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Pretium gold output slowed by COVID-19

Despite challenges, BC mine on pace to achieve 2021 goals North of 60 Mining News – May 7, 2021

Despite being challenged with a COVID-19 outbreak, Pretium Resources Inc.'s Brucejack Mine in Northern British Columbia was able to produce enough gold to turn a profit during the first quarter of 2021.

As of Feb. 11, Pretium reported that it is managing 14 COVID-19 cases among employees and contractors at Brucejack, prompting BC Northern Health to declare an outbreak at the mine. As a result, Pretium quickly implemented enhanced COVID-19 protocols, including restrictions on travel to and from Brucejack, while BC Northern Health completed site-wide testing and assessed the situation.

On March 21, BC Northern Health declared an end to the COVID-19 outbreak at the mine.

While Pretium was able to continue operations during the outbreak, the rates of both mining and milling were reduced over much of the first quarter.

"The first quarter of 2021 proved to be very challenging, but operations continued throughout the COVID-19 outbreak that occurred at Brucejack in February. This was only possible because of the tremendous dedication of our team, the support of our contractors and the contributions of our healthcare provider Iridia Medical, our First Nation community partners and BC Northern Health," said Pretium Resources President and CEO Jacques Perron. "Despite this challenge, we delivered yet another profitable quarter with US$142.4 million in revenue and generated US$51 million in free cash flow which allowed us to significantly reduce our debt with a discretionary payment of US$38 million subsequent to the quarter end."

During the first three months of 2021, the Brucejack mill processed 341,057 metric tons of ore, or 3,790 metric tons per day. This is about a 1.2% decrease from the 3,793 metric tons per day processed during the first quarter of 2020.

The mill feed grade, however, averaged 8.2 grams per metric ton gold for the first quarter of 2021, which is an increase over the 7.8 g/t during the same period last year.

Gold recoveries were also higher – 96.8% in the first quarter of this year compared to 96.4% in the comparable period in 2020 – which helped overcome the slightly lower mill throughput.

As a result, the Brucejack Mine produced 85,795 ounces of gold during the first quarter of 2021, a nearly 4% increase over the 82,888 oz produced last year. The mine also produced 117,905 oz of silver, which is down about 5% from the 123,926 oz produced during the first three months of 2020.

Pretium Resource COO Patrick Godin expects the impacts of the COVID-19 outbreak to have residual effects that will carry over into the second quarter but expects production will pick up in the second half of the year.

"Based on our production forecast, we remain on track to be within our full-year production guidance range," he said.

According to this guidance published in January, 2021 gold production at Brucejack is expected to be in the range of 325,000 to 365,000 oz, or 81,250 to 91,250 oz per quarter.

Initial drill results intercepted high-grade gold mineralization and demonstrate the potential to extend the Valley of the Kings deposit directly to the north and at depth adjacent to existing infrastructure. Follow-up drill programs are currently underway, and results are expected in the third quarter of 2021.

On the resource expansion front, Pretium is encouraged by high-grade gold mineralization encountered at depth and to the east of the Valley of the Kings deposit.

Significant results from a 1080 Level resource expansion drill program carried out last year include:

Five meters averaging 303.6 g/t gold in hole VU-2355.

5.3 meters averaging 96.9 g/t gold in hole VU-2380.

One meter averaging 1,555 g/t gold and 1,655 g/t silver in hole VU-2383.

One meter averaging 1,400 g/t gold and 1,310 g/t silver in hole VU-2397.

7.5 meters averaging 245.9 g/t gold in VU-2421.

"Our resource expansion drill program is only in the initial stages and has already intercepted high-grade mineralization immediately adjacent to existing underground infrastructure. Follow-up drilling is currently underway targeting the potential expansion of the Valley of the Kings deposit to the north and at depth," said Perron.

Pretium had up to six diamond drills turning and completed 38,386 meters of infill and resource expansion drilling during the first three months of 2021.

"We experienced some delays with the program as a result of the COVID-19 outbreak in February, but we have adjusted our plans to increase the pace for the remainder of the year to achieve our objectives," said Perron. "Drilling results are expected to be released throughout the remainder of the year and we continue to be very excited by the geological potential at Brucejack."

Author Bio

Shane Lasley, Publisher

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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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