Pretivm corporate february 2013 jjo
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Pretivm corporate february 2013 jjo Presentation Transcript

  • 1. Corporate Presentation February 2013
  • 2. CAUTIONARY STATEMENT Forward Looking Information This Presentation contains ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information may include, but is not limited to, information with respect to the anticipated production and developments in our operations in future periods, our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral resources, realization of mineral resource estimates, costs and timing of development of the projects we currently intend to acquire (the “Projects”), costs and timing of future exploration, results of future exploration and drilling, 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’’ or ‘‘does not expect’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘anticipate’’ or ‘‘does not anticipate’’, ‘‘believe’’, ‘‘intend’’ and similar expressions or statements that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, have been used to identify forward-looking information. Statements concerning mineral 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 (often, but not always, using words or phrases such as ‘‘expects’’, ‘‘anticipates’’, ‘‘plans’’, ‘‘projects’’, ‘‘estimates’’, ‘‘assumes’’, ‘‘intends’’, ‘‘strategy’’, ‘‘goals’’, ‘‘objectives’’, ‘‘potential’’ or variations thereof, or stating that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, or the negative of any of these terms and similar expressions) 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. Many of these risks are listed and described in our final short-form prospectus dated March 19, 2012 (the “Prospectus”), which is available for review on SEDAR at www.sedar.com under our profile. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Forward-looking information involves statements about the future and is inherently uncertain, and our actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Prospectus under the heading ‘‘Risk Factors’’. Our forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made, and 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”) “Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project” dated February 20, 2012 “Mineral Resources Update Technical Report” dated April 3, 2012, “Mineral Resources Update Technical Report” dated September 18, 2012 and “Mineral Resources Update Technical Report” dated November 20, 2012. We have filed the Reports under our profile at www.sedar.com. Technical and scientific information not contained within the Reports for the Projects have been prepared under the supervision of Mr. Kenneth C. McNaughton, 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 $. 2
  • 3. An investment in GoldHigh-grade gold resource of significant size: Valley of the Kings 8.5 M oz gold Indicated (16.1 Mt @ 16.4 g/t gold) 2.9 M oz gold Inferred (5.4 Mt @ 17.0 g/t gold)Located in British Columbia, CanadaUnderground feasibility study Q2 2013Commercial production target early 2016 3
  • 4. HIGH-GRADE GOLD WITH SIZE 18.0 Indicated Gold: Valley of the 8.5 mm oz @ 16.4 g/t Au 16.0 Kings Inferred Gold: F2 Deposit 2.9 mm oz @ 17.0 g/t Au Kirkland Lake Mine (Rubicon) 14.0 (Kirkland Lake) Pogo Mine Red Lake Mine 12.0 (Sumitomo) (Goldcorp) Buritica 10.0 (Continental) Eleonore Kensington Mine (Goldcorp) 8.0 (Coeur) Cerro Negro El Penon Mine (Goldcorp) 6.0 (Yamana) 4.0 Cerro Moro (Yamana) Casa Berardi (Aurizon) 2.0 0.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 M&I + Inferred Gold Resources (mm oz)November 2012 Valley of the Kings High-Grade Gold Mineral Resource based on a cut-off grade of 5.0 grams of gold-equivalent/tonne.Data sources: Intierra Ltd., NRH. 4
