Brucejack Project – Technical Session
February 2014
CAUTIONARY STATEMENT
Forward Looking Information
This Presentation contains “forward-looking information” and “forward loo...
TODAY’S PRESENTERS
Ivor Jones
BSc (Hons), Macquarie University;
MSc University of Queensland;
FAusIMM (CP)

Executive Cons...
TODAY’S PRESENTERS
Warwick Board, Ph.D., P.Geo, MAusIMM, Pr.Sci.Nat.
Chief Geologist
Dr. Board has over 17 years of global...
Agenda
 Brucejack’s geology as it relates to resource estimation (Board)
 Resource estimation and nuggety gold deposits ...
BRUCEJACK GEOLOGY – OVERVIEW

 Intermediate sulfidation epithermal gold-silver deposit
― Stockwork vein-hosted system
― A...
BRUCEJACK GEOLOGY - STRUCTURE
S

N

Valley of the
Kings

West Zone

Fragmental
Volcanic Rocks

Plag.-Kfs.-Phyric
Latite Fl...
CONFIRMATION OF GEOLOGICAL MODEL


Modelled lithologies and contacts



Corridors of stockwork mineralization



Folded...
BULK SAMPLE AREA - GEOLOGY

Cleopatra is considered part
of the stockwork system

9
DEFORMED STOCKWORK MINERALIZATION

10
BULK SAMPLE AREA – DEFORMED VEINS

11
Snowden Mining Industry Consultants
 A leading service provider founded in 1987

 Offices in Perth, Brisbane, Johannesbu...
Common estimation methods
 Linear techniques
― Inverse Distance methods (Power 0, 1, 2, 3)
― Ordinary Kriging (OK)
 Othe...
Selecting an estimation technique
based on grade data population

no skew

positive skew

negative skew

mixed

Ordinary k...
Indicator Kriging
 Indicator Kriging is a common technique
— Originated out of Stanford University (Journel, 1983)
— Non-...
Where has MIK been used for operating
mines?
Deposit

Company

Country

Date(1)

Mine Type

Porgera deposit

Barrick Gold ...
Indicator Kriging
 Indicator data transform
original

1.3

select
indicator

0
0
0

8.1

data

0

2.8

2.2

0

2.8

8.1

...
Indicator Kriging
 Selecting indicator thresholds

log histogram

log probability plot
18
Indicator Kriging
 Indicator data transform
original
0.5

0.7

0.5

2.8

0.95
1.9
3.2

1.3

8.1

data

2.2

select indica...
Indicator Kriging
 Indicator statistics
2.8

1.6

0.7

1.3

8.1

data

median

0 to 0.95

0.63

0.70

0.95 to 1.9

1.45

...
Indicator Kriging
 Estimated probabilities
1.00 -

Ave grade =

probability (%)

0.87 -

0.4 * 0.63
+
0.23 * 1.45
+
0.24 ...
Valley of the Kings - High-grade
mineralisation is consistent
Coarse gold mineralisation at
Valley of the Kings

Visible gold mineralisation

Drill hole

23
23
Valley of the Kings data
Summary statistics of 1.5m composited data for mineralized domains – VOK

Statistic
Samples
Minim...
Estimation methodology – Valley
of the Kings
Steps:
1. Define low grade / high grade definition limit
2. Separate the lowe...
Steps 1,2: Summary statistics –
VOK

High grade
population

Low grade
population

26
Step 3: Low grade population –
VOK

27
Step 4: High grade population –
VOK
Indicator thresholds for MIK
Percentile

Cut-off grade
Au (g/t)

Ag (g/t)

10

5.75

5...
Step 4,5: High grade proportion –
VOK

29
Step 4,5: High grade population –
VOK

30
Step 6: Final grade estimate

Low grade population estimate * Probability of block being low grade
+
High grade population...
Step 6: Combined model – VOK

32
Step 7: Model validation – visual
review
December 2013 Mineral Resource - oblique view

33
Step 7: Model validation - statistical
December 2013 Mineral Resource estimate – data validation

Mineralized domain
Gold ...
BULK SAMPLE AREA – DENSE DRILLING

35
IMPACT OF DRILLING DIRECTION

25 m
Au (g/t)
<0.5
0.5-1.0
1.0-5.0
5.0-20.0
>20.0

N

36
MILL VS. TOWER – 426585E EXAMPLE
Figure 9.7 from Mineral Resources Update Technical Report 19 December 2013
14.00
Min
Max
...
MILL VS. TOWER – 426585E EXAMPLE
14.00

Min
Max

10.00

Calculated mill feed grade

8.00
6.00
4.00
2.00
0.00
5 6 7 8 9 10 ...
BULK SAMPLE – MILL & MODEL RESULTS
Table 14.10 December 2013 Mineral Resource versus November 2012 Mineral Resource and Mi...
BULK SAMPLE – OK, ID VERSUS MILL(1)
Table 14.12 Ordinary kriging and inverse distance weighted estimated versus Mill resul...
KEY POINTS – BULK SAMPLE OUTCOMES

