Issue link: http://resourceworld.uberflip.com/i/460990
F E B R U A R Y / M A R C H 2 0 1 5 www.resourceworld.com 9 Pretium's high-grade gold Brucejack Project in northwestern British Columbia. Photo courtesy Pretium Resources Inc. grade gold quartz stockwork system. In June 2014, a feasibility study was com- pleted that reported proven and probable reserves in the Valley of the Kings totaling 6.9 million ounces of gold (13.6 million tonnes grading 15.7 g/t gold). Permitting is now underway to build an underground mine at Brucejack with an operating rate of 2,700 tonnes per day. The data used for the Valley of the Kings estimate comprised information derived from 1,355 drill holes. The base case figures in the feasibility study state that pre-tax Net Present Value (5% discount) is US $2.25 billion. The projected mine life would be 18 years pro- ducing an estimated 7.3 million ounces of gold with an average annual production of 504,000 ounces of gold over the first eight years and 404,000 ounces of gold over the life of mine. The base case pre-tax Internal Rate of Return is calculated to be 34.7% with capital payback estimated at 2.7 years. The estimated project capital cost, including contingencies, totals US $746.9 million and the average operating costs are forecast to be CDN $163.05/tonne milled over the life of the mine. GOLDSPIKE EXPLORATION INC. [GSE-TSXV] In November 2014, Goldspike Exploration Inc. announced a significant zinc discov- ery at its 100%-owned Lone Mountain property in Eureka County, east-central Nevada. Drill hole LM-14-01 averaged 7.56% zinc + lead over 89.9 metres with zinc accounting for 6.22% and lead accounting for 1.34%. Hole LM-14-02 returned 77.7 metres grading 2.8% zinc and 0.3% lead, including 19.8 metres of 9.1% zinc and 0.04% lead. These encouraging assays were fol- lowed up by further drilling. The company reported the up-dip extension to the high- grade mineralization discovered in the lower part of drill holes LM-14-01 and LM-14-02 was intersected about 30 metres up-dip in hole LM-14-04 where a sub- interval of the overall intersection assayed 33.67% zinc + lead over 15.24 metres (33.06% zinc, 0.61% lead). The overall interval in this hole returned 11.87% zinc + lead over 45.11 metres (11.62% zinc, 0.25% lead). In addition, drill hole LM-14-05 assayed 6.98% zinc + lead over 64.01 metres (5.87% zinc, 1.11% lead), including a high-grade interval of 23.58% zinc + lead over 16.76 metres (19.82% zinc, 3.76% lead). According to Goldspike, based on the historic data and the recent work by the company, it appears zinc mineralization may extend up to 1,000 metres west from the historic 5 million-lb Mountainview Zinc Mine., (not held by GSE). There is a well-defined, strong zinc-in-soil anomaly that accompanies the up-dip projection of mineralization for a minimum 1,400-metre length. Mineralization remains open to expansion, particularly down-dip and alomg strike. If the thickness of nearly 40 metres persists, a significant, near-surface, open- pittable zinc deposit could be outlined quickly. A Phase II drill program is under way for an additional 1,500 metres. The 4,000-acre Lone Mountain property is road-accessible. PREMIER GOLD MINES LTD. [PG-TSX] Premier Gold Mines Ltd. has significant gold discoveries on the Trans-Canada Property near Geraldton, Ontario, the Rahill-Bonanza JV near Red Lake, Ontario and the McCoy-Cove Project in Nevada. Premier has drilled the 100%-owned Hardrock Project on Trans-Canada, where high-grade intercepts within the pri- mary resource area include 10.15 g/t gold across 3.1 metres and 25.93 g/t gold across 2.5 metres. Recent drilling was designed to upgrade the remaining 501,000 oz of inferred resources to indicated within the open-pitable portion at Hardrock. Since July 2014, Hardrock hosts 3,972,000 open pit indicated oz. Total open pit and underground resources include 4,870,000 indicated and 2,744,000 inferred oz. A positive PEA, completed in early 2014, supports average annual gold production in the first eight years of 253,100 oz. A fea- sibility study is expected in first half 2015. Premier has been conducting explora- tion at its 49%-owned (51% Goldcorp) Rahill-Bonanza JV that has returned 134.7 g/t gold across 0.3 metres and discovered multiple vein sets in recent drilling. More drill results are expected in the future and underground drilling will resume in 2015. In 2014, Premier consolidated a 100%-ownership in the McCoy-Cove Project along the Battle Mountain-Eureka Gold Trend in Nevada. The discovery of the 2201 Zone included 18.09 g/t gold and 18.50 g/t silver across 4.3 metres. Drilling at the CSD Zone returned 15.09 g/t gold and 161.42 g/t silver across 4.0 metres. The 48 square mile property hosts under- ground indicated resources of 0.143 million indicated oz and 0.279 million inferred oz gold in the Helen deposit. Past production at the McCoy and Cove Mines was 3.3 million oz gold and 110 mil- lion oz silver. The property, immediately south of Newmont's multi-million ounce Phoenix Mine, has both deeper high-grade and open pit expansion potential. CORVUS GOLD INC. [KOR-TSX; CORVF-OTCQX] Corvus Gold Inc. continues to receive excellent drill results from its gold discov- ery at its 100%-controlled North Bullfrog Project near Beatty, southwest Nevada. The latest assays include hole NB-14-403 in the New Upper Stockwork Zone that returned 145 g/t gold and 22 g/t silver over 1.7 metres as well as hole NB-14-404 in the Joshua Vein + Stockwork that returned 3.8 g/t gold and 14 g/t silver. These holes follow holes NB-14-400 and NB-14-401 which respectively returned broad intercepts of 36 metres grading 17 g/t gold and 32 metres of 5 g/t gold. These new results continue to fill a gap in the previous drilling in an area targeted for high-grade mineralization. Based upon a US $1,300/oz gold price and a silver to gold price ratio of 59:1, the North Bullfrog Project has estimated resources defined in six deposits: the structurally-controlled Yellowjacket mill- ing deposit and the oxidized disseminated heap leach Sierra Blanca, Jolly Jane, Air Track West, Connection and Mayflower