Brucejack gold mine Credit: Pretium
BRITISH COLUMBIA – Pretium Resources expects to produce 325,000 oz. to 365,000 oz. gold a year while it mines the Valley of the Kings zone, in contrast with the 525,000 oz. long-term output rate suggested in a technical report released last year. Gold production of 354,405 oz. from the Brucejack mine last year at all-in sustaining costs of US$888 per oz. is in line with earlier forecasts.
In the release, Pretium indicated that the change in the production outlook is due to lower estimated gold grades; it expects to release an updated life of mine plan by the end of March which will include a resource and reserve update for Brucejack.
The company’s board is searching for a new president and CEO: Joseph Ovsenek will remain at the helm in the meantime.
“Brucejack continues to be consistently profitable and a strong cash generator,” Ovsenek said in a release.
Last year, the mine generated US$184.2 million in free cash flow, allowing the company to reduce its total debt by US$180.4 million.
This year, with 325,000 oz. to 365,000 oz. of gold expected, AISCs are forecast at US$910 to US$1,060 per oz. which includes costs related to ongoing lateral development and one-time sustaining capital items.
The 2019 technical report, completed by Tetra Tech, suggested an increased production rate of 3,800 t/d for Brucejack: Pretium expects to mine at this rate in 2020 after achieving 3,800 t/d mill throughputs in the fourth quarter. Gold grades for the year are expected in the range of 7.6 g/t to 8.5 g/t, below the Valley of the Kings reserve grade of 13.8 g/t. Last year’s head grades were at 8.7 g/t gold.
The NI 43-101 compliant report suggested average annual gold production of 525,000 oz. over the first 10 years of mine life at AISCs of US$535 per oz. The report updated reserves for Brucejack to 16 million tonnes at 12.6 g/t gold for a total of 6.4 million oz., primarily comprised of the 5.8-million oz. Valley of the Kings zone.
For more information, visit www.Pretivm.com.