September 9 2013 corp web

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Corporate Presentation September 9, 2013

Transcript of September 9 2013 corp web

Page 1: September 9 2013 corp web

Corporate Presentation September 9, 2013

Page 2: September 9 2013 corp web

CAUTIONARY STATEMENT

Forward Looking Information This Presentation contains ‘‘forward-looking information’’ within the meaning of applicable Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information may include, but is not limited to, information with respect to the anticipated production and developments in our operations in future periods, our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral resources, realization of mineral resource estimates, costs and timing of development of the projects we currently intend to acquire (the “Projects”), costs and timing of future exploration, results of future exploration and drilling, timing and receipt of approvals, consents and permits under applicable legislation, our executive compensation approach and practice, the composition of our board of directors and committees, and adequacy of financial resources. Wherever possible, words such as ‘‘plans’’, ‘‘expects’’ or ‘‘does not expect’’, ‘‘budget’’, ‘‘scheduled’’, ‘‘estimates’’, ‘‘forecasts’’, ‘‘anticipate’’ or ‘‘does not anticipate’’, ‘‘believe’’, ‘‘intend’’ and similar expressions or statements that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, have been used to identify forward-looking information. Statements concerning mineral resource estimates may also be deemed to constitute forward-looking information to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as ‘‘expects’’, ‘‘anticipates’’, ‘‘plans’’, ‘‘projects’’, ‘‘estimates’’, ‘‘assumes’’, ‘‘intends’’, ‘‘strategy’’, ‘‘goals’’, ‘‘objectives’’, ‘‘potential’’ or variations thereof, or stating that certain actions, events or results ‘‘may’’, ‘‘could’’, ‘‘would’’, ‘‘might’’ or ‘‘will’’ be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking information. Forward-looking information is subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by the forward-looking information. Many of these risks are listed and described in our final short-form prospectus dated March 19, 2012 (the “Prospectus”), which is available for review on SEDAR at www.sedar.com under our profile. Although we have attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Forward-looking information involves statements about the future and is inherently uncertain, and our actual achievements or other future events or conditions may differ materially from those reflected in the forward-looking information due to a variety of risks, uncertainties and other factors, including, without limitation, those referred to in the Prospectus under the heading ‘‘Risk Factors’’. Our forward-looking information is based on the beliefs, expectations and opinions of management on the date the statements are made, and we do not assume any obligation to update forward-looking information, whether as a result of new information, future events or otherwise, other than as required by applicable law. For the reasons set forth above, prospective investors should not place undue reliance on forward-looking information. National Instrument 43-101 Technical and scientific information contained herein relating to the Projects is derived from National Instrument 43-101 (“NI 43-101”) compliant technical reports (“Reports”) “Mineral Resources Update Technical Report” dated November 20, 2012 and “Feasibility Study and Technical Report on the Brucejack Project, Stewart, BC” dated June 21, 2013. We have filed the Reports under our profile at www.sedar.com. Technical and scientific information not contained within the Reports for the Projects have been prepared under the supervision of Mr. Kenneth C. McNaughton, an independent “qualified person” under NI 43-101. This presentation uses the terms “measured resources”, “indicated resources” (together “M&I”) and “inferred resources”. Although these terms are recognized and required by Canadian regulations (under NI 43-101), the United States Securities and Exchange Commission does not recognize them. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no guarantee that all or any part of the mineral resource will be converted into mineral reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre feasibility studies, or economic studies, except for a Preliminary Assessment as defined under NI 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Currency Unless otherwise indicated, all dollar values herein are in Canadian $.

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High-grade gold Reserves: Probable Reserves for Valley of the Kings:

6.6 Million oz gold (15.1 Mt @ 13.6 g/t gold)

Robust Feasibility Study for underground mine

Located in British Columbia, Canada

Commercial production target early 2016

An investment in Gold

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Kirkland Lake Mine (Kirkland Lake)

Kensington Mine (Coeur)

Casa Berardi (Hecla)

El Penon Mine (Yamana)

Red Lake Mine (Goldcorp)

Pogo Mine (Sumitomo)

Valley of the Kings

F2 Deposit (Rubicon)

Buritica (Continental)

Cerro Negro (Goldcorp)

Eleonore (Goldcorp)

