LAKEWOOD, Colo., Dec. 2, 2014 /PRNewswire/ -- Pershing Gold
Corporation (OTCQB:PGLC) ("Pershing Gold" or the "Company") is
pleased to announce that Mine Development Associates ("MDA") of
Reno, Nevada has completed a
Technical Report for Pershing Gold's Relief Canyon Mine in
Pershing County, Nevada. The MDA
Technical Report discusses in detail the resource estimate,
previously announced in March 2014,
based on the results from drilling completed through 2013. In
addition, The Technical Report summarizes the recent final Relief
Canyon Heap Leach Cyanidation Report completed by McClelland
Laboratories, Inc. ("MLI") reporting results of metallurgical tests
from earlier this year. The Technical Report also makes
recommendations for further metallurgical tests and continued
drilling at Relief Canyon. The new Technical Report is available on
the Company's website at www.pershinggold.com.
As previously reported in the Company's March 31, 2014 news
release the MDA resource estimate shows a Measured and Indicated
resource of 552,000 ounces of gold and an Inferred Resource of
165,000 ounces of gold. MDA's estimate was prepared following the
definitions and guidelines adopted by the Canadian Institute of
Metallurgy ("CIM"). These definitions and guidelines satisfy the
requirements of Canadian National Instrument 43-101. MDA geologist,
Paul Tietz, Certified Professional
Geologist, was the qualified person responsible for preparing the
Technical Report and resource estimate.
"This Technical Report presents a snapshot of the Relief Canyon
resource estimate based on drilling completed through 2013 and
includes metallurgical recommendations based on the recent results
of the column leach tests completed this year," stated Stephen D. Alfers, Pershing Gold's Chairman and
CEO. "The resource estimate it refers to does not include any of
the results from our 2014 drilling program.
"We expect this resource to expand in 2015 when we complete an
updated resource estimate that incorporates the results from our
aggressive 2014 development drilling program," Alfers explained.
"So far this year, the Company has drilled 85 core holes, and
currently has three rigs on site with drilling planned through the
beginning of next year. We expect our 2014 core drilling program to
complete approximately 95 holes (approximately 60,000 feet), and we
will continue into early 2015 to complete up to a total of 120 core
drill holes (approximately 75,000 feet). This will more than double
the number of core holes previously drilled at the conclusion of
the 2013 program at Relief Canyon," commented Alfers.
The Technical Report identifies an opportunity to eliminate
uncertainties about gold intercepts below the water table in the
historic reverse circulation drill hole database by drilling core
holes in these areas. Pershing Gold's 2014 core drilling program
has already made significant progress drilling core holes in areas
of the deposit where reverse circulation drill holes intercepted
gold mineralization below the water table. As explained in the
Company's September 15 press release, it appears that gold
mineralization is under represented in some of the reverse
circulation drill holes due to sample recovery problems below the
water table. In discussing this issue, the MDA Technical Report
states "The exclusion of some of the North area mineralized
intercepts from the reverse circulation drill-hole database has
undoubtedly eliminated some mineralization that is real."
The Company's ongoing core drilling program will continue to
test those parts of the deposit where confirmation core drilling
can potentially expand the gold resource – either by adding ounces
or upgrading existing ounces from the Inferred resource
classification to the Indicated or Measured resource
classification.
The Technical Report includes a detailed chapter on mineral
processing and metallurgical testing written by Jack McPartland, Vice President of Operations
with MLI. This chapter also reviews all of the metallurgical
testing data available for the deposit and presents a thorough
discussion of the column leach tests completed earlier this year by
MLI. As reported in the Company's May 12 and June 23 press
releases, two composite columns containing a representative blend
of the Main Zone mineralization types had gold recoveries of 79
percent and 82 percent when leached for 70 to 91 days.
One of the key recommendations for additional metallurgical work
in MDA 's report is to perform column leach tests of the Lower and
Jasperoid Zones to support future mine planning. The Company is
planning to drill metallurgical core holes in the Lower and
Jasperoid Zones to obtain samples for the recommended column leach
testing program on these zones, with the objective of completing
the column leach tests in 2015. The Company anticipates that the
duration and scope of the column leach tests on the Lower and
Jasperoid Zones will be similar to the program completed this year
on the Main Zone. The other metallurgical work recommended in the
Technical Report will be performed as necessary to refine the
current mine plan. The projected cost for these column leach tests
is roughly $170,000.
"The Technical Report reaches an important conclusion about the
Relief Canyon Mine," stated Alfers. "The report finds that the
currently available metallurgical testing data are adequate to
support our current mine plan for the Main Zone ores that we are
planning to process using heap leaching," explained Alfers citing
from the conclusions in the Technical Report.