 Confirmed the geological model
 The results of mapping in the bulk sample area were
...
Changes between 2012 & 2013 –
Fine tuning the estimation parameters
Use of bulk sample results to fine tune estimation par...
December 2013 Mineral Resource
classification
Section showing December 2013 Mineral Resource blocks colour-coded by Classi...
December 2013 Mineral Resource
classification - Measured
S

N

Indicated

Measured
~10m

Detail of section
showing
Decembe...
December 2013
Mineral Resource(1,4,5,6)
 Valley of the Kings - Mineral Resource >5g/t AuEq

(1) Mineral Resources which a...
December 2013
Mineral Resource(1,4,5,6)
 West Zone Mineral Resource >5g/t AuEq
(3)

Category

Tonnes
(millions)

Gold
(g/...
Comparison of November 2012
and December 2013 Mineral
Resource estimates – VOK(1)

Tonnes
(millions)
Nov-12

Grade
Gold
Si...
Key Points – December 2013
Mineral Resource estimate
 Confirms global robustness of November 2012 estimate – little chang...
WHY LONGHOLE STOPING AT BRUCEJACK?

Longhole Open Stoping (LHOS) selected at
Brucejack because:
 Vein stockwork conducive...
PLAN VIEW: 2013 UG DRILLING
N

Polylithic
Conglomerate

Fragmental
Volcanic Rocks

Key (g/t Au)
Assay intervals

2.5-5.0
5...
OTHER REASONS LHOS IS SUITABLE
 Stable rock in ore, hangingwall, and footwall
 Adaptable to a variety of stope widths
 ...
EXAMPLES OF LHOS MINES WORLD WIDE (1)
 Goldex, Agnico Eagle, Quebec
 LaRonde, Agnico Eagle, Quebec
 Red Lake, Goldcorp,...
LIFE OF MINE PLAN
Valley of the Kings

Infrastructure Area

West Zone

Portals

Oblique view facing west

53
VALLEY OF THE KINGS LONG SECTION
View Facing South

Stope Blocks
Footwall Level Drives

Ramp

54
LONG HOLE STOPING TERMINOLOGY
 Primary stopes bounded
by rock on both sides
 Secondary stopes
bounded by backfill on
one...
TOP CUT CENTER DRIVE
 The mucking level was
previously established
during the excavation of
the previous stope
 A drift ...
CENTER DRIVE CABLE BOLTING
 The center of the stope is
supported using cable
bolts in ordered to
provide a stable span
af...
SLASHING COMPLETE
 Full width slashing
allows for parallel
drilling rather than ring
drilling
 Parallel drilling
provide...
SLOT RAISE DRILLING
 Because the stope is
confined by rock on all
sides, an opening must be
excavated to allow rock
movem...
SLOT DRILLING
 Once the slot raise is
complete, the slot is
drilled off
 The drilling is
completed using a long
hole dri...
PRODUCTION BLASTING
 Once completed, the
more efficient
production blasting can
begin
 The production blasts
are shot in...
FILL BARRICADE CONSTRUCTED
 Once the stope is fully
mucked out, a fill barricaded
is constructed
 The barricade prevents...
BACKFILL PLACEMENT
High Strength
Plug

Main
Pour

High
Strength
Plug

 High strength mucking sill
pour provides a harder
...
MINING THE VALLEY OF THE KINGS(1)
 Primarily Transverse Longhole Open Stoping
with cemented paste backfill
 Longitudinal...
MINING: MINERAL RESERVES SUMMARY(1)
Ore
Tonnes
(Mt)
Valley
Proven
of the
Probable
15.1
Kings
Subtotal
15.1
Proven
2.0
West...
MILESTONES TO PRODUCTION
2013


Completed Feasibility Study (June)



Updated Resource Estimate (December)

H1 2014


F...
PERMITTING PROCESS


BC Environmental Assessment Office (EAO) manages it



Federal review coordinated by Federal Enviro...
THE NEXT SIX MONTHS:
Q1 2014


File 43-101 Technical Report for
December 2013 Mineral Resource
estimate update



Proces...
Q&A

69
Appendix

70
APPENDIX: BRUCEJACK LOCATION

Red Chris

Mt Milligan

220km
Terrace

71
APPENDIX: 2013 BULK SAMPLE
N

S

100 m

200 m

300 m

400 m

500 m

Valley of the Kings
Bulk Sample

546 m
200 m
West Zone...
APPENDIX: BULK SAMPLE - PLANNED

73
APPENDIX: BULK SAMPLE - MINED

74
APPENDIX: BULK SAMPLE AREA - GEOLOGY

75
APPENDIX: CLEOPATRA STRUCTURE
 The Cleopatra structure is considered as being part of the broader
stockwork mineralizatio...
APPENDIX: BRUCEJACK ECONOMICS

