King Ross cancelled Gold Project in Ecuador

  After two years of conversations and disagreement on Ecuador taxation( they wanted a 70% income taxation),  King Ross decided to cancel its project of Frutas del Norte Gold Mine.

  Source: bnn.ca

Risks of prolonged monetary accommodative policies. IMF Report.

Rising stability Risks of Accommodative Monetary Policies

''The use of unconventional monetary policies in
advanced economies continues to provide essential support
to aggregate demand. These policies

are generating a substantial rebalancing of private 

investor portfolios toward riskier assets, as intended.
However, a prolonged period of extraordinary
monetary accommodation could push portfolio
rebalancing and risk appetite to the point of creating
significant adverse side effects. While the net benefits
of unconventional policies remain highly favorable
today, these side effects must be closely monitored
and controlled''.


''the favorable funding environment for emerging market
economies might breed complacency about growing
challenges to domestic financial stability. Valuations
have not yet reached stretched levels (except in a few
hot spots), but sensitivity to higher global interest
rates and market volatility has increased across asset
classes, including in emerging market economies. A
prolonged period of continued monetary accommodation will increase vulnerabilities and sensitivity to a rise in rates''.

''Acute short-term stability risks have declined in the
euro area on the back of strong policy action. Prices
and liquidity conditions in sovereign, bank, and
corporate debt markets have improved dramatically,
and issuance has soared. However, medium-term
risks remain, reflecting a weak economic outlook,
persistent fragmentation, and structural challenges.
Some banks in the euro area periphery remain
challenged by deleveraging pressures, still-elevated
funding costs, deteriorating asset quality, and weak
profits.
 Corporations in the periphery are directly
affected by bank deleveraging, cyclical headwinds,
and their own debt overhangs. Against this backdrop
more work needs to be done in the short term to
improve bank and capital market functioning, while
moving steadily toward a full-fledged banking union.
Policy actions have greatly reduced nearterm perceptions of tail risk''.

Excerpts from the IMF GFSR, April 2013 

EXPECT HIGH VOLATILITY,TURMOILS IN THE BOND AND STOCK MARKETS,IN THE PROCESS OF NORMALIZATION OF INTEREST RATES

''The rolling back of the U.S. Federal Reserve's massive quantitative easing program could be a major issue for all economies, according to former World Bank President Robert Zoellick. "[Fed] tapering is a big issue. I think for all economies - U.S., Europe, China, Southeast Asia - the fundamentals still go back to structural reforms," Robert Zoellick,  told CNBC Asia's "Squawk Box" on Tuesday.
He added that "The question will be as the Fed eventually moves away from the monetary easing policies, what will be the effect of the [withdrawal of the wall of money that's moved around the world?"

 See previous article on this Blog, End of easy money will put pressure on Latin American Currencies.
 Time to adjust portfolios?

The global economy is “in the early stages of the recovery of the equity culture and perhaps the end of a 30-year growing love affair” with bonds, Jim O’Neill said earlier in an interview on Bloomberg Television’s “On The Move” with Mark Barton.
''The Federal Reserve is buying $85 billion of Treasuries and mortgage securities each month to support the world’s largest economy by putting downward pressure on borrowing costs. Speculation the central bank may taper its debt purchases in the coming months may damp demand for emerging-market bonds, as well as U.S. debt, said O’Neill''.

“It’s all part of this big normalization that’s going to happen,” O’Neill said in an interview in London today. “In the process, there could be quite ugly days.”

''The benchmark 10-year Treasury yield rose four basis points, or 0.04 percentage point, to 2.25 percent at 6:14 a.m. New York time. It touched 2.26 percent, the highest since April 2012 and up from a record-low 1.38 percent on July 25".

Ten-year yields, which were last above 4 percent in April 2010, may reach that level “not next week, but in the next couple of years if the U.S. is getting back to normality,” O’Neill said.

Source CNBC, Bloomberg.

Barron´s interview to Marc Faber Part III

On China´s GDP growth rates and other economic data.

