brucejack tour august 2017 (web)

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VALUE THROUGH GOLD BRUCEJACK MINE TOUR August 15-17, 2017

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Page 1: Brucejack tour august 2017 (web)

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VA LU E T H R O U G H G O L D

BRUCEJACK MINE TOUR

August 15-17, 2017

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CAUTIONARY STATEMENT

Forward-Looking InformationThis Presentation contains “forward-looking information” and “forward looking statements” within the meaning of applicable Canadian and United States securities legislation. Forward-looking information may include, but is not limited to, the anticipated production and developments in our operations in future periods, information with respect to our planned exploration and development activities, the adequacy of our financial resources, the estimation of mineral reserves and resources including the 2016 Valley of the Kings Mineral Resource estimate, realization of mineral reserve and resource estimates and timing of development of our Brucejack Project, costs and timing of future exploration, results of future exploration and drilling, production and processing estimates, capital and operating cost estimates, timelines and similar statements relating to the economic viability of the Brucejack Mine, 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”, “projects”, “assumes”, “budget”, “strategy”, “scheduled”, “estimates”, “forecasts”, “anticipates”, “believes”, “intends”, “targets” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative forms of any of these terms and similar expressions, have been used to identify forward-looking statements and information. Statements concerning mineral reserve and 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 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, including, without limitation, those risks identified in our Annual Information Form dated March 30, 2017 filed on SEDAR at www.sedar.com and in the United States on Form 40-F through EDGAR at the SEC’s website at www.sec.gov. Forward-looking information is based on the expectations and opinions of our management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise. 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 43-101Technical and scientific information contained herein relating to the Projects is derived from National Instrument 43-101 (“NI 43-101”) compliant technical reports (“Reports”), “Measured, Indicated, and Inferred Mineral Resource Update” dated July 21, 2016, “Feasibility Study and Technical Report on the Brucejack Project, Stewart, BC” dated June 19, 2014, “Mineral Reserve Update” dated December 15, 2016, “capital cost update” dated February 3, 2017, and . We have filed the Reports and Update 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. Ivor W.O. Jones, M.S.c., FAusIMM, Cpgeo, Mr. Kenneth C. McNaughton, P.Eng., Ian Chang, P.Eng., Mr. Russell Pennel, B.A.S.c., P.Eng., and Mr. Lyle Morgenthaler, B.A.S.c., P.Eng. each of whom is 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. CurrencyUnless otherwise indicated, all dollar values herein are in Canadian $.

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RAMPING UP BRUCEJACK

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MAY: Wet commissioning complete

JUNE:Increase in production rate. First gold pour.

JULY:Achieved commercial processing rate. Mill optimization. Produced 25,392 ounces of gold in June/July from low-grade stockpiles, development muck, and in July, the addition of stope ore.

AUGUST: Continue mill optimization. Continue addition of stope ore.

SEPTEMBER >Optimize ore blending

MILL COMMISSIONING & RAMP-UP

2017 Focus:

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MILL OPTIMIZATION

Gravity Recoverable Gold Gold Room Gold Recovery Slag

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MILL OPTIMIZATION

PrimaryScreen

CycloneUnderflow

Primary Knelson

Bin

PrimaryShakerTable

PrimaryScreen

Bin Bin

SecondaryScreen

Primary Knelson

Secondary Knelson

SecondaryShakerTable

Table TailsGravity

Concentrate

Table Middlings

Oversize

KnelsonTails

Table Tails

KnelsonTails

KnelsonTails

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FINANCIAL

2017 Capex Close Out Gold Sales Underway Positive Cash Flow End of Q3

2018 Pay Down Debt Buy Back Stream

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DELIVERING ON STRATEGY

Brucejack Reserve Expansion

Bowser Exploration Potential

Brucejack Production Expansion

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RESERVE EXPANSION

N

250 m

1Outline of Measured, Indicated, and Inferred Mineral Resource as at 21 July 2016.2Outline of Proven and Probable Mineral Reserve, based on 19 June 2014 Updated Feasibility Study.

