The following is an excerpt from Canaccord Genuity's Morning Coffee report.
Shares of Pretium Resources Inc.
, Stock Forum
) continued to garner headlines as the war of words between company management and Strathcona Mineral Services
After Pretium released very positive results from the company’s bulk sample program at the Brucejack [project in northern British Columbia], in which 4,215 ounces gold were produced from 8,090 tonnes of ore, Strathcona commented that the results were based on the company’s stumbling on an unknown vein while mining the sample.
Strathcona had also expected 4,000 ounces from the bulk sample, but only because of this lucky find. Strathcona noted that due to such stumblings, which are unreliable, the problem is not the bulk sample but with the rest of the deposit, where Strathcona is certain that the grade is nothing close to 16 grams per tonne.
The war of words started in October when Strathcona withdrew from the project stating that “…there are no valid gold mineral resources at Valley of Kings Zone, and without mineral resources there can be no mineral reserves and without mineral reserves there can be no basis for a feasibility study.”
It is now squarely in Pretium’s court to prove to the market the Valley of Kings is everything that it promised to be.
Pretium shares were off 0.18% to $5.49 on Thursday, leaving the company with a market cap of $576.7 million, based on 105 million shares outstanding. The stock is down from around $8 in October and trades in a 52-week range of $14.10 and $2.83.