" There has been a huge credit bubble in China, and it isn't going to end well. Its economy officially grew 7.7% in the first quarter. In reality, it is growing 4% a year, at best. Figures on Chinese exports to Taiwan, South Korea, Hong Kong, and Singapore don't agree with the import figures of those countries. In each case, reported exports are much larger than reported imports. Singapore publishes relatively honest economic statistics. Its gross domestic product has hardly grown in the past six months. Inflation is about 4% a year. Here in Thailand, growth has slowed despite massive fiscal stimulus. Trade and current-account surpluses have been shrinking in Malaysia, Indonesia, and other countries".

On his thoughts about the european markets.

''I wasn't optimistic for a long time, although I bought some Swiss insurance stocks after the crisis in 2009. Then, last May, I took another look, as sentiment was so negative. The S&P had doubled from its 2009 lows, yet many markets in Europe were at or below their 2009 lows. Something was out of sync. For the first time in my life, I bought European shares, and I plan to buy more''.

''Markets in Europe have made major lows. But investors don't fully comprehend what happened in Cyprus. In the event of future bailouts, bank depositors will lose a percentage of their money. Money in the bank isn't 100% safe anymore. That's why I own stocks, and corporate bonds, and real estate''.

 What does he thinks about gold correction and its allocation in a portfolio of investments?

 ''Gold is down 30% from its 2011 peak of $1,921, but has far outperformed financial assets since 1999. A correction was overdue. I have about a 25% allocation to gold and buy some every month. I want to have some assets that aren't in the banking system. When the asset bubble bursts, financial assets will be particularly vulnerable.

Gold is easier to carry than a Lamborghini.

Most of my gold is in a safe-deposit box in Switzerland, but I am shifting it to Asia''. 

End of easy money will put pressure on Latin American currencies. Time to adjust portfolios?

Analysis: History may repeat itself for Mexico, Peru as Fed eyes exit

By Krista Hughes

MEXICO CITY | Sun Jun 9, 2013 4:18pm EDT

(Reuters) - "Mexico and Peru's popularity among foreign investors means they are among the emerging market economies most exposed to losses when the United States finally moves to take its foot off the monetary accelerator".

"History shows that when U.S. interest rates jump - widely anticipated when the Federal Reserve begins reducing its $85 billion a month bond purchases - new foreign investment in Peruvian and Mexican financial assets drops by almost two-thirds.

In what many see as a dress rehearsal, worries that the Fed might slow buying later this year pushed Mexican 10-year yields up almost 100 basis points in May. The rise was twice the jump in U.S. Treasuries".

"Bonds in Brazil, Colombia and Peru also sold off and major Latin Americancurrencies fell on average 5.5 percent on the mere hint of a limit to the cheap cash that has pushed many emerging markets to record highs.

Latin America has outperformed other emerging markets in attracting foreign investment over the last two years and economists say countries with the highest inflows may see the strongest outflows when the wind turns.

Mexico, with its close ties to the United States, has been the biggest magnet for Latin American portfolio flows since 2009, with foreign ownership of local bonds close to 40 percent. Peru and Chile lead taking all foreign flows into account".

Reuters' analysis of data shows that "a one percentage point rise in U.S. 10-year yields since 1995 is typically followed by a 63 percent drop in net, non-foreign direct investment inflows to Mexico. Taking inflows over the last 12 months, that would be equivalent to a $50 billion fall".

"In Peru, where foreigners own a whopping 57 percent of local currency debt, a comparable rise precedes a 61 percent drop in inflows, while a 40-48 percent fall could be expected in Chile, Colombia and Brazil, which has just dropped a tax on foreign investment in domestic bonds to attract more capital'

Peruvian Finance Minister Luis Castilla downplayed risks to his country from a Fed exit and welcomed the sol's easing from 16-year highs.

"We're a country that has been running fiscal surpluses," he told Reuters. "We are not a country that will need to be tapping markets such as other countries in the region. That gives us some comfort."

"But Peru is also pressured by slower growth in China, undercutting the high commodity prices that have buoyed its economy. The minerals exporter has just posted its first quarterly trade deficit in more than four years and economists are trimming growth forecasts.