Scientific and Technical Data
All scientific and technical information related to drill and
surface samples for the Relief Canyon project has been reviewed and
approved by Larry L. Hillesland,
Certified Professional Geologist #11720, who is a Qualified Person
under the definitions established by Canadian National Instrument
43-101. Drill core at Relief Canyon is boxed and sealed at the
drill rig and moved to the Relief Canyon logging and sample
preparation facilities by trained personnel. The core is logged and
split down the center using a typical table-fed circular rock saw.
One half of the core is sent for assay to Skyline Assayers &
Laboratories of Sparks, Nevada,
while the other half is returned to the core box and stored at
Relief Canyon in a secure, fenced-off, area. Pershing Gold
Corporation quality assurance/quality control (QA/QC) procedures
include the regular use of blanks, standards, and duplicate
samples.
About Pershing Gold Corporation
Pershing Gold is an emerging Nevada gold producer on a fast-track to
re-open the Relief Canyon Mine, which includes three open-pit mines
and a state-of-the-art, fully permitted and constructed heap-leach
processing facility. Pershing Gold is currently permitted to resume
mining at Relief Canyon under the existing Plan of Operations.
Pershing Gold's landholdings cover over 25,000 acres that
include the Relief Canyon Mine asset and lands surrounding the mine
in all directions. This land package provides Pershing Gold with
the opportunity to expand the Relief Canyon Mine deposit and to
explore and make new discoveries on nearby lands.
Cautionary Note to United States Investors Regarding
Estimates of Measured, Indicated and Inferred Resources
We use certain terms, or refer to reports that use these terms,
in this press release such as "measured", "indicated" and "inferred
resources", that are defined in Canadian National Instrument
43-101; however these terms are not recognized under the U.S. SEC
Industry Guide 7. U.S. investors are cautioned not to assume
that any or all of measured, indicated or inferred resources are
economically or legally mineable or that these resources will ever
be converted into reserves. "Inferred mineral resources" have
a high degree of uncertainty as to their existence and it cannot be
assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. U.S. investors are
urged to consider closely the disclosure in our Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and other SEC
filings. You can review and obtain copies of these filings
from the SEC's website at http://www.sec.gov/edgar.shtml.
Legal Notice and Safe Harbor Statement
This press release contains "forward-looking statements" within
the meaning of Section 21E of the Securities Exchange Act of 1934.
All statements, other than statements of historical fact,
including, without limitation, those with respect to the
objectives, plans and strategies of the Company set forth herein
including the planned reopening and recommissioning of the Relief
Canyon mine and processing facilities, anticipated additional
drilling and other exploration work on Pershing Gold's Relief
Canyon properties, anticipated expansion and upgrade of the Relief
Canyon deposit as a result of drilling, planned update of estimates
of mineral resources and the timing thereof, additional
metallurgical work including additional column leach tests;
anticipated timing of future 43-101 reports; costs of future
exploration and metallurgical work; interpretations of exploration
results and other geologic information at Relief Canyon, and those
preceded by or that include the words "believes," "expects,"
"given," "targets," "intends," "anticipates," "plans," "projects,"
"forecasts" or similar expressions, are "forward-looking
statements." Although the Company's management believes that such
forward-looking statements are reasonable, it cannot guarantee that
such expectations are, or will be, correct. These forward-looking
statements involve a number of risks and uncertainties, which could
cause the Company's future results to differ materially from those
anticipated. Potential risks and uncertainties include, among
others, inability to obtain external financing to fund the
development of plans for and the reopening and commencement of
production at the Relief Canyon Mine, planned exploration, or to
maintain property rights; unanticipated delays or results in the
updated 43-101 resource report planned in 2015; interpretations or
reinterpretations of geologic and metallurgical information or
unfavorable exploration results that could negatively affect
estimates of resources; delay or inability to obtain permits
required for planned production, including permits to mine the
deposit below the water table, for exploration and other
activities; general economic conditions and conditions affecting
the industries in which the Company operates; the uncertainty of
regulatory requirements and approvals; decreases in gold and other
mineral and commodity prices; risks of junior exploration and
pre-production activities; and maintenance of important business
relationships. Additional information regarding the factors that
may cause actual results to differ materially from these
forward-looking statements is available in the Company's filings
with the SEC including the Annual Report on Form 10-K for the year
ended December 31, 2013. The
Company assumes no obligation to update any of the information
contained or referenced in this press release.
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SOURCE Pershing Gold Corporation