Pretivm June Presentation


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Pretivm June Presentation

  1. 1. Corporate PresentationJune 26, 2013
  2. 2. CAUTIONARY STATEMENTForward Looking InformationThis Presentation contains ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation and the United States Private Securities LitigationReform Act of 1995. Forward-looking information may include, but is not limited to, information with respect to the anticipated production and developments in our operationsin future periods, our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral resources, realization of mineral resourceestimates, 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 anddrilling, timing and receipt of approvals, consents and permits under applicable legislation, our executive compensation approach and practice, the composition of our board ofdirectors 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 deemedto 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 thatexpress 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 variationsthereof, 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 andsimilar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknownrisks, 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 risksare listed and described in our final short-form prospectus dated March 19, 2012 (the “Prospectus”), which is available for review on SEDAR at 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 beother 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 andfuture 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 onthe 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, whetheras 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 unduereliance 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 (“Reports”)“Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project” dated February 20, 2012 “Mineral Resources Update Technical Report” dated April3, 2012, “Mineral Resources Update Technical Report” dated September 18, 2012 and “Mineral Resources Update Technical Report” dated November 20, 2012. We have filed theReports under our profile at Technical and scientific information not contained within the Reports for the Projects have been prepared under the supervision ofMr. 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 byCanadian regulations (under NI 43-101), the United States Securities and Exchange Commission does not recognize them. Mineral resources which are not mineral reserves donot 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 aninferred 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 prefeasibility 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 inferredresource exists, or is economically or legally mineable.CurrencyUnless otherwise indicated, all dollar values herein are in Canadian $.2
  3. 3. 3 High-grade gold Reserves:Probable Reserves for Valley of the Kings:6.6 Million oz gold (15.1 Mt @ 13.6 g/t gold) Robust Feasibility Study for underground mine Located in British Columbia, Canada Commercial production target early 2016An investment in Gold
  4. 4. Kirkland Lake Mine(Kirkland Lake)Kensington Mine(Coeur)Casa Berardi(Hecla)El Penon Mine(Yamana)Red Lake Mine(Goldcorp)Pogo Mine(Sumitomo)Valley of the KingsF2 Deposit(Rubicon)Buritica(Continental)Cerro Negro(Goldcorp)Eleonore(Goldcorp)Cerro Moro(Yamana) 2.0 4.0 6.0 8.0 10.0 12.0 14.0M&I+InferredGoldGrade(g/t)M&I + Inferred Gold Resources (mm oz)HIGH-GRADE GOLD RESOURCE WITH SIZE4November 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: CompaniesIndicated Gold:8.5 mm oz @ 16.4 g/t AuInferred Gold:2.9 mm oz @ 17.0 g/t Au
  6. 6. EXPLORATION AND OWNERSHIP HISTORY1960-19801980-19851986-1989199019931999-2000200920102011-20122013Exploration byvariouscompaniesWest Zone discoveryand definitionby Newhawk5.3 kmundergrounddevelopment ofWest ZoneWest ZoneFeasibility StudycompletedAcquisition bySilver StandardResources Inc.Exploration resumes.Discovery of Valley ofthe Kings ZoneAcquisition byPretivmExtensive explorationprogram, high-graderesource, exploration roadMine DevelopmentCertificate issuedCompleted feasibility study,Valley of the Kings undergroundbulk sample underway6
  7. 7. BRUCEJACK GEOLOGY/DRILLING7Meters500Valley of the KingsWest Zone
  9. 9. 9HIGH-GRADE GOLD RESERVES(1,2)Category Tonnes(mil)Gold(g/t)Silver(g/t)ContainedGold(mil oz)Silver(mil oz)Probable 15.1 13.6 11.0 6.6 5.3Valley of the Kings Mineral Reserve Estimate –May 16, 2013(1) Rounding of some figures may lead to minor discrepancies in totals(2) Based on C$180/t cutoff grade, US$1350/oz Au price, US$22/oz Ag price, C$/US$ exchange rate = 1.0Category Tonnes(mil)Gold(g/t)Silver(g/t)ContainedGold(mil oz)Silver(mil oz)Proven 2.0 5.7 309 0.4 19.9Probable 1.8 5.8 172 0.3 10.1Total P&P 3.8 5.8 243 0.7 30.0West Zone Mineral Reserve Estimate –May 16, 2013
  10. 10. VALLEY OF THE KINGS INDICATED RESOURCENorthing(± 25 m)Ind.Gold*(Oz.)6258225 230,9006258175 484,0006258125 703,1006258075 336,6006258025 1,951,1006257975 2,365,9006257925 1,021,0006257875 513,6006257825 687,5006257775 176,400Total Ounces per 100 m Easting and 50 m Northing stripsValley of the KingsIndicated Mineral Resource:8.5 Moz. Au @ 5.0 g/t AuEq.(16.1 Mt @ 16.4 g/t Au)*Nov. 2012 Indicated Mineral Resource;≥5.0 g/t AuEq.101,092,100 1,776,900 1,467,600 2,185,800 1,391,000 380,100 192,900 Ind. Au* (Oz.)