To some investors, the sell-off in May was a wake-up call to those who had preached that emerging markets were the new global safe haven amid ongoing weakness in developed economies".

Zhou Xiaochuan Governor of PBOC: China needs to sacrifice short-term economic growth to make structural adjustments.

"China’s slower expansion in the first quarter is “normal” as the world’s second-largest economy sacrifices growth to make structural reforms, People’s Bank of China GovernorZhou Xiaochuan said".

"While a “mild” global slowdown is affecting China, the 7.7 percent gain was “overall normal” compared with the government’s 2013 target of 7.5 percent, Zhou told Bloomberg News outside a meeting of the International Monetary Fund in Washington on April"

“China’s undergoing economic restructuring, which sometimes is not in lockstep with growth,” Zhou said. “We need to sacrifice short-term growth for the purposes of reforms and structural adjustments.”

China’s economy had a stable start in the first quarter and growth was within a reasonable range, Zhou said at the IMF meeting, according to a statement on the PBOC’s website.

In China, “structural adjustment has scored notable achievements,” according to a PBOC statement. "The contribution of service industries to economic growth in the first quarter exceeded that of manufacturing for the first time, it said".

"In his statement to the IMF, Zhou reiterated that changes in China’s financial sector will involve “further interest-rate liberalization, capital account convertibility and exchange rate reform.” While inflation has been “relatively stable,” the government remains on guard due to rising costs for labor and raw materials, pricing reforms and excessive global liquidity, Zhou said".

Source: Bloomberg

Barron's interview to Marc Faber Part II

On present policy makers mistakes.

''They are applying neo-Keynesian theories that call for the government to step in after a recession to boost demand. This might be right in some instances, but I doubt Keynes [British economist John Maynard Keynes] would approve of current policies. Neither would the late economist Milton Friedman, even though Bernanke invoked him to justify his actions. The neo-Keynesians would argue that if the Fed hadn't flooded the system with money, things would have been much worse. That might be true, but they would have been worse for a shorter period of time''.

On how excesses might be corrected.

''At some point, there will be a big reset. Now the rich will be targeted through some kind of wealth tax or significantly higher tax rates. Eventually there will be so much antagonism against well-to-do people that it won't be comfortable.

Also, geopolitical conditions could deteriorate badly in the Middle East and Asia. America's reset toward Asia has alarmed the Chinese, who won't tolerate U.S. interference long term in the region. Then there's the possibility of a Black Swan event. If the S&P 500 drops 20%, the Fed will print more money, so that's not a huge downside risk. But the bond market could collapse, inflation could accelerate, or the Chinese economy could implode. Or we could have a destabilizing political event, or a pandemic''.

On his personal investments.

"'I keep 25% of my assets in equities. I haven't shorted anything yet, although I am tempted to short the S&P or the Russell 2000. I don't own U.S. stocks, but I hold some Asian shares, including Singapore real-estate investment trusts, which I will discuss momentarily. Markets in the Philippines, Indonesia, and Thailand have quadrupled from their postcrisis lows, and aren't attractive any more. But I still hold some shares in these markets with relatively high dividend yields.

I'm not keen on Chinese equities, but if conditions worsen and China prints money like crazy, the currency will weaken and stocks will rise. I own some issues in Hong Kong, but without great enthusiasm. 

I figured the Japanese stock market would go ballistic as soon as the government weakened the yen, and that's what happened. Since the Oct. 15 low, the market is up more than 70% in yen terms and 35% in dollars—before the recent correction, that is. I bought brokers such asNomura [NMR], which has more than doubled in price. The Japanese market is correcting now, and the yen might rebound somewhat. But whereas the U.S. is near a long-term top, Japanese stocks made a generational low in 2012 and won't go below that''.

A closer look to the latest U.S. Job's Report .

Long-Term Jobless: Still a Bleak Picture

By ANNIE LOWREY

"Long-term unemployment remains a very dark shadow in the May jobs report: 4.4 million workers have been out of a job for more than six months. In essence, the job market has normalized for the short-term unemployed. But the longer you have been out of a job, the bleaker the picture gets.

