Chi­nese backer helps Canadian gold min­ing

China Daily (Canada) - - FRONT PAGE - By BIAN JIBU in Van­cou­ver

Canadian min­ing com­pany Pretium Re­sources is us­ing pro­ceeds from an $81 mil­lion in­vest­ment by a Chi­nese min­ing com­pany to help fund a gold-min­ing project in north­ern Bri­tish Columbia.

A pri­vate place­ment in­vest­ment by Zi­jin Min­ing Group Co Ltd, China’s largest gold miner, based in Shang­hang county, Fu­jian prov­ince, closed in Jan­uary. Zi­jin now owns just un­der 10 per­cent of Pretium shares. Shaoyang Shen of Zi­jin was named to the Pretium board of di­rec­tors as part of the deal.

Pretium, which also uses the name Pre­tivm, said the pro­ceeds from the Zi­jin in­vest­ment would go to­ward cap­i­tal ex­pen­di­tures at the Bruce­jack Project.

“Pre­tivm is ad­vanc­ing its 100%-owned Bruce­jack Project in north­ern Bri­tish Columbia to pro­duc­tion as a high-grade gold un­der­ground mine,” Pretium said in a re­lease. “Based on the re­sults of the June 2014 Fea­si­bil­ity Study, Bruce­jack is ex­pected to pro­duce an av­er­age of 504,000 ounces of gold a year over the first eight years and 404,000 ounces of gold a year over the 18-year mine life.

“Bruce­jack’s Val­ley of the Kings hosts proven and prob­a­ble re­serves to­tal­ing 6.9 mil­lion ounces of gold (13.6 mil­lion ton grad­ing 15.7 grams of gold per ton), the state­ment said. Com­mer­cial pro­duc­tion at Bruce­jack is tar­geted for 2017.”

In an in­ter­view pub­lished Wed­nes­day with en­er­gyand­, Pretium CEO Robert Quar­ter­main dis­cussed the gold mar­ket as it per­tains to China.

“I con­tinue to be a longterm gold bull,” Quar­ter­main said. “What I think is key to the gold mar­ket, is this move­ment of the phys­i­cal metal from the West to the East. We con­tinue to see China as one of the world’s largest con­sumers of phys­i­cal gold. I was re­cently to China a few times over the last few months.

Quar­ter­main told the web­site: “In th­ese two vis­its, I took a wan­der around jew­elry stores, and what I no­ticed in both Hong Kong and Shang­hai, was a lot of peo­ple were buy­ing phys­i­cal gold, ei­ther gold jew­elry, small bars of gold or fig­urines. So we con­tinue to see strong gold de­mand in China and also In­dia, and at some point I think we’ve got to see the phys­i­cal mar­ket align with the pa­per mar­ket.”

Zi­jin is also China’s sec­ond­largest pro­ducer of cop­per and mines iron ore, tung­sten and zinc. Shares of Zi­jin trade on both the Hong Kong and Shang­hai stock ex­changes, and the com­pany has a mar­ket cap­i­tal­iza­tion of more than $9 bil­lion. Pretium re­ported a loss of $1.7 mil­lion, or 2 cents a share, in its fourth-quar­ter earn­ings re­port, which was re­leased on Tues­day. Shares of Pretium, which trade on the New York Stock Ex­change, closed Wed­nes­day at $5.62, down 18 cents, or 3.1 per­cent.

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