Brucejack and Snowfield Projects PDF - Minerals North
Brucejack and Snowfield Projects PDF - Minerals North
Brucejack and Snowfield Projects PDF - Minerals North
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WHY PRETIVM?Adjacent projects in northern British Columbia are delivering value through gold<strong>Snowfield</strong> ProjectBulk-tonnage presentslong-term value in gold1700RL1500RL1300RL1.64 g/t Au157m0.83 g/t Au637m0.78 g/t Au528m1100RL900RL700RLSVolcanicsNDrill Hole200 mMineralized IntersectionMeasured <strong>and</strong> Indicated GoldInferred Gold<strong>Snowfield</strong> Zone cross section<strong>Brucejack</strong> ProjectPotential to host ahigh-grade gold-silver depositVisible gold in SU-106TSX:PVG2
GOLD: MARKET OVERVIEWTSX:PVG3
GOLD: MARKET OVERVIEWTSX:PVG4
GOLD: MARKET OVERVIEWTSX:PVG5
GOLD: MARKET OVERVIEWTSX:PVG6
GOLD: MARKET OVERVIEWTSX:PVG7
SILVER: MARKET OVERVIEWTSX:PVG8
SILVER: MARKET OVERVIEWTSX:PVG9
SILVER: MARKET OVERVIEWTSX:PVG10
SILVER: MARKET OVERVIEWTSX:PVG11
WHY PRETIVM: THREE INVESTMENT OPPORTUNITIESStrategic RationaleKey ComparableMine(s)Development<strong>Brucejack</strong>High Grade• Quickest path toproduction• Meaningful high gradeounces present• Economics potentially veryfavorable• Kensington (Coeurd’Alene)• Efemcukuru (Eldorado)• Eleanore (Goldcorp)• PEA underway; likelystraight to feasibility study• Lower capitalrequirements; can befinanced alone• Quicker developmentschedule<strong>Brucejack</strong>Bulk Tonnage• Further upside / goldexposure via drilling• Additional revenues atreasonable cost structure• Malartic (Osisko)• Detour Lake (Detour)• Metates (Chesapeake)• Livengood (Int’l TowerHill)• Mining <strong>and</strong> crushingfacilities built at site• Capital needs can likely bemet via debt financing• Can be developed int<strong>and</strong>em with high-grade<strong>Snowfield</strong>Bulk Tonnage• Long-term gold call option• Rare asset of its sizeworldwide in favorablegeography• Potential to partner withSeabridge• KSM (Seabridge)• Partnering with Seabridgemay enhance economics• Given scale, would likelyrequire support from amajorTSX:PVG
Gold Resources (mm oz)PebbleKSMSF/BJDonlin CreekDetour LakeMetatesLivengoodMalarticHycroftPhoenixLARGE-SCALE NORTH AMERICAN GOLD PROJECTS120.0(NDM)Measured & Indicated ResourcesInferred Resources100.040.480.060.040.020.00.066.9(SEA)14.545.4<strong>Snowfield</strong> <strong>Brucejack</strong>(PVG)12.68.29.025.9(NG/ABX)4.437.9(DGC)5.1(CKG) (ITH) (OSK)2.6 4.00.220.5 17.2 15.7 17.4(WRN)4.58.0(RMX)3.6TSX:PVG13
SNOWFIELD & BRUCEJACK PROJECTSGalore Creek (20km)Avg grade: 27 g/t AuAvg grade: 45 g/t AuAvg grade: 9.6 g/t AuTSX:PVG14
SNOWFIELD & BRUCEJACK PROJECTS<strong>Snowfield</strong>Shore Zone<strong>Brucejack</strong>Galena HillWest ZoneTSX:PVG15
BRUCEJACK GEOLOGYTSX:PVG16
