In this, it may be Pretium will go back to the market in the coming year or so, if that capital cost figure proves close to reality. Or, maybe Pretium closes the gap between what it has raised and spent to what it needs in full. Either way it wouldn’t be surprising to see it go back to markets for more cash or seek additional debt resources to give it a bit more breathing room.

In production, Pretium plans Brucejack as one of the more important gold mines – certainly one of its highest grade gold mines – to come online in recent years in Canada and beyond.

Pretium targets 2017 for first production from a deposit that contains swarms of very narrow veins with extremely high-grade (and difficult to model) gold often counted in the kilogram/tonne range over sub-meter intervals. In all, Pretium estimates 13.6 million tonnes proven and probable resources at a whopping 15.7 g/t Au for just under 7 million ounces gold.

That gives the project a mine life near two decades with annual production around 500,000 ounces gold a year for most of the first decade of production. It is, if it all goes according to plan and bulk underground mining captures that gold at forecast costs and values, the kind of mine majors will want to buy. Notably, Zijin Mining, is already a key Pretium shareholder through recent private placements.

Eoin Treacy's view

A veteran subscriber has been to the Pretium claim and testifies that it is the real deal. Against a background where mining ore grades have been declining for years the prospect of bringing a high grade project on stream has insulated the share price from the selling pressure that has prevailed across the majority of the gold mining sector. 

Pretium hit a medium-term low above $2 in December 2013 and has been ranging above $4 since. A sustained move above $6 would begin to suggest a return to demand dominance beyond short-term steadying. 

Zijin Mining was not immune to the sell-off in Chinese equities but has steadied in the region of HK$1.75 and a sustained move above the 200-day MA would confirm a return to medium-term demand dominance. 

Gold continues to firm from the July low near $1070 but will need to sustain a move above $1175 to break the medium-term progression of lower rally highs to indicate more than temporary steadying.