Pretivm corporate february 2013 jjo
Transcript of Pretivm corporate february 2013 jjo
Corporate PresentationFebruary 2013
CAUTIONARY STATEMENT
Forward Looking InformationThis Presentation contains ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information may include, but is not limited to, information with respect to the anticipated production and developments in our operations in future periods, our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral resources, realization of mineral resource estimates, 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 and drilling, timing and receipt of approvals, consents and permits under applicable legislation, our executive compensation approach and practice, the composition of our board of directors 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 deemed to 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 that express 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 variations thereof, 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 and similar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, 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 risks are listed and described in our final short-form prospectus dated March 19, 2012 (the “Prospectus”), which is available for review on SEDAR at www.sedar.com 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 be other 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 and future 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 on the 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, whether as 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 undue reliance 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 April 3, 2012, “Mineral Resources Update Technical Report” dated September 18, 2012 and “Mineral Resources Update Technical Report” dated November 20, 2012. We have filed the Reports under our profile at www.sedar.com. Technical and scientific information not contained within the Reports for the Projects have been prepared under the supervision of Mr. 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 by Canadian regulations (under NI 43-101), the United States Securities and Exchange Commission does not recognize them. Mineral resources which are not mineral reserves do not 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 an inferred 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 pre feasibility 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 inferred resource exists, or is economically or legally mineable. CurrencyUnless otherwise indicated, all dollar values herein are in Canadian $.
2
3
An investment in Gold
High-grade gold resource of significant size:Valley of the Kings8.5 M oz gold Indicated (16.1 Mt @ 16.4 g/t gold)2.9 M oz gold Inferred (5.4 Mt @ 17.0 g/t gold)
Located in British Columbia, Canada
Underground feasibility study Q2 2013
Commercial production target early 2016
Kirkland Lake Mine(Kirkland Lake)
Kensington Mine(Coeur)
Casa Berardi(Aurizon)
El Penon Mine(Yamana)
Red Lake Mine(Goldcorp)
Pogo Mine(Sumitomo)
Valley of the Kings
F2 Deposit(Rubicon)
Buritica(Continental)
Cerro Negro(Goldcorp)
Eleonore(Goldcorp)
Cerro Moro(Yamana)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0M&I + Inferred Gold Resources (mm oz)
HIGH-GRADE GOLD WITH SIZE
4November 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: Intierra Ltd., NRH.
Indicated Gold: 8.5 mm oz @ 16.4 g/t AuInferred Gold:2.9 mm oz @ 17.0 g/t Au
BRUCEJACK PROJECT LOCATION
5
BRUCEJACK HIGH-GRADE RESOURCE
6
(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues. The Mineral Resources in this news release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.(2) The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.(3) Contained metal may differ due to rounding.(4) The Mineral Resource estimate is defined using 5 m by 5 by 5 m blocks in the well drilled portion of West Zone (5 m by 10 m drilling or better) and 10 m by 10 m by 10 m blocks in the remainder of West Zone and in Valley of the Kings.(5) The gold equivalent value is defined as AuEq=Au + Ag/53
Valley of the Kings Mineral Resource Estimate –November 2012(1,4,5)
(Based on a cut-off grade of 5.0 grams of gold-equivalent/tonne)
