Pretivm Updates Brucejack Mine Mineral Resource VANCOUVER, British Columbia, March 09, 2020 (GLOBE NEWSWIRE) -- Pretium Resources Inc. (TSX/NYSE:PVG) (“Pretivm” or the “Company”) announces an updated Mineral Reserve (the “2020 Mineral Reserve”), Mineral Resource (the “2020 Mineral Resource”) and Life of Mine (“LOM”) plan (the “2020 LOM Plan”, and together with the 2020 Mineral Reserve and 2020 Mineral Resource, the “2020 Updates”) for the Brucejack Mine (“Brucejack”), which highlight the continued robust economics of the long-life underground operation. The effective date of the 2020 Mineral Reserve and 2020 Mineral Resource is January 1, 2020.
The 2020 Updates will be detailed in a National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) Technical Report (the “2020 Report”) prepared by Tetra Tech Canada Inc. and co-authored by consultants listed under “Independent Qualified Persons” below. The 2020 Report updates the operating parameters contained in the “Technical Report on the Brucejack Gold Mine, Northwest British Columbia” with an effective date of April 4, 2019 (the “2019 Report”). The 2020 Report will be filed in Canada under the Company’s profile on SEDAR at www.sedar.comand in the United States on the EDGAR section of the Securities and Exchange Commission (“SEC”) website at www.sec.gov, within the coming weeks.
All dollar amounts are expressed in, and references to “$” refer to United States dollars unless otherwise noted. References to “C$” refer to Canadian dollars.
“Consistent with the preliminary production outlook for post-2020 gold production in the Valley of the Kings announced on February 12, our updated life of mine plan outlines average annual gold production of 367,000 ounces for the first nine years while mining primarily in the Valley of the Kings,” said Joseph Ovsenek, President and CEO of Pretivm. “At a gold price of $1,600, Brucejack now has an estimated after-tax net present value at a 5% discount rate of $2.13 billion over the 13-year mine life. Since achieving commercial production in July 2017, Brucejack has generated over $500 million of cash flow and is expected to generate strong cash flow well into the future.”
Summary of 2020 Updates
The 2020 LOM Plan is based on the 2020 Mineral Reserve and the 2020 Mineral Resource estimates. The 2020 Mineral Resource was updated from the Mineral Resource estimate reflected in the 2019 Report (the “2019 Mineral Resource”) only within the Valley of the Kings Zone (the “Valley of the Kings”) inside an area informed with new data from additional infill drilling conducted in 2019, totaling 89,121 meters. Furthermore, the Mineral Resource cut-off for the Valley of the Kings Zone has been lowered to 3.5 g/t gold, as this cut-off better resembles the recently mined grades. This has resulted in an increase in the number of tonnes in the Measured and Indicated Mineral Resource categories, albeit at a lower reported grade.
Approximately 50% of the tonnes comprising the 2020 Mineral Reserve are from the area of the Valley of the Kings where the Mineral Resource was updated. A Mine Call Factor was applied to the remaining tonnes (approximately 50%) comprising the 2020 Mineral Reserve (the area of the Mineral Reserve outside of the Mineral Resource update area). The Mine Call Factor is a reconciliation factor which is derived from operational experience. The Mine Call Factor is determined by applying an upper limit to the reserve stope grade, where the upper limit is determined by the average diamond drill hole spacing of the reserve shape. Stopes with a lower average diamond drill hole spacing (higher drill density) have a lower resulting Mine Call Factor than stopes with greater diamond drill hole spacing (lower drill density). The 2020 Mineral Reserve reflects a reduction in gold grade from the 2019 Mineral Reserve (defined below) grade due to updates to the Mineral Resource and the application of the Mine Call Factor.
- 2020 Brucejack Mine Estimated Total Life of Mine Plan (Valley of the Kings and West Zone)
- Average annual production of over 366,000 ounces of gold over the first 5 years with average annual cash flow of $171 million (post-tax) at $1,300/ounce gold.
