VANCOUVER (miningweekly.com) – TSX- and NYSE-listed miner Pretium Resources has submitted an application to the British Columbia Energy, Mines and Petroleum Resources and the province’s Environment and Climate Change Strategy Ministries to increase the Brucejack mine production rate to 3 800 t/d.
The production increase will bring the average expected annual output to 1.39-million tonnes, from 990 000 t/y, or 2 700 t/d as previously planned.
The company expects to get approval within 6 to 12 months.
Pretium said engineering is currently underway to assess the mill capacity upgrades required to increase the production rate. Based on preliminary engineering, the capital cost to increase the mill capacity is estimated to be less than C$25-million and will be updated when the engineering process is complete, the company advised.
Pretium announced its first gold pour at Brucejack on June 20, and declared commercial production at the C$811.1-million mine on July 3.
The high-grade underground mine is located in north-western British Columbia, about 65 km north of Stewart.
Under the mine’s previous economic assumptions, Brucejack is expected to produce on average 404 000 oz/y of gold over the 18-year mine life. The mine has an after-tax net present value, at a 5% discount rate, of $1.53-billion, with an internal rate of return of 28.5%, based on previous assumptions.