  • 5. BRUCEJACK PROJECT LOCATION 5
  • 6. BRUCEJACK HIGH-GRADE RESOURCE Gossan Hill Shore Zone West Zone Valley of the Kings Mineral Resource Estimate – M&I gold: November 2012(1,4,5) 0.9 mil oz @5.85 g/t Inferred gold: (Based on a cut-off grade of 5.0 grams of gold-equivalent/tonne) 0.8 mil oz @6.44 g/t Contained(3) Category Tonnes Gold Silver Gold Silver (mil) (g/t) (g/t) (mil oz) (mil oz) Indicated 16.1 16.4 14.2 8.5 7.3 Inferred(2) 5.4 17.0 15.7 2.9 2.7 Valley of the Kings (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 Bridge Zone prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council. N (2) The quantity and grade of reported Inferred resources in this estimation are uncertain in Key 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 0.5-5.0 g/t AuEq upgrading them to an Indicated or Measured Mineral Resource category. (3) Contained metal may differ due to rounding. 5.0-15.0 g/t AuEq (4) The Mineral Resource estimate is defined using 5 m by 5 by 5 m blocks in the well drilled 500 m portion of West Zone (5 m by 10 m drilling or better) and 10 m by 10 m by 10 m blocks in the >15.0 g/t AuEq remainder of West Zone and in Valley of the Kings. (5) The gold equivalent value is defined as AuEq=Au + Ag/53 6
  • 7. VALLEY OF THE KINGSValley of the Kings – Isometric view of main mineralization corridor 200 m Brucejack Fault 7
  • 8. HIGH-GRADE CORRIDORSValley of the Kings Drill Hole Trace Bar Graphs – 426630E Section View Bulk sample and ramp Mineralization Corridor 8
  • 9. VALLEY OF THE KINGS INDICATED RESOURCE Valley of the Kings Indicated Gold Resource: 8.5 million oz (16.1 Mt @ 16.4 g/t gold) 9
  • 10. INDICATED GOLD RESOURCE CONTINUITY Indicated Gold Valley of the Kings indicated resource blocks - 100 m thick slice along 6257950 NBench (m) (Oz) W E1540-1570 116,3001510-1540 499,7001480-1510 734,8001450-1480 510,4001420-1450 365,4501390-1420 566,7001360-1390 631,7001330-1360 364,8001300-1330 527,4001270-1300 992,0001240-1270 998,2001210-1240 521,9501180-1210 213,0501150-1180 246,8001120-1150 294,600 AuEq (g/t)1090-1120 393,900 5-101060-1090 317,600 10-20 20-60 >60
  • 11. CONTINUITY: HIGH GRADE BLOCKSValley of the Kings block model plan view - 1300m level (+/- 25m) 100 m 11
  • 12. CONTINUITY: HIGH GRADE BLOCKSValley of the Kings block model plan view - 1275m level (+/- 25m) 100 m 12
  • 13. CONTINUITY: HIGH GRADE BLOCKSValley of the Kings block model plan view - 1250m level (+/- 25m) 100 m 13
  • 14. CONTINUITY: HIGH GRADE BLOCKSValley of the Kings block model – 426500E section view West (+/- 50m) Indicated and Inferred blocks greater than 5 g/t AuEq 14
  • 15. CONTINUITY: HIGH GRADE BLOCKSValley of the Kings block model – 426550E section view West (+/- 50m) Indicated and Inferred blocks greater than 5 g/t AuEq 15
  • 16. CONTINUITY: HIGH GRADE BLOCKSValley of the Kings block model – 426600E section view West (+/- 50m) Indicated and Inferred blocks greater than 5 g/t AuEq 16
  • 17. BULK SAMPLE 10,000-tonne bulk sample from Valley of the Kings planned (Q2/Q3) 5 X 5 meter slashing of existing West Zone workings completed Turned towards Valley of the Junction of 1314 re-muck (l) and Valley of the Kings ramp (r) Kings, with over 150 meters completed as of January EXISTING DEVELOPMENT WEST ZONE Total ramp planned is 541 meters in length
  • 18. BULK SAMPLE LOCATION Siltstone, litharenite, pebble conglomerate Polylithic Conglomerate 60° Intensely Silicified Conglomerate Fragmental Volcanic RocksHbl-phyricLatite Flow Key (g/t AuEq) 5-10 N 10-20 20-60 >60 Only Indicated and Inferred blocks greater than 5 g/t AuEq shown 18