BRUCEJACK PROJECT• Intrusion-related gold/silver vein systems• 60,000 meters of drilling planned for 2011• Resources increased 134% from 2010 to 2011• Mineralization remains open in ALL directionsSurface samplescontaininggold:0.3-0.5 ppm> 0.5 ppm<strong>Brucejack</strong> Bulk-Tonnage Resource Summary – February 2011 (1)(Based on a cut-off of 0.30 grams of gold-equivalent/tonne)Grade Contained MetalTonnes Au Ag Au Ag(mt) (g/t) (g/t) (mm oz) (mm oz)Measured 11.7 2.25 75.56 0.85 28.4Indicated 285.3 0.80 9.57 7.34 87.8Measured & Indicated 297.0 0.86 12.17 8.18 116.2Inferred 542.5 0.72 8.67 12.56 151.21 km(1) Metal price <strong>and</strong> recoveries assumptions are: Au US$1,025/oz. (71%); Ag US$16.60/oz. (70%)TSX:PVG17
BRUCEJACK – HIGH-GRADE• Multi-kilo gold intercepts• 5km existing underground developmentShore Zone• High-grade PEA planned for Q3 2011<strong>Brucejack</strong> 5.0g/t Grade & Tonnage Resource Summary - February 2011 (1)(3)Grade Contained MetalTonnes Au Ag Au Ag(mt) (g/t) (g/t) (mm oz) (mm oz)Measured 1.95 7.95 241.25 0.498 15.10Indicated 1.72 7.33 123.19 0.406 6.82Measured & Indicated 3.67 7.66 185.84 0.903 21.92Inferred 4.71 12.54 49.24 1.898 7.45<strong>Brucejack</strong> 3.0g/t Grade & Tonnage Resource Summary - February 2011 (2)(3)Grade Contained MetalTonnes Au Ag Au Ag(mt) (g/t) (g/t) (mm oz) (mm oz)West ZoneGalena Hill ZoneValley of the KingsMeasured 3.50 5.43 177.98 0.610 19.99Indicated 4.94 4.62 69.33 0.734 11.01Measured & Indicated 8.44 4.96 114.35 1.344 31.01Inferred 9.64 7.80 40.74 2.417 12.62(1)@ 5.0 g/t cut-off within the 0.30 grams of au-equiv/tonne optimized pit shell.(2) @3.0 g/t cut-off within the 0.30 grams of au-equiv/tonne optimized pit shell.(3) Metal price <strong>and</strong> recoveries assumptions are: Au US$1,025/oz. (71%); Ag US$16.60/oz. (70%)TSX:PVG18
BRUCEJACK LONG SECTION900 Drill Holes; 120,000 m of Drilling; 5,000 m Underground DevelopmentNSGalena Hill ZoneShore ZoneWest ZoneOpenOpenExisting 5 kmof undergroundworkingsOpenValley of the KingsHigh-Grade Gold / SilverTSX:PVGGold Grade Legend>0.35 g/t Au200 m200 mViewing window depth: 1,200m19
HIGH-GRADE RESOURCE AREASENValley of KingsS1000mGold Grade LegendLow-Grade Envelope10x10m High-Grade BlockTSX:PVG20
VALLEY OF THE KINGS: CROSS-SECTIONSU-29SU-77SU-5SU-106SU-84SU-40TSX:PVG21
Mitchell Zone(Seabridge Gold)SNOWFIELD PROJECT• Located 65km northwest of Stewart, BCOpen Pit(September 2010 PA)• Gold-enriched porphyry deposit withcopper, silver, molybdenum <strong>and</strong> rheniummineralization• PEA of a joint <strong>Snowfield</strong> / KSM project inplace with SeabridgeMineral Resource Summary – February 2011 (1),(2)GradeContained MetalTonnes Au Ag Cu Mo Re Au Ag Cu(mt) (g/t) (g/t) (%) (ppm) (ppm) (mm oz) (mm oz) (bil lbs)Measured 189.8 0.82 1.69 0.09% 97.4 0.57 4.98 10.3 0.38Indicated 1,180.3 0.55 1.73 0.10% 83.6 0.50 20.93 65.4 2.60Measured & Indicated 1,370.1 0.59 1.72 0.10% 85.5 0.51 25.92 75.8 2.98Inferred 833.2 0.34 1.90 0.06% 69.5 0.43 9.03 50.9 1.10(1) Metal price <strong>and</strong> recoveries assumptions are: Au US$1,025/oz (71%); Ag US$16.60/oz (70%); Cu US$3.0/lb (70%); Mo US$19.00/lb (60%); Re US$145.00/oz. (60%)(2) Mineral resource estimate at 0.30g/t AuEq cut-off.TSX:PVG22
