Seeking Alpha

Pretium pushes nearly 80% higher on apparent bulk sample success

  • Pretium Resources (PVG) continues to rip higher, now +78.5% after saying the gold recovered from a 10K-ton bulk sample taken at Valley of the Kings in British Columbia exceeded its target.
  • The data published today appear to show gold grades of ~16 grams/ton of ore, a GMP Securities analyst says, higher than the 13-gram level the firm expected.
  • Despite today's gains, an options trader still buys 1,240 calls betting on the stock rallying another 30% by mid-January.
  • The news prompts BMO to upgrade shares to Outperform.
  • It's worth remembering that the stock has experienced some ups and downs; shares were cut in half just last month after a dispute between the company and a contractor working on the project.
Comments (1)
  • Russ Winter
    , contributor
    Comments (662) | Send Message
     
    The news on Pretium shouldn't be any surprise and shows if anything how totally disconnected from reality the exploration and development stocks have become. Once again a situation that should have been apparent to a thinking person was turned into some kind of manipulated fear driven controversy.

     

    Why? Other than some anal retention behavior from one of the consultants, I have no idea. It defies the imagination that VoK which hit 139 intervals over 1000 grams, 398 of 100-1000 grams, 851 of 15-100 grams, and total intervals over 5 grams of 2,955 wouldn't have plenty of gold. And surprise, surprise there were 4215 oz on 80.9% of the sample, versus an expectation of 4000 oz for the whole sample. And that's with the last pending portion of the sample taken from the rich Cleopatra Vein itself. Whodathunk?
    23 Nov 2013, 10:21 AM Reply Like
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