Pretium Pops on More Drill Results, More Bonanza Grades

Staff @ Geology for Investors December 3, 2013 - Last Updated: December 4, 2013

7 minutes read

Plan view of Pretium's underground drilling.

It seems like investors are eager to respond to Pretium’s news and each release has resulted in a significant price pop. For Pretium’s part, they have continued to stay on course and have published results consistent with their previous estimates and predictions.

Disclaimer: This is an editorial review of a public press release and not an endorsement. It may include opinions or points of view that may not be shared by the companies mentioned in the release. The editorial comments are highlighted so as to be easily separated from the release text and portions of the release not affecting this review may be deleted. Please view original release here.

VANCOUVER, BRITISH COLUMBIA–(Marketwired – Dec. 2, 2013) – Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) (“Pretivm”) is pleased to report the remaining assay results from underground exploration drilling in the Valley of the Kings. These results include 8 intersections grading greater than 1,000 grams per tonne gold uncut from 6,164 meters of drilling in 46 holes. (See Table 1 below for assays.)

Pretium’s Brucejack Gold Project is located in Northern BC, Canada. The company’s last few news releases resulted in some serious pops in their stock price, but they still haven’t bounced back to their pre-bulk-sampling-scandal prices of early October. If you’re not familiar with what happened back then you read a little more here.

At the time we thought that the concerns over grade would linger with investors for some time, regardless of the news from Pretium. However it seems like investors are eager to respond to Pretium’s news and each release has resulted in a significant price pop. Perhaps this is because there aren’t a lot of mining company stocks to root for these days.

For Pretium’s part, they have continued to stay on course and have published results consistent with their previous estimates and predictions. Let’s review this latest news.

Selected drill highlights include:

Hole VU-365 intersected 328.91 grams of gold per tonne uncut over 20.50 meters, including 13,400 grams of gold per tonne uncut over 0.50 meters;
Hole VU-369 intersected 96.71 grams of gold per tonne uncut over 44.95 meters, including 7,700 grams of gold per tonne uncut over 0.50 meters;
Hole VU-384 intersected 331.99 grams of gold per tonne uncut over 8.00 meters, including 5,210 grams of gold per tonne uncut over 0.50 meters;
Hole VU-390 intersected 179.14 grams of gold per tonne uncut over 13.50 meters, including 4,780 grams of gold per tonne uncut over 0.50 meters;
Hole VU-397 intersected 175.44 grams of gold per tonne uncut over 10.78 meters, including 3,770 grams of gold per tonne uncut over 0.50 meters;
Hole VU-385 intersected 1,200 grams of gold per tonne uncut over 0.50 meters;
Hole VU-383 intersected 1,095 grams of gold per tonne uncut over 0.50 meters;
Hole VU-391 intersected 1,040 grams of gold per tonne uncut over 0.50 meters.

The bonanza-grade gold intercepts noted above were encountered in drilling to the east and west, as well as above and below the area of the Valley of the Kings Bulk Sample Program (the “Program”).

Underground exploration drilling has expanded the defined Valley of the Kings high-grade gold mineralization to the east, and mineralization remains open in all directions.

In 2013 a total of 38,830 meters of underground drilling was completed in the Valley of the Kings, comprising 16,789 meters of Program drilling and 22,041 meters of exploration drilling. Assay results from 2013 drilling include a total of 69 intercepts grading over 1,000 grams per tonne gold uncut (of which 15 were in the Cleopatra Vein).

Processing of the approximately 1,500 wet tonnes of bulk sample material remaining from the Program is expected to be completed this week, with final results reported after the completion of assaying.

The results both from the 38,830 meters of underground drilling and from milling will be incorporated into the updated Mineral Resource estimate for the Valley of the Kings expected later this month.

Part of the “controversy” surrounding Pretium’s deposit is well demonstrated in these drill results: Intervals of low grade gold interspersed with bonanza grade intervals.

For example, consider hole #VU-365. If we remove the highlights, the remaining intervals hold grades of:

9.87 meters of 0.93 g/t gold
8.07 meters of 1.65 g/t gold
20.00 meters of 4.66 g/t gold
1.32 meters of 23.10 g/t gold

There grades are not particular good and it’s easy to see why a small sample might lead one to conclude that there is nothing to mine here.

However, the high grade highlights are what make this interesting. In this deposit the company has consistently demonstrated an extremely high grade nugget effect with grades often in excess of 1000 g/t gold!

In addition, the high grade “nuggets” are not outliers or occasional occurrences – they consistently occur.

In some ways, the deposit is more akin to a diamond deposit where the large tonnages of material are required to assess the economic value. Arguments over this process and the approach to bulk sampling are what led to the fallout with Strathcona minerals in October.

