Pretium sees exciting potential at Brucejack Mine, NW BC
Pretium Resources Inc. [PVG-TSX] on Thursday February 25 said high-grade gold mineralization was intercepted in the first resource expansion drill program completed at its Brucejack Mine since commercial production began in 2017.
Brucejack is Pretium’s flagship asset. It is a high-grade gold underground mine in northwestern British Columbia, about 65 km north of Stewart in the Golden Triangle. The mine achieved guidance by producing 347,743 ounces of gold in 2020. That was up from 354,405 ounces in 2019 at an all-in-sustaining cost of US$888/oz.
Brucejack is expected to produce between 325,000 and 365,000 ounces of gold this year at an AISC of between US$1,060 and US$1,190/oz, and generate US$120-US$170 million in free cash flow.
“These initial results validate our view that there is an exciting extension potential at the North Block Zone of the Valley of Kings deposit at Brucejack,” said Jacques Perron, President and CEO.
High-grade gold mineralization was identified in three new areas during Phase 1 drilling of the North Block Zone. Four intersections assayed above 1,000 g/t gold. Results include high-grade gold mineralization intercepts up to 300 metres from the current resource shell, including 19.3 g/t gold over 9.0 metres in VU-2792 and 2,590 g/t gold over 1.0 metre in VU-2794.
The North Block Zone is located directly north of the Valley of Kings deposit. The 2020 mineral resource expansion program was designed to test for Valley of Kings style mineralization to the north and at depth.
Phase 1 of the program was drilled from the 1050 level in the mine to target an area extending up to 300 metres from north of the current resource shell. Phase 2 was drilled in 2020 to target an area up to 450 metres north of the current resource shell, and those drill results are pending.
Phase 1 of the North Block expansion program consisted of 7,011 metres in 38 drill holes. Drilling identified three new zones, including an extension of the Domain 13 Stockwork, which is currently being mined in the Valley of Kings; a newly identified corridor in the footwall of the Domain 13 structure, located 300 metres north of the current resource shell; and a previously unidentified zone of gold mineralization located within 50 metres of the existing development.
Pretium’s share price advanced, rising 2% or $0.26 to $13.54 on volume of 433,821.