SU-658

SU-661

SU-654

SU-668

2.05m @ 2,100 g/t Au(Includes 0.5m @ 8,600 g/t Au)

1.18m @ 10.75 g/t Au

9.0m @ 21.87 g/t Au(Includes 0.5m @ 203 g/t Au)

1.5m @ 16.9 g/t Au

0.5m @ 137 g/t Au

Mineral Resource1

Mineral Reserve2

Exploration PotentialDrill Intercepts

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N

5km

2016201520142011/13 Pre 2011

BOWSER EXPLORATIONEXTENSIVE SURFACE SAMPLING

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PRODUCTION EXPANSION

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GEOLOGY UPDATE

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KEY GEOLOGICAL FEATURES

Intermediate sulphidation epithermal Au-Ag deposit

Formed in an active island arc at 185-183 Ma

Long-lived arc magmatism between ~195-178 Ma– Ideal ground preparation for precious metal system

Pre-sulphidation – minimized rock sulphur buffering capacity Pervasive white mica development – pH buffering Pre-mineralized - Au in pyrite

– Heat and metal source driving younger epithermal system

Syn-arc compressional deformation– Plumbing system development

Foliation Damage zones

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REGIONAL GEOLOGIC SETTING

Cache Creek Ocean

~196-183 MaStikinia

~110 Ma

FarallonPlate

Insular BeltIntermontane Belt

~173 MaStikinia

Cache Creek Terrane Quesnellia

Bowser Basin

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REGIONAL GEOLOGICAL SETTING: ANALOGY

After Noda (2013)

Modern Day Tectonic Setting Analogy

PLATESSU – Sundaland PlatePS – Philippine Sea Plate

TRENCHESMT – Manila TrenchELT – East Luzon Trench

TRENCH-LINKED STRIKE-SLIP FAULTSPF – Philippine FaultSSF – Sibuyan Sea Fault

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REGIONAL GEOLOGICAL SETTING

From Nelson and Kyba, 2014

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VALLEY OF THE KINGS GEOLOGY

After Tombe et al. (in prep.)

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STRUCTURAL GEOLOGY – SCHEMATIC

N

50 m

UndergroundDevelopment

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STRUCTURAL GEOLOGY – SCHEMATIC

N

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GEOLOGY – EPITHERMAL VEIN TYPES

Vn1a Vn1b Vn1c

Vn2 Vn2

Vn3

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GEOLOGY HIGHLIGHTS: AU/AG IN ELECTRUM

After McLeish et al. (in prep.)

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SG VARIATION AS A FUNCTION OFAU/AG RATIO

Generated from electrum coin data in: The Numismatic Chronicle and Journal of the Numismatic Society, Royal Numismatic Society of Great Britain (Edition III, 1887)

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GRADE CONTROL: PRODUCTION SAMPLING

Wet Drill Cuttings (2t)Rig-mounted

Pump

Surface BulkGravity Laboratory

Bulk Bag Collection& Transportation

Sample Collector

Underground SampleSplitting Station

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TOUR STOPS

View facing West

1

2

3

1. Stockwork Veining & VG - 1230 Level 2. Open Stope - 1230 Level3. Stockwork Veining & VG - 1260 Level

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TOUR STOPS

1

2

3

Plan View

Upper Conveyor

Truck Dump

Lower ConveyorCrusher

West Zone Portal

VOK Portal

1. Stockwork Veining & VG - 1230 Level 2. Open Stope - 1230 Level3. Stockwork Veining & VG – 1260 Level

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STOP 1: 1230 M LEVEL

N

25 m

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N

25 m

STOP 3: 1260 M LEVEL

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UNDERGROUND DEVELOPMENT

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LONGHOLE STOPING

30 m level spacing

Maximum of 45 m stope lengths

15 m widths

Dilution Factors– Primary Stopes: 7%– Secondary Stopes: 15%

Mining Recovery Factors– Primary Stopes: 97.5%– Secondary Stopes: 92.5%

Average 12 stopes in the mining and backfill cycle at any time

30 M SPACING

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2017 STOPES

View facing North West

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ORE FLOW

Isometric view facing North

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ORE HANDLING SYSTEM

LHD & Truck from stopes to the grizzly Grizzly – 0.6 m x 0.6 m (24” x 24”) openings Coarse Ore Bin: 900 t capacity Metso C120 Jaw Crusher – 1200 x 870 mm opening

