GOLD: Pretium reports on Brucejack feasibility

BRITISH COLUMBIA – Pretium Resources of Vancouver has filed the feasibility study for its Brucejack gold project near Stewart. A 2,700-t/d underground mine using longhole open stoping plus a mill combining conventional flotation and gravity concentration with a Q3 2016 production date are proposed.

The total initial capital cost is estimated to be $663.4 million. The sum includes $174.5 million to develop the underground mine and $80.1 million for the processing plant. Mining costs are estimated at $93.18 per tonne of ore milled, $18.16 for processing, plus contract material re-handling, general and administrative expenses, surface services, backfilling and water treatment total $156.46 per tonne.

Pretium puts the project at a net present value of US$2.69 billion (5% discount) and expects a 42.9% internal rate of return. The initial capital expense would be paid back in 2.1 years.

The feasibility study may be read in its entirety at Pretivm.com.