Pretium Site Visit Boosts Analysts' Confidence

Pretium Site Visit Boosts Analysts' ConfidenceInvestors interested in gold development companies are no doubt familiar with Pretium Resources (TSX:PVG) and its substantial, high-grade Brucejack deposit north of Stewart, British Columbia.

For the last year, Pretium has been diligently working on progressing the Valley of the Kings (VOK) zone at Brucejack. The company has completed an underground bulk sampling and drilling program and re-estimated the mineral resource, which, when announced in December, outlined a measured and indicated resource of 8.7 million ounces of gold grading 17.6 grams per tonne (g/t), and 4.9 million ounces of inferred gold grading of 25.6 g/t. The company has also completed a definitive feasibility study for Brucejack, which it announced in June.

Indeed, 2013 was fairly busy for Pretium, and made more so when the company was faced with "significant public controversy" following the resignation of one of its geological consultants. The company saw its share price dip quite a bit, dropping from the $10 range to $2.83 before climbing its way — albeit slowly — back to the current $7.59.

Following its progress and difficulties last year, it was important for Pretium to provide the market with concrete evidence of its deposit. For that reason, the company invited analysts from GMP Securities and CIBC World Markets on a site tour of its project. Happily for Pretium, it seems to have only helped strengthen the analysts' stance on the company, due in large part by the visual of the VOK mineralization.

As CIBC analyst Jeff Killeen said in a research note to clients, the aim of the visit was to review the underground VOK bulk sample area extracted in 2013 and how the company's resource and reserve estimates measure up to exposed geology underground with the VOK.