- Average annual production of over 357,000 ounces of gold over the first 10 years and average annual free cash flow of $181 million (post-tax) at $1,300/ounce gold.
- Average operating costs of $164/tonne milled over the first 10 years and average LOM operating costs of $163/tonne milled.
- At the mine level, average sustaining costs of $702/ounce of gold sold over the first 10 years and average LOM sustaining costs of $691/ounce.
- At the corporate level, average all-in sustaining costs (“AISC”) of $747/ounce of gold sold over the first 10 years and average LOM AISC of $743/ounce of gold sold.
- After tax net present value (“NPV”) at a 5% discount of $1.50 billion ($1.80 billion pre-tax) at $1,300/ounce gold, $16.90/ounce silver and exchange rate of US$0.76/C$1.00.
- 2020 Brucejack Mine Total Proven and Probable Mineral Reserve Estimate
- 4.2 million ounces of gold (15.7 million tonnes grading 8.4 grams of gold per tonne after application of the Mine Call Factor).
- The West Zone Mineral Reserves was not updated.
- Excludes all Mineral Reserve material mined prior to January 1, 2020.
- 2020 Valley of the Kings Proven and Probable Mineral Reserve Estimate
- 3.6 million ounces of gold (12.8 million tonnes grading 8.8 grams of gold per tonne after application of the Mine Call Factor).
- Excludes all Mineral Reserve material mined prior to January 1, 2020.
2020 Brucejack Mine Economics
Table 1: Summary of Brucejack Economic Results by Metal Price
| | Base Case | Spot Case | High Case |
| Gold Price ($/ounce) | $1,300 | $1,600 | $1,900 |
| Silver Price ($/ounce) | $16.90 | $20.80 | $24.70 |
| Net Cash Flow ($) | $2.44 billion (pre-tax)
$1.95 billion (post-tax) | $3.70 billion (pre-tax)
$2.75 billion (post-tax) | $4.96 billion (pre-tax)
$3.55 billion (post-tax) |
Net Present Value (1)
(5.0% discount) ($) | $1.80 billion (pre-tax)
$1.50 billion (post-tax) | $2.75 billion (pre-tax)
$2.13 billion (post-tax) | $3.70 billion (pre-tax)
$2.76 billion (post-tax) |
| Exchange Rate (US$:C$) | 0.76 | 0.76 | 0.76 |
| (1) NPV is discounted to January 2020. |
| |
Summary of 2020 Updates Compared to 2019
The 2020 Updates are based on the ten quarters of mining operations at Brucejack since commercial production commenced in July 2017. The Valley of the Kings Proven and Probable Mineral Reserve gold grade has been reduced from 13.8 grams per tonne to 8.8 grams per tonne (a 36% decrease from the 2019 Mineral Reserve grade) due to an update of the Mineral Resource and the application of a Mine Call Factor that has been generated based on mining experience and reconciliations. All estimated costs have been updated with actual costs from 2019. Areas of cost increase include labour, environmental compliance and snow removal. The net present value decrease of 42% is mainly attributable to an update of the Mineral Resource and the application of a Mine Call Factor that resulted in estimated sold ounces decreasing by 34%.
A comparison of the main parameters of the 2020 Report and the 2019 Report is summarized below in Table 2.
