Pretium Sets New Cost Estimate for Brucejack at US$696.8 Million

Pretium Resources Inc. (TSX:PVG,NYSE:PVG) released an updated cost estimate for its Brucejack project, also providing an update on the project itself. Brucejack is set to begin commercial production in 2017.
Highlights of the estimated cost estimate include:

Based on the achievement of the 60% engineering milestone, a capital cost estimate was carried out in late 2015 (the “Updated Estimate”) to update the June 2014 Feasibility Study cost estimate (the “Feasibility Study Estimate”) for the Brucejack Project. The estimated total project capital cost to complete design, construction, installation and commissioning, including contingencies, is US$640.8 million.
Working capital for the three-month period of post-plant commissioning and initial gold production is estimated at US$56.0 million and covers the cost of operations, but does not take into account any revenue generated during this period. The working capital estimate also covers the costs for prepayments related to electrical power and permitting, including US$9 million in government fees and bonds.

In terms of remaining capital requirements, the company said:

Capital expenditures to the end of Q3 2015 for the development of the Brucejack Project have totaled US$66 million. With the US$540 million construction financing package announced in September 2015 (see news release dated September 15, 2015) and cash on hand, the remaining capital required to fully fund the US$696.8 million development of the Brucejack mine is estimated at US$100 million.

Click here to read the full Pretium Resources Inc. (TSX:PVG,NYSE:PVG) press release.