Category Tonnes(mil)
Gold(g/t)
Silver(g/t)
Contained(3)
Gold(mil oz)
Silver(mil oz)
Indicated 16.1 16.4 14.2 8.5 7.3Inferred(2) 5.4 17.0 15.7 2.9 2.7
Gossan Hill Shore Zone
West Zone
Valley of the Kings
Bridge Zone
500 m
N0.5-5.0 g/t AuEq
5.0-15.0 g/t AuEq
>15.0 g/t AuEq
Key
M&I gold: 0.9 mil oz @5.85 g/tInferred gold: 0.8 mil oz @6.44 g/t
7
VALLEY OF THE KINGS
7
BrucejackFault
200 m
Valley of the Kings – Isometric view of main mineralization corridor
8
HIGH-GRADE CORRIDORSValley of the Kings Drill Hole Trace Bar Graphs – 426630E Section View
Mineralization Corridor
Bulk sample and ramp
VALLEY OF THE KINGS INDICATED RESOURCE
9
Valley of the Kings Indicated Gold Resource:
8.5 million oz(16.1 Mt @ 16.4 g/t gold)
INDICATED GOLD RESOURCE CONTINUITY
AuEq (g/t)
5-10
10-20
20-60
>60
W EValley of the Kings indicated resource blocks - 100 m thick slice along 6257950 N
Bench (m)Indicated Gold
(Oz)
1540-1570 116,300 1510-1540 499,700 1480-1510 734,800 1450-1480 510,400 1420-1450 365,450 1390-1420 566,700 1360-1390 631,700 1330-1360 364,800 1300-1330 527,400 1270-1300 992,000 1240-1270 998,200 1210-1240 521,950 1180-1210 213,050 1150-1180 246,800 1120-1150 294,600 1090-1120 393,900 1060-1090 317,600
1111
100 m
CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model plan view - 1300m level (+/- 25m)
1212
100 m
CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model plan view - 1275m level (+/- 25m)
1313
100 m
CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model plan view - 1250m level (+/- 25m)
CONTINUITY: HIGH GRADE BLOCKS
14Indicated and Inferred blocks greater than 5 g/t AuEq
Valley of the Kings block model – 426500E section view West (+/- 50m)
CONTINUITY: HIGH GRADE BLOCKS
15Indicated and Inferred blocks greater than 5 g/t AuEq
Valley of the Kings block model – 426550E section view West (+/- 50m)
CONTINUITY: HIGH GRADE BLOCKS
16Indicated and Inferred blocks greater than 5 g/t AuEq
Valley of the Kings block model – 426600E section view West (+/- 50m)
BULK SAMPLE
10,000-tonne bulk sample from Valley of the Kings planned (Q2/Q3)
5 X 5 meter slashing of existing West Zone workings completed
Turned towards Valley of the Kings, with over 150 meters completed as of January
Total ramp planned is 541 meters in length
Junction of 1314 re-muck (l) and Valley of the Kings ramp (r)
EXISTING DEVELOPMENTWEST ZONE
BULK SAMPLE LOCATION
18
Only Indicated and Inferred blocks greater than 5 g/t AuEq shown
NN
Polylithic Conglomerate
Siltstone, litharenite, pebble conglomerate
Fragmental Volcanic Rocks
Intensely Silicified
Conglomerate
Hbl-phyricLatite Flow
60°
5-10
10-20
20-60
>60
Key (g/t AuEq)
Source: Strathcona Mineral Services Limited, Meladine Project
BULK SAMPLE: SAMPLING & PROCESSING
Strathcona Mineral Services to oversee sampling
Sample tower located on site (Q2)
Remainder of sample to be processed to produce gold (H2)
19
2013 PLANS
20
H1 2013
Channel sample the ramp from West Zone to Valley of the Kings
Complete ramp from West Zone to Valley of the Kings
Underground sampling/drilling Valley of the Kings
Drill results
10,000-tonne underground bulk sample from Valley of the Kings
Sample Tower
H2 2013 (post bulk sample)
Process bulk sample
Valley of the Kings expansion drilling
PROPOSED MINE DEVELOPMENT
21
Oblique View of Mining Stopes, Valley of the Kings
S
N
100 m
2222
High-grade visible gold stringers within a lower grade (5g/t to 20g/t) gold quartz stockwork
Steeply dipping ore body
Competent ground conditions
Stope widths (15m wide X 30m high) appropriate both for transverse and longitudinal layouts
Cost effective
First 50 meters of Valley of the Kings ramp
Long hole stoping mining method:
MINING METHOD
MINE AND MILL SITE LAYOUT
23
Crushing
Grinding
Gravity Concentrate Circuit
Doré (50%-60%)
Flotation Concentrate Circuit
Off-take (40%-50%)
Flowsheet Summary:
BRUCEJACK PROJECT ECONOMICS
24
(1) Source: Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project, effective date February 20, 2012
(2) Base case metals prices of US$1,100 /oz gold and US$21/oz silver
PEA is based on Mineral Resource estimates for the Valley of the Kings and West Zone effective November 28, 2011 which are now out-of-date.
