Feasibility Study and Technical Report - Pretivm

26.3 MARKET STUDIES AND CONTRACTSTetra Tech recommends conducting further marketing studies, including shippingconcentrate to smelters located in Asia for a potential reduction in the shipping costs.26.4 MINING METHODSAMC has identified the following key mining risks and mining opportunities:• Inferred Mineral Resource blocks in the resource model have been treated aswaste and have been assigned zero grades. Stope shapes that incorporateInferred blocks due to the practical constraints of mining may realize anincrease in grade.• The pre-production development plan is highly focused on establishinginfrastructural waste development. Increased ore production during thepreproduction phase may be realized through further optimization of schedulingand/or design.• Notwithstanding the opportunity above, if development advance targets are notachieved during the preproduction phase, and also during the first few years ofproduction, the ramp-up schedule to full production may be compromised.• The ability to sustain full production in the early years of mine life is dependenton the development of the VOK middle block. The infrastructural wastedevelopment program required to begin production from the VOK middle blockwill be realized in an environment of competing priorities.• The Brucejack orebody hosts multiple economic lenses in close proximity toeach other, which creates both sequential and geotechnical complexity.Definition drilling and detailed modelling must precede mining in a timelymanner or the loss of resources and/or an increase in ore dilution may occur.AMC makes the following mining-related recommendations:• Average LOM operational costs have been estimated at $157.7/t. The $180/tNSR cut-off grade used in estimating Mineral Reserves would thus give anaverage 22.3/t operational margin on ore mined. However, it is not currentlyknown whether this cut-off grade is optimal in terms of value, or in terms ofother key metrics such as cash flow. AMC recommends further study work oncut-off grade optimization at an estimated cost of $40,000.• Opportunities to improve the ore production profile in the early years ofoperation should be investigated through further scheduling exercises at anestimated cost of $30,000.• A detailed definition drilling program should be developed and scheduled toensure that mine production targets are fully supported by a level of resourceinformation that is consistent with the complexity of the Brucejack orebody. Theestimated cost for this work is $15,000.Pretium Resources Inc. 26-2 1291990200-REP-R0012-02Feasibility Study and Technical Report on the BrucejackProject, Stewart, BC