Feasibility Study and Technical Report - Pretivm

Unit operating costs were multiplied by annual milled tonnages to determine the totalmine operating costs. The total mine operating costs were then deducted from the atthe-mine-revenuesto derive annual operating cash flows.Initial and sustaining capital costs have been incorporated on a year-by-year basis overthe mine life and deducted from the operating cash flows to determine the net cash flowbefore taxes. Initial capital expenditures include costs accumulated prior to firstproduction of doré and concentrate; sustaining capital includes expenditures for miningand milling additions, replacement of equipment, and tailings embankment construction.The total LOM sustaining capital is $328.54 million.The mine closure and reclamation cost is $25.68 million.Working capital has been calculated based on a three-month operating cost in Year 1 ofthe mine operation and will be recovered at the end of the mine life.NPV was estimated at the beginning of the four-year construction period.Metal production quantities are presented in Table 22.1. The annual pre-tax net cashflows (NCFs) and cumulative net cash flows (CNCFs) are presented in Figure 22.1.Table 22.1Metal Production QuantitiesYears 1 to 10LOMTotal Tonnes to Mill ('000) 9,618 18,986Annual Tonnes to Mill ('000) 962 863Average GradeGold (g/t) 14.234 12.011Silver (g/t) 11.882 57.869Total ProductionGold ('000 oz) 4,257 7,073Silver ('000 oz) 3,126 31,641Average Annual ProductionGold ('000 oz) 425.668 321.493Silver ('000 oz) 313 1438Pretium Resources Inc. 22-2 1291990200-REP-R0012-02Feasibility Study and Technical Report on the BrucejackProject, Stewart, BC