June 2013 Feasibility Study Highlights(1,2,4) :
Processing rate

2,700 tonnes per day

Mine...
Advancing a major high-grade gold project in Canada
CONTACT

HEAD OFFICE

Phone: 604-558-1784
Fax: 604-558-4784
Toll-free:...
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Technical session presentation toronto

  1. 1. Brucejack Project – Technical Session February 2014
  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 18, 2013 filed on SEDAR at www.sedar.com and in the United States on Form 40-F through EDGAR at the SEC’s website at www.sec.gov. 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 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, 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 $. 2
  3. 3. TODAY’S PRESENTERS Ivor Jones BSc (Hons), Macquarie University; MSc University of Queensland; FAusIMM (CP) Executive Consultant, Snowden Mining Industry Consultants Mr Jones has more than 25 years experience in the mining industry. Since graduating in 1984, he has worked in mining (gold, copper, nickel), exploration and resource evaluation (gold, including coarse gold, silver, PGEs, copper, iron ore, REEs and nickel and other commodities). Companies include BHP Engineering, WMC Resources Ltd and Anvil Mining Limited (and juniors). Since first joining Snowden in April 2001, Mr Jones has consulted in mineral resource projects globally, and has specialist skills in project management, evaluation and review, geostatistics, resource evaluation, extensional exploration, grade control and reconciliation studies. 3
  4. 4. TODAY’S PRESENTERS Warwick Board, Ph.D., P.Geo, MAusIMM, Pr.Sci.Nat. Chief Geologist Dr. Board has over 17 years of global experience as a professional geologist. He was most recently Senior Resource Geologist at Silver Standard Resources Inc., where he was involved with the structural assessment and initial non-linear resource modeling of the high grade gold mineralization at the Brucejack Deposit. Prior to Silver Standard, he was Principal Consultant at Snowden Mining Industry Consultants Inc. Dr. Board holds Bachelor of Science (Honours), Master of Science, and Doctor of Philosophy degrees in geology from the University of Cape Town, South Africa, as well as a Citation in Applied Geostatistics from the University of Alberta. Dr. Board is a registered professional geoscientist with the Association of Professional Engineers and Geoscientists of British Columbia, a member of the Australasian Institute of Mining and Metallurgy, and a registered professional with the South African Council for Natural Scientific Professions. Kevin Torpy Director, Mine Engineering Mr. Torpy has over 17 years of experience developing underground mines in remotes areas. Mr. Torpy manages both the mining portion of the Brucejack Feasibility Study and the Operations group at Brucejack. Mr. Torpy was previously Project Mine Engineer with Silver Standard Resources where he managed the mining portion of various studies for projects in Mexico and South America. As Chief Mine Engineer Coeur d’ Alene Mines’ Kensington Project Mr. Torpy managed the detailed engineering and site operations for the underground development program during construction of the mine. As Operations Engineer at Teckcominco’s Pogo Mine, he helped to manage the operation of a remote camp and underground development program and work on the feasibility study. He has also been Project Engineer for JS Redpath during a shaft excavation project in Wyoming. He holds a Bachelor of Science degree from Montana Tech. 4
  5. 5. Agenda  Brucejack’s geology as it relates to resource estimation (Board)  Resource estimation and nuggety gold deposits (Jones)  Multiple Indicator Kriging (MIK) (Jones)  Valley of the Kings resource estimation (Jones)  2013 Bulk Sample Outcomes (Board)  December 2013 Resource estimate (Jones)  Mining the Valley of the Kings (Torpy)  Next steps, Q&A 5
  6. 6. BRUCEJACK GEOLOGY – OVERVIEW  Intermediate sulfidation epithermal gold-silver deposit ― Stockwork vein-hosted system ― Active island arc ― Alkaline porphyry associated  Key age dates ― 198-180 Myr ago – Host rock sequence formation ― 191-184 Myr ago – Mineralization ― ~110 Myr ago - Deformation Myr = Million Years 6
