Mining Explorers 2011: Pretivm Resources Inc.

 

Last updated 11/6/2011 at Noon



PVG: TSX

President and CEO: Robert A. Quartermain, BSc (Hons), MSc, P.Geo, DSc ,

Chief Development Officer: Joseph J. Ovsenek, ,P. Eng., LLB

Chief Exploration Officer: Kenneth C. McNaughton, , M.A. Sc., P.Eng.

Pretivm Resources Inc. is a mineral exploration company that is advancing the Brucejack Project, located 65 kilometers (40 miles) north-northwest of Stewart, B.C. and the Snowfield Project, which borders Brucejack to the north, in northern British Columbia.

Combined, these projects are among the largest undeveloped gold resources in the world.

Pretivm followed up a 70,000-meter exploration program in 2010 with another 70,000 meters of drilling in 2011 at the high-grade gold Brucejack Project, which comprises six mineral claims totaling 3,199.28 hectares (7,905 acres) in area.

In May Pretivm reported agreements with Seabridge Gold Inc. to cooperate in advancing both the Brucejack and Snowfield projects and Seabridge's KSM Project, which together represent the largest undeveloped gold resource in North America with a bulk-tonnage opportunity of 34 million ounces of gold in all categories.


Of note, Pretivm also agreed with Seabridge to complete an engineering study examining the economics of combining the Snowfield Project and Seabridge's KSM Project as a single operation.

The Snowfield Project is comprised of one mineral claim with an area of 1,267.43 hectares (3,132 acres).

This study is expected to be completed in the fourth quarter.

In June the company announced positive results from a NI 43-101-compliant preliminary economic assessment for the high-grade gold and silver resources identified to date at Brucejack.


Highlights of the PEA include annual average production for the first 10 years of 173,200 ounces of gold and 1.12 million ounces of silver, a mine life of 16 years, with average processing of 1,500-metric-tons-per-day; and an estimated capital cost, including contingencies, of US$281.7 million.

The assessment's base case estimated the pre-tax net present value (5 percent discount) of the project at US$662 million and its internal rate of return at 27.1 percent, using US$1,100-per-ounce gold and US$21/oz silver.

Throughout the 2011 field season, Pretivm reported impressive drill results at Brucejack, including the highest-grading gold intersection to date on the property.


Selected intercepts include 0.6 meters in hole SU-115, in the Valley of the Kings Zone with uncut grades of 18,755 grams-per-metric-ton gold and 9,312 g/t silver (2.0 feet averaging 547.1 ounces per ton gold and 271.6 oz/t); and 1.0 meters in hole SU-230, uncut grades of 7,420 g/t gold and 3,800 g/t silver (3.3 feet averaging 216.4 oz/t gold and 110.8 oz/t silver).

The bonanza-grade intercept in hole SU-230 noted above was intersected within a 6.5 meter interval with cut grades of 76.8 g/t gold and 478.5 g/t silver (uncut grades of 1,349 g/t gold and 740 g/t silver).

This interval is located about 40 meters from the high-grade interval from hole SU-195 with uncut grades of 5,740 g/t gold and 2,750 g/t silver over 0.5 meters.

Both holes were drilled on the eastern-most section of the Valley of the Kings Zone, which remains open to the east and down dip.


Drill results from other zones on the Brucejack property continue to encounter high-grade gold within broader intervals of significant gold values.

A highlight is hole SU-215 in the Galena Hill Zone, which intersected 55.0 meters grading 4.7 g/t gold and 47.5 g/t silver, including 0.5 meters with uncut grades of 462 g/t gold and 311 g/t silver.

By Sept. 29, Pretivm had completed 164 holes totaling 68,000 meters at Brucejack.

Assay results for 34 holes were outstanding, of which 29 were for holes drilled in the Valley of the Kings zone.

Pretivm said it would complete another eight exploration holes totaling 4,000 meters, and an additional 2,000 meters of geotechnical and condemnation drilling in support of a feasibility study.


Contango ORE is an Alaska gold exploration and mining company.

The drill program was expected to conclude by the second week in October, and an update to the mineral resource estimate for Brucejack was to be completed in the fourth quarter.

Cash and short-term deposits: C$35.95 million (June 30, 2011)

Working capital: C$35.30 million (June 30, 2011)

Market capitalization: C$886.84 million (Sept. 23, 2011)

1600 - 570 Granville St.

Vancouver, B.C., Canada V6C 3P1

Ph: 604 558-1784 • Fax: 604-408-8893

http://www.pretivm.com

 

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