– Jaw Crusher sized for dayshift operation Conveyor belts from crusher to surge bin - 1067 mm

(42”) wide– Crusher discharge belt – 18.2 m– Lower belt – 259.2 m– Upper belt – 571.4 m– Surge bin feed belt – 117.6 m

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OTHER SYSTEMS

Ventilation– 350 m3/s (175 m3/s per portal)– 800 HP fans at each portal– Hybrid 2 MW electric / 5 MW propane heating per portal

Dewatering– 450 m3/hr design capacity

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OPERATIONS

Staffing complete

Stoping underway with contract miner: Procon

Dore sales underway

Flotation concentrate being shipped

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FIRST NATIONS EMPLOYMENTNORTHWEST BC

$14 M

COLUMBIA

27% First

Nations

Pretivm PretivmPlus Contractors

37% First

Nations

119/433 317/864

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MILL BUILDING

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MILL BUILDING

VOK Portal

Mill

Camp

Waste RockDisposal

Contact WaterPond

West ZonePortal

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PROCESSING FLOW SHEET

55% FROM CONCENTRATE

45% FROM GRAVITY

(1) Source: Feasibility Study and Technical Report Update on the Brucejack Project, dated June 19, 2014.

96.7% GOLD RECOVERY (LOM)

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PROCESSING FLOW SHEET

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MILL BUILDING– SHAKER TABLE

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MILL BUILDING– FIRST GOLD POUR

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MILL BUILDING– FIRST DORÉ BAR

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Ramping Up Brucejack

PVG : TSX/NYSEpretivm.com

CONTACT: Pretium Resources Inc.Suite 2300 – 1055 Dunsmuir St.Four Bentall CentrePO Box 49334Vancouver, BC, Canada V7X 1L4

Phone: 604-558-1784Fax: 604-558-4784Toll-free: 1-877-558-1784

[email protected]

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SHAREHOLDING & ANALYST COVERAGE

(1) As of August 1, 2017; ownership calculated on an undiluted basis.(2) As of August 14, 2017. Source: IPREO & SEDI.

Top Shareholders(2) (% S/O)

Black Rock Asset Management 10.6Silver Standard Resources 9.4Van Eck Associates 5.9Zijin Mining 5.0Liberty Mutual Group 4.1M&G Investment Management 3.1BMO Asset Management 3.0Sun Valley Gold 2.7Orion Mine Finance 2.6Anchor Bolt Capital 2.5Pretivm Management 1.9

Equity Structure(1)(shares in millions)

Issued & Outstanding 181.2Fully Diluted 188.1

Market Cap (August 14, 2017) US$1.46 B

Working Capital (at June 30, 2017) (US$12.9) M

Analyst CoverageBMO Andrew KaipCanaccord Genuity Eric ZaunscherbCIBC Jeff KilleenCiti Alexander HackingCormark Securities Richard GrayCredit Suisse Robert ReynoldsH.C. Wainwright Heiko F. IhleNumis Jonathan GuyPareto Securities Rhys BradleyRBC Dan RollinsRoth Capital Partners Joseph ReagorScotiabank Ovais Habib

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APPENDIX

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BRUCEJACK LOCATION

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BRUCEJACK PROJECT LOCATION

Access Road

Power Line

Knipple Camp Transfer Station

Airstrip

Brucejack

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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)