  7. 7. BRUCEJACK GEOLOGY - STRUCTURE S N Valley of the Kings West Zone Fragmental Volcanic Rocks Plag.-Kfs.-Phyric Latite Flow Polylithic Conglomerate 200 m Intensely Silicified Conglomerate Siltstone, litharenite, pebble conglomerate Mineralized Corridors Hbl-phyric Latite Flow 7
  8. 8. CONFIRMATION OF GEOLOGICAL MODEL  Modelled lithologies and contacts  Corridors of stockwork mineralization  Folded stratigraphy East Raise – 615 Lateral 426555E Round 7W  Multiple overprinting vein generations  East-West part of system East-West part of system Visible electrum ― Stockwork association ― Alteration association ― Spatial distribution – resource blocks  Continuity ― Along strike ― Across strike ― Vertical  Post-mineral deformation Cleo North Raise 426660E West Wall East-West part of system North-South part of system ― Folds, thrust faults, wrench faults ― Late veins 8
  9. 9. BULK SAMPLE AREA - GEOLOGY Cleopatra is considered part of the stockwork system 9
  10. 10. DEFORMED STOCKWORK MINERALIZATION 10
  11. 11. BULK SAMPLE AREA – DEFORMED VEINS 11
  12. 12. Snowden Mining Industry Consultants  A leading service provider founded in 1987  Offices in Perth, Brisbane, Johannesburg, Vancouver, Calgary, London, Belo Horizonte  Services focused on mining related activities: – Resource evaluation – Mining engineering – Geotechnical engineering – Corporate services – Mining /geology related software 12
  13. 13. Common estimation methods  Linear techniques ― Inverse Distance methods (Power 0, 1, 2, 3) ― Ordinary Kriging (OK)  Other techniques ― Indicator Kriging (including MIK and Med IK) - a nonparametric method ― Uniform Conditioning (mathematical manipulation of OK estimates) 13
  14. 14. Selecting an estimation technique based on grade data population no skew positive skew negative skew mixed Ordinary kriging Indicator kriging Indicator kriging Indicator kriging Indicator kriging if spatially integrated 14
  15. 15. Indicator Kriging  Indicator Kriging is a common technique — Originated out of Stanford University (Journel, 1983) — Non-parametric — Not a linear technique — Suitable for skewed and mixed statistical datasets  As in all resource estimation methods, it can be applied poorly – care is required  The definition of geological domains is still important 15
  16. 16. Where has MIK been used for operating mines? Deposit Company Country Date(1) Mine Type Porgera deposit Barrick Gold Corp. Papua N.G. December 2011 Underground to Open Pit Cadia Hill Newcrest Mining Ltd. Australia February 2013 Open Pit Telfer – Main Dome Newcrest Mining Ltd. Australia February 2013 Open Pit Telfer – West Dome Newcrest Mining Ltd. Australia February 2013 Open Pit Telfer – VSC Newcrest Mining Ltd. Australia February 2013 Underground Bonikro Newcrest Mining Ltd. Ivory Coast February 2013 Open Pit Wafi Newcrest Mining Ltd. Papua N.G. February 2013 Open Pit Peak Gold Mines New Gold Inc. Australia January 2009 Underground Tiriganiaq (Meliadine) Comaplex Minerals Corp. Canada February 2010 Underground McKinnons Gold Deposit Burdekin Resources Ltd. Australia 1995 Open Pit Agbaou Gold Project Endeavour Mining Corp. Ivory Coast May 2012 Open Pit Blagodatnoye Gold Deposit ZAO Polyus Russian Fed. November 2008 Open Pit Ban Houayxai PanAust Ltd. Laos December 2012 Open Pit Note: non-inclusive list (1) Effective date of Mineral Resource as of most recent technical report 16
  17. 17. Indicator Kriging  Indicator data transform original 1.3 select indicator 0 0 0 8.1 data 0 2.8 2.2 0 2.8 8.1 1.3 2.8 0.95 threshold 1 2.2 0.5 1 1.6 0.7 0.7 1 0.7 1.6 0.5 0.7 2.8 0.95 threshold 0 Proportion = 3/9 = 0.33 Grade below = 0.63 Grade above = 3.13 Ave grade = 2.3 0.33*0.63 +(1-0.33)*3.13 indicator transform 17
  18. 18. Indicator Kriging  Selecting indicator thresholds log histogram log probability plot 18
  19. 19. Indicator Kriging  Indicator data transform original 0.5 0.7 0.5 2.8 0.95 1.9 3.2 1.3 8.1 data 2.2 select indicators 1 1 1 1 1 0.7 1 1 1 1.3 0 1 1 1.6 0 1 1 2.2 0 0 1 0 0 1 0 0 1 8.1 indicator 1 2.8 0.7 3.2 2.8 1.6 1.9 0.7 2.8 0.95 0 0 0 Indicator transform 19
  20. 20. Indicator Kriging  Indicator statistics 2.8 1.6 0.7 1.3 8.1 data median 0 to 0.95 0.63 0.70 0.95 to 1.9 1.45 1.45 3.2 1.9 to 3.2 2.60 2.80 > 3.2 2.8 mean 1.9 0.5 interval 0.95 0.7 indicator 8.10 8.10 2.2 select indicators inter-percentile statistics 20