The number of people who report being out of work for less than five weeks has returned to almost the same level as in 2007. But the number of people unemployed 5 to 14 weeks is about 25 percent higher. For those out of a job 15 to 26 weeks, it is 78 percent higher. And the number of long-term jobless, those unemployed for more than 27 weeks, is a whopping 257 percent higher''.

''The long-term unemployed are struggling mightily to get rehired, as confirmed by recent research by Rand Ghayad and William Dickens of the Federal Reserve Bank of Boston. Some economists have theorized that the unusually long spells of unemployment we have seen in the wake of the recession are caused by a “mismatch”: The long-term jobless were in obsolete professions, with obsolete skills, and that is why they are not getting new gigs.

But Mr. Ghayad and Mr. Dickens argue that is not the case. The long-term jobless seem to be having trouble finding work across industries, for instance. Discrimination does seem to be a major factor, though: Employers simply do not want to hire the long-term jobless, as my colleague Catherine Rampell has reported and further research by Mr. Ghayad has shown".

Economix,New York Times 09.06.2013

Barron's interview to Marc Faber Part 1

About his negative view on money printing

"The Fed is flooding the system, it doesn't increase economic activity and asset prices in concert.
Instead it creates excessess in countries and asset classes.
Money-printing fueled the colossal stock-market bubble of 1999-2000, when the Nasdaq more than doubled, becoming disconnected from economic reality. It fueled the housing bubble, which burst in 2008, and the commodities bubble. Now money is flowing into the high-end asset market—things like stocks, bonds, art, wine, jewelry, and luxury real estate. The art-auction houses are seeing record sales. Property prices in the Hamptons rose 35% last year. Sandy Weill [the former head of Citigroup] bought a Manhattan condominium in 2007 for $43.7 million. He sold it last year for $88 million"

It wouldn't have been worse without Quantative Easing after the economic crisis of 2008?

"Why start with 2008? The government bailed out savings-and-loan depositors during the thrift crisis in the late 1980s. The U.S. Treasury and Federal Reserve bailed out Mexico in the mid-1990s. The biggest policy mistake occurred with the Fed-supervised bailout of the hedge fund Long-Term Capital Management in 1998, because it gave a green light to Wall Street to keep leveraging up.

Another policy mistake was made in 2000, right after the Nasdaq collapsed. The system probably could have handled a recession then, but instead, the Fed engineered a drop in interest rates, eventually to 1%, that encouraged a huge housing bubble. After it burst in September 2008, Bernanke slashed short-term rates to near-zero, where they are still. Meanwhile, the stock market is up 150% from its 2009 lows''.

   Is the US stock market in a bubble?

  '' I am suggesting that in the fourth year of an economic expansion, near-zero interest rates will lead to a further misallocation of capital. I thought the U.S. market would have a 20% correction last fall, but it didn't happen. I also said the market might explode to the upside before the correction occurred. We might be in the final acceleration phase now. The Standard & Poor's 500 is at 1650. It could rally to 1750 or even 2000 in the next month or two before collapsing. People with assets are all doomed, because prices are grossly inflated globally for stocks, bonds, and collectibles''.

Buffett's investing in Nevada's NV Energy,fits his strategy,to own businessess with large predictable cash flows.

Buffett utility deal may signal big push to invest cash

"MidAmerican Energy Holdings Co, a core part of Warren Buffett's sprawling business empire, is becoming a favourite way for the "Oracle of Omaha" to invest the billions of dollars of cash on Berkshire Hathaway Inc's  balance sheet"

"The unit's $5.6 billion US acquisition of Nevada's NV Energy , announced last week, vaulted MidAmerican to ninth place in terms of U.S. electric utility customers from fourteenth, according to data compiled by Reuters, and fits right into Buffett's strategy of owning businesses with large, predictable cash flows.

Berkshire Vice Chairman Charles Munger last year said MidAmerican could deploy as much as $100 billion over the next 10 to 15 years".

"The energy sector looks to be a pathway for (Buffett) to invest a lot of money," said David Rolfe, chief investment officer of St. Louis-based Wedgewood Partners, which has about $300 million invested in Berkshire Hathaway stock. "There is a very good chance that 10 years from now it's the largest part of Berkshire, easily."

