource and reserve estimate and an updated feasibility study anticipated by Q2/2014.

Current underground exploration work is being completed to the west, east and under the 10,000 tonne bulk sample area.  The bulk sample program has been expanded by 1,500m and 12 holes from 15,000m and 190 holes to 16,500 and 202 holes (15,100m and 182 holes in progress or completed to date).  Pretium is advancing underground and surface exploration program at the Valley of the Kings with 5,000m of surface drilling planned.  The company has completed approximately 6,500m of its planned 10,000m underground exploration drilling to be completed in addition to the 16,500m of assays planned for the bulk sample program.

Map of Brucejack Project

Map of Brucejack Project

Here’s the release: Underground Drilling Continues to Hit High-Grade Gold

At $1350/oz gold, the base case pre-tax NPV(5%) for Brucejack sits at US$2.7billion with average annual production of 321,000 ounces of gold over a 22 year mine-life (based on Pre-feas).  Capital costs are expected to be US$663.5 million and operating costs around $156.46/tonne milled over mine life.  If Pretium is able to prove that these grades are continuous throughout the mining blocks then you could see a boost in the already, robust economics of the Brucejack project.  Watch for updated guidance on a H1/2014 updated resource estimate and feasibility study

See Tommy’s Interview with Pretium's President and CEO, Bob Quartermain: Pretium Resources - Bob Quartermain Interview