Cerro Moro (Yamana)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0

M&

I + In

ferr

ed G

old

Gra

de (g

/t)

M&I + Inferred Gold Resources (mm oz)

HIGH-GRADE GOLD RESOURCE WITH SIZE

4 November 2012 Valley of the Kings High-Grade Gold Mineral Resource based on a cut-off grade of 5.0 grams of gold-equivalent/tonne. Data sources: Companies

Indicated Gold: 8.5 mm oz @ 16.4 g/t Au Inferred Gold: 2.9 mm oz @ 17.0 g/t Au

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BRUCEJACK PROJECT LOCATION

220km Terrace

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EXPLORATION AND OWNERSHIP HISTORY

1960-1980

1980-1985

1986-1989

1990

1993

1999-2000

2009

2010

2011-2012

2013

Exploration by various

companies

West Zone discovery and definition by Newhawk

5.3 km underground

development of West Zone

West Zone Feasibility Study

completed

Acquisition by Silver Standard Resources Inc.

Exploration resumes. Discovery of Valley of

the Kings Zone

Acquisition by Pretivm

Extensive exploration program, high-grade

resource, exploration road Mine Development Certificate issued

Completed feasibility study, Valley of the Kings underground

bulk sample program 6

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BRUCEJACK GEOLOGY/DRILLING

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Meters 500

Valley of the Kings

West Zone

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DEFORMED STOCKWORK MINERALIZATION

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HIGH-GRADE GOLD RESERVES(1,2)

Category

Tonnes

(mil)

Gold (g/t)

Silver (g/t)

Contained Gold

(mil oz) Silver

(mil oz) Probable 15.1 13.6 11.0 6.6 5.3

Valley of the Kings Mineral Reserve Estimate – May 16, 2013

(1) Rounding of some figures may lead to minor discrepancies in totals (2) Based on C$180/t cutoff grade, US$1350/oz Au price, US$22/oz Ag price, C$/US$ exchange rate = 1.0

Category

Tonnes

(mil)

Gold (g/t)

Silver (g/t)

Contained Gold

(mil oz) Silver

(mil oz) Proven 2.0 5.7 309 0.4 19.9 Probable 1.8 5.8 172 0.3 10.1 Total P&P 3.8 5.8 243 0.7 30.0

West Zone Mineral Reserve Estimate – May 16, 2013

SU-452

SU-266

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VALLEY OF THE KINGS INDICATED RESOURCE

Northing (± 25 m)

Ind.Gold* (Oz.)

6258225 230,900

6258175 484,000

6258125 703,100

6258075 336,600

6258025 1,951,100

6257975 2,365,900

6257925 1,021,000

6257875 513,600

6257825 687,500

6257775 176,400 Valley of the Kings Indicated Mineral Resource: 8.5 Moz. Au @ 5.0 g/t AuEq. (16.1 Mt @ 16.4 g/t Au)

*Nov. 2012 Indicated Mineral Resource; ≥5.0 g/t AuEq.

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1,092,100 1,776,900 1,467,600 2,185,800 1,391,000 380,100 192,900 Ind. Au* (Oz.)

Surface projection of November 2012 Mineral Resource estimate, with total ounces per 100 m Easting and 50 m Northing strips

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MINERAL RESOURCE CONTINUITY

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Total Ounces* per 10 x 100 m N-S corridor – 6257800 N Long Section Level (m) Ind. Gold (Oz)*

1540-1570 116,300 1510-1540 499,700 1480-1510 734,800 1450-1480 510,400 1420-1450 365,450 1390-1420 566,700 1360-1390 631,700 1330-1360 364,800 1300-1330 527,400 1270-1300 992,000 1240-1270 998,200 1210-1240 521,950 1180-1210 213,050 1150-1180 246,800 1120-1150 294,600 1090-1120 393,900 1060-1090 317,600

W E

100 m

4,000-6,000 6,000-7,000 7,000-8,000

>10,000

Key (Oz. Au)

3,000-4,000 1,000-3,000 <1,000

8,000-10,000 Total Ounces per level (Valley of Kings Zone) *Nov. 2012 Indicated Mineral Resource; ≥5.0 g/t AuEq.

