Pretivm november 2011 web

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Pretivm november 2011 web

  1. 1. November 2011
  2. 2. DISCLAIMERForward Looking InformationThis 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-lookinginformation 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, theadequacy 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”), costsand 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, thecomposition 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, havebeen 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 themineralization 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 orfuture events or performance (often, but not always, using words or phrases such as ‘‘expects’’, ‘‘anticipates’’, ‘‘plans’’, ‘‘projects’’, ‘‘estimates’’, ‘‘assumes’’, ‘‘intends’’, ‘‘strategy’’, ‘‘goals’’, ‘‘objectives’’, ‘‘potential’’ orvariations 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 notstatements 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 orresults 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 April 4, 2011 (the “Prospectus”), which isavailable 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 futureevents 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 futureevents 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 theProspectus 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 anyobligation 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 investorsshould not place undue reliance on forward-looking information.National Instrument 43-101Technical and scientific information contained herein relating to the Projects is derived from National Instrument 43-101 (“NI 43-101”) compliant technical reports “Technical Report and Updated Resource Estimate onthe Snowfield Property” and “Technical Report and Updated Resource Estimate on the Brucejack Property” dated February 18, 2011, a preliminary economic assessment entitled ‘‘Technical Report and PreliminaryEconomic Assessment of the Snowfield Brucejack Project’’ dated October 28, 2010 (the “Preliminary Assessment”) and a preliminary economic assessment dated June 3, 2011 on the Brucejack Project and news releasedated November 28, 2011. We have filed the Technical Reports, Preliminary Assessment and news release under our profile at www.sedar.com. Technical and scientific information not contained within thePreliminary Assessment and Technical 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 maybe 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 intomineral 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 beupgraded 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 asdefined under NI43 101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.U.S. Securities Law DisclaimerOur securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States and, subject to certainexceptions, may not be offered or sold within the United States. Investors resident in the United States will be required to acknowledge that the securities are "restricted securities" within the meaning of Rule 144, andthat if in the future an investor decides to offer, resell, pledge or otherwise transfer any of the securities, it may do so only (a) to the Corporation; (b) outside the United States in accordance with Rule 904 of Regulation Sunder the Securities Act and in compliance with applicable Canadian and provincial laws and regulations; (c) within the United States in accordance with Rule 144, if available, and in compliance with any applicablestate securities laws of the United States; or (d) in another transaction that does not require registration under the Securities Act or any applicable state securities laws of the United States.Our securities have not been approved or disapproved by the United States Securities and Exchange Commission or by any state securities commission or regulatory authority, nor have any of the foregoing authoritiespassed on the accuracy or adequacy of any offering document provided in connection with the offering of these securities.CurrencyUnless otherwise indicated, all dollar values herein are in Canadian $. 1