Including the NV Energy deal, which is the largest in the global energy and power sector so far this year, MidAmerican makes up only about 10 percent of Berkshire's pre-tax earnings, dwarfed by the company's vast insurance holdings. But that is expected to change.

"What (MidAmerican and railroad Burlington Northern Santa Fe) have done is guaranteed the cash flows get reinvested back into those businesses," said Morningstar analyst Greggory Warren. "It eliminates some of the risk to whoever succeeds him of having too much cash on the balance sheet and not enough good ideas."

BNSF has been investing in the expansion of rail infrastructure in the United States and in new technologies such as powering locomotives with natural gas in a bid to increase profitability.

In his most recent letter to shareholders, Buffett called MidAmerican's earnings "recession-resistant" because the company offers "an essential service."

"Buffett has also figured out how to generate stable returns in renewable energy by investing in projects that come with long-term contracts to sell their output to utilities.

The regulated utilities are MidAmerican's primary focus, however, and include Oregon-based PacifiCorp, Iowa's MidAmerican Energy Co and Northern Powergrid in England. Together, those utilities will serve 8.4 million customers once NV Energy is folded into the mix".

Nichola Groom, Reuters
3:32 PM, E.T. | June 5, 2013
Investing

Interview to Pierre Lassonde, Chaiman of Franco Nevada.

Pierre Lassonde
      -was President of Newmont Mining Corp. from 2002 to 2006.
      -Co-founder and Chairman of the original Franco Nevada Corp.
        The first gold royalty company.
      -Past Chairman of the World Gold Conuncil.
    
  For the past 18 months we had a typical midsize correction of the
price of gold,his thoughts are that we are still in a long run bull market for
gold.

 Gold is the anti-dollar,if central banks of Japan, US, the ECB,UK, etc, keep their policy of
printing money. At the end of the day what you are going to see is the debasing of their currencies
and then gold will shine again.

  In 2013 55% of all gold sold in the world came from China an India.
  If the chinese economy had a sharp decrease in its rate of growth,then the price of gold could have an
 important correction.

   In the past decade as the price of gold went up,major gold miners went into a race of increasing
their reserves by lowering their grade cut-off. And mining engineers decided to design pits to
produce gold from these much lower grades too.

   The result was that their cash costs went to the roof,  5 years ago they had a cash cost of US$700,
now it is 1000 or 1100 us dollars.

Interview by Howard Green in bnn.ca 07.06.2013

Impact of Oil and Gas industry on the US

"PwC's preliminary estimates show that the US oil and natural gas industry's total
employment impact to the national economy in 2011, combining the operational and
capital investment impacts, amounted to 9.6 million full-time and part-time jobs,
accounting for 5.5 percent of the total employment in the country . At
the national level, each direct job in the oil and natural gas industry supported
approximately 2.7 jobs elsewhere in the US economy in 2011. Total estimated labor
income, including proprietors' income, was $580 billion, or 6.1 percent of national labor

As shown in the previous section, the US oil and natural gas industry's direct labor
income in 2011 is estimated to be $224.4 billion and capital expenditures are
preliminarily estimated to be $156.3 billion in 2011.
 One measure of the industry's
total "spend" is the sum of the industry labor income, capital expenditures and dividend
payments.
Total dividends paid by the industry were obtained from S&P's Compustat North
America® database for US-headquartered companies in the oil and natural gas
industry.7 Excluding distributions from Master Limited Partnerships and other passthrough entities,
8 PwC estimates that the industry paid out a total of $28.7 billion in
dividends in 2011, including dividends paid to individuals, retirement plans, foreign
shareholders, and other businesses.
Using this measure of total "spend" (consisting of the estimated direct labor income,
capital expenditures, and dividend payments), the industry's total "spend" amounted to
$409.4 billion in 2011.
Another source for the industry's annual capital expenditures is a survey published
annually by the Oil & Gas Journal, which puts the industry's 2011 US capital
expenditures at $292.0 billion.
 If this estimate of the industry's capital expenditures is
used for the purpose of computing the industry's total "spend" as defined above, the
industry's total "spend" was $545.0 billion in 2011"

PwC
Economic Impacts of the
Oil and Natural Gas
Industry
December 19, 2012

Emerging Market Stocks Turn From Best to Worst‏

Emerging Market Stocks Turn From Best to Worst
In today's "Global Outlook," Bloomberg's David Ingles takes a look at emerging market stocks.

