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.
[box type=”info” align=”aligncenter” ]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.[/box]
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.)
[box type=”note” align=”aligncenter” ]
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.
[box type=”note” align=”aligncenter” ]
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)
|Exploration Drilling from Drill Bay Section 426700E (180 Azimuth)|
|VU-364||-33/180||3.00||19.50||16.50||21.80||52.67||1 Au sample cut|
|50.50||71.00||20.50||12.57||118.78||1 Au sample cut|
|VU-368||42/180||55.75||77.60||21.85||11.44||19.87||1 Au sample cut|
|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|
|68.00||76.00||8.00||29.38||46.17||1 Au sample cut|
|Exploration Drilling from Drill Bay Section 426700E (150 Azimuth)|
|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|
|136.50||144.50||8.00||33.24||256.74||1 Au sample cut|
|94.50||108.00||13.50||18.03||114.47||1 Au sample cut|
|Exploration Drilling from Drill Bay Section 426652E (95 Azimuth)|
|123.40||148.40||25.00||11.09||13.49||1 Au sample cut|
|Exploration Drilling from Drill Bay Section 426652E (110 Azimuth)|
|Exploration Drilling from Drill Bay Section 426482E (244 Azimuth)|
|85.50||106.50||21.00||11.20||25.51||1 Au sample cut|
|VU-385||-22/244||8.77||39.90||31.13||8.77||26.43||1 Au sample cut|
|67.00||84.50||17.50||12.81||14.59||1 Au sample cut|
|Exploration Drilling from Drill Bay Section 426482E (231 Azimuth)|
|VU-391||28/231||50.80||72.50||21.70||13.23||19.74||1 Au sample cut|
|VU-397||13.5/231||73.51||84.29||10.78||20.52||111.85||1 Au sample cut|
|Exploration Drilling from Drill Bay Section 426482E (155 Azimuth)|
|Exploration Drilling from Drill Bay Section 426616E (100 Azimuth)|
|(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.|
[box type=”note” align=”aligncenter” ]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.[/box]
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.
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.
Subscribe for Email Updates