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0.5-5.0 g/t AuEq

5.0-15.0 g/t AuEq

>15.0 g/t AuEq

Assay Intervals Key

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BULK SAMPLE LOCATION

N S

West Zone Underground Development

Valley of the Kings Bulk

Sample

200 m

546 m

100 m 200 m 300 m 400 m 500 m

10,000 tonne bulk sample from Valley of the Kings completed

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BULK SAMPLE LOCATION

0.5-5.0 g/t Au

5.0-15.0 g/t Au

>15.0 g/t Au

Key Assay Intervals

VOK Bulk Sample

Domain 17

Domain 11

200 m

N S

Domain 20

VOK Access Ramp

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HIGH GRADE RESOURCE BLOCKS

14 Indicated and Inferred blocks greater than 5 g/t AuEq shown from November 2012 Mineral Resource estimate

Valley of the Kings block model – 426550E section view (50m wide)

5-15

15-30

30-60

>60

Key (g/t AuEq)

N S

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HIGH GRADE RESOURCE BLOCKS

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Valley of the Kings block model – 426600E section view (50m wide)

5-15

15-30

30-60

>60

Key (g/t AuEq)

N S

Indicated and Inferred blocks greater than 5 g/t AuEq shown from November 2012 Mineral Resource estimate

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BULK SAMPLE REPRESENTIVITY

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Drilling Density

100 m

Drillhole Trace

Indicated Blocks

Bulk Sample

Area

N

Vertical viewing window ±8.5 m Indicated blocks greater than 5 g/t AuEq shown from November 2012 Mineral Resource estimate

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BULK SAMPLE LOCATION

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1345 m Level

Polylithic Conglomerate

Fragmental Volcanic Rocks

Intensely Silicified

Conglomerate

Hbl-phyric Latite Flow

Siltstone, litharenite, pebble conglomerate

5-15

15-30

30-60

>60

Cleopatra Vein

Key (g/t Au) Block Grades

Vertical viewing window ±8.5 m Indicated blocks greater than 5 g/t AuEq shown from November 2012 Mineral Resource estimate

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BULK SAMPLE LOCATION

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1345 m Level

<0.5 0.5-1.0

1.0-5.0

>20

Key (g/t Au) Assay intervals

5.0-20.0

Cleopatra Vein

Vertical viewing window ±30 m Surface drilling from 2012. Projection of Cleopatra Vein.

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Fragmental Volcanic Rocks

Volcanic Sediment

Silicified Conglomerate

4266

00E

25 m

585E

615E

645E

555E

N

Viewing Window ±15m

6258015N

Cleopatra Vein (solid where mapped in drift)

1345M LEVEL PLAN - EXCAVATION

Completed Underground Development

Completed Bulk Sample

Legend

<0.5

0.5-1.0

1.0-5.0

>20

5.0-20.0

Key (g/t Au) Assay intervals

Cleopatra Vein (solid where mapped in drift)

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DEFORMED N-S FLUID CONDUITS

20

S N

S N

426615E Back

426615E Back

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DEFORMED N-S FLUID CONDUITS

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UNDERGROUND DRILLING - PROGRESS

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1345 m Level Oblique View

Siltstone, litharenite, pebble conglomerate

Intensely Silicified

Conglomerate

Fragmental Volcanic Rocks

Office Phyric Flow

Bridge Zone Phyric Flow

Cleopatra Structure

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COMPOSITE E-W VEIN BRECCIAS

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S N

660N crosscut – Domain 20

~0.5 m

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COMPOSITE E-W VEIN BRECCIAS

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Vn1b vein

breccia

Vn1c vein

Vn1c vein

breccia

Vn1b vein

breccia

~0.5 m

S N

Vn1b vein

breccia Vn1b vein

breccia

Vn1b vein

breccia Electrum

S N

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Fragmental Volcanic Rocks

Volcanic Sediment 50 m

N

Viewing Window ±100m centered at 1250m

PLAN VIEW: VU-136

Volcanic Flows

13.46m @ 54.99 ppm Au

16.26m @ 21.45 ppm Au

SU-526 1.16m @ 4194.5 ppm Au

0.5m @ 211 ppm Au 1.5m @ 52.4 ppm Au 0.5m @ 1,100 ppm au

0.5m @ 559 0.5m @ 81.5 ppm Au

<0.5 0.5-1.0

1.0-5.0

>20

Key (g/t Au) Assay intervals

5.0-20.0

High Grade Intervals

Cleopatra Vein (solid where mapped in drift)

