pretivm june presentation
TRANSCRIPT
Corporate Presentation June 26, 2013
CAUTIONARY STATEMENT
Forward Looking InformationThis 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 43-101Technical and scientific information contained herein relating to the Projects is derived from National Instrument 43-101 (“NI 43-101”) compliant technical reports (“Reports”) “Technical Report and Updated Preliminary Economic Assessment of the Brucejack Project” dated February 20, 2012 “Mineral Resources Update Technical Report” dated April 3, 2012, “Mineral Resources Update Technical Report” dated September 18, 2012 and “Mineral Resources Update Technical Report” dated November 20, 2012. 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. CurrencyUnless 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
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
4November 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 AuInferred Gold:2.9 mm oz @ 17.0 g/t Au
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BRUCEJACK PROJECT LOCATION
220km Terrace
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 underway 6
BRUCEJACK GEOLOGY/DRILLING
7
Meters500
Valley of the Kings
West Zone
DEFORMED STOCKWORK MINERALIZATION
8
9
HIGH-GRADE GOLD RESERVES(1,2)
Category Tonnes(mil)
Gold(g/t)
Silver(g/t)
ContainedGold
(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)
ContainedGold
(mil oz)Silver
(mil oz)Proven 2.0 5.7 309 0.4 19.9Probable 1.8 5.8 172 0.3 10.1Total P&P 3.8 5.8 243 0.7 30.0
West Zone Mineral Reserve Estimate –May 16, 2013
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
Total Ounces per 100 m Easting and 50 m Northing strips
Valley of the KingsIndicated 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.
10
1,092,100 1,776,900 1,467,600 2,185,800 1,391,000 380,100 192,900 Ind. Au* (Oz.)
MINERAL RESOURCE CONTINUITY
11
Total Ounces* per 10 x 100 m N-S corridor – 6257800 N Long SectionLevel (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
WW EE
100 m100 m
4,000-6,0006,000-7,0007,000-8,000
>10,000
Key (Oz. Au)
3,000-4,0001,000-3,000<1,000
8,000-10,000Total Ounces per level(Valley of Kings Zone)*Nov. 2012 Indicated Mineral Resource;≥5.0 g/t AuEq.
0.5-5.0 g/t AuEq
5.0-15.0 g/t AuEq
>15.0 g/t AuEq
Key
12
BULK SAMPLE LOCATION
N S
West Zone UndergroundDevelopment
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 underway (Q2/Q3)
13
BULK SAMPLE LOCATION
West Zone UndergroundDevelopment
VOK Bulk Sample
SN
Domain 17
Domain 11
200 m
BULK SAMPLE REPRESENTIVITY
14
Drilling Density
100 m100 m
DrillholeTrace
DrillholeTrace
IndicatedBlocks
IndicatedBlocks
BulkSample
Area
BulkSample
Area
NN
Vertical viewing window ±8.5 m
BULK SAMPLE LOCATION
15
1345 m LevelSiltstone, litharenite, pebble conglomerateSiltstone, litharenite, pebble conglomerate
Polylithic ConglomeratePolylithic Conglomerate
Fragmental Volcanic Rocks
Fragmental Volcanic Rocks
Intensely Silicified
Conglomerate
Intensely Silicified
Conglomerate
Hbl-phyricLatite FlowHbl-phyricLatite Flow
BULK SAMPLE LOCATION
16
Vertical viewing window ±30 m
1345 m Level
5-10
10-20
20-60
>60
Key (g/t AuEq)
2.5-5
1-2.5
0.3-1
1345M LEVEL PLAN
<0.5
0.5-1.0
1.0-5.0
>20
Key (g/t Au)
5.0-20.0
Fragmental Volcanic Rocks
Fragmental Volcanic Rocks
VolcanicSedimentVolcanicSediment
SilicifiedConglomerate
SilicifiedConglomerate
4266
00E
4266
00E
25 m
585E
58
5E
615E
61
5E
645E
64
5E
555E
55
5E
NN
Viewing Window±15m
Viewing Window±15m
6258015N 6258015N
BULK SAMPLE LOCATION
18
1345 m Level
Vertical viewing window ±8.5 m
Siltstone, litharenite, pebble conglomerateSiltstone, litharenite, pebble conglomerate
Polylithic ConglomeratePolylithic Conglomerate
Fragmental Volcanic Rocks
Fragmental Volcanic Rocks
Intensely Silicified
Conglomerate
Intensely Silicified
Conglomerate
Hbl-phyricLatite FlowHbl-phyricLatite Flow
Domain 17Domain 17
Domain 11Domain 11
BULK SAMPLE LOCATION
19
5-10
10-20
20-60
>60
Key (g/t AuEq)
Only Indicated blocks greater than 5 g/t AuEq shown
1345 m Level
Vertical viewing window ±8.5 m
Polylithic ConglomeratePolylithic Conglomerate
Fragmental Volcanic Rocks
Fragmental Volcanic Rocks
Intensely Silicified
Conglomerate
Intensely Silicified
ConglomerateHbl-phyricLatite FlowHbl-phyricLatite Flow
Siltstone, litharenite, pebble conglomerateSiltstone, litharenite, pebble conglomerate
426600E CROSSCUT – DRILL FAN
Fragmental Volcanic Rocks
Fragmental Volcanic Rocks
PolylithicConglomerate
PolylithicConglomerate
Volc
anic
Sedi
men
tVo
lcan
icSe
dim
ent
NN SS
SilicifiedConglomerate
SilicifiedConglomerate
426600E426600E VU-001VU-001
10 m
<0.5
0.5-1.0
1.0-5.0
>20
Key (g/t Au)
5.0-20.0
Intervals Reported 6/6/13
Viewing Window±7.5m
Viewing Window±7.5m
426600E CROSSCUT – BLOCKS
Fragmental Volcanic Rocks
Fragmental Volcanic Rocks
PolylithicConglomerate
PolylithicConglomerate
Volc
anic
Sedi
men
tVo
lcan
icSe
dim
ent
NN SS
SilicifiedConglomerate
SilicifiedConglomerate
426600E access ramp426600E access ramp
10 m
<0.5
0.5-1.0
1.0-5.0
>20
Key (g/t Au)
5.0-20.0
Viewing Window±7.5m
Viewing Window±7.5m
1345M LEVEL PLAN - BLOCKS
<0.5
0.5-1.0
1.0-5.0
>20
Key (g/t Au)
5.0-20.0
25 m
NN
Viewing Window±5m
Viewing Window±5m
BULK SAMPLE: BLAST PROGRESS
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Planned Bulk Sample (Gold)
Excavation progress as of June 18, 2013 (Blue)Fragmental Volcanic Rocks
N
Remaining excavation (outline)
Valley of the Kings 1345M Level
AC
CES
S R
AM
PA
CC
ESS
RA
MP
4266
00E
cros
s-cu
t42
6600
E cr
oss-
cut
6258015N drift 6258015N drift
Volcanic sediment
UNDERGROUND DRILLING
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SN
Typical Section – Fan Drilling
Detailed underground drilling at <15 meter centers to outline 700,000 ounces of gold.
