Pretium Resources Inc., the Canadian miner developing the Valley of the Kings discovery in British Columbia, increased 80 percent in Toronto after saying the gold recovered from an ore sample exceeded its target.
The shares rose to C$5.53 at the close, the biggest gain since Pretium’s December 2010 initial public offering.
Pretium produced 4,215 ounces of gold from 8,090 metric tons of rock, the Vancouver-based company said today in a statement. The ore is part of a 10,000-ton so-called bulk sample taken from Valley of the Kings for testing. Pretium said it had a target of 4,000 ounces of gold from the entire sample.
“It does provide confirmation that we’re on track,” Michelle Romero, a company spokeswoman, said today in a telephone interview. “The deposit continues to deliver.”
The stock slumped 52 percent last month after a dispute between Pretium and a contractor working on the project. Pretium said Oct. 9 that Strathcona Mineral Services Ltd. quit and told the miner there were “no valid” gold resources at Valley of the Kings.
The data published in today’s statement appear to show gold grades of about 16 grams per ton of ore, George Albino, a Toronto-based analyst at GMP Securities LP, said in a note. That’s higher than the 13-gram level he was expecting.
Results from the other 1,815 tons of rock will be available after the first week of December, the company said.