This was the story in todays Northern Miner FYIat the bottom of note Killeen indicates that he is being very conservative in his valuation.Shareholders of Pretium Resources (PVG-T. PVG-N) havcseen the total resources at the company’s Brucelack gold-silver prouin northern ac. whittled downafter it published a revised resource estimate for one of the proaect’s underground deposits.Following the Sept. 7 update forthe VaLley of Kings zone. CIBCanalyst Jeff Killeen cut his pricetarget from $18.50 to $15.50 a share.citing concerns over variance inthe inferred resource compared toan April 2012 estimate.“The updated estimate realizedan increase in total tonnes andounces within the indicated category, but total estimated ounceswithin all catrgories at Brucejackhave decreased,” he writes in aSept. 12 note. “The decrease intotal ounces was driven by sub—stantial changes to the inferredcategory estimate.’The Valley of Kings hosts 9.9milliontonnesgradingló.2gramsgold per tonne and 14.1 grams silver. for 5.1 million oz. gold and4.5 million oz. silver in the indicated category. Compared to theApril estimate, indicated goldand silver ounces grew 4% and8%. respectively, thanks to moretonnes despite the grades dropping slightly.However, the same growthwasn’t seen in the inferred cat-egory. which contains 5.1 millionox. gold and 2 million oz silver— roughly half of what it hadpreviously.Killeen notes that while someof the inferred resource was upgraded to the indicated category,most of it was removed followingPretium’s reinterpretation of thezone’s ore geometry.Pretium states that the mineralized domains are better definedand tightly constrained in its newinterpretation, which is based on afurther 175 holes — or 55.800 metres completed this year — for atotal of331 holes. or 115,000 metres.This has led to a greater confidence in the mineraLized zone andsubsequently in the estimated resources. Pretium says.But this has also contributed toa reduction in the z one’s total resources. which stands at 14.5 million tonnes grading 22.2 gramsgold and 1.3.7 grams silver for 10.2million ox. gold and 6.5 million oz.silver. Total gold and silverounces dropped by 33% and 27%,respectively.Since adding the rst zone resource, which wasn’t updated,Brucejack has a total undergroundresource of 23.4 million tonnes at16.1 grams gold and 107.7 gramssilver, for 11.9 million oz. gold and58,8 million ox. silver in measured,indicated and infcrrecLThat’s an overall reduction of23% in tonnes, with in goldounces and 45% in silver ouncescompared to the April estimate.Gold and silver grades fell 8% and49. respectively, Killeen notes.The company’s stock was off5.5% on the resource update toclose Sept. 7 at $13.85. More recently it ended at $13.07 a share.Pretium has a 24.000-metre drillprogram with six drills turning atthe Valley of Kings. It aims to convert more inferred ounces into indicated to support a feasibiLitystudy that is underway.Killeen opines that the Valley ofKings could become one of thehighest-grade gold deposits to bemined, but cautions that given theamount ofuncertaintics inestirnating the zone’s resources going forward, he remains conservative inhis valuation of the company.The Bruce jack project is envisioned as an underground operation with the Valley of Kingsand West zone ore feeding a1,500-tonne-per-day mill.The proposed mine should produce 6.9 million ox. gold and 17million ox. silver over its estimated 24-year life, according toan updated 2012 preliminary economic assessment.Killeen expects the mine tocome on stream in 2017, at a costof $460 million.