  21. 21. Indicator Kriging  Estimated probabilities 1.00 - Ave grade = probability (%) 0.87 - 0.4 * 0.63 + 0.23 * 1.45 + 0.24 * 2.60 + 0.13 * 8.10 0.63 - 0.40 - 0.00 | | 0.00 • | 0.95 1.90 | | = 2.26 3.20 maximum Grade Indicator kriged estimate = sum of (sample value x probability) 21
  22. 22. Valley of the Kings - High-grade mineralisation is consistent
  23. 23. Coarse gold mineralisation at Valley of the Kings Visible gold mineralisation Drill hole 23 23
  24. 24. Valley of the Kings data Summary statistics of 1.5m composited data for mineralized domains – VOK Statistic Samples Minimum Maximum Mean Standard deviation CV Variance Gold g/t Silver g/t 79,699 79,699 0.00 0.25 16,552 9,383 2.57 8.59 69.54 41.94 27.03 4.88 4,836 1,759 24
  25. 25. Estimation methodology – Valley of the Kings Steps: 1. Define low grade / high grade definition limit 2. Separate the lower grade ‘background’ population from the higher grade population 3. Estimate grade of lower grade component using ordinary kriging 4. Estimate grade of higher grade component using multiple indicator kriging (MIK) 5. Estimate proportion of high grade component using indicator kriging 6. Recombine low grade and high grade estimates using estimated proportions 7. Grade estimate validation and classification 8. Grade tabulation 25
  26. 26. Steps 1,2: Summary statistics – VOK High grade population Low grade population 26
  27. 27. Step 3: Low grade population – VOK 27
  28. 28. Step 4: High grade population – VOK Indicator thresholds for MIK Percentile Cut-off grade Au (g/t) Ag (g/t) 10 5.75 55.51 20 6.813 60.79 30 8.191 67.3 40 10.58 76.37 50 14.05 89.81 60 20.12 109.1 70 34.31 137.9 80 72.54 190 90 211.4 317 95 503 549.6 28
  29. 29. Step 4,5: High grade proportion – VOK 29
  30. 30. Step 4,5: High grade population – VOK 30
  31. 31. Step 6: Final grade estimate Low grade population estimate * Probability of block being low grade + High grade population estimate * Probability of block being high grade 31
  32. 32. Step 6: Combined model – VOK 32
  33. 33. Step 7: Model validation – visual review December 2013 Mineral Resource - oblique view 33
  34. 34. Step 7: Model validation - statistical December 2013 Mineral Resource estimate – data validation Mineralized domain Gold (g/t) Number of samples Composite mean Estimated mean Silver (g/t) 79,699 79,699 2.57 8.59 2.36 8.23 34
  35. 35. BULK SAMPLE AREA – DENSE DRILLING 35
  36. 36. IMPACT OF DRILLING DIRECTION 25 m Au (g/t) <0.5 0.5-1.0 1.0-5.0 5.0-20.0 >20.0 N 36
  37. 37. MILL VS. TOWER – 426585E EXAMPLE Figure 9.7 from Mineral Resources Update Technical Report 19 December 2013 14.00 Min Max 12.00 Calculated mill feed grade Gold grade (g/t) 10.00 8.00 6.00 4.00 2.00 0.00 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Round number Tonnes Mill Sample tower *Based on dry tonnage from mill 2,167* Au (g/t) Oz. Au 4.03 281 2.08 145 37
  38. 38. MILL VS. TOWER – 426585E EXAMPLE 14.00 Min Max 10.00 Calculated mill feed grade 8.00 6.00 4.00 2.00 0.00 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Round number 426585 E Gold grade (g/t) 12.00 38
  39. 39. BULK SAMPLE – MILL & MODEL RESULTS Table 14.10 December 2013 Mineral Resource versus November 2012 Mineral Resource and Mill results by bulk sample crosscut(1) November 2012 Mineral Resource Mill Drive December 2013 Mineral Resource Tonnes Au (g/t) Au (oz) Tonnes Au (g/t) Au (oz) Tonnes Au (g/t) Au (oz) 426555E 1,416 4.41 201 1,491 4.89 234 1,481 3.97 189 426645E 1,875 2.28 137 1,959 5.64 355 1,987 3.26 208 426585E 2,169 4.02 280 2,231 12.12 869 2,269 2.35 171 426615E 2,878 39.35 3,642 3,089 18.88 1,876 3,127 15.74 1,582 615L 1,964 25.52 1,611 1,535 38.78 1,914 1,574 38.42 1,945 10,305 15.84 5,248 10,438 12.20 4,096 Final clean out Total 52.0 10,302 17.88 5,923  Direct comparisons at crosscut level are only guidelines: – Mineral Resource block size is 10 mE x 10 mN x 10 mRL (approximately 2,700 t per block) – Round size is 4 mE x 2.7 mN x 3.5 mRL (approximately 100 t per round) – Cannot assume grade homogeneity throughout block (1)From Mineral Resources Update Technical Report 19 December 2013 39
