The Brucejack gold mine was a British Columbia prospect without a cheque behind it until December 2014. The deal that changed that is the reason the province now has one of the highest grade gold mines in the world.
Vancouver-based company Pretium Resources has signed a massive $81-million deal with Zijin Mining Group, which is China’s largest gold produce, second largest copper producer, and also mines sinc, tungsten and iron ore.
The venture will allow B.C. gold mine developer to fund its high-grade, underground Brucejack gold project in northwestern B.C. and give the Chinese miner a 9.9 per cent stake, or 12,836,826 common shares of Pretium at $6.30 through a private placement, in the Canadian company. Zijin also has a market capitalization of more than $9 billion. CJ
What happened to the Brucejack gold mine after the deal
British Columbia approved the project on 30 July 2015 and construction began that September. The first gold was poured in June 2017 and commercial production started on 1 July 2017. The mine produced 347,743 ounces in 2020. Pretium Resources did not stay independent for long after that. Newcrest completed its acquisition of the company on 9 March 2022, and when Newmont acquired Newcrest in 2023 the operation passed to Newmont, which runs it today.
Why a gold mine matters at the jewellery counter
Most retail conversations about gold stop at the price per gram. The supply side is where the useful story sits. Canada is one of a short list of countries that can put gold into the market from a jurisdiction with enforceable environmental and labour law, and that is precisely the assurance a customer is reaching for when they ask where the metal in a ring came from. A jeweller who can answer that without hedging has an advantage over one who cannot.
Foreign capital is how Canadian projects get built
The 2014 placement is also a reminder of how mine finance actually works. A junior with a world class deposit rarely has the balance sheet to build it, so the capital arrives from a larger producer and the ownership moves. For the trade the practical consequence is that the name on the mine changes more often than the metal does. Provenance claims should be tied to the deposit and the jurisdiction rather than to a corporate owner that may be sold within a few years.
What to take from it
Canadian gold is a selling point and a durable one, because it rests on where the ore came out of the ground rather than on who currently holds the shares. Continuing coverage is in our mining and metal section.
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Author: Canadian Jeweller Magazine Staff
Canadian Jeweller Magazine Staff is the shared byline for reporting filed by the magazine's editorial desk. Founded in 1879, Canadian Jeweller is the longest running jewellery business publication in Canada, covering market reporting, retail strategy, watches, diamonds, coloured gemstones and the commerce of the Canadian jewellery trade. Work published under this byline is edited and verified by the Canadian Jeweller editorial team in Toronto.