Table 1: Valley of the Kings Drill Results, December 2013 (VU-363 to VU-408)(1,2,3,4)

HoleNo.	Dip/Azimuth		From(meters)	To(meters)	Interval (meters)	Gold(g/t)	Silver(g/t)	Capping
Exploration Drilling from Drill Bay Section 426700E (180 Azimuth)
VU-363	-44/180		55.50	62.95	7.45	7.05	6.47
		incl	62.35	62.95	0.60	79.00	17.30
			74.50	80.05	5.55	13.05	11.56
		incl	76.26	76.76	0.50	35.30	8.80
		incl	78.50	79.00	0.50	30.70	13.00
		incl	79.55	80.05	0.50	23.90	15.40
			104.50	113.60	9.10	11.91	12.56
			105.25	105.75	0.50	207.00	160.00
VU-364	-33/180		3.00	19.50	16.50	21.80	52.67	1 Au sample cut
		or	3.00	19.50	16.50	31.52	52.67	Uncut
		incl	9.00	10.50	1.50	75.40	156.00
			15.10	15.60	0.50	751.00	456.00	Uncut
			59.50	63.50	4.00	3.97	6.40
			83.55	84.05	0.50	162.00	32.80
VU-365	-18/180		1.00	12.67	11.67	9.37	12.53
		incl	1.82	2.32	0.50	78.70	58.90
		incl	8.06	8.86	0.80	27.30	24.50
		incl	12.17	12.67	0.50	77.80	17.60
			21.46	30.03	8.57	5.51	12.13
		incl	26.43	26.93	0.50	67.80	47.10
			50.50	71.00	20.50	12.57	118.78	1 Au sample cut
		or	50.50	71.00	20.50	328.91	118.78	Uncut
		incl	69.18	69.68	0.50	13,400	4,690	Uncut
			69.68	71.00	1.32	23.10	6.90
VU-366	1/180		0.00	24.00	24.00	3.57	9.67
			1.00	2.00	1.00	48.60	42.20
			45.00	62.96	17.96	25.39	9.58
		incl	48.00	49.50	1.50	283.00	88.50
		incl	62.41	62.96	0.55	46.60	24.80
VU-367	24/180		18.00	30.00	12.00	2.64	5.73
VU-368	42/180		55.75	77.60	21.85	11.44	19.87	1 Au sample cut
		or	55.75	77.60	21.85	17.89	19.87	Uncut
		incl	55.75	56.25	0.50	712.00	577.00	Uncut
			77.10	77.60	0.50	49.30	60.90
Exploration Drilling from Drill Bay Section 426700E (165 Azimuth)
VU-369	-35/165		3.55	48.50	44.95	14.10	61.96	2 Au samples cut
		or	3.55	48.50	44.95	96.71	61.35	Uncut
		incl	4.05	4.50	0.45	24.20	32.90
		incl	7.85	8.36	0.51	251.00	90.30
		incl	34.47	34.97	0.50	7,770	3,880	Uncut
		incl	47.54	48.04	0.50	516.00	352.00	Uncut
			68.00	76.00	8.00	29.38	46.17	1 Au sample cut
		or	68.00	76.00	8.00	57.88	46.17	Uncut
		incl	72.99	73.49	0.50	886.00	624.00	Uncut
VU-370	-20/165		13.50	25.25	11.75	14.63	14.15
		incl	17.70	18.30	0.60	266.00	133.00
			39.00	47.00	8.00	8.06	31.49
		incl	41.53	42.03	0.50	88.70	56.30
VU-371	1/165		28.50	56.00	27.50	7.22	9.65
		incl	52.15	52.65	0.50	344.00	280.00
VU-372	30/165		42.00	51.00	9.00	1.38	7.23
VU-373	-45/165		31.00	44.41	13.41	2.25	8.73
			57.90	64.20	6.30	19.88	16.79
		incl	63.70	64.20	0.50	238.00	163.00
			84.40	96.94	12.54	14.10	20.21
		incl	93.00	93.50	0.50	300.00	319.00
Exploration Drilling from Drill Bay Section 426700E (150 Azimuth)
VU-374	-40/150		9.00	13.74	4.74	9.10	42.69
		incl	11.90	12.50	0.60	64.10	49.00
			24.60	34.50	9.90	10.36	35.33
		incl	26.20	26.65	0.45	22.30	6.10
		incl	28.35	28.95	0.60	96.60	68.20
		incl	30.37	30.87	0.50	40.20	289.00
			42.77	43.27	0.50	17.05	5.80
			64.50	75.50	11.00	10.31	13.94
		incl	64.50	65.00	0.50	186.50	131.00
			104.50	122.50	18.00	12.26	12.53
		incl	112.23	112.73	0.50	175.00	79.00
		incl	121.00	122.50	1.50	68.10	29.00
VU-375	-29/150		10.45	26.15	15.70	12.66	25.98
		incl	10.45	11.00	0.55	26.00	68.10
		incl	17.68	18.18	0.50	275.00	176.00
		incl	22.00	22.50	0.50	16.30	62.90
			48.70	51.25	2.55	16.02	10.65
		incl	48.70	49.20	0.50	73.30	28.00
VU-377	-16/150		22.80	43.43	20.63	11.78	24.04
		incl	24.77	25.27	0.50	54.00	24.77
		incl	31.25	31.75	0.50	285.00	197.00
		incl	42.43	42.93	0.50	103.00	333.00
VU-379	1/150		36.00	65.50	29.50	0.91	5.20
VU-380	16/150		51.50	61.00	9.50	2.59	15.90
VU-382	40/150		21.00	39.00	18.00	1.25	3.54
			112.00	113.50	1.50	40.50	25.70
Exploration Drilling from Drill Bay Section 426652E (80 Azimuth)
VU-384	1/80		4.07	15.50	11.43	25.46	28.34	1 Au sample cut
		or	4.07	15.50	11.43	41.47	28.34	Uncut
		incl	4.07	4.57	0.50	796.00	547.00
		incl	14.00	15.50	1.50	48.70	19.00
			57.50	72.48	14.98	8.12	13.01
		incl	68.25	68.75	0.50	202.00	294.00
			136.50	144.50	8.00	33.24	256.74	1 Au sample cut
		or	136.50	144.50	8.00	331.99	256.74	Uncut
		incl	137.00	137.50	0.50	5,210	2,570	Uncut
			137.50	138.00	0.50	48.90	37.90