Table 2: Comparison of Main Parameters of 2020 Report to 2019 Report
| | 2019 Report(1) | 2020 Report |
| Operating Rate (tonnes/day) | 3,800 | 3,800 |
| Mine Life (years)(2) | 14 | 13 |
| Proven and Probable Mineral Reserve Gold Grade (g/t) | 12.6 | 8.4 |
| Recoveries Gold/Silver (%) | 96.5/87.9 | 96.3/90.4 |
| LOM Average Annual Gold Production (‘000 ounces) | 441 | 311 |
| LOM Average Operating Costs ($/t) | $168 | $163 |
| LOM Average Mine Site AISC(3) ($/ounce gold sold) | $502 | $691 |
| LOM Average AISC(3,4) ($/ounce gold sold) | $539 | $743 |
| US$:C$ Exchange Rate | 0.775 | 0.76 |
| NPV5 Pre-Tax/Post-Tax ($’000) | $3,602/$2,587
($1,300 Au/$16.90 Ag) | $1,799/$1,496
($1,300 Au/$16.90 Ag) |
| NPV5 Pre-Tax/Post-Tax ($’000) | $4,537/$3,181
($1,500 Au/$19.50 Ag) | $2,752/$2,135
($1,600 Au/$20.80 Ag) |
| (1) The Mineral Reserves (the “2019 Mineral Reserves”) and LOM in the 2019 Report were updated for the Valley of the Kings in April 2019 (see News Release April 4, 2019). |
| (2) Mine life is based from start of year in which the report was issued. 2019 Report begins January 1, 2019. 2020 Report begins January 1, 2020. |
| (3) AISC excludes 3,800 tpd expansion capital. |
| (4) LOM AISC includes corporate general and administrative (“G&A”) costs. |
2020 Brucejack Mineral Reserve
Brucejack Mine Total Mineral Reserve
The updated Mineral Reserve estimates by zone and Mineral Reserve category are summarized below in Table 3. The 2020 Updates include Mineral Reserve updates for the Valley of the Kings. The West Zone Mineral Reserve was not updated as there was no new information in 2019. The Mineral Reserve estimate for the areas of the 2020 Mineral Resource for the Valley of the Kings that were not updated in the 2020 Mineral Resource have had a Mine Call Factor applied that was determined based on historic mining data and reconciliations. The 2020 Mineral Reserve grade over the LOM for the Valley of the Kings was reduced by approximately 18% as a result of the application of the Mine Call Factor.
Table 3: 2020 Brucejack Mine Total Mineral Reserve(1,2,3,4)
| Zone | Ore Tonnes (Mt) | Grade | Contained Ounces | |
| Au (g/t) | Ag (g/t) | Au (Moz) | Ag (Moz) | |
| |
| Valley of the Kings Zone(5) | Proven | 1.4 | 8.9 | 11.1 | 0.4 | 0.5 | |
| Probable | 11.3 | 8.7 | 9.8 | 3.2 | 3.6 | |
| Total | 12.8 | 8.8 | 10.0 | 3.6 | 4.1 | |
| West Zone(6) | Proven | 1.4 | 7.2 | 383.0 | 0.3 | 17.4 | |
| Probable | 1.5 | 6.5 | 181.0 | 0.3 | 8.6 | |
| Total | 2.9 | 6.8 | 278.5 | 0.6 | 26.0 | |
| Total Mine | Proven | 2.8 | 8.1 | 195.1 | 0.7 | 17.9 | |
| Probable | 12.8 | 8.5 | 29.8 | 3.5 | 12.2 | |
| Total | 15.7 | 8.4 | 59.6 | 4.2 | 30.1 | |
| (1) Mineral Reserves exclude all Mineral Reserve material mined prior to January 1, 2020. |
| (2) Valley of the Kings Mineral Reserves based on $180/t net smelter return (“NSR”) cut-off grade, $1,250/oz gold, $15.60/oz silver, C$1:US$0.78 exchange rate. |
| (3) Rounding of some figures may lead to minor discrepancies in totals. |
| (4) Values are inclusive of mining recovery and dilution. Values are determined as of delivery to the mill and therefore not inclusive of milling recoveries. |
| (5) Mineral Reserve Grade for the Valley of the Kings is inclusive of the Mine Call Factor. |
| (6) The West Zone Mineral Reserve was not updated and the Mine Call Factor was not applied. |
2019 Mineral Reserve Reconciliation
The 2019 Mineral Reserve reconciliation was completed by evaluating the 2019 Mineral Reserve shapes against the results from 2019 milling and mining (the “2019 Mined Actuals”). Reserve shapes that are spatially proximal with the 2019 actual stopes and development ore positions were compared to the 2019 Mined Actuals. Applicable Reserve shapes were determined by the use of Cavity Monitoring Systems (“CMS”) scans of the mined material for all material mined in 2019. In 2019, ore was mined from 67 stopes over 10 levels from the 1170-meter level to the 1410-meter level across a distance ranging 290 meters east to west and 155 meters north to south. Late in 2019, material was also mined from one stope on the 1110-meter level. Table 4 below summarizes the comparison.
