Corp presmay23 2014


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Corp presmay23 2014

  2. 2. 2 CAUTIONARY STATEMENT Forward Looking Information This Presentation contains “forward-looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation. Forward-looking information may include, but is not limited to, the preliminary mill results from processing the 426585E cross-cut, the preliminary mill results from the bulk sample program, the estimated gold to be produced from the bulk sample program, the estimated contained gold in the 426585E cross-cut from the sample tower, the anticipated production and developments in our operations in future periods, information with respect to our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral reserves and resources including the 2013 Valley of the Kings Mineral Resource estimate, realization of mineral reserve and resource estimates and timing of development of our Brucejack Project, costs and timing of future exploration, results of future exploration and drilling, production and processing estimates, capital and operating cost estimates, timelines and similar statements relating to the economic viability of the Brucejack Project, timing and receipt of approvals, consents and permits under applicable legislation, our executive compensation approach and practice, the composition of our board of directors and committees and adequacy of financial resources. Wherever possible, words such as “plans”, “expects”, “projects”, “assumes”, “budget”, “strategy”, “scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”, “intends”, “targets” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative forms of any of these terms and similar expressions, have been used to identify forward-looking statements and information. Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information, including, without limitation, those risks identified in our Annual Information Form dated March 31, 2013 filed on SEDAR at and in the United States on Form 40-F through EDGAR at the SEC’s website at Forward-looking information is based on the expectations and opinions of our management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise. We do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information. National Instrument 43-101 Technical and scientific information contained herein relating to the Projects is derived from National Instrument 43-101 (“NI 43-101”) compliant technical reports (“Reports”) “Mineral Resources Update Technical Report” dated December 19, 2013 and “Feasibility Study and Technical Report on the Brucejack Project, Stewart, BC” dated June 21, 2013. We have filed the Reports under our profile at Technical and scientific information not contained within the Reports for the Projects have been prepared under the supervision of Mr. Kenneth C. McNaughton, P.Eng. and Ian Chang, P.Eng., each of whom is an independent “qualified person” under NI 43-101. This presentation uses the terms “measured resources”, “indicated resources” (together “M&I”) and “inferred resources”. Although these terms are recognized and required by Canadian regulations (under NI 43-101), the United States Securities and Exchange Commission does not recognize them. 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, title, taxation, socio-political, marketing, or other relevant issues. There is no guarantee that all or any part of the mineral resource will be converted into mineral reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Currency Unless otherwise indicated, all dollar values herein are in Canadian $.
  3. 3. 3  High-grade underground gold project  Commercial production target 2016  Located in British Columbia, Canada V A L U E T H R O U G H G O L D 3
  4. 4. 4 PRETIVM MANAGEMENT Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc. President & Chief Executive Officer, Director Joseph Ovsenek, B.A. Sc., P.Eng., LLB Executive Vice President & Chief Development Officer, Director Ken McNaughton, M.A. Sc., P.Eng. Vice President & Chief Exploration Officer Ian I Chang, M.A. Sc., P.Eng. Vice President, Project Development Michelle Romero, B.A., M.L.S. Vice President, Corporate Relations Kevin Torpy, B.Sc. Director, Mine Engineering Warwick Board, Ph.D., P.Geo. Chief Geologist Max Holtby, B.Sc., P. Geo. Director, Permitting James A Currie, P.Eng. Vice President & Chief Operating Officer Peter de Visser, CA Chief Financial Officer
  5. 5. 5 2010 IPO HIGH-GRADE CROSS-SECTION AT BRUCEJACK SU-084 100 m Scale 100 m SU-5 1.50 m @ 215 g/t Au SU-84 0.44 m @ 5,480 g/t Au SU-106 0.69 m @ 1,710 g/t Au SU-12 1.50 m @ 16,948 g/t Au SU-29 1.50 m @ 5,344 g/t Au Section View +/- 300m 5.0-20 Key (g/t Au) Assay intervals 1.0-5.0 0.5-1.0 >20 N S
  6. 6. 6 DRILLING 2010 - 2013 100 m Scale 100 m N S Section View +/- 300m 5.0-20 Key (g/t Au) Assay intervals 1.0-5.0 0.5-1.0 >20
  8. 8. 8 147 HITS OVER 1 KG/T GOLD TO DATE
  9. 9. 9 HIGH-GRADE GOLD RESERVES(1,2,3) Valley of the Kings West Zone Category Tonnes (mil) Gold (g/t) Silver (g/t) Contained Gold (mil oz) Silver (mil oz) Probable 15.1 13.6 11.0 6.6 5.3 Category Tonnes (mil) Gold (g/t) Silver (g/t) Contained Gold (mil oz) Silver (mil oz) Proven 2.0 5.7 309 0.4 19.9 Probable 1.8 5.8 172 0.3 10.1 Total P&P 3.8 5.8 243 0.7 30.0 Valley of the Kings Mineral Reserve Estimate – May 16, 2013 West Zone Mineral Reserve Estimate – May 16, 2013 (1) Source: Feasibility Study and Technical Report on the Brucejack Project, dated June 21, 2013 (2) Base case metals prices of US$1,350 /oz gold and US$20/oz silver (3) The June 2013 feasibility study is based on the November 2012 Mineral Resource estimate for the Brucejack Project and will be amended in 2014.
