In a Dec. 17 research note, BMO Capital Markets analyst Andrew Mikitchook reported that Pretium Resources Inc. (PVG:TSX; PVG:NYSE) made a new discovery at the Hanging Glacier zone, which is 4 kilometers northwest of its Brucejack mine in British Columbia.
"Although still early, the consistent mineralization over broad intervals at shallow depths is encouraging and highlights the exploration leverage around Brucejack as a district," Mikitchook wrote.
The analyst reviewed the results of 2020 drilling in Hanging Glacier, which tested soil anomalies and followed up on mineralization encountered in 2015.
Drilling at North Hanging Glacier encountered mineralization with grades and thicknesses comparable to those of the ore now being mined at Brucejack. Specifically, a 100-meter (100m) stepout from a previous hole, intersected 1.3 grams per ton (1.3 g/t) gold over 101m, including 0.68 g/t gold over 10.5m, along with 2.1 g/t gold over 102m, including 9.55 g/t gold over 13m.
At South Hanging Glacier, the drill bit hit broad intervals of low-grade gold plus a shorter intercept in an epithermal-style vein: 8.97 g/t gold and 5,150 g/t silver over 1m.
About 30 kilometers east-southeast of Hanging Glacier is the Koopa zone. Drill results from there returned 0.94 g/t gold over 1.5m and 1,675 g/t silver, 2.72% lead and 7.23% zinc over 1.1m.
"These results highlight the exploration potential regionally to Brucejack that, in our opinion, is broadly undervalued by the market," commented Mikitchook.
Next year, the analyst pointed out, Pretium plans 195,000m of drilling to encompass three types: definition (40%), in resource and sustaining (20%) and resource expansion (40%). Of the total, 10,000m will be drilled in the Hanging Glacier zone in light of the 2020 results. Another 8,000m are slated to test for additional targets near the Brucejack mine and to expand the mineralization around the same.
BMO has an Outperform rating and a CA$18.50 per share target price on Pretium. The stock is trading now at about CA$14.53 per share.
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1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
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Disclosures from BMO Capital Markets, Pretium Resources, December 17, 2020
I, Andrew Mikitchook, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Analysts who prepared this report are compensated based upon (among other factors) the overall profitability of BMO Capital Markets and their affiliates, which includes the overall profitability of investment banking services. Compensation for research is based on effectiveness in generating new ideas and in communication of ideas to clients, performance of recommendations, accuracy of earnings estimates, and service to clients.
Company Specific Disclosures
Disclosure 5: BMO Capital Markets or an affiliate received compensation for products or services other than investment banking services within the past 12 months from Pretium Resources.
Disclosure 6C: Pretium Resources is a client (or was a client) of BMO Nesbitt Burns Inc., BMO Capital Markets Corp., BMO Capital Markets Limited or an affiliate within the past 12 months: C) Non-Securities Related Services.
Disclosure 8A: BMO Capital Markets or an affiliate has a financial interest in 1% or more of any class of the equity securities of Pretium Resources.
Disclosure 9B: BMO Capital Markets makes a market in Pretium Resources in United States.
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