  11. 11. MINERAL RESOURCE CONTINUITY11Total Ounces* per 10 x 100 m N-S corridor – 6257800 N Long SectionLevel (m) Ind. Gold (Oz)*1540-1570 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 294,6001090-1120 393,9001060-1090 317,600WW EE100 m100 m4,000-6,0006,000-7,0007,000-8,000>10,000Key (Oz. Au)3,000-4,0001,000-3,000<1,0008,000-10,000Total Ounces per level(Valley of Kings Zone)*Nov. 2012 Indicated Mineral Resource;≥5.0 g/t AuEq.
  12. 12. 0.5-5.0 g/t AuEq5.0-15.0 g/t AuEq>15.0 g/t AuEqKey12BULK SAMPLE LOCATIONN SWest ZoneUndergroundDevelopmentValley of theKings BulkSample200 m546 m100 m 200 m 300 m400 m500 m 10,000 tonne bulk sample from Valley of the Kings underway (Q2/Q3)
  13. 13. 13BULK SAMPLE LOCATIONWest ZoneUndergroundDevelopmentVOK BulkSampleSNDomain 17Domain 11200 m
  14. 14. BULK SAMPLE REPRESENTIVITY14Drilling Density100 m100 mDrillholeTraceDrillholeTraceIndicatedBlocksIndicatedBlocksBulkSampleAreaBulkSampleAreaNNVertical viewing window ±8.5 m
  15. 15. BULK SAMPLE LOCATION151345 m LevelSiltstone, litharenite,pebble conglomerateSiltstone, litharenite,pebble conglomeratePolylithic ConglomeratePolylithic ConglomerateFragmentalVolcanic RocksFragmentalVolcanic RocksIntenselySilicifiedConglomerateIntenselySilicifiedConglomerateHbl-phyricLatite FlowHbl-phyricLatite Flow
  16. 16. BULK SAMPLE LOCATION16Vertical viewing window ±30 m1345 m Level5-1010-2020-60>60Key (g/t AuEq)2.5-51-2.50.3-1
  17. 17. 1345M LEVEL PLAN<0.50.5-1.01.0-5.0>20Key (g/t Au)5.0-20.0FragmentalVolcanic RocksFragmentalVolcanic RocksVolcanicSedimentVolcanicSedimentSilicifiedConglomerateSilicifiedConglomerate426600E426600E25 m585E585E615E615E645E645E555E555ENNViewing Window±15mViewing Window±15m6258015N6258015N
  18. 18. BULK SAMPLE LOCATION181345 m LevelVertical viewing window ±8.5 mSiltstone, litharenite,pebble conglomerateSiltstone, litharenite,pebble conglomeratePolylithic ConglomeratePolylithic ConglomerateFragmentalVolcanic RocksFragmentalVolcanic RocksIntenselySilicifiedConglomerateIntenselySilicifiedConglomerateHbl-phyricLatite FlowHbl-phyricLatite FlowDomain 17Domain 17Domain 11Domain 11
  19. 19. BULK SAMPLE LOCATION195-1010-2020-60>60Key (g/t AuEq)Only Indicated blocks greater than 5 g/t AuEq shown1345 m LevelVertical viewing window ±8.5 mPolylithic ConglomeratePolylithic ConglomerateFragmentalVolcanic RocksFragmentalVolcanic RocksIntenselySilicifiedConglomerateIntenselySilicifiedConglomerateHbl-phyricLatite FlowHbl-phyricLatite FlowSiltstone, litharenite,pebble conglomerateSiltstone, litharenite,pebble conglomerate
  20. 20. 426600E CROSSCUT – DRILL FANFragmentalVolcanic RocksFragmentalVolcanic RocksPolylithicConglomeratePolylithicConglomerateVolcanicSedimentVolcanicSedimentNN SSSilicifiedConglomerateSilicifiedConglomerate426600E426600E VU-001VU-00110 m<0.50.5-1.01.0-5.0>20Key (g/t Au)5.0-20.0IntervalsReported 6/6/13Viewing Window±7.5mViewing Window±7.5m
  21. 21. 426600E CROSSCUT – BLOCKSFragmentalVolcanic RocksFragmentalVolcanic RocksPolylithicConglomeratePolylithicConglomerateVolcanicSedimentVolcanicSedimentNN SSSilicifiedConglomerateSilicifiedConglomerate426600E access ramp426600E access ramp10 m<0.50.5-1.01.0-5.0>20Key (g/t Au)5.0-20.0Viewing Window±7.5mViewing Window±7.5m
  22. 22. 1345M LEVEL PLAN - BLOCKS<0.50.5-1.01.0-5.0>20Key (g/t Au)5.0-20.025 mNNViewing Window±5mViewing Window±5m