NPV 5% (US$ mm)IRR (%)2010 SNOWFIELD/BRUCEJACK PA• Open pit operation with 27-year mine life• Attractive strip ratios at <strong>Snowfield</strong>(0.57:1) <strong>and</strong> <strong>Brucejack</strong> (2.95:1)• Capital expenditures of US$3,465 million;operating costs of US$9.38/t milled 1• Milling throughput of 120,000 t/dayproducing:• Gold-silver doré• Copper-gold-silver concentrate• Molybdenum-rhenium concentrateAverage Annual ProductionPreliminary Assessment Results <strong>and</strong> Gold Price 2BaseCase 3Spot PriceCase 4NPV @ 5% (US $mm) 2,302 5,951IRR (%) 12.4 21.7Payback (yrs) 5.3 3.5Mine Life (yrs) 27 27Gold Price (US$/oz) 878 1,2352010 Preliminary Assessment Sensitivity Chart 5$4,00019.0%Yrs1 – 8Life ofMine$3,500$3,00017.0%15.0%Gold (000 oz) 960 700$2,50013.0%Silver (000 oz) 7,855 4,162$2,000$1,50011.0%9.0%Copper (000 lb) 39,531 44,582$1,0007.0%Molybdenum (000 lb) 3,514 3,668Rhenium (kg) 9,379 9,011TSX:PVGAu Price (NPV)Au Price (IRR)(1) Capital cost includes US$454.5 million contingency. Operating costs converted from C$ at an exchange rate of 1.00 : 0.92 (C$ : US$).(2) Results are presented on a pre-tax basis as disclosed in the Preliminary Assessment dated October 28, 2010.(3) Metal prices used: US$14.50/oz Ag, US$17.00/lb Mo, US$2.95/lb Cu <strong>and</strong> US$7,811/kg Re.(4) Metal prices used: US$19.03/oz Ag, US$15.88/lb Mo, US$3.26/lb Cu <strong>and</strong> US$5,311/kg Re (as at August 27, 2010).(5) Source: Technical Report <strong>and</strong> Preliminary Assessment of the <strong>Snowfield</strong>-<strong>Brucejack</strong> Project, effective date September 10, 2010.$500(20%) (10%) 0% (Base Case) +10.0% +20.0%Change in Commodity Price (%)Cu Price (NPV)Cu Price (IRR)5.0%23
VALUE CREATION - 2011• Preliminary Assessment on <strong>Brucejack</strong> high-grade gold mineralization• Extensive drill program focused on high-grade resource• Advance <strong>Snowfield</strong>, <strong>Brucejack</strong> or combined project to pre-feasibility<strong>Brucejack</strong> High-Grade PEA<strong>Snowfield</strong> <strong>and</strong>/or <strong>Brucejack</strong> Pre-FeasibilityDrilling at <strong>Brucejack</strong> (High-Grade Focus)Drilling ResultsUpdate <strong>Brucejack</strong> Resource EstimatesUpdate <strong>Brucejack</strong>High-Grade PEA2Q 2011 3Q 2011 4Q 2011 1Q 2012TSX:PVG24
Measured & Indicated + Inferred Gold Grade (g/t)RESOURCE COMPARISON: BRUCEJACK HIGH-GRADE25.020.0Phoenix15.0Red Lake<strong>Brucejack</strong>10.0EfemcukuruKensingtonJerritt CanyonEl PenonEleonore5.0Casa BerardiQuimsacochaMusselwhite0.00.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0Measured & Indicated + Inferred Gold Resources (mm oz)<strong>Brucejack</strong> gold resources based on a cut-off grade of 0.30 grams of gold-equivalent/tonne.Source: Intierra Ltd.TSX:PVG25
WHY PRETIVM?TSX:PVG26
ContactPhone: 604-558-1784Fax: 604-558-4784Toll-free: 1-877-558-1784invest@pretivm.comwww.pretivm.comHead officePretium Resources Inc.570 Granville St.Suite 1600Vancouver, BCCanada V6C 3P1Common SharesTSX:PVGIssued: 85.5 millionFully diluted: 90.5 million52-week hi/low: $14.19/$5.75Market capitalization (at April 12, 2011)$886 million
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