Mining News: Northern Nuggets: Brucejack project on schedule, under budget

Pretium Resources Inc. Feb. 17 said the Brucejack project remains on schedule for commercial production in 2017, and the costs of developing the high-grade underground gold mine are coming in under budget. Upon reaching a 60 percent engineering milestone, a capital cost estimate was carried out in late 2015. The estimated total project capital cost to complete design, construction, installation and commissioning, including contingencies, is now US$640.8 million. Adding in US$56 million for three months of post commission working capital, the development and start-up costs for Brucejack are now projected to be US$696.8 million, or about 6.6 percent less than costs projected in a feasibility study completed in 2014. The largest driver for these savings is a more favorable U.S.-Canadian dollar foreign exchange. Commissioning of the Brucejack Mine is expected in the third quarter of 2017. The permanent camp pad has been completed. Assembly of the 330-person permanent camp at site is expected to begin in March. Bulk earthworks to level the site for the mill building are expected to be completed in March with concrete foundation work scheduled to begin in April. Construction of the transmission line also is expected to begin in April. Pre-production underground development contract crews have been mobilized to site and operating on multiple headings since early January. There are currently more than 700 employees and contractors working on the Brucejack project.

- Shane Lasley