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REGIONAL NEWS - U.S. & CANADA Pretium Advances Engineering Work on Brucejack Gold for a 50-km-long transmission line. An evaluation of the cost benefits of alternatively entering into a build-own-maintain agreement for the construction and operation of the transmission line is now under way. The capital cost associated with plant construction is also being evaluated for potential savings in optimizing the site layout. Royal Nickel Reports Positive Results for Dumont Project Pretium will initially develop the Valley of the Kings deposit—one of two identified at its Brucejack property in British Columbia—before turning to the lower-grade West Zone deposit. Ore in Valley of the Kings probable reserves is reported at 13.6 grams per metric ton. (Photo courtesy of Pretium Resources) Pretium Resources has reported the results of a positive, NI 43-101-compliant feasibility study of the high-grade gold and silver resources identified to date at its 100%-owned Brucejack project in northern British Columbia. The feasibility study was prepared by Tetra Tech. Pretium also noted it is continuing to advance engineering for the Brucejack project in support of the ongoing permitting process and anticipates filing its application for an Environmental Assessment Certificate later in 2013. After obtaining permits and subject to a production decision, Pretium anticipates starting construction of the mine in the second half of 2014. Brucejack is planned as an underground mining operation using a long-hole stoping mining method and cemented paste backfill. The Valley of the Kings deposit—the higher-grade, primary targeted deposit—will be developed first. The lower-grade West Zone will be developed during the second half of the project's 22-year mine life. The Brucejack project is planned to operate at a processing rate of 2,700 mt/d, producing a total of 7.073 million oz of gold and 31.641 million oz of silver over the mine life. Average annual gold produc8 E&MJ; • JULY 2013 tion during the first 10 years of production is planned at 425,000 oz/y. The base case for the Brucejack feasibility study assumes $1,350/oz gold and $20/oz silver prices and a one-to-one US$:C$ exchange rate. Project capital cost, including contingencies, is estimated at $663.5 million. All-in sustaining cash costs per ounce of gold produced are estimated at $508/oz, net of silver credits. Internal rate of return is estimated at 42.9%, and payback is estimated at 2.1 years. Valley of the Kings probable mineral reserves currently stand at 6.6 million oz of gold in 15.1 million mt grading 13.6 g/mt gold. West Zone's proven and probable mineral reserves currently stand at 700,000 oz of gold in 3.8 million mt grading 5.8 g/mt gold. The Brucejack mineral processing plant is planned to use conventional sulphide flotation and gravity concentration and to produce both gold-silver doré and gold-silver flotation concentrate. Metallurgical recoveries are estimated at 96.7% for gold and 84.8% for silver for the Valley of the Kings deposit and 94.7% for gold and 90.4% for silver for the West Zone deposit. The estimated capital cost for the Brucejack project includes $49.9 million Royal Nickel has reported positive results for a bankable feasibility study of its Dumont open-pit nickel project 60 km northeast of Rouyn-Noranda in western Quebec. The study considers a project having initial nickel production of 73 million lb/y, expanded in year five to 113 million lb/y for the remainder of the 20-year mine life. Cash costs net of cobalt and platinum group metal byproducts are estimated at $4.01/lb of nickel during the initial phase of production and $4.31/lb over the project life. Capital expenditure to develop the Dumont project is estimated at $1.2 billion. Royal Nickel currently anticipates receipt of the main permit for the project by mid-2014; start of construction subsequent to receipt of permits; and project commissioning in first half of 2016, followed by production ramp-up throughout 2016. Royal Nickel President and CEO Tyler Mitchelson said, "We are very pleased to have successfully completed this major milestone, which confirms the project NPV of more than $1 billion. When in production, Dumont is expected to be one of the largest base metal mines in Canada and one of the top five sulphide nickel producers globally, targeting production of more than $27 billion of nickel over 33 years based on current reserves alone. "With our economically and technically sound feasibility study completed, I look forward to accelerating project discussions with potential partners on a financing package that will allow Royal Nickel to rapidly advance the project into the construction stage following the anticipated completion of the main permitting process by the middle of next year," Mitchelson said. The Dumont project will be an open-pit mine/mill operation, using conventional drilling, blasting and loading, with a comwww.e-mj.com