Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Shares of Pretium Resources were up 80% on Friday, trading at $5.52 apiece, after the Canadian gold miner reported bulk samples that surpassed targets.
Pretium has produced 4,215 ounces of gold from 8,090 dry tonnes of excavated material – 215 ounces more than expected. Approximately 1,815 wet tonnes remain to be processed.
The sampling comes from the company’s 100%-owned Burcejack project in northwestern British Columbia.
The focus of the Project is the Valley of the Kings which hosts probable mineral reserves of 6.6 million ounces of gold. Commercial production is expected in 2016.
Pretium also owns the Snowfield project in northern BC.
Last month Strathcona Mineral Services sent Pretium shares plummeting after it walked away from the Burcejack project, saying there were “no valid gold mineral resources” there, Reuters reports.
Comments
RBF
There should never have been any doubt. Strathacona was wrong from the start, not only in their flawed sampling methods, but in the way they attempted to smear the reputations of both Pretivm and Quartermain.