  40. 40. BULK SAMPLE – OK, ID VERSUS MILL(1) Table 14.12 Ordinary kriging and inverse distance weighted estimated versus Mill results by bulk sample drive – total gold ounces Model Mill ID1 ID2 ID3 OK December 2013 Mineral Resource 5,923 5,923 5,923 5,923 No top cut 8,313 8,541 8,351 6,932 2000 4,626 4,716 4,640 3,925 Top cut (Au g/t) 1500 3,931 4,007 3,963 3,440 700 2,755 2,807 2,811 2,582 85 837 826 810 790 4,096 Table 14.13 Ordinary kriging and inverse distance weighted estimated versus Mill results by bulk sample drive – grade details Model Mill ID1 ID2 ID3 OK December 2013 Mineral Resource 16.08 16.08 16.08 16.08 No top cut 28.78 29.57 28.91 24.00 2000 15.99 16.31 16.05 13.58 Top cut (Au g/t) 1500 13.59 13.85 13.70 11.90 700 9.51 9.69 9.71 8.92 85 2.86 2.82 2.77 2.71 12.20 (1)From Mineral Resources Update Technical Report 19 December 2013 40
  41. 41. KEY POINTS – BULK SAMPLE OUTCOMES  Confirmed the geological model  The results of mapping in the bulk sample area were consistent with the November 2012 Mineral Resource estimate  Facilitated parameter optimization for December 2013 Mineral Resource estimate  Increased confidence in the Valley of the Kings Mineral Resources 41
  42. 42. Changes between 2012 & 2013 – Fine tuning the estimation parameters Use of bulk sample results to fine tune estimation parameters  Testwork to look at different techniques and constraints  Refinement of search parameters for estimates  Reduction in smoothing (reblocking)  Additional drilling and bulk sample (including reconciliation) 42
  43. 43. December 2013 Mineral Resource classification Section showing December 2013 Mineral Resource blocks colour-coded by Classification S N Inferred Measured (see next slide) Indicated 43
  44. 44. December 2013 Mineral Resource classification - Measured S N Indicated Measured ~10m Detail of section showing December 2013 Mineral Resource blocks colourcoded by Classification 44
  45. 45. December 2013 Mineral Resource(1,4,5,6)  Valley of the Kings - Mineral Resource >5g/t AuEq (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 were reported 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 and tonnes figures in totals may differ due to rounding. (4) The Mineral Resource estimate stated in Table 14.25 and Table 14.26 is defined using 5 m by 5 by 5 m blocks in the well drilled portion of West Zone (5 m by 10 m drilling or better) and 10 m by 10 m by 10 m blocks in the remainder of West Zone and in VOK. (5) The gold equivalent value is defined as AuEq = Au + Ag/53. (6) Mineral Resource Update Technical Report 19 December 2013. 45
  46. 46. December 2013 Mineral Resource(1,4,5,6)  West Zone Mineral Resource >5g/t AuEq (3) Category Tonnes (millions) Gold (g/t) Silver (g/t) Measured 2.4 5.85 Indicated 2.5 M+I Inferred(2) Contained Gold (Moz) Silver (Moz) 347 0.5 26.8 5.86 190 0.5 15.1 4.9 5.85 267 0.9 41.9 4.0 6.44 82 0.8 10.6 (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 were reported 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 and tonnes figures in totals may differ due to rounding. (4) The Mineral Resource estimate stated in Table 14.25 and Table 14.26 is defined using 5 m by 5 by 5 m blocks in the well drilled portion of West Zone (5 m by 10 m drilling or better) and 10 m by 10 m by 10 m blocks in the remainder of West Zone and in VOK. (5) The gold equivalent value is defined as AuEq = Au + Ag/53. (6) Mineral Resource Estimate Update Technical Report 19 December 2013. 46
  47. 47. Comparison of November 2012 and December 2013 Mineral Resource estimates – VOK(1) Tonnes (millions) Nov-12 Grade Gold Silver (g/t) (g/t) Contained metal Gold Silver (Moz) (Moz) 16.4 14.1 8.5 7.3 5.4 17 15.7 2.9 2.7 Measured 2 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 (1) See notes slide 47 16.1 Inferred Dec-13 Indicated 5.9 25.6 20.6 4.9 3.9 47
  48. 48. Key Points – December 2013 Mineral Resource estimate  Confirms global robustness of November 2012 estimate – little changed ― M&I contained metal effectively the same ― More selective estimate (slightly higher grade for slightly less tonnes)  Conservative ― Drilling orientation under-sampling N-S structures ― Revised estimation parameters calibrated to production  Increased Confidence ― Reconciliation to production data ― Definition of Measured Mineral Resource ― Increased understanding of mineralization ― Confirmation of geological model 48
  49. 49. WHY LONGHOLE STOPING AT BRUCEJACK? Longhole Open Stoping (LHOS) selected at Brucejack because:  Vein stockwork conducive to bulk mining  Steeply dipping orebody  Extensive orebody  Probable reserves over: ― >550 m of vertical extent in VOK ― >450 m of strike length ― Inferred resource beyond those limits 49