  3. 3. WHY PRETIVM?Our exploration projects in British Columbia offer Brucejack: High-grade Gold Opportunity Catalyst for near-term production Brucejack: Bulk-tonnage Gold Opportunity Surrounding high-grade core zones Snowfield: Bulk-tonnage Gold Opportunity Long-term call option 2
  4. 4. BRUCEJACK AND SNOWFIELD PROJECTS 3
  5. 5. BRUCEJACK HIGH-GRADE: HISTORY  120,000 meters of drilling in 908 holes from 1980-1994  5.3 kilometers of underground development 1986-1990  Previously permitted for mine development in 1993 Underground development Mine Development Exploration resumes. Discovery ofExploration of West Zone – 5.3 meters. Certificate issued. Valley of the Kings Zone. 1960-1980 1986-1989 1993 2009-2010 1980-1985 1990 1999-2000 2011 West Zone discovery West Zone Feasibility Acquisition by Silver PEA on Brucejack high-grade. and definition study completed Standard Resources Inc. 73,000-meter drill program. SU-115 intersects gold grading 18,754 grams per tonne over 0.60 meters 4
  6. 6. BRUCEJACK EXPLORATION Historical drilling: Historical drilling M&I: 421,000 oz Au West Zone Inferred: 82,700 oz Au 2009 drilling: M&I: 4.0M oz Au 2009/2010 drilling Valley of the Kings Zone Inferred: 4.9Moz Au 2010 drilling: M&I: 8.2M oz Au Inferred: 12.6Moz Au 2011 drilling 2011 drilling: (176 DDH/72,144m) M&I: 12.9M oz Au Inferred: 18.2M oz Au >0.3 g/t gold North – South Existing 5km underground workings 500m 5
  7. 7. VALLEY OF THE KINGS: TOP HITS In 2011, a total of 24 intersections with uncut grades over 1,000 g/t gold were intersected in 17 holes, all in Valley of the Kings Zone2011 Top Ten Highest-Grading Gold Intersections at Brucejack: Hole From To Interval Gold Silver No. (meters) (meters) (meters) (g/t) (g/t) SU- 60.60 61.20 0.6 18,754 9,312 115 SU- 65.84 66.34 0.50 17,750 7,780 260 SU- 343.69 344.25 0.56 13,600 6,910 266 SU- 305.73 306.73 1.00 7,420 3,800 230 SU- 76.38 76.88 0.50 6,670 3,630 150 SU- 295.08 295.76 0.68 6,110 2,220 269 SU- 349.39 349.89 0.50 5,740 2,750 195 SU- 76.10 76.61 0.51 4,209 2,039 115 SU- 57.68 58.18 0.50 4,060 1,660 132 SU- 115.59 116.09 0.50 3,880 1,745 249 6
  8. 8. VISIBLE GOLD SU-260 (2011) 17,750 g/t Au 0.5 m SU-230 (2011) SU-195 (2011) SU-115 (2011) 7,420 g/t Au 5,740 g/t Au 18,755 g/t Au 1.0 m 0.5 m 0.6 m SU-84 (2010) SU-29 (2009) SU-12 (2009) 5,480 g/t Au 5,344 g/t Au 16,948 g/t Au 0.4 m 0.5 m 1.5 m 7
  9. 9. BRUCEJACK – HIGH-GRADE High-Grade PEA update underway High-Grade Feasibility Study underway Brucejack Project 5.0 g/t Grade & Tonnage Estimate – November 2011 (1)(2) (Based on a cut-off grade of 5.0 grams of gold-equivalent/tonne Contained Category Tonnes Gold Silver Gold Silver (millions) (g/t) (g/t) (million oz) (million oz) Measured 2.4 7.93 236.1 0.60 18.0 Indicated 6.9 19.99 60.9 4.46 13.6 M+I 9.3 16.92 105.6 5.06 31.6 Inferred 4.0 25.67 20.6 3.33 2.7 Brucejack Project Underground Sensitivity to the Resource Estimate – November 2011(1)(3) (Based on a cut-off of 5.0 grams of gold-equivalent/tonne) Contained Category Tonnes Gold Silver Gold Silver (millions) (g/t) ( g/t) (million oz) (million oz) Measured 2.4 7.29 241.2 0.57 18.9 Indicated 6.1 24.13 53.3 4.76 10.5 M+I 8.6 19.35 106.7 5.33 29.4 Inferred 4.0 25.73 22.0 3.29 2.8(1) Metal price and recoveries assumptions are: Au US$1,200/oz. (71%); Ag US$22/oz. (70%)(2) 5.0 g/t cutoff within the 0.30 grams of au-equiv /tonne optimized pit shell(3) The Underground Sensitivity is a sensitivity study of the Brucejack underground potential and isnot meant to supercede or replace the results of the bulk-tonnage mineral resource estimate.Sensitivity results are not reported within a constraining Whittle pit shell. 8