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BULK SAMPLE: SAMPLE TOWER OPERATION

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100 tonne sample rounds

Jaw crusher and screen plant 100% passing 2 cm

Sample cutters in tower

800 kg split

Cone crusher Size reduction to 1 cm

Rotary splitter

2 x 30 kg samples

Rejects

Rejects

Rejects run through tower for multiple subsequent passes and sampled

Remainder to mill

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BULK SAMPLE TOWER

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Corridors of high-grade visible gold seams within lower grade (5g/t to 20g/t) gold quartz stockwork

Steeply dipping ore body

Competent ground conditions

Stope widths (15m wide X 30m high) appropriate both for transverse and longitudinal layouts

Cost effective

Valley of the Kings ramp

Long hole stoping mining method:

MINING METHOD FOR STOCKWORK

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PROPOSED MINE DEVELOPMENT

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Oblique View of Mining Stopes, Valley of the Kings

S

N

100 m

West-Zone (late mine life) Valley of the Kings

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BRUCEJACK MINE SITE: SURFACE LAYOUT

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Camp

Mill

Portals

Development Rock Disposal

West Zone Portal

Water Treatment

Substation

Laydown & Fuel Storage

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BRUCEJACK PROJECT ECONOMICS

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(1) Source: Feasibility Study and Technical Report on the Brucejack Project, dated June 21, 2013 (2) Base case metals prices of US$1,350 /oz gold and US$20/oz silver (3) Includes by-product cash costs, sustaining capital, exploration expense and reclamation cost accretion

June 2013 Feasibility Study Highlights(1,2) : Processing rate 2,700 tonnes per day

Mine life 22 years

Total gold production 7.1 million oz

Average annual gold production 425,700 ounces (years 1-10) 321,500 ounces (life of mine)

Average gold grade 14.2 g/t (years 1-10) 12.0 g/t (life of mine)

All-in sustaining cash cost per oz(3) $508/oz

Capex (including contingencies) US$663.5 million

Total operating costs C$156.46/t milled

Internal Rate of Return

42.9% (pre-tax) 35.7% (post-tax)

Net Present Value (5% discount)

US$2.69 billion (pre-tax) US$1.76 billion (post-tax)

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2013 BRUCEJACK PROJECT PLANS

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H2 2013

Complete Valley of the Kings bulk sample excavation and sampling

Process bulk sample

Complete bulk sample report

Additional Valley of the Kings drilling

Advance mine engineering

Advance permitting

File Environmental Assessment Certificate Application

Resource update

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BRUCEJACK PHOTOS

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Recently-completed bridge Access road

Camp Bulk sample/portal area

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COMMUNITY ENGAGEMENT

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Pretivm’s management team has been cooperatively engaging with First Nations and local community leaders in the Stewart, BC region for over 10 years

We work to ensure that our communication about the progress of the Brucejack Project is open and continuous

Commercial relationships with local First Nations developed during the exploration phase at Brucejack have been mutually successful

We will continue to extend both commercial contract and employment opportunities to locals whenever possible

Stewart warehouse constructed by development corporation of Skii km Lax Ha First Nation

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BRUCEJACK PERMITTING

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1986

1989

1993

1998

1999

2006

2011-2012

2013

2014

2015

2016

Reclamation Permit

Mine Development Certificate issued

April 15, 1993

Project Assessment Certificate

Permitted for exploration and exploration road

Project Assessment Certificate allowed to

expire

Approval in principle for development of a mine at West Zone

Reclamation Completion

Project Description under review for

underground mine at Brucejack’s Valley of

the Kings

Anticipate Environmental

Assessment Certificate

Construction, commissioning

Commercial production target

Brucejack Lake is not fish habitat Nearest fish 20 km away Waterfalls and Sulphurets Glacier

impede fish migration Brucejack Lake is 100 meters deep Up to 50% of tailings to be deposited in

the Lake, with total volume of tailings stored in bottom 30 meters

Focus on minimizing potential for suspended solids to discharge from Brucejack Lake