  23. 23. BULK SAMPLE: BLAST PROGRESS23Planned Bulk Sample(Gold)Excavation progress as of June 18, 2013 (Blue)FragmentalVolcanic RocksNRemaining excavation(outline)Valley of the Kings 1345M LevelACCESSRAMPACCESSRAMP426600Ecross-cut426600Ecross-cut6258015N drift6258015N driftVolcanic sediment
  24. 24. UNDERGROUND DRILLING24SNTypical Section – Fan DrillingDetailed underground drilling at <15 meter centers to outline 700,000 ounces of gold.N
  25. 25. BULK SAMPLE: SAMPLE TOWER OPERATION25100 tonne sample roundsJaw crusher and screen plant100% passing 2 cmSample cutters in tower800 kg splitCone crusherSize reduction to 1 cmRotary splitter2 x 30 kg samplesRejectsSecond pass throughsample towerFirst pass throughsample towerRejectsSample cuttersin tower800 kg splitCone crusherSize reduction to 1 cmRotary splitter2 x 30 kg samplesConvey back totop of tower99.14 t0.74 tto mill
  27. 27. 2727 Corridors of high-grade visiblegold seams within lower grade(5g/t to 20g/t) gold quartzstockwork Steeply dipping ore body Competent ground conditions Stope widths (15m wide X 30mhigh) appropriate both fortransverse and longitudinallayouts Cost effectiveFirst 50 meters of Valley of the Kings rampLong hole stoping mining method:MINING METHOD FOR STOCKWORK
  28. 28. PROPOSED MINE DEVELOPMENT28Oblique View of Mining Stopes, Valley of the KingsSN100 mWest-Zone(late mine life)Valley of the Kings
  29. 29. BRUCEJACK MINE SITE: SURFACE LAYOUT29CampMillPortalsDevelopment RockDisposalWest ZonePortalWaterTreatmentSubstationLaydown &Fuel Storage
  30. 30. BRUCEJACK PROJECT ECONOMICS30(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) Includes by-product cash costs, sustaining capital, exploration expense and reclamation cost accretionJune 2013 Feasibility Study Highlights(1,2) :Processing rate 2,700 tonnes per dayMine life 22 yearsTotal gold production 7.1 million ozAverage 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/ozCapex (including contingencies) US$663.5 millionTotal operating costs C$156.46/t milledInternal 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)
  31. 31. 2013 BRUCEJACK PROJECT PLANS31H2 2013 Complete Valley of the Kings bulksample excavation and sampling Complete bulk sample report Process bulk sample Advance mine engineering Advance permitting File Environmental AssessmentCertificate Application Resource update Potential additional Valley of theKings drilling
  32. 32. COMMUNITY ENGAGEMENT32 Pretivm’s management team has beencooperatively engaging with First Nationsand local community leaders in theStewart, BC region for over 10 years We work to ensure that ourcommunication about the progress of theBrucejack Project is open and continuous Commercial relationships with local FirstNations developed during the explorationphase at Brucejack have been mutuallysuccessful We will continue to extend bothcommercial contract and employmentopportunities to locals whenever possibleStewart warehouse constructed by developmentcorporation of Skii km Lax Ha First Nation
