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Pretium: Brucejack Mine Economics Improved

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Pretium Resources Inc. (TSX, NYSE: PVG) has released an updated mineral reserve and resource estimate and 14-year plan for the Brucejack Mine in British Columbia, saying the mine is expected to produce 525,000 ounces of gold annually over the first 10 years at a cost of $535 an ounce. “Since achieving production at Brucejack, we have processed over 1.5 million tonnes of ore and produced over 500,000 ounces of gold, providing us a solid foundation of operating experience and key metrics to update the life-of-mine plan and outlook for the mine,” says Joseph Ovsenek, president and chief executive officer. “At $1,300 gold, Brucejack now has an estimated after-tax net present value at a 5% discount rate of $2.59 billion over a 14-year mine life. This is a significant increase from the 2017 estimated net present value at a 5% discount rate of $2.1 billion.” Brucejack proven and probable reserves were put at 6.4 million ounces of gold (16.0 million tonnes grading 12.6 grams of gold per tonne).

By Allen Sykora of Kitco News; asykora@kitco.com

 

Sandstorm Agrees To Financing Package With Americas Silver Corp.

Thursday April 4, 2019 08:30

Sandstorm Gold Ltd. (NYSE American: SAND, TSX: SSL) says it has entered into a $42.5 million financing package with Americas Silver Corp. (TSX: USA; NYSE American: USAS) that includes a $25 million gold stream and royalty on the Relief Canyon project in Nevada, the companies report. The package also includes a $10 million convertible debenture and a $7.5 million equity subscription. Americas Silver expects Relief Canyon to pour gold by the end of 2019 with average annual production of 91,000 ounces of gold at an all-in-sustaining cost of $801 per ounce. Sandstorm says it will receive 32,022 ounces of gold over 5.5 years, followed by a 4% precious-metals stream thereafter. This is expected to increase Sandstorm’s gold-equivalent ounces by 7% in 2020 and 9% in 2021, the company adds. The deal comes as Americas Silver Corp. closed on the previously announced acquisition of Pershing Gold Corp., allowing the company to proceed with the Relief Canyon project. “The company can immediately begin construction at Relief Canyon now that the transaction has closed, and we have secured financing and board approval,” says Darren Blasutti, president and chief executive officer of Americas Silver Corp. “With Sandstorm as our financing partner, we have raised the necessary capital to fund the project through to sustainable cash flow while adding an important strategic partner as the company’s largest shareholder.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Premier Gold Enters Into Option Agreement For San Felipe Property

Thursday April 4, 2019 08:30

Premier Gold Mines Ltd. (TSX: PG) says it has entered into an option acquisition agreement with Americas Silver Corp. to acquire an option to purchase the San Felipe Property, located 55 kilometers from the company’s Mercedes Mine in Mexico. Hochschild plc is the underlying owner of the San Felipe property. Premier will pay America’s Silver $7 million on closing, then additional payments of $1.9 million upon making positive construction decision and achieving commercial production. Premier will also make eight quarterly payments of $750,000 to Hochschild. There is no royalty payable on the property. “San Felipe represents a strategic asset, adding resources and providing a near-term development opportunity in close proximity to an existing operation,” says Ewan Downie, president and chief executive officer of Premier. “We will assess options to bring San Felipe to production to complement existing production in Mexico.”

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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