The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
Pretium Resources Inc. Feb. 3 reported that construction at its Brucejack gold mine is ahead of schedule and commissioning of the mill is slated to begin in March, ahead of the mid-2017 start originally planned.
In preparation for commissioning, the company has stockpiled more than 110,000 metric tons of ore from the high-grade underground gold mine.
The total cost to complete construction of the Brucejack Mine, including contingencies, is now expected to be US$811.1 million, an increase of 16 percent from the US$696.8 million Pretium forecast at this time last year.
The updated forecast, however, includes US$68.8 million of working capital for the first three months of production and does not take into account any revenue generated during this period.
One of the major cost increases, about US$37.9 million, is for the completion of the transmission line, which is now nearing completion.
All of the towers are in place and the first 42 kilometers (26 miles) of the 57-kilometer (35 miles) transmission line is energized to the Knipple substation.
Pretium said the final 15-kilometer (nine miles) section of the transmission line is 90 percent complete and expected to be energized this quarter.
An additional six 2-megawatt diesel generators are fully commissioned and, combined with the 5 mega-watts of power generation already in place, can provide adequate power to maintain full mill and underground production in the event of any grid power interruption.
Other cost overages include construction (US$34.1 million); and indirect costs (US$31.4 million).
Pretium says it has sufficient cash to complete the construction of the Brucejack Mine and is assessing the working capital requirements during the first three months of production.
The Valley of the Kings deposit at Brucejack hosts 15.6 million metric tons of proven and probable reserves grading 16.1 grams per metric ton (8.1 million ounces) gold.
This includes 3.3 million metric tons of proven reserves averaging 14.5 g/t (1.6 million oz) gold, enough ore for the first three years of production.
Over his more than 16 years of covering mining and mineral exploration, Shane has become renowned for his ability to report on the sector in a way that is technically sound enough to inform industry insiders while being easy to understand by a wider audience.
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