Pretivm Resources (TSX:PVG) (NYSE:PVG) has made a new high-grade gold discovery on its Brucejack property in British Columbia, Canada. The property is located approximately 3.5 kilometres north of the Valley of the Kinds deposit, and the discovery was made at the Golden Marmot Zone. 

Assays have now been received for its first nine drills holes. Eight of the nine drill holes intersected gold with a highlight of 53.5m grading 72.5 grams per tonne gold; including 50cm grading 6,700g/t gold and 3,990g/t silver.

President and CEO of Pretium Resources, Jaques Perron said in a statement: “Initial results from Golden Marmot are exciting and affirm the district-scale potential of the Brucejack property.”

The property’s gold mineralization covers a zone about 150m by 250m and 275 in depth, and occurs in the same host rocks and with the same alteration signature as the Valley of the Kings deposit. The company has claimed that this may be an indication that it could also be a new high-grade deposit. 

Anticipation for Q3 Results

The company also recently announced it will release third-quarter 2021 operational and financial results after the market close on Thursday, November 11, 2021. This is to be followed by a webcast and conference call on Friday, November 1, 2021. Investors will also be waiting to hear about the new discovery and more details on how the company interprets the discovery. 

No doubt a positive development, the high-grade gold discovery could also change the drill program or accelerate the timeline if Pretium decides it is economically feasible and fits forward guidance.

Pretium’s Q2 2021 operating and financial results showed the company was on-track for annual guidance, and that its cash position had then exceeded its debt. Perron said in a statement: “The second quarter of 2021 started under some challenging circumstances, but thanks to the hard work of our team we made consistent improvements through the quarter and we remain on track to achieve our annual guidance. We accomplished another profitable quarter with $152.3 million in revenue, generated $50.7 million in free cash flow and we have reached a key turning point where our cash position now exceeds our debt.”

Production came in at 83,083 ounces of gold, revenue hit $152.3 million through the sale of 84,618 ounces of gold, and the company was on track to achieve the 2021 guidance of 325,000 to 365,000 ounces of gold produced at an AISC between $1,060 and $1,190 per ounce of gold sold.

Brucejack continues to be a focus for the company, and progresses consistently quarter after quarter. The company will likely extend the Valley of the Kings deposit further, and the fourth quarter of 2021 is likely to bring new drill results. The Brucejack Mine is a high-grade gold mine located in northwest British Columbia, about 65 kilometers south of Stewart.

Optimistic Outlook

Pretivm Resources isn’t the only company with an optimistic outlook for 2021. Despite the obstacles and challenges posed by the pandemic, 82% of global mining industry CEOs believe economic growth will improve in the next 12 months, according to PCW’s BC Mining Survey. The long tradition of discovery mining lays the foundations for the next generation of investment.  

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above.

Monday, May 17 saw Newmont (NYSE:NEM) (TSX:NGT) complete its acquisition of GT Gold by scooping up the outstanding 85.1% of common shares of the Canadian exploration company in a C$393 million cash deal. Announced two months ago in March, the deal allows Newmont (NYSE:NEM) (TSX:NGT) to take control of the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation. 

Tatogga sits about 14km west of Imperial Metal’s Red Chris copper-gold mine in British Columbia. For Newmont (NYSE:NEM) (TSX:NGT), the acquisition gives the US-based gold mining company a major advantage in the region, and further consolidates its position as the world’s number one gold producer.

Bigger and Better

By adding the copper-gold project to Newmont’s (NYSE:NEM) (TSX:NGT) portfolio, the company will add significant gold and copper annual production to its overall output. It also expands the company’s foothold in the area by adding to its existing interest through the company’s 50% ownership in the Galore Creek project; the acquisition includes the Saddle North asset. The company has also opened up opportunities for further exploration beyond the deposits at Saddle North with this acquisition.  

Newmont (NYSE:NEM) (TSX:NGT) president and CEO Tom Palmer commented in a statement: “With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio. We will partner with the Tahltan Nation at all levels, and with the Government of B.C to ensure a shared path forward as the company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”

M&A Optimism Picks Up 

M&A activity has picked up again after a sluggish rut in 2020 for the entire mining industry, but beautiful British Columbia’s volume has been higher than the average. Many of the deals in the last six months have involved deals with Vancouver-headquartered companies or companies with projects in the province. 

In 2020, there was the sale of the New Gold (NYSE:NGD) (TSX:NGD) Blackwater property south of Prince George to Artemis Gold (TSX.V:ARTG) for a total of $190 million. The snowfield project operated by Pretium Resources (TSX:PVG) was bought by Seabridge Gold Inc. (TSX:SEA) in December 2020 for $100 million in cash, a 1.5% net smelter royalty on all production, and a future contingent payment of $20 million. Those deals began to foreshadow a pickup in M&A activity as miners’ optimism rose with the lifting of restrictions and business operations in some parts of the economy. 

In early 2021, Eldorado Gold (NYSE:EGO) (TSX:ELD) made a neat and tidy acquisition of QMX Gold Corp. (TSX.V:QMX) for $132 million to kick off the new year. 

More activity is likely with higher volume as well as bigger buyouts as a dearth of exploration projects or development projects makes anything operating or of a higher-quality worth even more. With everything scrambling to scoop up the same properties and projects, the competition is fierce, and it is driving bidding wars and competition not unlike the red-hot Canadian housing market.

 

The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a licensed professional for investment advice. The author is not an insider or shareholder of any of the companies mentioned above. 

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