  • 19. BULK SAMPLE: SAMPLING & PROCESSING Strathcona Mineral Services to oversee sampling Sample tower located on site (Q2) Remainder of sample to be processed to produce gold (H2) Source: Strathcona Mineral Services Limited, Meladine Project 19
  • 20. 2013 PLANS H1 2013 Channel sample the ramp from West Zone to Valley of the Kings Complete ramp from West Zone to Valley of the Kings Underground sampling/drilling Valley of the Kings Drill results 10,000-tonne underground bulk sample from Valley of the Kings Sample Tower H2 2013 (post bulk sample) Process bulk sample Valley of the Kings expansion drilling 20
  • 21. PROPOSED MINE DEVELOPMENTOblique View of Mining Stopes, Valley of the Kings N S 100 m 21
  • 22. MINING METHODLong hole stoping mining method: High-grade visible gold stringers within a lower grade (5g/t to 20g/t) gold quartz stockwork Steeply dipping ore body Competent ground conditions Stope widths (15m wide X 30m high) appropriate both for transverse and longitudinal layouts Cost effective 22 First 50 meters of Valley of the Kings ramp
  • 23. MINE AND MILL SITE LAYOUT Flowsheet Summary: Crushing Grinding Gravity Concentrate Circuit Doré (50%-60%) Flotation Concentrate Circuit Off-take (40%-50%) 23
  • 24. BRUCEJACK PROJECT ECONOMICS Feasibility Study (expected Q2): February 2012 Preliminary Economic Assessment Results(1,2) : Processing rate increased Processing rate 1,500 tpd 2,700 tonnes per day Mine life 24 years Total gold production 6.9 million oz Mill facilities streamlined Average annual gold 325,000 ounces Flotation concentrate to be sold to production (Yrs 1-12) 3rd parties rather than refined on Capex US$436.3 million site Total operating costs C$170.90/t milled Capex and Opex savings, reduced Internal Rate of 29.8% project footprint Return Net Present Value US$2.262 billion Metallurgy continues to be positive (5% discount) (1) Source: Technical Report and Updated Preliminary Economic Assessment of Feasibility metallurgical studies (2) the Brucejack Project, effective date February 20, 2012 Base case metals prices of US$1,100 /oz gold and US$21/oz silver confirm gold recoveries over 95% PEA is based on Mineral Resource estimates for the Valley of the Kings and West Zone effective November 28, 2011 which are now out-of-date. 24
  • 25. BRUCEJACK PERMITTING Brucejack Lake is not fish habitat Waste rock from 1980’s/1990’s underground development was deposited in Brucejack Lake as part of 1999 reclamation More than 50% of tailings (targeting 60%) to be used for paste backfill and deposited underground, with remainder of tailings to be deposited in bottom 30 meters of Brucejack Lake Mine Development Permitted for exploration Certificate issued Reclamation Completion and exploration roadReclamation Permit April 15, 1993 (Silver Standard) (Pretivm) (MX-1-86) (MDC 92-06) (MEND 9.1c) (MX-1-832), (MX-1-842) 1986 1993 1999 2011-2012 1989 1998 2006 2013 Approval in Project Assessment Project Assessment Project Description under principle for Certificate Certificate allowed to review for underground development of a (PAC 98-03) expire (Silver Standard) mine at Brucejack’s Valley mine at West Zone (PAC M98-03) of the Kings 25
  • 26. COMMUNITY ENGAGEMENT Pretivm’s management team has been cooperatively engaging with First Nations and local community leaders in the Stewart, BC region for over 10 years We work to ensure that our communication about the progress of the Brucejack Project is open and continuous Commercial relationships with local First Nations developed during the exploration phase at Brucejack have been mutually successful We will continue to extend both commercial contract and employment opportunities to locals whenever possible Stewart warehouse constructed by development corporation of Skii km Lax Ha First Nation 26