VU-386	-23/80		100.50	108.00	7.50	1.85	28.13
VU-388	-40/80		3.29	7.50	4.21	7.19	12.21
		incl	3.29	3.79	0.50	55.00	84.50
			97.50	127.50	30.00	1.47	18.79
VU-390	-52/80		20.14	32.50	12.36	1.82	1.85
			94.50	108.00	13.50	18.03	114.47	1 Au sample cut
		or	94.50	108.00	13.50	179.14	114.47	Uncut
		incl	97.77	98.27	0.50	4,780	1,775	Uncut
VU-392	24/80		68.35	112.00	43.65	6.18	15.04
		incl	68.35	68.85	0.50	411.00	99.40
Exploration Drilling from Drill Bay Section 426652E (95 Azimuth)
VU-395	-64/95		20.35	20.85	0.50	68.50	20.10
			96.00	137.97	41.97	10.66	15.71
		incl	105.38	105.88	0.50	403.00	543.00
		incl	113.23	113.73	0.50	47.50	39.90
		incl	113.73	114.23	0.50	153.50	97.10
		incl	125.67	126.17	0.50	96.10	39.00
		incl	133.47	133.97	0.50	21.50	67.30
VU-396	-45/95		100.95	109.00	8.05	13.44	13.50
			100.95	101.45	0.50	206.00	140.00
			123.40	148.40	25.00	11.09	13.49	1 Au sample cut
		or	123.40	148.40	25.00	11.59	13.49	Uncut
		incl	123.40	123.90	0.50	455.00	242.00	Uncut
			142.02	142.52	0.50	64.40	84.40
VU-400	-23/95		3.73	4.23	0.50	44.80	27.40
			27.27	28.27	1.00	92.50	28.80
Exploration Drilling from Drill Bay Section 426652E (110 Azimuth)
VU-403	-62/110		86.90	101.40	14.50	0.69	5.39
VU-404	-50/110		88.30	96.90	8.60	8.55	12.17
		incl	91.40	91.90	0.50	69.40	76.40
		incl	91.90	92.40	0.50	21.50	20.20
VU-406	-35/110		94.97	95.47	0.50	35.70	13.80
Exploration Drilling from Drill Bay Section 426482E (244 Azimuth)
VU-376	1/244		16.50	18.00	1.50	20.50	15.70
			70.46	80.32	9.86	4.17	3.88
		incl	70.46	70.96	0.50	66.20	27.70
VU-378	22/244		12.00	37.50	25.50	0.71	6.28
VU-381	40/244		65.00	78.50	13.50	1.30	22.98
VU-383	52/244		46.95	73.50	26.55	1.17	6.74
			85.50	106.50	21.00	11.20	25.51	1 Au sample cut
		or	85.50	106.50	21.00	27.04	25.51	Uncut
		incl	102.97	103.47	0.50	1,095	786.00	Uncut
			132.50	142.00	9.50	4.32	8.35
			138.62	139.12	0.50	46.90	12.50
VU-385	-22/244		8.77	39.90	31.13	8.77	26.43	1 Au sample cut
		or	8.77	39.90	31.13	21.14	26.43	Uncut
		incl	8.77	9.27	0.50	1,200	913.00	Uncut
			67.00	84.50	17.50	12.81	14.59	1 Au sample cut
		or	67.00	84.50	17.50	23.27	14.59	Uncut
		incl	76.79	77.29	0.50	796.00	369.00	Uncut
			51.00	66.00	15.00	4.69	8.10
		incl	63.15	64.85	1.70	23.46	45.94
VU-387	-38/244		13.44	13.94	0.50	18.50	14.30
Exploration Drilling from Drill Bay Section 426482E (231 Azimuth)
VU-389	1/231		23.12	41.50	18.38	8.01	9.38
			23.12	23.62	0.50	271.00	152.00
			77.50	79.00	1.50	33.40	30.00
VU-391	28/231		50.80	72.50	21.70	13.23	19.74	1 Au sample cut
		or	50.80	72.50	21.70	27.29	19.74	Uncut
		incl	65.44	65.94	0.50	31.60	20.10
		incl	67.44	67.84	0.40	33.30	36.00
		incl	67.84	68.34	0.50	1,040	609.00	Uncut
			111.50	130.50	19.00	1.86	5.77
VU-393	45/231		37.50	50.15	12.65	8.28	19.24
			40.50	42.00	1.50	56.30	37.00
VU-394	-26/231		41.44	77.50	36.06	0.91	2.96
			106.10	106.60	0.50	18.50	13.40
VU-397	13.5/231		73.51	84.29	10.78	20.52	111.85	1 Au sample cut
		or	73.51	84.29	10.78	175.44	111.85	Uncut
		incl	83.29	83.79	0.50	3,770	2,340
Exploration Drilling from Drill Bay Section 426482E (155 Azimuth)
VU-398	23/155		38.72	48.88	10.16	1.39	15.42
VU-399	1/155		39.50	68.00	28.50	1.06	6.19
VU-401(4)	-23/155		83.92	101.50	17.58	10.57	6.25
		incl	85.74	86.24	0.50	339.00	92.40
VU-402	-44/155		21.00	26.13	5.13	6.31	21.10
		incl	25.50	26.13	0.63	36.40	9.20
			105.33	144.00	38.67	1.33	9.28
Exploration Drilling from Drill Bay Section 426616E (100 Azimuth)
VU-405	19/100		34.90	37.90	3.00	1.40	34.20
			66.20	110.00	43.80	0.96	11.11
		incl	115.00	138.55	23.55	2.40	21.72
		incl	120.63	121.13	0.50	40.70	20.00
		incl	185.00	186.50	1.50	32.90	33.40
VU-407	43/100		98.10	110.41	12.31	7.92	61.22
		incl	102.80	103.39	0.59	32.20	327.00
		incl	103.39	103.89	0.50	24.80	259.00
		incl	109.91	110.41	0.50	56.40	146.00
			135.50	140.65	5.15	7.81	144.76
		incl	137.50	138.00	0.50	13.50	197.00
		incl	138.00	138.50	0.50	19.05	542.00
			154.71	163.20	8.49	8.64	41.65
		incl	162.70	163.20	0.50	129.50	206.00
VU-408	63/100		91.33	95.83	4.50	9.12	90.00
			92.33	92.83	0.50	34.40	296.00
			92.83	93.34	0.51	21.80	191.00