  10. 10. WEST ZONE 9
  11. 11. WEST ZONE SECTION 10
  12. 12. VALLEY OF THE KINGS 11
  13. 13. VALLEY OF THE KINGS 12
  14. 14. HIGH-GRADE RESOURCE AREASN S West Zone VOK Zone 5x5x5 blocks >5.0 g/t Au-equiv 13
  15. 15. JUNE 2011 BRUCEJACK HIGH-GRADE PEA(1,2) Average processing rate of 1,500 tonnes/day producing gold-silver doré Average gold recovery of 93% over life of mine Capital cost of US$281.7 million; operating costs of C$158.36/t milled(3) Total life of mine (16 years) production of 2.16 million ounces of gold and 14.72 million ounces of silver Pre-Tax Economic Results Production Summary Base Spot Price Years Life of Case Case 1 – 10 MineGold Price (US$/oz) 1,100 1,536.30 Average Annual ProductionSilver Price (US$/oz) 21.00 37.86 Gold (oz) 173,200 135,000NPV @ 5% (US$ mm) 662 1,416 Silver (oz) 1.1 million 918,000IRR (%) 27.1 48.3 Total ProductionPayback (yrs) 4.2 2.5 Gold (oz) 1.73 million 2.16 millionExchange rate (US$:C$) 0.93 1.02 Silver (oz) 11.15 million 14.72 million(1) Source: Technical Report and Preliminary Economic Assessment of the Brucejack Project, effective date June 3, 2011.(2) Underground mining for first 12 years followed by small-scale open pit mining.(3) Operating cost for underground operation. Open pit operating cost estimated at C$68.77/tonne milled. 14
  16. 16. LARGE-SCALE NORTH AMERICAN GOLD PROJECTS 120 (NDM) 100 Gold Resources (mm oz.) 80 66.9 (PVG) (SEA) 60 12.9 Brucejack 18.2 (NG/ABX) 40 45.3 (DGC) (OSK) 37.9 Snowfield 25.9 (ITH) 20 40.4 20.5 22.5 15.3 14.5 9.0 4.4 5.1 4.9 0 0.9 Measured + Indicated Resources Inferred Resources 15
  17. 17. BRUCEJACK PROJECT Gold/silver vein systems within lower grade envelopes Mineralization remains open Brucejack Project Bulk-Tonnage Mineral Resource Estimate – November 2011 (1) (Based on a cut-off grade of 0.30 grams of gold-equivalent/tonne) Contained Category Tonnes Gold Silver Gold Silver (millions) (g/t) ( g/t) (million oz) (million oz) Measured 12.2 2.50 81.6 0.99 32.1 Indicated 293.0 1.26 10.5 11.91 99.3 M+I 305.3 1.31 13.4 12.89 131.5 Inferred 813.7 0.70 7.7 18.20 201.2 Brucejack Project 1.25 Grade & Tonnage Estimate – (1),(2) November 2011 Contained Category Tonnes Gold Silver Gold Silver (millions) (g/t) (g/t) (million oz) (million oz) Measured 9.3 3.08 102.2 0.92 30.6 Indicated 64.8 3.62 23.7 7.53 49.4 M+I 74.1 3.55 33.6 8.46 80.0 Inferred 78.5 2.68 16.3 6.76 41.2(1) Metal price and recoveries assumptions are: Au US$1,200/oz. (71%); Ag US$22/oz. (70%)(2)@ 1.25 g/t cut-off within the 0.30 grams of au-equiv/tonne optimized pit shell. 16
  18. 18. FOCUSED ON OBJECTIVESProjectsAcquiredIPO raisesUS$285M Management appointments Resource Updates Joint engineering study with Seabridge examining Snowfield + KSM +72,000-meter Brucejack drill program One of first holes encounters 18, 755 g/t gold, a record grade for project Brucejack High- Brucejack grade PEA Resource Update 173,200 oz gold per/year for first 10 Update Brucejack years H-G PEA Brucejack H-G Feasibility Brucejack Integrated PEADec. 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 17
