This corporate presentation provides an overview of a high-grade gold resource project located in British Columbia, Canada. Key points include:
- The Valley of the Kings deposit contains 8.5 million ounces of indicated gold resources grading 16.4 g/t and 2.9 million ounces of inferred resources grading 17.0 g/t.
- A 10,000 tonne underground bulk sample is planned from the Valley of the Kings to support feasibility studies and confirm metallurgy.
- A feasibility study is expected in Q2 2013 and aims to increase processing rates, reduce costs, and simplify project design compared to earlier estimates.
2. 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”)
“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.
Currency
Unless otherwise indicated, all dollar values herein are in Canadian $.
2
3. An investment in Gold
High-grade gold resource of significant size:
Valley of the Kings
8.5 M oz gold Indicated (16.1 Mt @ 16.4 g/t gold)
2.9 M oz gold Inferred (5.4 Mt @ 17.0 g/t gold)
Located in British Columbia, Canada
Underground feasibility study Q2 2013
Commercial production target early 2016
3
4. HIGH-GRADE GOLD WITH SIZE
18.0 Indicated Gold:
Valley of the 8.5 mm oz @ 16.4 g/t Au
16.0
Kings Inferred Gold:
F2 Deposit 2.9 mm oz @ 17.0 g/t Au
Kirkland Lake Mine
(Rubicon)
14.0
(Kirkland Lake)
Pogo Mine Red Lake Mine
12.0 (Sumitomo) (Goldcorp)
Buritica
10.0
(Continental) Eleonore
Kensington Mine
(Goldcorp)
8.0 (Coeur) Cerro Negro
El Penon Mine (Goldcorp)
6.0 (Yamana)
4.0 Cerro Moro
(Yamana) Casa Berardi
(Aurizon)
2.0
0.0
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0
M&I + Inferred Gold Resources (mm oz)
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: Intierra Ltd., NRH. 4
6. BRUCEJACK HIGH-GRADE RESOURCE
Gossan Hill Shore Zone
West Zone Valley of the Kings Mineral Resource Estimate –
M&I gold: November 2012(1,4,5)
0.9 mil oz @5.85 g/t
Inferred gold: (Based on a cut-off grade of 5.0 grams of gold-equivalent/tonne)
0.8 mil oz @6.44 g/t
Contained(3)
Category Tonnes Gold Silver Gold Silver
(mil) (g/t) (g/t) (mil oz) (mil oz)
Indicated 16.1 16.4 14.2 8.5 7.3
Inferred(2) 5.4 17.0 15.7 2.9 2.7
Valley of the Kings
(1) 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, marketing, or other relevant issues. The Mineral Resources in this news
release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum
(CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines
Bridge Zone prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM
Council.
N (2) The quantity and grade of reported Inferred resources in this estimation are uncertain in
Key nature and there has been insufficient exploration to define these Inferred Resources as an
Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in
0.5-5.0 g/t AuEq upgrading them to an Indicated or Measured Mineral Resource category.
(3) Contained metal may differ due to rounding.
5.0-15.0 g/t AuEq (4) The Mineral Resource estimate is defined using 5 m by 5 by 5 m blocks in the well drilled
500 m portion of West Zone (5 m by 10 m drilling or better) and 10 m by 10 m by 10 m blocks in the
>15.0 g/t AuEq remainder of West Zone and in Valley of the Kings.
