Canadian Mining Journal

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GOLD: Pretium updates Brucejack numbers, construction on schedule



BRITISH COLUMBIA – Vancouver’s Pretium Resources is a year away from production at its Brucejack underground gold mine north of Stewart, but the company says the project is on budget – an all-in capital budget of US$640.8 million plus US$56 million in working capital for the first three months of operation after commissioning. The company estimates there remains US$100 million to be spent at Brucejack.

As construction has progressed, Pretium has updated its cost estimates, noting both cost savings and cost increases. Compared to the feasibility estimate, savings have been made in underground development (US$17.7 million), deferral of mining equipment purchase (US$23.4 million), actual savings in the mill design and build (US$9.5 million), and the exchange rate between the US and Canadian dollars (US$145 million).

Certain cost increases have been identified including the owner’s pre-production cost (US$46.7 million), additional environmental monitoring (US$18.6 million), additional winter construction costs (US$14.5 million), additional camp support costs (US$10.8 million). The EPCM contractor also boosted its costs by US$18.4 million.

The high grade Brucejack project has proven and probable reserves of 16.5 million tonnes averaging 14.1 g/t Au and 57.7 g/t Ag and containing 7.5 million oz of gold and 30.7 million oz of silver. Photos are posted at www.Pretivm.com/projects/photo-gallery.