Watch this video at http://bloomberg.com/share/video/MAT6Ed2TSw2ZFLgzLN4~ug

Worries about the end of easy money.

FT attributes  the fall of the dollar index today, to the worries of the ending of bond purchases by the Federal Reserve.

 In an article published today by the WSJ, they also explain the jitters of the market.

"The big question worrying investors today is how markets will react when the Federal Reserve starts trimming its stimulus program, something that could happen as soon as this year.
The first time the Fed pared stimulus, in March 2010, the Dow Jones Industrial Average responded with a 14% drop between April and July. The second time the Fed pulled stimulus back, in June 2011, the Dow moved in anticipation, slumping 17% from April into October.
Some analysts think the softness means the Fed will give up on withdrawing stimulus for the foreseeable future. But so far, the Fed is still signaling a desire to start cutting stimulus at some point.

Part of the problem the Fed faces is that it never before has tried to carry out this massive a stimulus program for such a long period. The Fed’s role in markets is, in that sense, greater than ever before, meaning markets are more dependent on the Fed than ever before. Because of that, and because the economy is so fragile, the current period truly is an exceptional one, in some ways more like the 1930s than the 1990s.

Many analysts now are trying to predict the market’s future based on what happened after Fed actions in the past 30 years. A better reference point might be the Depression, or Japan’s two recent lost decades.

Mr. Bernanke’s challenge is to move the Fed back to a more normal role in financial markets and the economy, while avoiding the disastrous errors of 1936 and 1937. One problem he will face is that markets aren’t likely to applaud cutbacks in Fed assistance".

Wilbur Ross : We are now or beyond low and negative real interest rates in the U.S.

Ten-Year Treasury Runs Risk of 25% Decline: Wilbur Ross
June 6 (Bloomberg) -- Wilbur Ross, Chairman and CEO at WL Ross & Co., talks with Betty Liu about what is driving the current employment market, the big risk to the treasury market and his overall economic outlook for the United States. He speaks on Bloomberg Television's "In The Loop."

Watch this video at http://bloomberg.com/share/video/C5DDIK5hR6W3yP~aXOcPwg

Goldman Sachs Higher Mortgage rates won't derail housing recovery

From the WSJ article, excerpts.

“Housing can remain affordable by historical standards even if interest rates rise,” wrote Goldman Sachs economists Hui Shan and Marty Young in a research note this week. They say interest rates, given the recent half-percentage point rise, don’t change their expectation for home prices to rise by 4% to 5% annually over the next few years.

Getty Images

Goldman runs an exercise that shows just how affordable housing is, even if rates rise. They assume the typical homebuyer has an annual household income of $50,000, pays a 20% down payment, and obtains a 30-year fixed-rate mortgage. At an interest rate of 3.8%, the average homebuyer can afford a house worth $279,000, which is 45% above the current median sales price of previously owned homes. Even if interest rates rise to 6%, homes would still be affordable to this median borrower because prices are still so low.

Rising rates “will likely slow the strong house price appreciation observed over the past year, but the impact will likely be modest given the cushion provided by the high level of housing affordability at present,” the Goldman economists write.

Jim Rogers on the correction of the price of gold

Excerpt from Félix Moreno Interview to Jim Rogers

''FM: You always say in your interviews that you are not a very good market timer, but I beg to differ. I’d like to turn to gold: you are one of the few gold bulls who had actually been calling for a correction in the past few months, or at least saying that we were in a correction and that, even though you were very optimistic in the long term, we should expect lower prices now. You must feel vindicated now.

JR: Every once in a while I get it right. Even I get it right sometimes. Vindicated? I don’t take any great pleasure in it. I just talk about the way the world works. It’s reality. Unfortunately some people don’t like to see how the world works, but yes, I did happen to get it right this time.