  50. 50. PLAN VIEW: 2013 UG DRILLING N Polylithic Conglomerate Fragmental Volcanic Rocks Key (g/t Au) Assay intervals 2.5-5.0 5.0-20.0 >20 Silicified Conglomerate Legend Completed Underground Development Volcanic Sediment Volcanic Flows Completed Bulk Sample 50 m
  51. 51. OTHER REASONS LHOS IS SUITABLE  Stable rock in ore, hangingwall, and footwall  Adaptable to a variety of stope widths  Allows for scheduling flexibility due to multiple stopes on multiple horizons being available  Conventional mining method and equipment  High production rate provides lower operating costs  Backfill placement helps to maximize recovery of the reserve and reduce surface impacts 51
  52. 52. EXAMPLES OF LHOS MINES WORLD WIDE (1)  Goldex, Agnico Eagle, Quebec  LaRonde, Agnico Eagle, Quebec  Red Lake, Goldcorp, Ontario  Musselwhite, Goldcorp, Ontario  Casa Berardi, Hecla, Quebec  Kensington Mine, Coeur d’Alene Mines  Greens Creek Mine, Hecla, Alaska  Chukar Mine, Newmont, Nevada  Miekle, Barrick, Nevada  Cortez Hills, Barrick, Nevada  Tanami, Newmont, Northern Territory, Australia (1) Long hole stoping may not necessarily be the only method employed at these operations 52
  53. 53. LIFE OF MINE PLAN Valley of the Kings Infrastructure Area West Zone Portals Oblique view facing west 53
  54. 54. VALLEY OF THE KINGS LONG SECTION View Facing South Stope Blocks Footwall Level Drives Ramp 54
  55. 55. LONG HOLE STOPING TERMINOLOGY  Primary stopes bounded by rock on both sides  Secondary stopes bounded by backfill on one or both sides  30 m level spacing  Maximum of 45 m stope lengths  15 m widths 55
  56. 56. TOP CUT CENTER DRIVE  The mucking level was previously established during the excavation of the previous stope  A drift is driven across the center of the drift using a jumbo drill Two Boom Jumbo 56
  57. 57. CENTER DRIVE CABLE BOLTING  The center of the stope is supported using cable bolts in ordered to provide a stable span after the stope is fully excavated Cable Bolter 57
  58. 58. SLASHING COMPLETE  Full width slashing allows for parallel drilling rather than ring drilling  Parallel drilling provides cleaner walls which helps to control dilution and improve recovery 58
  59. 59. SLOT RAISE DRILLING  Because the stope is confined by rock on all sides, an opening must be excavated to allow rock movement and volume swell during the blasts  Accomplished by excavating a slot raise, then a full width slot  Several methods of accomplishing this Now viewing from the hanging wall 59
  60. 60. SLOT DRILLING  Once the slot raise is complete, the slot is drilled off  The drilling is completed using a long hole drill Long Hole Drills 60
  61. 61. PRODUCTION BLASTING  Once completed, the more efficient production blasting can begin  The production blasts are shot into the void created by the slot  Again, the ore is mucked from the lower level using remote control LHD’s 61
  62. 62. FILL BARRICADE CONSTRUCTED  Once the stope is fully mucked out, a fill barricaded is constructed  The barricade prevents backfill from running into the level before it has cured Viewing from the footwall 62
  63. 63. BACKFILL PLACEMENT High Strength Plug Main Pour High Strength Plug  High strength mucking sill pour provides a harder surface for mucking the next stope up  Reduces ore losses from LHD’s driving over ore  Reduces dilution from the LHD bucket digging up backfill 63
  64. 64. MINING THE VALLEY OF THE KINGS(1)  Primarily Transverse Longhole Open Stoping with cemented paste backfill  Longitudinal Longhole Open Stoping in some areas  Dilution Factors – Primary Stopes: 7% – Secondary Stopes: 15%  Mining Recovery Factors – Primary Stopes: 97.5% – Secondary Stopes: 92.5%  Avg. 12 stopes in the mining & backfill cycle at any time (1)See Feasibility Study and Technical Report on the Brucejack Project, Stewart, BC dated June 21, 2013 64
  65. 65. MINING: MINERAL RESERVES SUMMARY(1) Ore Tonnes (Mt) Valley Proven of the Probable 15.1 Kings Subtotal 15.1 Proven 2.0 West Zone Probable 1.8 Subtotal 3.8 Proven 2.0 Total Probable 17.0 Total 19.0 Grade Au g/t 13.6 13.6 5.7 5.8 5.8 5.7 12.8 12.0 Ag g/t 11.0 11.0 309.0 172.0 243.0 309.0 28.0 58.0 Contained Metal Au Ag Mil oz Mil oz g/t g/t 6.6 5.3 6.6 5.3 0.4 19.9 0.3 10.1 0.7 30.0 0.4 19.9 7.0 15.4 7.3 35.3 Mineral Reserve at $180/t NSR Cutoff Grade (1)See Feasibility Study and Technical Report on the Brucejack Project, Stewart, BC dated June 21, 2013. The June 2013 Feasibility Study will be amended using the December 2013 Valley of the Kings Mineral Resource estimate. 65