  19. 19. COMMUNITY RELATIONS & SUSTAINABILITY Pretivm’s Social Responsibility Policy reflects our commitment to establishing positive, trusting relationships with local communities and key stakeholders We are working to ensure that communication with local communities is open and continuous, and that the benefits of our exploration success can extend to them Pretivm’s management team has been cooperatively engaging with local community leaders in the Stewart, BC region for over 10 years We have begun the consultation process with community leaders concerning the Brucejack high-grade opportunity 18
  20. 20. RESOURCE COMPARISON: BRUCEJACK HIGH-GRADE 25.0 Brucejack Measured & Indicated + Inferred Gold Grade (g/t) (2011) 20.0 Kirkland Lake 15.0 Red Lake Brucejack (2010) 10.0 Cerro Negro Jerritt Canyon Eleonore Kensington El Penon Quimsacocha 5.0 Casa Berardi 0.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Measured & Indicated + Inferred Gold Resources (mm oz)Brucejack gold resources based on a cut-off grade of 5.0 grams of gold-equivalent/tonne within the 0.30 grams of gold-equivalent/tonne optimized pit shell.Source: Intierra Ltd. 19
  21. 21. SHAREHOLDING AND ANALYST COVERAGE Silver Top Five Shareholders(1,3) (shares in millions) Standard, 22% Silver Standard Resources 18.913 Institutions, Royce & Associates 6.346 Management, 50% Carmignac Gestion 6.150 5% Robert Quartermain 2.876 Retail, 23% Norges Bank Investment 2.094Capital Structure(1,2) (millions) Analyst CoveragePublic Float 68.0 CIBC Brian QuastSilver Standard Shares 18.9 Citibank Alex HackingTotal Issued & Outstanding Shares 86.9 Dahlman Rose Adam GrafIncentive Options 5.1Total Fully Diluted Shares Outstanding 92.6Working Capital (at September 30) C$33.0 million(1)Assumes the exercise of 5,750,000 share purchase warrants each exercisable to purchase one share of Pretivm owned by Silver Standard at $12.50 until April 7, 2012.(2)As of July 15, 2011; ownership calculated on an undiluted basis.(3)As of November 24. Source: IPREO, SEDI 20
  22. 22. MANAGEMENT TEAM & BOARD(1) Robert Quartermain, B.Sc., M.Sc, P.Geo, D.Sc. Noel Dunn President & Chief Executive Officer, Lead Director Director Managing Director, Liberty Metals & Mining Liberty Mutual Group Asset Management Inc. Joseph Ovsenek, B.A. Sc., P.Eng, LLB Vice President & Chief Development Officer, Director Ross Mitchell, CA Director Former CFO, Silver Standard Resources Inc. Ken McNaughton, M.A. Sc., P.Eng. Vice President & Chief Exploration Officer Ian I Chang, M.A. Sc., P.Eng. Vice President, Project Development John Smith Director Chief Executive Officer, Silver Standard Resources Inc. Ken Konkin, P.Geo. Project Manager Tom Yip, CA Director Peter de Visser, CA Chief Financial Officer, Chief Financial Officer International Tower Hill Mines Ltd(1)All senior management and directors are shareholders of Pretivm 21
  23. 23. WHY PRETIVM? We have three opportunities to add High-grade Gold Opportunity: Brucejack  Quicker path to production; can be financed without a partner  PEA update underway – targeted for completion in Q1 2012  Feasibility Study – targeted for completion in Q4 2012 Integrated High-grade /Bulk-tonnage: Brucejack  High-grade gold contained in lower-grade envelope  Scale-up from high-grade opportunity  PEA targeted for completion Q2 2012 Bulk tonnage Gold Opportunity: Snowfield  One of the largest undeveloped gold deposits in the world  Joint engineering study with SEA for Snowfield + KSM expected Q1 2012 22
  24. 24. Contact Head office Common Shares Phone: 604-558-1784 Pretium Resources Inc. TSX:PVG Fax: 604-558-4784 570 Granville St. Issued: 86.9 millionToll-free: 1-877-558-1784 Suite 1600 Fully diluted: 92.0 million invest@pretivm.com Vancouver, BC 52-week hi/low: $14.19/$5.75 www.pretivm.com Canada V6C 3P1 Market capitalization (at November 24, 2011) $742 million

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