FM: So what is your opinion on the current state of the gold bull market. You’ve said repeatedly that you expect it to go much higher this decade. How do you see it right now?

JR: Unfortunately from my point of view, and I own gold and haven’t sold any, we are in a long overdue and much needed correction. The anomaly was that gold had been up 12 years in a row. That’s not normal, typical action. It’s abnormal, which worries me and should worry all the gold bulls. It has now corrected for some 18 to 20 months now. I find that encouraging. I mean, I don’t know, because I’m not a very good market timer, but I do know that most corrections go on long enough to scare a lot of people and scare them out of their positions, and that’s what I would expect to happen.

I’ve had people write to me and say: “gold cannot go down 30%”, and I say: “turn on your computer. It’s there.” There are a lot of mystics that are still true believers. Until it scares a lot of people the correction is not over. I would certainly like the correction to be over this afternoon and see gold go to $2,000 or to $3,000, but that’s not reality''.

Interview published in GoldMoney 30 May 2013

High Grade(AU,AG) Pretium´s Valley of Kings latest drilling results

Pretium Resources  initial underground drilling has been succesful  as part of the Valley of the Kings bulk sample program intersected visible gold, and continues to confirm the projection of high-grade gold mineralized domains. 

Table 1: Valley of the Kings Bulk Sample Drill Results, June 2013 (VU-01 to VU-07)(1,2,3)
Hole No.	Collar Coords.	Dip/ Azimuth		From (meters)	To (meters)	Interval (meters)	Gold (g/t)	Silver (g/t)	Capping
VU-01(4)	6258007N 426599E	-0.3/ 180		32.00	44.00	12.00	21.57	17.50
			incl	42.75	43.25	0.50	388.00	279.00
			incl	43.50	44.00	0.50	99.70	50.00
				64.00	66.00	2.00	8.38	58.92
			incl	65.60	66.00	0.40	31.10	22.10
VU-02	6258007N 426599E	-10.6/ 180		27.00	44.50	17.50	17.25	25.07	1 Au sample cut
			or	27.00	44.50	17.50	33.20	25.07	Uncut
			incl	27.55	28.05	0.50	988.00	493.00	Uncut
			incl	41.15	41.65	0.50	117.50	66.10
VU-03	6258007N 426599E	-22.7/ 180		30.00	40.00	10.00	3.85	8.75
			incl	30.00	30.50	0.50	42.30	65.50
VU-04	6258007N 426599E	13.9/ 180		29.50	38.50	9.00	1.44	6.27
VU-05	6258007N 426599E	25.7/ 180		29.00	42.00	13.00	1.65	6.76
VU-06	6258007N 426599E	35.0/ 180		37.00	44.00	7.00	3.24	5.02
			incl	40.00	41.57	1.57	10.64	9.32
VU-07	6258007N 426599E	-32.2/ 179.5		30.00	45.50	15.50	10.07	18.22
			incl	35.89	36.39	0.50	271.00	257.00
				51.00	59.00	8.00	10.85	14.44
			incl	53.95	54.45	0.50	140.00	57.60

	(1)	True thickness to be determined.
	(2)	Unless otherwise indicated as uncut, all gold assays over 421 g/t were cut to 421 g/t.
	(3)	All samples were submitted for preparation and analysis by ALS Chemex at its facilities in Terrace, B.C. All samples were analyzed using multi-digestion with ICP finish and fire assay with AA finish for gold. Samples over 100 ppm silver were reanalyzed using four acid digestion with an ore grade AA finish. Samples over 1,500 ppm silver were fire assayed with a gravimetric finish. Samples with over 10 ppm gold were fire assayed with a gravimetric finish. One in 20 samples was blank, one in 20 was a standard sample, and differing one in 20 samples was a field duplicate one-quarter split core assayed at ALS Chemex in Vancouver, B.C.
	(4)	Previously reported.

Kenneth C. McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, Pretium Resources Inc. is the Qualified Person (QP) responsible for the Brucejack Proje