  66. 66. MILESTONES TO PRODUCTION 2013  Completed Feasibility Study (June)  Updated Resource Estimate (December) H1 2014  File Environmental Assessment Certificate Application  Amend Feasibility Study H2 2014/ 2015  Anticipate Environmental Assessment Certificate  Mine construction 2016  Commission, ramp-up, commercial production at Brucejack Gold Mine 66
  67. 67. PERMITTING PROCESS  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 Project Description Filed January 2013 Scope and Process for Review determined 1st Public Comment Period Application Submitted Five Open Houses in November 2013 Target submitting by March 31, 2014 Application evaluated for completeness Application review, 2nd Public Comment Period (30 days) Assessment Report Referral to Ministers (Review stage 180 days) Project Decision by Ministers (Decision 45 days) For more information on assessment process: www.eao.gov.bc.ca/ea_process.html 67
  68. 68. THE NEXT SIX MONTHS: Q1 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  Plan for excavation of additional 1,000 tonnes of high-grade ore  File Environmental Assessment Certificate application Q2 2014  Amend Feasibility Study  Plan underground exploration program  Potential production of additional 1,000 tonnes of high-grade ore 68
  69. 69. Q&A 69
  70. 70. Appendix 70
  71. 71. APPENDIX: BRUCEJACK LOCATION Red Chris Mt Milligan 220km Terrace 71
  72. 72. APPENDIX: 2013 BULK SAMPLE N S 100 m 200 m 300 m 400 m 500 m Valley of the Kings Bulk Sample 546 m 200 m West Zone Underground Development Key 0.5-5.0 g/t AuEq 5.0-15.0 g/t AuEq >15.0 g/t AuEq  10,000 tonne bulk sample from Valley of the Kings  Selection based on representative geology, mineralisation, drill spacing density, run of mine material and grade distribution of the November 2012 Indicated mineral resource  Successfully confirmed geological interpretation of the deposit to date 72
  73. 73. APPENDIX: BULK SAMPLE - PLANNED 73
  74. 74. APPENDIX: BULK SAMPLE - MINED 74
  75. 75. APPENDIX: BULK SAMPLE AREA - GEOLOGY 75
  76. 76. APPENDIX: CLEOPATRA STRUCTURE  The Cleopatra structure is considered as being part of the broader stockwork mineralization system: ― No obvious cross-cutting relationships ― Dominant E-W and subordinate N-S structures appear to merge ― No differences in style of mineralization, gangue mineralogy, and associated alteration between the E-W and N-S components of the stockwork system ― Similar abundance of dendritic electrum in both E-W and N-S structures ― Both E-W and N-S structures appear to have formed coevally – imprinted on rocks of Lower Jurassic age, cut by post-mineral dykes of Lower Jurassic age ― Both E-W and N-S structures display similar styles and degrees of deformation  The presence of N-S structures in the stockwork is not unexpected: ― Both the dominant E-W and subordinate N-S structures are present throughout the bulk sample area, as well as in surface outcrop  The Cleopatra structure is interpreted as one of probably a whole series of variably oriented higher fluid flow conduits in the overall stockwork system 76
  77. 77. APPENDIX: BRUCEJACK ECONOMICS 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) (1) (2) (3) (4) Source: Feasibility Study and Technical Report on the Brucejack Project, (Tetra Tech) dated June 21, 2013 Base case metals prices of US$1,350 /oz gold and US$20/oz silver Includes by-product cash costs, sustaining capital, exploration expense and reclamation cost accretion The June 2013 feasibility study is based on the November 2012 Mineral Resource estimate for the Brucejack Project and will be amended in 2014. 77
  78. 78. Advancing a major high-grade gold project in Canada CONTACT HEAD OFFICE Phone: 604-558-1784 Fax: 604-558-4784 Toll-free: 1-877-558-1784 invest@pretivm.com www.pretivm.com Pretium Resources Inc. 570 Granville St. Suite 1600 Vancouver, BC Canada V6C 3P1 COMMON SHARES TSX/NYSE:PVG Issued: 105 million Fully diluted: 114.8 million 52-week hi/low: $11.17/$2.83 Market cap: $656 million (at February 6, 2014)
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