Value Through Gold

projects
RAMPING UP PRODUCTION OF THE HIGH-GRADE BRUCEJACK GOLD MINE
COMMERCIAL PRODUCTION ANNOUNCED JULY 2017

Project History

Prior owners

Since the 1960’s the area had been a focus for exploration by various companies, with five kilometres of underground development completed at the Brucejack property’s West Zone, near the heart of the current mine. Though a mine development certificate for an underground gold-silver mine had been granted to prior owners for the West Zone in 1993, a mine was never ultimately developed there due to low metals prices and the small size of the deposit.

Exploration drilling on the Brucejack property in 2009 returned results which included significant values of gold-silver mineralization. In August, hole SU-12 intersected four bands of high-grade, visible gold mineralization, with the highest grading 16,949 grams per tonne gold uncut over 1.5 meters. The bonanza results from hole SU-12 and the other promising results that season encouraged a return to test further targets in 2010.

A drill program of 33,400 meters in the summer of 2010 continued to return bonanza-grade results over a wide area, and indicated the prospect for a new, high-grade gold deposit on the Brucejack property.

Pretivm

In late 2010, Pretivm was formed to acquire and advance the Brucejack exploration project. In 2011, Brucejack was drilled extensively in key target areas (72,144 meters in 176 holes), the camp at site was expanded and winterized, and rehabilitation work on the former access road from Highway 37 to the project was started, as well as the initial de-watering of the historic West Zone underground workings. Additionally, a Preliminary Economic Assessment on the Project was completed.

The year 2012 saw an even greater exploration advance with an additional 105,769 meters of surface drilling completed in 306 holes, and with results continuing to demonstrate high-grade, visible gold. The West Zone de-watering process continued, and the widening of the underground workings in the West Zone commenced with the excavation of an underground ramp that would lead from the West Zone to the new heart of the Brucejack project, the Valley of the Kings deposit.

In 2013, the access road rehabilitation and the underground access ramp were completed, enabling Pretivm to proceed with a 10,000-tonne bulk sample from the Valley of the Kings. A positive feasibility study for an underground mine was completed in June. A total of 44,600 meters of drilling was completed, comprising 38,800 meters of underground drilling in 446 holes and 5,800 meters in 37 surface holes.

In 2014 the feasibility study was updated, and project engineering began along with mine permitting activities. Infill, exploration and condemnation drilling for site infrastructure totalled 11,920 meters in 41 holes.

In 2015, as the permitting process was concluding, a construction financing package was assembled. In March, Pretivm received the provincial Environmental Assessment Certificate from the Minister of the Environment and the Minister of Energy and Mines, and a positive Federal Environmental Assessment Decision followed in July. With the receipt of the major project permits, a production decision and a substantial portion of the construction financing completed, construction-related activity ramped up in September 2015.

Additionally in 2015, a program of underground fan drilling comprising 47,900 meters in 210 holes was completed in the area of the first three years of the mine plan to confirm the style and grade distribution of gold mineralization in the Valley of the Kings. Further afield, a regional grass-roots exploration program demonstrated the extension of known gold zones as well as establishing new zones on the property surrounding Brucejack.

The focus of 2016 was construction, both at the mine site and the 57-kilometre transmission line being built to connect the project to grid power. A total of 36,750 meters of underground infill drilling was completed in the Valley of the Kings, and the updated Mineral Resource estimate for the Valley of the Kings announced in July reflected an increase in Measured Mineral Resources and additional Indicated Mineral Resources.

Construction of the mine and transmission line was completed in 2017, and the first gold was poured in June. Ramp-up and optimization continued through the summer.