Seeking Alpha

Snapback rally for Pretium after positive results

  • Pretium Resources (PVG +19.4%) claws back a chunk of its large losses this month after reporting positive drill fan results at its Valley of the Kings project in British Columbia. "Reported assays include 12 intersections grading greater than 1K grams per ton gold uncut, two of which were intersected in the planned Program fan."
  • The company was most recently stung on Tuesday by a geologist team asserting there was "no valid gold resource" at the project.
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Comments (4)
  • Barbairic
    , contributor
    Comments (19) | Send Message
    Held my nose and bought some of this today.


    That is one hell of a drill hole they reported! 26m at 334gms/ton. even if the hole followed the vein the whole way, which i gather is likely, it is still a spectacular data point. I'm not a geologist, but a back of the envelope calc is: A cubic meter of rock weighs around 2.5 to 2.9 tons depending on the kind of rock. 334gms/ton = 10.7 oz. 10.7 x 2.5 tons = 26.9 oz/ cu meter. The hole is 26meters long. Assuming the ore surrounding the hole is similar for a 1 sq m circular slice, then the hole represents good confidence for 26.9 x 26 = 700oz. 700 x $1350 = $950K. The ore represented by that one single hole is worth nearly $1m! Each cubic meter of rock is worth $36K!


    The controversy over the resource analysis is for sure an issue. BUT, with data points like today's i have to think there's something there that can be profitable. I'm of course resting my case that the drill data is correct even though the current resource modelling may not be.
    24 Oct 2013, 02:17 PM Reply Like
  • 6151621
    , contributor
    Comments (1180) | Send Message
    I totally agree Barbairic. It may be Brucejack defies modeling and thus may be hard to finance but could be a great nonstandard gold find. Of course, hard to finance means could simply never happen until gold prices are much higher.
    25 Oct 2013, 01:23 AM Reply Like
  • Connev
    , contributor
    Comments (12) | Send Message
    my comment was not published
    25 Oct 2013, 09:03 AM Reply Like
  • Makaband
    , contributor
    Comments (4) | Send Message


    26m @ 334g/t: inc 0.5m @ 17100g/t, 0.5m @ 79g/t and 0.5m @ 96.1 g/t.
    Whats in the other 24.5m of this intercept? ((26*334-17100*05-79*0... = 1.89g/t




    27.57m @ 149.45g/t: inc 0.5m @ 328g/t and 0.5m @7850 g/t.
    Over the other 26.57m of this intercept the grade is 1.18 g/t ((27.57*149.45-0.5*328...


    Couple of good veins but the rest is not particularly economic for an underground mine.
    27 Oct 2013, 10:24 PM Reply Like
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