N
BULK SAMPLE: SAMPLE TOWER OPERATION
25
100 tonne sample rounds
Jaw crusher and screen plant100% passing 2 cm
Sample cutters in tower800 kg split
Cone crusherSize reduction to 1 cm
Rotary splitter
2 x 30 kg samples
Rejects
Second pass through sample tower
First pass through sample tower
Rejects
Sample cuttersin tower
800 kg split
Cone crusherSize reduction to 1 cm
Rotary splitter
2 x 30 kg samples
Convey back totop of tower
99.14 t
0.74 t
to mill
BULK SAMPLE TOWER
26
2727
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
First 50 meters of Valley of the Kings ramp
Long hole stoping mining method:
MINING METHOD FOR STOCKWORK
PROPOSED MINE DEVELOPMENT
28
Oblique View of Mining Stopes, Valley of the Kings
S
N
100 m
West-Zone(late mine life) Valley of the Kings
BRUCEJACK MINE SITE: SURFACE LAYOUT
29
Camp
Mill
Portals
Development RockDisposal
West ZonePortal
WaterTreatment
Substation
Laydown &Fuel Storage
BRUCEJACK PROJECT ECONOMICS
30
(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)
2013 BRUCEJACK PROJECT PLANS
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H2 2013
Complete Valley of the Kings bulk sample excavation and sampling
Complete bulk sample report
Process bulk sample
Advance mine engineering
Advance permitting
File Environmental Assessment Certificate Application
Resource update
Potential additional Valley of the Kings drilling
COMMUNITY ENGAGEMENT
32
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
BRUCEJACK PERMITTING
33
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
PRETIVM MANAGEMENT
34
Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc. President & Chief Executive Officer, Director
Peter de Visser, CAChief Financial Officer
Joseph Ovsenek, B.A. Sc., P.Eng., LLBVice 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.Director, 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
SHAREHOLDING & ANALYST COVERAGE
35
Institutions, 53%
Retail, 23%
Management, 5%
Silver Standard,
19%
Capital Structure(1)
Public Float 83.3Silver Standard Shares 19.0 Total Issued & Outstanding Shares 102.3 Incentive Options 8.5Total Fully Diluted Shares 110.8
Market Capitalization C$706 million
Working Capital (at March 31, 2013) C$22.5 million
Share Offering gross proceeds (at April 26, 2013) (3) C$40 million
(1) As of June 26, 2013; ownership calculated on an undiluted basis. (2) As of June 26, 2013. Source: IPREO, SEDI(3) See new release dated April 26, 2013
(shares in millions)
Top Shareholders(2) (shares in millions)
Silver Standard Resources 18.986Royce & Associates 9.587Passport Capital 5.927Liberty Metals & Mining 5.780 Robert Quartermain 2.853 TD Asset Management 2.153Sun Valley Gold LLC 2.018Sprott Asset Management 1.686Weiss Asset Management 1.644Connor Clark & Lunn 1.590
Analyst CoverageBMO John HayesCIBC Jeff KilleenCitibank Alex HackingCormark Securities Richard GrayCowen Securities Adam GrafGlobal Hunter Securities Jeff WrightGMP Securities George AlbinoRBC Dan RollinsSalman Partners Ash GuglaniScotiabank Ovais HabibVery Independent Research John Tumazos
HIGH-GRADE GOLD PRODUCTION
36
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
Data sources: Companies, NRH.
Production target:425,700 oz/year (yrs 1-10)
@ 14.2g/t head grade
CONTACTPhone: 604-558-1784Fax: 604-558-4784Toll-free: [email protected]
HEAD OFFICEPretium Resources Inc.570 Granville St.Suite 1600Vancouver, BCCanada V6C 3P1
COMMON SHARESTSX/NYSE:PVGIssued: 102 millionFully diluted: 110.8 million52-week hi/low: $15.77/$5.53Market cap: $625 million (at June 25 2013)
Advancing a major high-grade gold resource in Canada