(1)	True thickness to be determined.
(2)	Unless otherwise indicated as uncut, all gold assays over 430 g/t were cut to 430 g/t.
(3)	All samples were submitted for preparation and analysis by ALS Chemex at its facilities in Terrace, B.C. All samples were analyzed using multi-digestion with ICP finish and fire assay with AA finish for gold. Samples over 100 ppm silver were reanalyzed using four acid digestion with an ore grade AA finish. Samples over 1,500 ppm silver were fire assayed with a gravimetric finish. Samples with over 10 ppm gold were fire assayed with a gravimetric finish. One in 20 samples was blank, one in 20 was a standard sample, and differing one in 20 samples was a field duplicate one-quarter split core assayed at ALS Chemex in Vancouver, B.C.
(4)	Hole ended in mineralization.

We’ve mentioned this before when discussing Pretium drill results. Normally assays are “cut” as part of a QA/QC program in order to remove outliers from the geochemical data. Essentially the maximum reportable grade is capped at a certain level. The rationale is that if a value is too high, it may skew the overall grade averages resulting in inaccurate results. Pretivm has capped the results at 430 g/t, but has reported these very high uncut results in order to demonstrate the extremely high grades being encountered.

Kenneth C. McNaughton , M.A.Sc., P.Eng., Chief Exploration Officer, Pretium Resources Inc. is the Qualified Person (QP) responsible for the Brucejack Projectexploration program.

About Pretivm

Pretivm is creating value through gold at its high-grade gold Brucejack Project, located in northern British Columbia. Permitting of a high-grade underground gold mine at Brucejack is underway, with commercial production targeted to commence in 2016.

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