  • 27. PLANS FORWARD TO PRODUCTION Key milestones • Completed additional drilling in Valley of the Kings • Initiated feasibility study • Initiated exploration decline from West Zone historic workings to • Anticipate EAC Valley of the Kings issue • Filed Project Description • Underground• Property acquired by • Completed exploration access road development • Commercial production Pretivm to Highway 37 • Begin construction target H2 2010 2012 2014 2016 2011 2013 2015 • First resource estimate • Complete feasibility study • Construction • Aggressive drill • Complete exploration decline for • Begin commissioning program in Valley of the underground test sample from • Ramp-up Kings Valley of the Kings • Extract test sample from Valley of the Kings (10,000 tonnes) • Basic and detailed engineering • Submit Environmental Assessment Certificate (EAC) application 27
  • 28. PRETIVM MANAGEMENT Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc. Kevin Torpy, B.Sc. President & Chief Executive Officer, Director, Mine Engineering Director Joseph Ovsenek, B.A. Sc., P.Eng., LLB Max Holtby, B.Sc., P. Geo. Vice President & Chief Development Officer, Director, Permitting Director Ken McNaughton, M.A. Sc., P.Eng. Michelle Romero, B.A., M.L.S. Vice President & Chief Exploration Officer Director, Corporate Relations Ian I Chang, M.A. Sc., P.Eng. Andrew Saltis, I.Eng. Vice President, Project Development Site Project Manager, Mine Manager Warwick Board, Ph.D., P.Geo. Peter de Visser, CA Chief Geologist Chief Financial Officer 28
  • 29. SHAREHOLDING & ANALYST COVERAGE Top Shareholders(2) (shares in millions) Silver Silver Standard Resources 18.986 Standard, 20% Royce & Associates 10.689 Institutions, Passport Capital 3.966 Management, 50% Fidelity Management 3.739 5% Connor, Clark & Lunn 2.996 Retail, 23% Robert Quartermain 2.853 Norges Bank Investment 2.410 Carmignac Gestion 1.898 Sprott Asset Management 1.581Capital Structure(1) (shares in millions) Analyst CoveragePublic Float 75.8 CIBC Jeff KilleenSilver Standard Shares 19.0 Citibank Alex HackingTotal Issued & Outstanding Shares 94.8 Cormark Securities Richard GrayIncentive Options 8.5 Dahlman Rose Adam GrafTotal Fully Diluted Shares 103.3 GMP Securities Craig West RBC Dan RollinsMarket Capitalization C$1.3 billion Salman Partners Ash Guglani Scotiabank Ovais HabibWorking Capital (at Sept. 30, 2012) C$59.8 million UBS TBD Very Independent Research John Tumazos(1)As of January 22, 2013; ownership calculated on an undiluted basis. 29(2)As of January 22, 2013. Source: IPREO, SEDI
  • 30. HIGH-GRADE GOLD WITH SIZE 18.0 Indicated Gold: Valley of the 8.5 mm oz @ 16.4 g/t Au 16.0 Kings Inferred Gold: F2 Deposit 2.9 mm oz @ 17.0 g/t Au Kirkland Lake Mine (Rubicon) 14.0 (Kirkland Lake) Pogo Mine Red Lake Mine 12.0 (Sumitomo) (Goldcorp) Buritica 10.0 (Continental) Eleonore Kensington Mine (Goldcorp) 8.0 (Coeur) Cerro Negro El Penon Mine (Goldcorp) 6.0 (Yamana) 4.0 Cerro Moro (Yamana) Casa Berardi (Aurizon) 2.0 0.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 M&I + Inferred Gold Resources (mm oz)November 2012 Valley of the Kings High-Grade Gold Mineral Resource based on a cut-off grade of 5.0 grams of gold-equivalent/tonne.Data sources: Intierra Ltd., NRH. 30
  • 31. Advancing a major high-grade gold resource in CanadaCONTACT HEAD OFFICE COMMON SHARESPhone: 604-558-1784 Pretium Resources Inc. TSX/NYSE:PVGFax: 604-558-4784 570 Granville St. Issued: 94.8 millionToll-free: 1-877-558-1784 Suite 1600 Fully diluted: 103.3 millioninvest@pretivm.com Vancouver, BC 52-week hi/low: $18.15/$10.94www.pretivm.com Canada V6C 3P1 Market cap: $1.2 billion