Could this be something for SSL? It's as close to home as one can get, the economics look reasonable and SSL has a $100 Mil in cash plus $100 Mil on stand-by.

 

If this doesn't turn into a mine, we might as well forget about Canadian gold mining.



 

Pretium Resources Inc.: Positive Feasibility Study Completed for Brucejack High-Grade Gold Project


06/11/2013
Download this Press Release ()

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 11, 2013) - Pretium Resources Inc. (TSX:PVG)(NYSE:PVG) ("Pretivm") is pleased to announce a positive National Instrument 43-101-compliant Feasibility Study for the high-grade gold and silver resources identified to date at its 100%-owned Brucejack Project ("Brucejack" or the "Project") in northern British Columbia. The Feasibility Study was prepared by Tetra Tech.

Highlights (base case usingUS$1,350/oz gold,US$20/oz silverandexchange rate ofUS$/C$: 1)

 

  • Valley of the Kings Probable Mineral Reserves of 6.6 million ounces of gold (15.1 million tonnes grading 13.6 grams of gold per tonne) and West Zone Proven and Probable Mineral Reserves of 700,000 ounces of gold (3.8 million tonnes grading 5.8 grams of gold per tonne);



  • Average annual production of 425,700 ounces of gold over the first 10 years and 321,500 ounces of gold over the life of mine;



  • Base Case pre-tax Net Present Value (5% discount) of US$2.7 billion;



  • Base Case pre-tax Internal Rate of Return of 42.9%, with payback estimated at 2.1 years;



  • Mine life of 22 years producing an estimated 7.1 million ounces of gold;



  • Estimated project capital cost, including contingencies, of US$663.5 million;



  • Average operating costs of C$156.46/tonne milled over mine life.

     

 

 

Table 1: Summary of Brucejack High-Grade Economic Results by Metal Price
  Alternative

Case
Base Case

(1)
Spot Prices

at June 06, 2013
Gold Price (US$/ounce) $ 800 $ 1,350 $ 1,415.70
Silver Price (US$/ounce) $ 15.00 $ 20.00 $ 22.70
Net $ 1.41 billion (pre-tax) $ 5.28 billion (pre-tax) $ 5.90 billion (pre-tax)
Cash Flow $ 964.1 million (post-tax) $ 3.50 billion (post-tax) $ 3.91 billion (post-tax)
Net Present Value(2) $ 602.3 million (pre-tax) $ 2.69 billion (pre-tax) $ 3.01 billion (pre-tax)
(5.0% discount) $ 383.7 million (post-tax) $ 1.76 billion (post-tax) $ 1.98 billion (post-tax)
Internal Rate   16.6% (pre-tax)   42.9% (pre-tax)   47.0%(pre-tax)
of Return   13.7% (post-tax)   35.7% (post-tax)   39.2% (post-tax)
Payback(from start of   4.7 years (pre-tax)   2.1 years (pre-tax)   1.9 years (pre-tax)
production period)   4.8 years (post-tax)   2.2 years (post-tax)   2.0 years (post-tax)
Exchange Rate (US$:C$)   1.00   1.00   0.98

Full release: http://www.pretivm.com/news/news-details/2013/Pretium-Resources-Inc-Positive-Feasibility-Study-Completed-for-Brucejack-High-Grade-Gold-Project/default.aspx