  12. 12. 12 VALLEY OF THE KINGS: STOCKWORK S N Cleo West Drift 615L West Raise Domain 20 ~0.5 m
  13. 13. 13 PLAN VIEW: 2013 UG DRILLING Fragmental Volcanic Rocks Polylithic Conglomerate Volcanic Sediment 50 m N Completed Underground Development Completed Bulk Sample Legend >20 Key (g/t Au) Assay intervals 5.0-20.0 2.5-5.0 Silicified Conglomerate Volcanic Flows
  14. 14. 14 DECEMBER 2013 RESOURCE ESTIMATE Valley of the Kings Mineral Resource estimate - December 2013(1),(4) (Based on a cut-off grade of 5.0 grams of gold-equivalent/tonne(5)) Category Tonnes (millions) Gold (g/t) Silver (g/t) Contained(3) Gold (million oz) Silver (million oz) Measured 2.0 19.3 14.4 1.2 0.9 Indicated 13.4 17.4 14.3 7.5 6.1 M & I 15.3 17.6 14.3 8.7 7.0 Inferred(2) 5.9 25.6 20.6 4.9 3.9 (1) 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 using 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. (2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category. (3) Contained metal figures and totals may differ due to rounding of figures. (4) The Mineral Resource estimate stated in Table 1 is defined using 10 m by 10 m by 10 m blocks in the in Valley of the Kings. (5) The gold equivalent value is defined as AuEq = Au + Ag/53. (6) See news release dated December 19, 2013.  The updated Valley of the Kings Resource estimate announced in December(6) added Measured gold Resources and increased gold grade:  The June 2013 Feasibility Study will be amended using the December Valley of the Kings Mineral Resource estimate
  15. 15. 15 2013 RESOURCE MODEL – VALLEY OF THE KINGS 5-10 10-20 20-60 >60 Key (g/t Au) December 2013 Mineral Resource Measured and Indicated Blocks >5g/t Au. Blocks are 10m x 10m x 10m 100 m N
  16. 16. 16 MINING METRICS (1)  30 m level spacing  Maximum of 45 m stope lengths  15 m widths  Dilution Factors – Primary Stopes: 7% – Secondary Stopes: 15%  Mining Recovery Factors – Primary Stopes: 97.5% – Secondary Stopes: 92.5%  Average 12 stopes in the mining and backfill cycle at any time (1)See Feasibility Study and Technical Report on the Brucejack Project, Stewart, BC dated June 21, 2013
  17. 17. 17 LIFE OF MINE PLAN Oblique view facing west West Zone Valley of the Kings Infrastructure Area Portals
  18. 18. 18 SITE LAYOUT Portals Mill Camp Development Rock Disposal Laydown & Fuel Storage Substation West Zone Portal Truck Shop
  19. 19. 19 PROCESSING & POTENTIAL REFINEMENT  Gravity and flotation concentration  Producing gold/silver concentrate and doré  Bulk sample program gold recoveries averaged 98%  Evaluate increasing recoveries in amended Feasibility Study  Opportunity to simplify flow sheet
  20. 20. 20 BRUCEJACK PROJECT ECONOMICS (1) Source: Feasibility Study and Technical Report on the Brucejack Project, (Tetra Tech) dated June 21, 2013 (2) Base case metals prices of US$1,350 /oz gold and US$20/oz silver (3) Includes by-product cash costs, sustaining capital, exploration expense and reclamation cost accretion (4) The June 2013 feasibility study is based on the November 2012 Mineral Resource estimate for the Brucejack Project and will be amended in 2014. June 2013 Feasibility Study Highlights(1,2,4) : Processing rate 2,700 tonnes per day Mine life 22 years Total gold production 7.1 million oz Average annual gold production 425,700 ounces (years 1-10) 321,500 ounces (life of mine) Average gold grade 14.2 g/t (years 1-10) 12.0 g/t (life of mine) All-in sustaining cash cost per oz(3) $508/oz Capex (including contingencies) US$663.5 million Total operating costs C$156.46/t milled Internal Rate of Return 42.9% (pre-tax) 35.7% (post-tax) Net Present Value (5% discount) US$2.69 billion (pre-tax) US$1.76 billion (post-tax)
  21. 21. 21 2014 AMENDED FEASIBILITY STUDY (1)  Uses Measured & Indicated Resources from December 2013  Uses lower metals prices, updated exchange rates  $1,100 gold, $17 silver  $0.92 CAD:US  Optimized site layout  Reduced surface prep  Cost and time savings  Refinements underway for mining, metallurgy and flow sheet based on results of 2013’s Valley of the Kings bulk sample program  Amended Brucejack Project Feasibility Study expected Q2 (1) The amended Brucejack Project Feasibility Study will be based on the December 2013 Mineral Resource estimate for the Valley of the Kings. See slide 9.