February 2012 Preliminary Economic Assessment Results(1,2) :Processing rate 1,500 tpd
Mine life 24 years
Total gold production 6.9 million oz
Average annual gold production (Yrs 1-12)
325,000 ounces
Capex US$436.3 million
Total operating costs C$170.90/t milled
Internal Rate of Return
29.8%
Net Present Value (5% discount)
US$2.262 billion
Processing rate increased 2,700 tonnes per day
Mill facilities streamlinedFlotation concentrate to be sold to 3rd parties rather than refined on siteCapex and Opex savings, reduced project footprint
Metallurgy continues to be positiveFeasibility metallurgical studies confirm gold recoveries over 95%
Feasibility Study (expected Q2):
BRUCEJACK PERMITTING
25
1986
1989
1993
1998
1999
2006
2011-2012
2013
Reclamation Permit(MX-1-86)
Mine Development Certificate issued
April 15, 1993(MDC 92-06)
Project Assessment Certificate
(PAC 98-03)
Permitted for exploration and exploration road
(Pretivm) (MX-1-832), (MX-1-842)
Project Assessment Certificate allowed to
expire (Silver Standard)(PAC M98-03)
Approval in principle for
development of a mine at West Zone
Reclamation Completion(Silver Standard)
(MEND 9.1c)
Project Description under review for underground
mine at Brucejack’s Valley of the Kings
Brucejack Lake is not fish habitatWaste rock from 1980’s/1990’s underground development was deposited in Brucejack Lake as part of 1999 reclamation
More than 50% of tailings (targeting 60%) to be used for paste backfill and deposited underground, with remainder of tailings to be deposited in bottom 30 meters of Brucejack Lake
COMMUNITY ENGAGEMENT
26
Pretivm’s management team has been cooperatively engaging with First Nations and local community leaders in the Stewart, BC region for over 10 years
We work to ensure that our communication about the progress of the Brucejack Project is open and continuous
Commercial relationships with local First Nations developed during the exploration phase at Brucejack have been mutually successful
We will continue to extend both commercial contract and employment opportunities to locals whenever possible
Stewart warehouse constructed by development corporation of Skii km Lax Ha First Nation
PLANS FORWARD TO PRODUCTION
27
Key milestones
H2 2010
2011
2012
2013
2014
2015
2016
• Property acquired by Pretivm
• Completed additional drilling in Valley of the Kings
• Initiated feasibility study• Initiated exploration decline from
West Zone historic workings to Valley of the Kings
• Filed Project Description• Completed exploration access road
to Highway 37
• Complete feasibility study• Complete exploration decline for
underground test sample from Valley of the Kings
• Extract test sample from Valley of the Kings (10,000 tonnes)
• Basic and detailed engineering• Submit Environmental
Assessment Certificate (EAC) application
• Anticipate EAC issue
• Underground development
• Begin construction
• Construction• Begin commissioning• Ramp-up
• First resource estimate• Aggressive drill
program in Valley of the Kings
• Commercial production target
PRETIVM MANAGEMENT
28
Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc. President & Chief Executive Officer, Director
Peter de Visser, CAChief Financial Officer
Joseph Ovsenek, B.A. Sc., P.Eng., LLBVice President & Chief Development Officer, Director
Ken McNaughton, M.A. Sc., P.Eng.Vice President & Chief Exploration Officer
Ian I Chang, M.A. Sc., P.Eng.Vice President, Project Development
Michelle Romero, B.A., M.L.S.Director, Corporate Relations
Kevin Torpy, B.Sc.Director, Mine Engineering
Warwick Board, Ph.D., P.Geo. Chief Geologist
Max Holtby, B.Sc., P. Geo.Director, Permitting
Andrew Saltis, I.Eng.Site Project Manager, Mine Manager
SHAREHOLDING & ANALYST COVERAGE
29
Institutions, 50%
Retail, 23%
Management, 5%
Silver Standard,
20%
Capital Structure(1)
Public Float 75.8Silver Standard Shares 19.0 Total Issued & Outstanding Shares 94.8 Incentive Options 8.5Total Fully Diluted Shares 103.3
Market Capitalization C$1.3 billion
Working Capital (at Sept. 30, 2012) C$59.8 million
Top Shareholders(2) (shares in millions)
Silver Standard Resources 18.986Royce & Associates 10.689Passport Capital 3.966 Fidelity Management 3.739Connor, Clark & Lunn 2.996Robert Quartermain 2.853 Norges Bank Investment 2.410Carmignac Gestion 1.898Sprott Asset Management 1.581
Analyst CoverageCIBC Jeff KilleenCitibank Alex HackingCormark Securities Richard GrayDahlman Rose Adam GrafGMP Securities Craig WestRBC Dan RollinsSalman Partners Ash GuglaniScotiabank Ovais HabibUBS TBDVery Independent Research John Tumazos
(1)As of January 22, 2013; ownership calculated on an undiluted basis.(2)As of January 22, 2013. Source: IPREO, SEDI
(shares in millions)
Kirkland Lake Mine(Kirkland Lake)
Kensington Mine(Coeur)
Casa Berardi(Aurizon)
El Penon Mine(Yamana)
Red Lake Mine(Goldcorp)
Pogo Mine(Sumitomo)
Valley of the Kings
F2 Deposit(Rubicon)
Buritica(Continental)
Cerro Negro(Goldcorp)
Eleonore(Goldcorp)
Cerro Moro(Yamana)
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0M&I + Inferred Gold Resources (mm oz)
HIGH-GRADE GOLD WITH SIZE
30November 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: Intierra Ltd., NRH.
Indicated Gold: 8.5 mm oz @ 16.4 g/t AuInferred Gold:2.9 mm oz @ 17.0 g/t Au
CONTACTPhone: 604-558-1784Fax: 604-558-4784Toll-free: [email protected]
HEAD OFFICEPretium Resources Inc.570 Granville St.Suite 1600Vancouver, BCCanada V6C 3P1
COMMON SHARESTSX/NYSE:PVGIssued: 94.8 millionFully diluted: 103.3 million52-week hi/low: $18.15/$10.94Market cap: $1.2 billion
Advancing a major high-grade gold resource in Canada