Table 4: Reconciliation of 2019 Mineral Reserve to 2019 Mined Actuals
| | Tonnes (000’s) | Gold Grade (g/t) | Contained Gold Ounces (000’s) |
| Mined 2019 Mineral Reserve Material | 1,023 | | 12.1 | | 396 | |
| Grade Control Depleted 2019 Reserves | 60 | | 12.9 | | 25 | |
| 2019 Mineral Reserve Material in Reconciliation | 1,083 | | 12.1 | | 421 | |
| 2019 Mined Actuals | 1,303 | | 8.7 | | 366 | |
| Reconciliation | 120 | % | 72 | % | 87 | % |
The 2019 Mineral Reserve material is inclusive of Mineral Reserve material that was subsequently identified as uneconomic by grade control with no possibility of future mining. This material amounted to 60,000 tonnes of 2019 Mineral Reserve material. The 2019 Mined Actuals contained 20% more tonnage than planned primarily due to the identification of out-of-reserve material that was determined to be economic as a result of the grade control program. All material sent to the mill was determined to be economic by the grade control program.
The 2019 grade control program identified approximately 570,000 tonnes of material located outside of reserve shapes as economic that the 2019 Mineral Resource model identified as sub-economic. This material was either mined or added to drilled inventory throughout 2019. These additional tonnes were not accounted for in the LOM plan reflected in the 2019 Report and are not accounted for in the 2020 Mineral Reserve and 2020 LOM Plan.
Mining and Processing
Brucejack is a high-grade underground mining operation using the long-hole stoping mining method (both transverse and longitudinal) and cemented paste backfill. The Valley of the Kings, the higher-grade, primary targeted deposit, has been developed first; the lower-grade West Zone will be mined in the second half of Brucejack’s 13-year mine life. The 2020 LOM plan is based on a processing rate of 3,800 tonne per day until 2029 when the rate is reduced to manage the grade distribution between the West Zone and remaining Valley of the Kings Mineral Reserves. Brucejack is planned to mine a total of 15.6 Mt at an average grade of 8.4 g/t gold after the application of the Mine Call Factor.
Mineral processing at the current operation uses conventional gravity concentration and sulphide flotation, producing gold-silver dor and gold-silver flotation concentrate. Predicted metallurgical recoveries over the LOM average 96.3% and 90.4% for gold and silver, respectively. A total of 4.0 million ounces of gold and 27.1 million ounces of silver are estimated to be produced over the remaining mine life of Brucejack after application of the Mine Call Factor. Projected production and processing is summarized in Table 5 below.