  33. 33. BRUCEJACK PERMITTING331986198919931998199920062011-20122013201420152016ReclamationPermitMine DevelopmentCertificate issuedApril 15, 1993Project AssessmentCertificatePermitted forexploration andexploration roadProject AssessmentCertificate allowed toexpireApproval in principlefor development of amine at West ZoneReclamationCompletionProject Descriptionunder review forunderground mine atBrucejack’s Valley ofthe KingsAnticipateEnvironmentalAssessment CertificateConstruction,commissioningCommercialproduction target Brucejack Lake is not fish habitat Nearest fish 20 km away Waterfalls and Sulphurets Glacierimpede fish migration Brucejack Lake is 100 meters deep Up to 50% of tailings to be deposited inthe Lake, with total volume of tailingsstored in bottom 30 meters Focus on minimizing potential forsuspended solids to discharge fromBrucejack Lake 50% or more of tailings to be used forpaste backfill and deposited underground
  34. 34. PRETIVM MANAGEMENT34Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc.President & Chief Executive Officer,DirectorPeter de Visser, CAChief Financial OfficerJoseph Ovsenek, B.A. Sc., P.Eng., LLBVice President & Chief Development Officer,DirectorKen McNaughton, M.A. Sc., P.Eng.Vice President & Chief Exploration OfficerIan I Chang, M.A. Sc., P.Eng.Vice President, Project DevelopmentMichelle Romero, B.A., M.L.S.Director, Corporate RelationsKevin Torpy, B.Sc.Director, Mine EngineeringWarwick Board, Ph.D., P.Geo.Chief GeologistMax Holtby, B.Sc., P. Geo.Director, PermittingAndrew Saltis, I.Eng.Site Project Manager, Mine Manager
  35. 35. SHAREHOLDING & ANALYST COVERAGE35Institutions,53%Retail, 23%Management,5%SilverStandard,19%Capital Structure(1)Public Float 83.3Silver Standard Shares 19.0Total Issued & Outstanding Shares 102.3Incentive Options 8.5Total Fully Diluted Shares 110.8Market Capitalization C$706 millionWorking Capital (at March 31, 2013) C$22.5 millionShare Offering gross proceeds (atApril 26, 2013) (3)C$40 million(1) As of June 26, 2013; ownership calculated on an undiluted basis.(2) As of June 26, 2013. Source: IPREO, SEDI(3) See new release dated April 26, 2013(shares in millions)Top Shareholders(2)(shares in millions)Silver Standard Resources 18.986Royce & Associates 9.587Passport Capital 5.927Liberty Metals & Mining 5.780Robert Quartermain 2.853TD Asset Management 2.153Sun Valley Gold LLC 2.018Sprott Asset Management 1.686Weiss Asset Management 1.644Connor Clark & Lunn 1.590Analyst CoverageBMO John HayesCIBC Jeff KilleenCitibank Alex HackingCormark Securities Richard GrayCowen Securities Adam GrafGlobal Hunter Securities Jeff WrightGMP Securities George AlbinoRBC Dan RollinsSalman Partners Ash GuglaniScotiabank Ovais HabibVery Independent Research John Tumazos
  36. 36. HIGH-GRADE GOLD PRODUCTION36MeadowBank(Agnico Eagle)Laronde(Agnico Eagle)Hycroft (Allied Nevada)Kemess (Aurico)Casa Berardi Mine(Hecla)Ruby Hill (Barrick)Round Mountain(Barrick/Kinross)Turqouise Ridge(Barrick/Newmont)Red Lake(Goldcorp)Musselwhite(Goldcorp)Marigold Mine(GoldCorp/Barrick)Fort Knox (Kinross)Kirkland Lake(Kirkland Lake Gold)Mesquite (NewGold)Carlin (Newmont)Canadian Malartic(Osisko)Valley of the Kings(Pretium)Detour Lake Mine(Detour Gold)01002003004005006007000 2 4 6 8 10 12 14 16 18AnnualGoldProduction(Koz/year)Grade (g/t)Average gold production vs. grade for various North Americanproducing mines with >2Moz AuData sources: Companies, NRH.Production target:425,700 oz/year (yrs 1-10)@ 14.2g/t head grade
  37. 37. CONTACTPhone: 604-558-1784Fax: 604-558-4784Toll-free: 1-877-558-1784invest@pretivm.comwww.pretivm.comHEAD OFFICEPretium Resources Inc.570 Granville St.Suite 1600Vancouver, BCCanada V6C 3P1COMMON SHARESTSX/NYSE:PVGIssued: 102 millionFully diluted: 110.8 million52-week hi/low: $15.77/$5.53Market cap: $625 million(at June 25 2013)Advancing a major high-grade gold resource in Canada