Pretium Resources (TSE:PVG)(NYSE:PVG) saw its shares advance on Tuesday after reporting a 66 per cent increase in its indicated gold resources at the Valley of Kings, part of its Brucejack project in northern British Columbia.
The NI 43-101 compliant report, completed by Snowden Mining, shows 8.5 million ounces of gold in the indicated category, up 66 per cent since the interim estimate in September, and 2.9 million ounces of gold in the inferred category. The cutoff was 5.0 grams per tonne (g/t) of gold equivalent.
The mineral resource includes data from all drilling so far, including 2012 drilling comprising 99,632 metres in 270 drill holes targeted at the Valley of the Kings.
The indicated mineral resource is defined over around 600 metres of the total strike length of the Valley of the Kings, Pretium said, which now extends to over 1,000 metres.
In addition to the strike length not included in the resource, the Valley of the Kings also remains open to the east and west along strike, and at depth.
Pretivm plans to use the updated mineral resource in the feasibility study, which is expected to wrap up in the second quarter of 2013.
The company has also started an underground exploration program designed to access the Valley of the Kings underground. It is planning sampling and mining for a 10,000 tonne underground bulk sample, which it expects to excavate in the second quarter of next year.
The feasibility study will consider a high grade underground mine at the Valley of the Kings, with an operating rate of 2,700 tonnes per day.
The Brucejack property comprises several gold-silver mineralized areas. These areas include West Zone, Valley of the Kings, Galena Hill, Bridge Zone, Gossan Hill and Shore Zone. The majority of the mineral resources lies within Valley of the Kings and West Zone.
Shares in Pretium rose more than 2.1 per cent on Tuesday, to $13.04.