Table 5: Life of Mine Projected Production and Processing Summary(1)
| Years | Tonnage(2)
(t) | Lateral Development
Meters(2)
(m) | Gold Grade (g/t)(3) | Silver Grade (g/t) | Gold Production ('000 ounces) | Silver Production ('000 ounces) |
| 1 | 1,387,000 | 12,000 | 8.3 | 13.7 | 358 | 517 |
| 2 | 1,387,000 | 12,000 | 8.6 | 9.3 | 371 | 371 |
| 3 | 1,387,000 | 10,800 | 8.6 | 10.7 | 371 | 417 |
| 4 | 1,387,000 | 10,800 | 8.6 | 11.4 | 370 | 441 |
| 5 | 1,387,000 | 4,320 | 8.4 | 14.0 | 363 | 550 |
| 6 | 1,387,000 | 4,650 | 8.6 | 51.8 | 368 | 2,072 |
| 7 | 1,387,000 | 3,890 | 8.4 | 98.1 | 362 | 3,939 |
| 8 | 1,387,000 | 1,020 | 8.6 | 88.5 | 369 | 3,577 |
| 9 | 1,387,000 | 960 | 8.6 | 57.4 | 369 | 2,290 |
| 10 | 1,040,000 | 770 | 8.4 | 110.1 | 270 | 3,357 |
| 11 | 1,040,000 | 560 | 7.4 | 122.1 | 238 | 3,722 |
| 12 | 693,000 | 400 | 7.2 | 159.3 | 155 | 3,238 |
| 13 | 380,000 | 150 | 7.0 | 231.0 | 82 | 2,604 |
| Life of Mine | 15,636,000 | 62,320 | 8.4 | 59.6 | 4,046 | 27,095 |
| (1) LOM begins on January 1, 2020. The 2020 Mineral Reserve excludes all Mineral Reserve material mined prior to January 1, 2020. |
| (2) Tonnes are rounded to nearest thousands. Development meters are rounded to the nearest tens. |
| (3) Gold grade is adjusted using a Mine Call Factor applied to the Mineral Reserves located in the non-updated portions of the 2020 Mineral Resource model. |
Capital and Operating Costs
The remaining capital cost for the mine throughput upgrade to 3,800 tonnes per day is estimated at $14.8 million over five quarters of 2020 and 2021, including a contingency of $2.5 million. Capital costs are summarized in Table 6 below.
Table 6: 3,800 tpd Expansion Capital Costs Summary (1)
| | ($ million) | |
| Mine Underground | 3.8 | |
| Process and Infrastructure | 6.9 | |
| Total Direct Costs | 10.7 | |
| Indirect Costs (2) | 1.6 | |
| Contingency (2) | 2.5 | |
| Total Expansion Capital Cost | 14.8 | |
| (1) Year 2020-2021 capital cost expenditure for expansion of mine, process and infrastructure, including mine throughput expansion related costs. |
| (2) Mill expansion related indirect costs and contingency only. | |
The total sustaining capital cost for the remainder of the LOM at Brucejack is estimated at $161.9 million. Sustaining capital costs are summarized in the Table 7 below.
Table 7: Sustaining Capital Costs Summary
| | ($ million) | |
| Mining | 66.6 | |
| Processing | 3.5 | |
| Site Services and Surface Maintenance | 91.8 | |
| Total Sustaining Capital Cost | 161.9 | |
| | | |
Average LOM operating cost is estimated at $163 per tonne milled. Operating costs are summarized in Table 8 below.
Table 8: Operating Costs Summary
| | ($/tonne) | |
| Mining | 71 | |
| Processing | 21 | |
| Mine General and Administrative | 35 | |
| Surface Services and Others | 36 | |
| Total Operating Cost | 163 | |
| | | |
All-in sustaining costs, which include by-product cash costs, sustaining capital, exploration expense and reclamation cost accretion are summarized in Table 9 below.
