Mining News

Newcrest expands footprint in Canada with Pretium buy

Newcrest Mining (ASX, TSX: NCM) is expanding its footprint in Canada, particularly in British Columbia’s Golden Triangle, after shareholders in Pretium Resources approved the Australian miner’s bid for the company.

The Melbourne-based gold and copper producer first announced it had reached an agreement to acquire the Canadian company for $2.8 billion (C$3.5bn) in November last year.

Pretium said the deal was approved with 95.5% of the votes in its favour, adding that investors will have the choice of accepting money for their holdings, or taking up shares in the gold major.

Newcrest, Australia’s largest gold producer, has set it focus on organic and mergers and acquisitions-based growth in the Americas.

In 2019, it acquired a 70% stake in Canada’s Red Chris copper and gold mine from Imperial Metals (TSX: III).

Pretium recently made new discovery at the Brucejack mine. In October, it intercepted a new high-grade gold exploration discovery at the Golden Marmot zone on the Brucejack property, located roughly 3.5km north of its Valley of the Kings deposit.  

Newcrest said it had received assays for the first nine drill holes, eight of which intersected gold, with a highlight of 53.5m grading 72.5 grams per tonne gold including 50cm grading 6,700 g/t gold and 3,990 g/t silver.

Brucejack began commercial production in July 2017 and is one of the highest-grade operating gold mines in the world. Pretium’s technical report of March 9, 2020, estimated gold production of 311koz per annum at an all-in sustaining cost of $743 per ounce of gold over a projected 13-year mine life.

The mine and surrounding tenements are within the traditional territories asserted by the Tsetsaut Skii km Lax Ha (TSKLH) and Tahltan Nation, and in the Nass Area of Nisga’a Nation as defined in the Nisga’a final agreement.

Brucejack is approximately 140 km from Newcrest’s majority-owned and operated Red Chris mine, located on Tahltan territory.

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