(5) The gold equivalent value is defined as AuEq=Au + Ag/53
6
7. VALLEY OF THE KINGS
Valley of the Kings – Isometric view of main mineralization corridor
200 m
Brucejack
Fault
7
8. HIGH-GRADE CORRIDORS
Valley of the Kings Drill Hole Trace Bar Graphs – 426630E Section View
Bulk sample
and ramp
Mineralization
Corridor
8
9. VALLEY OF THE KINGS INDICATED RESOURCE
Valley of the Kings
Indicated Gold Resource:
8.5 million oz
(16.1 Mt @ 16.4 g/t gold)
9
10. INDICATED GOLD RESOURCE CONTINUITY
Indicated Gold Valley of the Kings indicated resource blocks - 100 m thick slice along 6257950 N
Bench (m) (Oz)
W E
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
AuEq (g/t)
1090-1120 393,900
5-10
1060-1090 317,600
10-20
20-60
>60
11. CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model plan view - 1300m level (+/- 25m)
100 m
11
12. CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model plan view - 1275m level (+/- 25m)
100 m
12
13. CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model plan view - 1250m level (+/- 25m)
100 m
13
14. CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model – 426500E section view West (+/- 50m)
Indicated and Inferred blocks greater than 5 g/t AuEq
14
15. CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model – 426550E section view West (+/- 50m)
Indicated and Inferred blocks greater than 5 g/t AuEq
15
16. CONTINUITY: HIGH GRADE BLOCKS
Valley of the Kings block model – 426600E section view West (+/- 50m)
Indicated and Inferred blocks greater than 5 g/t AuEq
16
17. BULK SAMPLE
10,000-tonne bulk sample
from Valley of the Kings
planned (Q2/Q3)
5 X 5 meter slashing of
existing West Zone workings
completed
Turned towards Valley of the Junction of 1314 re-muck (l) and Valley of the Kings ramp (r)
Kings, with over 150 meters
completed as of January EXISTING DEVELOPMENT
WEST ZONE
Total ramp planned is 541
meters in length
18. BULK SAMPLE LOCATION
Siltstone, litharenite,
pebble conglomerate
Polylithic Conglomerate
60°
Intensely
Silicified
Conglomerate Fragmental
Volcanic Rocks
Hbl-phyric
Latite Flow
Key (g/t AuEq)
5-10
N 10-20
20-60
>60
Only Indicated and Inferred blocks greater than 5 g/t AuEq shown
18
19. BULK SAMPLE: SAMPLING & PROCESSING
Strathcona Mineral
Services to oversee
sampling
Sample tower located
on site (Q2)
Remainder of sample to
be processed to
produce gold (H2)
Source: Strathcona Mineral Services Limited, Meladine Project
19
20. 2013 PLANS
H1 2013
Channel sample the ramp from West Zone to
Valley of the Kings
Complete ramp from West Zone to Valley of
the Kings
Underground sampling/drilling Valley of
the Kings
Drill results
10,000-tonne underground bulk sample from
Valley of the Kings
Sample Tower
H2 2013 (post bulk sample)
Process bulk sample
Valley of the Kings expansion drilling
20
22. MINING METHOD
Long hole stoping mining method:
High-grade visible gold
stringers within a 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
22
First 50 meters of Valley of the Kings ramp
24. BRUCEJACK PROJECT ECONOMICS
Feasibility Study (expected Q2):
February 2012 Preliminary Economic
Assessment Results(1,2) : Processing rate increased
Processing rate 1,500 tpd 2,700 tonnes per day
Mine life 24 years
Total gold production 6.9 million oz Mill facilities streamlined
Average annual gold 325,000 ounces Flotation concentrate to be sold to
production (Yrs 1-12) 3rd parties rather than refined on
Capex US$436.3 million site
Total operating costs C$170.90/t milled Capex and Opex savings, reduced
Internal Rate of 29.8% project footprint
Return
Net Present Value US$2.262 billion Metallurgy continues to be positive
(5% discount)
(1) Source: Technical Report and Updated Preliminary Economic Assessment of
Feasibility metallurgical studies
(2)
the Brucejack Project, effective date February 20, 2012
Base case metals prices of US$1,100 /oz gold and US$21/oz silver confirm gold recoveries over 95%
PEA is based on Mineral Resource estimates for the Valley of the Kings and
West Zone effective November 28, 2011 which are now out-of-date.
24
25. BRUCEJACK PERMITTING
Brucejack Lake is not fish habitat
Waste rock from 1980’s/1990’s
underground development was deposited
in Brucejack Lake as part of 1999
reclamation
More than 50% of tailings (targeting 60%) to
be used for paste backfill and deposited
underground, with remainder of tailings to
be deposited in bottom 30 meters of
Brucejack Lake
Mine Development Permitted for exploration
Certificate issued Reclamation Completion and exploration road
Reclamation Permit April 15, 1993 (Silver Standard) (Pretivm)
(MX-1-86) (MDC 92-06) (MEND 9.1c) (MX-1-832), (MX-1-842)
1986 1993 1999 2011-2012
1989 1998 2006 2013
Approval in Project Assessment Project Assessment Project Description under
principle for Certificate Certificate allowed to review for underground
development of a (PAC 98-03) expire (Silver Standard) mine at Brucejack’s Valley
mine at West Zone (PAC M98-03) of the Kings
25
26. COMMUNITY ENGAGEMENT
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
26
27. PLANS FORWARD TO PRODUCTION
Key milestones
• Completed additional drilling in
Valley of the Kings
• Initiated feasibility study
• Initiated exploration decline from
West Zone historic workings to • Anticipate EAC
Valley of the Kings issue
• Filed Project Description • Underground
• Property acquired by • Completed exploration access road development • Commercial production
Pretivm to Highway 37 • Begin construction target
H2 2010 2012 2014 2016
2011 2013 2015
• First resource estimate • Complete feasibility study • Construction
• Aggressive drill • Complete exploration decline for • Begin commissioning
program in Valley of the underground test sample from • Ramp-up
Kings Valley of the Kings
• Extract test sample from Valley of
the Kings (10,000 tonnes)
• Basic and detailed engineering
• Submit Environmental
Assessment Certificate (EAC)
application
27
28. PRETIVM MANAGEMENT
Robert Quartermain, B.Sc., M.Sc., P.Geo, D.Sc. Kevin Torpy, B.Sc.
