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Pretivm Resources (TSX: PVG) Completed Bulk Sampling of Valley of the Kings Large High-Grade Gold Project in British Colombia

on 3/16/2014

Bob Quartermain, the President and CEO of Pretivm Resources (TSX:PVG) at the Cambridge House Resource Investment Conference in Vancouver.

Bob Quartermain, the President and CEO of Pretivm Resources (TSX: PVG), recently discussed their bulk sampling activity at the Valley of the Kings project and their newest developments.



Quartermain said “2013 was a very busy year for Pretivm. We undertook a bulk sample program underground which we completed at the end of the year.” The project was a positive for the company overall. Quartermain said, “It was successful for two reasons – one, we recovered about 5800 ounces of gold from the underground sample and we had an original target of 4000, so we recovered more gold, and secondly it gave us a good understanding of the style of mining and the controls underground.” The company used that information to add to the information they already had accumulated about the Valley of the Kings project. Quartermain said, “With that data, we went in and were able to update our resource. We drilled another 40,000 meters of resource drill holes, so when you add that to what we had completed before, we have about 218,000 meters of drilling both surface and underground that allowed us to do a new resource.”

This is a significant development for the company in that it has moved some of the resource into the measured category. Said Quartermain, “Our QP from Australia came up with 8.7 million ounces of gold in the measured and indicated category.” Additionally, the company discovered that they are holding a much higher quality of gold than previously thought. Quartermain said, “One of the key things we wanted to improve upon from the bulk sample was the quality of the gold that we found underground. Last year we only had indicated resources, now we have measured and indicated resources, which means we can use those in a revised feasibility study.” (to define proven resources)



The new results also revealed more about the actual deposit. Said Quartermain, “The study underground showed us that we have very competent rock, so the mine plan of long hole stoping is certainly going to work.” The bulk sample was taken for processing with positive results as well. Quartermain said, “For processing, we took our gold rock and shipped it to a plant in Montana and we got very good recoveries for the gold. We got about 98% recovery for our gold. It is great recovery.” The company will add those results to their current data. Said Quartermain, “What we can do now is to take what we learned underground and put that into a revised feasibility study. We completed a feasibility study last year based on an indicated resource so we only had a probable reserve of 6.6 million ounces in the Valley of the Kings. We were able to use that to give us ideas around the economics of the project.” The economics have changed slightly as the price of gold has decreased. Said Quartermain, “At the time of last year’s feasibility study, we used a $1350 gold price. With the movement of the price of gold down, we are going to be more conservative. With the feasibility study that we are currently updating, we are going to use $1100 gold, and we are going to look at optimizing the project.” Optimizing the project means that the company will look at smaller production units. Quartermain said, “Perhaps instead of optimizing the project with a 2700 ton a day operation, what we may want to do is to initially start with a lower daily input. We can then ramp it up from there” This is one of the key questions that the company will answer for investors in the newest version of the feasibility study. Said Quartermain, “We are working on the revised feasibility study right now and believe we will have it completed sometime in the first half of this year. Some of the key drivers would be the 43-101 report from last December will get filed in February and we will have a session with the QP on the resource.”



Once the feasibility study is completed, the company will move forward with the next step. Said Quartermain, “After that, we will continue with permitting. That’s the key thing we are focused on right now, moving forward with our permitting. We have filed our project description. We have started our open house meetings. We have started our working groups. We are hoping to be able to file for our environmental assessment permit sometime during the first quarter to first half of this year and hope to receive the permit late this year or during the beginning of 2015 which keeps us in our timeline of construction during 2015.” The goal of the company is to move forward with production after that. Said Quartermain, “If the gold market remains strong our goal is to start production in 2016.”



Why should investors consider Pretivm Resources as a gold play? Quartermain said, “We have come a long way really quickly. I think the key thing that differentiates us is the grade of our gold.” Unlike other projects, the Valley of the Kings project has a high grade of gold. Said Quartermain, “We are looking at 17 grams per gold per ton. We are significantly higher than most other mines that average only one gram per ton. We are located in British Colombia in Canada. They have opened a mine every year in the last year. We are in an area where there are other operational mines. We have a positive permitting regime. We have a business friendly government and a relationship with First Nations leaders who understand the opportunities. We have value for gold in our project.”

http://www.pretivm.com/

Pretium Resources Inc.

1600-570 Granville Street
Vancouver, BC V6C 3P1

Phone: 604-558-1784
Email:
invest@pretivm.com




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