Table 9: All-In Sustaining Costs Life of Mine
| | ($ million, except for cost per ounce and gold sales) | |
| Total Cash Costs(1,2) | $2,581 | |
| Reclamation Cost Accretion | $21 | |
| Sustaining Capital Expenditure | $162 | |
| Mine Site Sustaining Costs (3) | $2,764 | |
| Gold Sales (M ounces) | 4.0 M ounces | |
| Mine Site Sustaining Cost per ounce (1,2,3) | $691/ounce | |
| Corporate G&A Costs | $52/ounce | |
| All-in Sustaining Costs | $743/ounce | |
| (1) Net of silver credits at a silver price of $16.90/ounce. | |
| (2) Includes offsite shipping, treatment, refining charges and royalties. | |
| (3) Excludes 3,800 tpd Expansion Capital. | |
2020 Mineral Resource
Brucejack Mineral Resource
The 2020 Mineral Resource incorporates an additional 89,121 meters of resource drilling in 555 drill holes and 7,606 meters of mapped underground development completed in the Valley of the Kings Zone since the 2019 Mineral Resource. The 2020 Mineral Resource reported by zone and confidence category is summarized in Table 11 below. The Valley of the Kings Mineral Resource was updated for 2020, but only in an area where new data was available; the West Zone Mineral Resource was not updated as there was no new information in 2019.
Table 11: Brucejack Mineral Resource (1,2,3,4,5,6)
| Zone | Confidence Category | Ore Tonnes (Mt) | Grade | Contained Metal | |
| Au (g/t) | Ag (g/t) | Au (Moz) | Ag (Moz) | |
| |
| Valley of the Kings Zone | Measured | 2.3 | 10.5 | 12.6 | 0.8 | 0.9 | |
| Indicated | 16.1 | 11.4 | 12.2 | 5.9 | 6.3 | |
| Total M+I | 18.4 | 11.3 | 12.2 | 6.7 | 7.2 | |
| Inferred | 5.4 | 13.3 | 15.9 | 2.3 | 2.8 | |
| West Zone | Measured | 2.4 | 5.9 | 347 | 0.5 | 26.8 | |
| Indicated | 2.5 | 5.9 | 190 | 0.5 | 15.1 | |
| Total M+I | 4.9 | 5.9 | 267 | 0.9 | 41.9 | |
| Inferred | 4.0 | 6.4 | 82 | 0.8 | 10.6 | |
| Total Mine | Measured | 4.7 | 8.4 | 183.3 | 1.3 | 27.7 | |
| Indicated | 18.6 | 10.7 | 35.8 | 6.4 | 21.4 | |
| Total M+I | 23.2 | 10.1 | 65.5 | 7.6 | 49.1 | |
| Inferred | 9.4 | 10.3 | 44.3 | 3.1 | 13.4 | |
| (1) Mineral Resources are reported inclusive of Mineral Reserves. | |
| (2) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources in this news release were estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. | |
| (3) The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral Resource. It is uncertain if further exploration will result in upgrading Inferred Mineral Resources to an Indicated or Measured Mineral Resource category. | |
| (4) Tonnes, grade, and contained metal figures in totals may differ due to rounding. | |
| (5) The Brucejack Mineral Resource is reported at 3.5 g/t gold cut-off for the Valley of the Kings Zone and 5 g/t gold equivalent cut-off for the West Zone (AuEq = Au + Ag/53). | |
| (6) Mineral Resources exclude all Mineral Resource material mined prior to January 1, 2020. | |
The 2020 Mineral Resource for the Valley of the Kings Zone differs from the 2019 Mineral Resource in that there are significantly more drill holes used in the estimation of the model, the classification has been updated to allow for the change in confidence resulting from the new information, the estimation parameters have been adjusted to allow greater local accuracy of the grade estimates (based on validation of the model estimates against production information), and all production prior to January 1, 2020 as well as volumes deemed non-minable have been removed.
Furthermore, the Mineral Resource cut-off for the Valley of the Kings Zone has been lowered to 3.5 g/t gold, as this cut-off better resembles the recently mined grades. This has resulted in an increase in the number of tonnes in the Measured and Indicated Mineral Resource categories, albeit at a lower reported grade. The 2020 Measured and Indicated Mineral Resource for the Valley of the Kings Zone is 18.4 million tonnes at 11.3 g/t gold compared to 13.7 million tonnes at 17.2 g/t gold in 2019.