Proven 1.4 7.2 383 0.3 17.4

Probable 1.5 6.5 181 0.3 8.6

Total P&P 2.9 6.9 279 0.6 26.0

Valley of the Kings

West Zone

(1) Source: Mineral Reserve Update, see news release dated December 15, 2016(2) Source: Feasibility Study and Technical Report Update on the Brucejack Project, dated June 19, 2014

Category Tonnes(mil)

Gold(g/t)

Silver(g/t)

Contained

Gold(mil oz)

Silver(mil oz)

Proven 3.3 14.5 12.9 1.6 1.4

Probable 12.3 16.5 11.3 6.5 4.5

Total P&P 15.6 16.1 11.1 8.1 5.9

Mineral Reserve Estimate – Dec 2016

West Zone

Valley of the Kings

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BRUCEJACK PROJECT PRODUCTION

Source: Feasibility Study and Technical Report Update on the Brucejack Project, dated June 19, 2014; Mineral Reserve Update, see news release dated Dec. 15, 2016.

Mine Life 18 years

Feasibility Study Gold Production 7.27 million oz

Average Annual Gold Production

504,000 oz (years 1-8)

404,000 oz (life of mine)

Gold and Silver Recoveries 96.7% and 90.0%

Processing Rate 2,700 tonnes per day

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BRUCEJACK - ROBUST ECONOMICS

(1) Based on updated forecast of capital cost (see News Release dated February 3, 2017) and operating cost assumptions from the Feasibility Study and Technical Report Update on the Brucejack Project, with an effective date of June 19, 2014

(2) NPV is discounted to Dec 31, 2015.

Economic Results by Metal Price (1)

Low Case Base Case High Case

Gold Price (US$/oz) $800 $1,100 $1,400Silver Price (US$/oz) $10 $14 $18NPV(2) (5% US$M) Pre-Tax $1,050 $2,340 $3,620

After Tax $690 $1,530 $2,360Internal Rate of Return Pre-Tax 19.9% 34.4% 47.5%

After-Tax 16.5% 28.5% 39.1%Net Cash Flow (US$M) Pre-Tax $2,110 $4,220 $6,320

After-Tax $1,470 $2,820 $4,170Payback Pre-Tax 5.0 3.3 2.5

After-Tax 5.2 3.5 2.7

Capex (US$M) $811.1 $811.1 $811.1

Exchange Rate (US$:C$) 0.75 0.75 0.75

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UNDERGROUND DEVELOPMENT– TRUCK DUMP

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UNDERGROUND DEVELOPMENT– JAW CRUSHER

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UNDERGROUND DEVELOPMENT– LOWER TRANSFER TOWER

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UNDERGROUND DEVELOPMENT– UPPER TRANSFER TOWER

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PORTAL BUILDING– UPPER TRANSFER CONVEYOR

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PORTAL BUILDING– SURGE BIN FEED CONVEYOR

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MILL BUILDING– SURGE BIN AND APRON FEEDER

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MILL BUILDING– SURGE BIN DISCHARGE AND PEBBLE CRUSHER CONVEYORS

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MILL BUILDING– SAG MILL FEED CONVEYOR AND GRINDING AREA

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MILL BUILDING– SAG & BALL MILLS

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MILL BUILDING– CENTER BAY, FLOTATION CIRCUITS

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Process and fire water tanks

MILL BUILDING– FLOTATION CELLS

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Process and fire water tanks

MILL BUILDING– FLOTATION CELLS

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Process and fire water tanks

MILL BUILDING– CONCENTRATE THICKENER

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MILL BUILDING– CONCENTRATE FILTER PRESS

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MILL BUILDING– CONCENTRATE BAGGING

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MILL BUILDING– CONCENTRATE BAGGING

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MILL BUILDING– KNELSON FEED CHUTES

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MILL BUILDING– KNELSON FEED CHUTES

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MILL BUILDING– KNELSON (GRAVITY) CONCENTRATORS

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Process and fire water tanks

MILL BUILDING– TAILINGS THICKENER