50% or more of tailings to be used for paste backfill and deposited underground

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PRETIVM MANAGEMENT

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Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc. President & Chief Executive Officer, Director

Peter de Visser, CA Chief Financial Officer

Joseph Ovsenek, B.A. Sc., P.Eng., LLB Vice President & Chief Development Officer, Director

Ken McNaughton, M.A. Sc., P.Eng. Vice President & Chief Exploration Officer

Ian I Chang, M.A. Sc., P.Eng. Vice President, Project Development

Michelle Romero, B.A., M.L.S. Vice President, Corporate Relations

Kevin Torpy, B.Sc. Director, Mine Engineering

Warwick Board, Ph.D., P.Geo. Chief Geologist

Max Holtby, B.Sc., P. Geo. Director, Permitting

Andrew Saltis, I.Eng. Site Project Manager, Mine Manager

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SHAREHOLDING & ANALYST COVERAGE

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Institutions, 53%

Retail, 23%

Management, 5%

Silver Standard,

19%

Capital Structure(1)

Public Float 86.0 Silver Standard Shares 19.0 Total Issued & Outstanding Shares 105.0 Incentive Options 8.7 Total Fully Diluted Shares 113.7

Market Capitalization C$865 million

Working Capital (at June 30, 2013) C$37.9 million

Gross proceeds from September 2013 private placements (3) C$27.3 million

(1) As of September 6, 2013; ownership calculated on an undiluted basis. (2) As of September 6, 2013. Source: IPREO, SEDI (3) See news releases dated September 5, 2013 and September 6, 2013

(shares in millions)

Top Shareholders(2) (shares in millions)

Silver Standard Resources 18.986 Royce & Associates 9.057 Liberty Metals & Mining 6.850 Passport Capital 3.443 Robert Quartermain 2.853 Sun Valley Gold LLC 2.611 TD Asset Management 1.983 Sprott Asset Management 1.739 Schroder Inv. Mgmt. (N.A) 1.532 Wellington Management 1.223

Analyst Coverage

BMO John Hayes CIBC Jeff Killeen Citibank Alex Hacking Cormark Securities Richard Gray Cowen Securities Adam Graf GMP Securities George Albino RBC Dan Rollins Salman Partners Ash Guglani Scotiabank Ovais Habib Very Independent Research John Tumazos

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PVG SHARE PERFORMANCE

38 XAU Index (%) PVG (%)

Gold Price ($US) (%)

Relative Performance: PVG, Gold, and XAU Index: January 1, 2011 to September 3, 2013 (weekly,%)

Gold price ($US)

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HIGH-GRADE GOLD PRODUCTION

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MeadowBank (Agnico Eagle)

Laronde (Agnico Eagle)

Hycroft (Allied Nevada) Kemess (Aurico)

Casa Berardi Mine (Hecla)

Ruby Hill (Barrick)

Round Mountain (Barrick/Kinross)

Turqouise Ridge (Barrick/Newmont)

Red Lake (Goldcorp)

Musselwhite (Goldcorp)

Marigold Mine (GoldCorp/Barrick)

Fort Knox (Kinross)

Kirkland Lake (Kirkland Lake Gold)

Mesquite (NewGold)

Carlin (Newmont)

Canadian Malartic (Osisko)

Valley of the Kings (Pretium)

Detour Lake Mine (Detour Gold)

0

100

200

300

400

500

600

700

0 2 4 6 8 10 12 14 16 18

Ann

ual G

old

Prod

uctio

n (K

oz/y

ear)

Grade (g/t)

Average gold production vs. grade for various North American producing mines with >2Moz Au in resources

Data sources: Companies, NRH.

Production target: 425,700 oz/year (yrs 1-10)

@ 14.2g/t head grade

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CONTACT Phone: 604-558-1784 Fax: 604-558-4784 Toll-free: 1-877-558-1784 [email protected] www.pretivm.com

HEAD OFFICE Pretium Resources Inc. 570 Granville St. Suite 1600 Vancouver, BC Canada V6C 3P1

COMMON SHARES TSX/NYSE:PVG Issued: 102 million Fully diluted: 110.8 million 52-week hi/low: $14.93/$5.53 Market cap: $865 million (at September 6, 2013)

Advancing a major high-grade gold resource in Canada