President & Chief Executive Officer, Director, Mine Engineering
Director
Joseph Ovsenek, B.A. Sc., P.Eng., LLB Max Holtby, B.Sc., P. Geo.
Vice President & Chief Development Officer, Director, Permitting
Director
Ken McNaughton, M.A. Sc., P.Eng. Michelle Romero, B.A., M.L.S.
Vice President & Chief Exploration Officer Director, Corporate Relations
Ian I Chang, M.A. Sc., P.Eng. Andrew Saltis, I.Eng.
Vice President, Project Development Site Project Manager, Mine Manager
Warwick Board, Ph.D., P.Geo. Peter de Visser, CA
Chief Geologist Chief Financial Officer
28
29. SHAREHOLDING & ANALYST COVERAGE
Top Shareholders(2) (shares in millions)
Silver
Silver Standard Resources 18.986
Standard,
20% Royce & Associates 10.689
Institutions, Passport Capital 3.966
Management,
50% Fidelity Management 3.739
5%
Connor, Clark & Lunn 2.996
Retail, 23% Robert Quartermain 2.853
Norges Bank Investment 2.410
Carmignac Gestion 1.898
Sprott Asset Management 1.581
Capital Structure(1) (shares in millions) Analyst Coverage
Public Float 75.8 CIBC Jeff Killeen
Silver Standard Shares 19.0 Citibank Alex Hacking
Total Issued & Outstanding Shares 94.8 Cormark Securities Richard Gray
Incentive Options 8.5 Dahlman Rose Adam Graf
Total Fully Diluted Shares 103.3 GMP Securities Craig West
RBC Dan Rollins
Market Capitalization C$1.3 billion Salman Partners Ash Guglani
Scotiabank Ovais Habib
Working Capital (at Sept. 30, 2012) C$59.8 million
UBS TBD
Very Independent Research John Tumazos
(1)As of January 22, 2013; ownership calculated on an undiluted basis. 29
(2)As of January 22, 2013. Source: IPREO, SEDI
30. HIGH-GRADE GOLD WITH SIZE
18.0 Indicated Gold:
Valley of the 8.5 mm oz @ 16.4 g/t Au
16.0
Kings Inferred Gold:
F2 Deposit 2.9 mm oz @ 17.0 g/t Au
Kirkland Lake Mine
(Rubicon)
14.0
(Kirkland Lake)
Pogo Mine Red Lake Mine
12.0 (Sumitomo) (Goldcorp)
Buritica
10.0
(Continental) Eleonore
Kensington Mine
(Goldcorp)
8.0 (Coeur) Cerro Negro
El Penon Mine (Goldcorp)
6.0 (Yamana)
4.0 Cerro Moro
(Yamana) Casa Berardi
(Aurizon)
2.0
0.0
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0
M&I + Inferred Gold Resources (mm oz)
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: Intierra Ltd., NRH. 30
31. Advancing a major high-grade gold resource in Canada
CONTACT HEAD OFFICE COMMON SHARES
Phone: 604-558-1784 Pretium Resources Inc. TSX/NYSE:PVG
Fax: 604-558-4784 570 Granville St. Issued: 94.8 million
Toll-free: 1-877-558-1784 Suite 1600 Fully diluted: 103.3 million
invest@pretivm.com Vancouver, BC 52-week hi/low: $18.15/$10.94
www.pretivm.com Canada V6C 3P1 Market cap: $1.2 billion