2019 Mineral Resource Reconciliation
The 2019 Mineral Resource reconciliation compares ounces predicted in the 2019 global resource model in the areas mined over a given period to the actual ounces delivered to the mill from mining those same areas in that period. Reconciliation of the 2019 global resource model for the period January 1, 2019 to December 31, 2019 was approximately 101% on ounces. The modeled ounces for the areas mined during 2019 were predicted to be 361,739 ounces (delivered to the mill) at 8.3 grams per tonne and 1,355,769 tonnes; while the actual ounces for the areas mined were determined to be 365,585 ounces (delivered to the mill) at 8.7 grams per tonne and 1,303,001 tonnes. Reconciliation improved in 2019 compared to the comparable period in 2018 when reconciliation to the global resource model was approximately 90% on ounces.
Independent Qualified Persons
The following “Qualified Persons” as defined by NI 43-101 are independent of Pretivm and responsible for the 2020 Report, and each has reviewed, approved and verified the scientific and technical information contained in this news release relating to his or her respective scope of responsibility, as applicable:
| Qualified Person | Scope of Responsibility |
Ivor W.O. Jones, M.Sc., P.Geo., FAusIMM
Ivor Jones Pty Ltd. | Geology and Mineral Resources |
Maurie Phifer, P.Eng.
Tetra Tech Canada Inc. | Mineral Reserves, Mining Methods; Underground Infrastructure; Paste Backfill Distribution; Mining Operating Cost Estimate; Financial Analysis |
John Huang, Ph.D, P.Eng.
Tetra Tech Canada Inc. | Metallurgy and Recovery Methods; Market Studies; Process, G&A and Site Services Operating Cost Estimates |
Hassan Ghaffari, P.Eng., M.A.Sc.
Tetra Tech Canada Inc. | Surface Infrastructure; Capital Cost Estimate |
Calvin Boese, P.Eng., M.Sc.
SRK Consulting (Canada) Inc. | Waste Rock and Tailings Storage Facility |
Rolf Schmitt, M.Sc., P.Geo.
Environmental Resources Management Ltd. | Aspects of environmental, social, community studies, and permitting |
Alison Shaw, Ph.D., P.Geo.
Lorax Environmental Services Ltd. | Geochemistry, Water Quality |
Mauricio Herrera, PhD, P.Eng.
SRK Consulting (Canada) Inc. | Water Management |
Laura-Lee Findlater, P.Geo.
Lorax Environmental Services Ltd. | Hydrogeology |
Tim Coleman, P.Eng., ACSM, M.Sc. DIC
SRK Consulting (Canada) Inc. | Underground Mine Geotechnical |
| | |
Improved Local Data Density Through Reverse Circulation Drilling
A high-density reverse circulation (“RC”) drill program to increase the data density necessary to enhance mine planning and optimize gold production is scheduled to commence in the second quarter 2020. Under the main part of the program, 360-degree RC drill fans comprised of approximately 40 holes are planned to be drilled at 10-meter centers nominally west to east along the 1140-meter level of the mine over approximately 320 meters. Each drill hole will be approximately 48 meters long and assayed using 1.5 meter sample lengths. The high-density RC drill program is expected to improve the information available for mine planning and in turn reduce the Mine Call Factor.
Production and Cash Flows
Over the next three years, estimated gold production of over 1.1 million ounces of gold is expected to generate cash flows of $700 million at $1,600 gold, which is more than sufficient to pay down the scheduled debt maturities of approximately $480 million.
Scientific and technical information in this news release not set out in the 2020 Report has been reviewed, approved and verified by Barry McDonough, P.Geo, Manager of Geological Operations for the mine geology section, Lyle Morgenthaler, P.Eng., Chief Mining Engineer for the mine development and Nicolas Scarcelli-Casciola, B.A.Sc., P.Eng., Pretivm’s Mine Planning Manager for mine reserves, each of whom is a Qualified Person as defined in NI 43-101.
2020 Update Webcast and Conference Call
Webcast and conference call details: