Shares of Pretium Resources Inc.
, Stock Forum
) skyrocketed Friday after the company tabled preliminary mill results from its Brucejack Project in northern British Columbia.
The company said it has produced 4,215 ounces of gold from 8,090 tonnes of excavated material from the Valley of the Kings Bulk sample program.
Pretium shares jumped 81% to $5.58 in late morning trading Friday, leaving Pretium with a market cap of $585.1 million, based on 105 million shares outstanding. The 52-week range is $14.34 and $2.83.
The results to date surpass the target of 4,000 ounces of gold projected to be produced from the entire 10,000 tonnes of material excavated for the program, the company said in a press release.
It went on to say that processing is continuing on track and is expected to be completed by the first week of December (after a week-long mill shutdown for the Thanksgiving holiday).
Pretium was in the news recently when the head of Strathcona Mineral Services said his company chose to walk away from the Brucejack project because it disagreed with resource estimates prepared by another consulting firm in late 2012.
"We recommended to the company that it publicly disclose some of our observations,'' said Graham Farquharson in an interview with Stockhouse. "When they decided not to, it was time to walk away,'' he said.
Permitting of a high-grade underground gold mine is underway, with commercial production targeted to start in 2016.
The wholly-owned Brucejack project is part of a largely unexplored land package covering 103,000 hectares and located about 65 kilometres north of Stewart in northwestern B.C.
Work is currently focused on Valley of Kings, which is comprised of high-grade visible gold stringers within a lower grade gold quartz stockwork system.
Valley of Kings host probable mineral reserves of 6.6 million ounces.