  22. 22. 22 PERMITTING PROCESS Scope and Process for Review determined 1st Public Comment Period Application Submitted Application evaluated for completeness Application review, 2nd Public Comment Period Assessment Report Referral to Ministers January 2013 Five Open Houses in November 2013 Target submitting by H1, 2014 (30 days) (Review stage 180 days) Project Description Filed Project Decision by Ministers (Decision 45 days)  BC Environmental Assessment Office (EAO) manages it  Federal review coordinated by Federal Environmental Assessment Agency (CEAA) for relevant areas  Provincial and Federal reviews are coordinated For more information on assessment process:
  23. 23. 23 COMMUNITY ENGAGEMENT  Commercial relationships with local First Nations during the exploration phase at Brucejack have been mutually successful  Examples of Brucejack Project contracts with First Nation development corporations include camp construction, access road maintenance, waste rock disposal  The proposed mine will provide approximately 800 jobs during construction and 500 jobs during operations  We will continue to extend both commercial contract and employment opportunities to locals whenever possible
  24. 24. 24 THE NEXT EIGHT MONTHS: 2014  File 43-101 Technical Report for December 2013 Mineral Resource estimate update  Processing 1,000 tonnes of high-grade ore from 2013 exploration program  File Environmental Assessment Certificate application  Updated Feasibility Study  Plan and implement underground exploration program  Plan for excavation of additional 1,000 tonnes of high-grade ore  Potential production of additional 1,000 tonnes of high-grade ore
  25. 25. 25 VALLEY OF THE KINGS M+I RESOURCE Northing (± 25 m) M+I Gold* (Oz.) 6258225 138,175 6258175 412,508 6258125 853,632 6258075 342,402 6258025 2,161,727 6257975 2,434,390 6257925 1,126,442 6257875 643,503 6257825 410,615 6257775 87,687 *Dec. 2013 M+I Mineral Resource; ≥5.0 g/t Au. 1.20 1.87 1.53 2.28 1.17 0.52 0.52 M+I Au* (Moz.) Surface projection of December 2013 Mineral Resource estimate, with total ounces per 100 m Easting and 50 m Northing strips
  26. 26. 26 HIGH-GRADE GOLD WITH SIZE Kirkland Lake Mine (Kirkland Lake) Kensington Mine (Coeur) Casa Berardi (Hecla/Aurizon) El Penon Mine (Yamana) Red Lake Mine (Goldcorp) Pogo Mine (Sumitomo) Valley of the Kings Cerro Negro (Goldcorp) Eleonore (Goldcorp) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 Proven+ProbableGoldGrade(g/t) Proven + Probable Gold Reserves (mm oz) Data source: Companies (1) Valley of the Kings reserves based on June 2013 Feasibility Study to be amended in 2014 using updated Mineral Resource estimate.
  27. 27. 27 SHAREHOLDING & ANALYST COVERAGE (1) As of May 23, 2014; ownership calculated on an undiluted basis. (2) As of May 23, 2014. Source: IPREO, SEDI Top Shareholders(2) (shares in millions) Silver Standard Resources 18.986 Liberty Metals & Mining 6.850 Royce & Associates 5.546 Aristeia Capital, LLC 4.655 Sun Valley Gold, LLC 4.361 Robert Quartermain 2.808 Franklin Advisors, Inc. 2.749 Norges Bank Investment TD Asset Management 2.457 1.959 Sprott Asset Management 1.854 Weiss Asset Management 1.837 Analyst Coverage BMO John Hayes CIBC Jeff Killeen Citibank Alex Hacking Cormark Securities Richard Gray Cowen Securities Adam Graf GMP Securities George Albino H.C. Wainwright Jeff Wright RBC Dan Rollins Roth Capital Partners Joseph Reagor Salman Partners Ash Guglani Scotiabank Ovais Habib Capital Structure(1) Public Float 89.5 Silver Standard Shares 19.0 Total Issued & Outstanding Shares 108.5 Incentive Options 10.2 Total Fully Diluted Shares 118.7 Market Cap (at May 23, 2014) C$832 million Working Capital (at Mar. 31, 2014) C$28.1 million + pending gold sale receipts (shares in millions) Silver Standard, 18 % Institutions, 49% Management, 4% Retail, 29%
  28. 28. 28 CONTACT: Phone: 604-558-1784 Fax: 604-558-4784 Toll-free: 1-877-558-1784 HEAD OFFICE: Pretium Resources Inc. 570 Granville St. Suite 1600 Vancouver, BC Canada V6C 3P1 COMMON SHARES: TSX/NYSE:PVG Issued: 108.5 million Fully diluted: 118.8 million 52-week hi/low: $10.67/$2.83 Market cap: $832 million (at May 23, 2014) Advancing a major high-grade gold project in Canada 28