- Pretivm Resources (TSX:PVG) has updated their resource estimates for The Brucejack Gold Mine in British Columbia
- Estimates now suggest that the entire mine site has 4.2 million ounces of gold
- The new mineral estimate lowered the annual gold production by 100,000 ounces to 311,000, reflecting the ongoing depletion of reserves
- The mine’s life is largely unaltered and is expected to be operational for the next 13 years
- Pretivm Resources (PVG) was up 2.17 per cent, with shares trading at $9.87
Pretivm Resources Inc (TSX:PVG) has released updated resource estimates for their Brucejack Gold Mine in British Columbia.
During 2019, the company drilled almost 90,000 metres of exploration around the Valley of Kings site at Brucejack.
Although the step-out program also looked outside the Valley of Kings, the majority of expected production over the mine’s life will come from this area.
As a result of exploration efforts, estimates now suggest that the entire mine site has 4.2 million ounces of gold.
The new mineral estimate lowered the annual gold production by 100,000 ounces to 311,000. The reduction is the result of ongoing operations at the mine, which are depleting high-grades and overall reserves.
This reduction has, for the most part, not affected the mine’s life, which is likely to last another 13 years. The company predicts that it will produce 367,000 ounces annually in the first nine.
In the adjusted reserve, the company reduced the grade cut-off to 3.5 grams per tonne. The company did so to better reflect the grades more recently mined from the site, which has operated since July 2017.
As a result of the decline in reserves, the company estimates a 42 percent reduction in value.
President and CEO of Pretivm, Joseph Ovsenek, believes the updated figures are consistent with any long-life operational mine.
“Since achieving commercial production in July 2017, Brucejack has generated over $500 million of cash flow and is expected to generate strong cash flow well into the future,” he said.
During 2019, the company ramped up production by 40 per cent to 3,800 tonnes of ore per day. Despite the reduction in reserves the company will maintain this output for the foreseeable future.
Pretivm Resources Inc (PVG) was up 2.17 per cent, with shares trading for $9.87 at 2.25pm EST.