LAKEWOOD, Colo., April 27, 2015 /PRNewswire/ -- Pershing Gold
Corporation (OTCQB: PGLC) ("Pershing Gold" or the "Company"), an
emerging Nevada gold producer on a
fast-track to reopen the Relief Canyon Mine, today announced its
plans for the Company's 2015 drilling program as well as an update
on activities at Relief Canyon including a NI 43-101 compliant
resource estimate update, an economic study, a permitting update,
and ongoing metallurgical modeling and test work.
2015 Drilling Program
Pershing Gold has initiated road
building and site preparation for phase 1 of its 2015 Relief Canyon
drilling program. Pershing Gold plans to complete approximately 100
additional core holes at Relief Canyon in 2015. The drilling is
planned to include approximately 75,000 feet (nearly 23,000 meters)
and will begin in the second quarter of 2015. The current cost
estimate for this phase 1 drilling is approximately $3.5 million. This program will focus on
expanding the high-grade zones in the North Target Area where
high-grade gold intercepts of 76.8 grams per tonne ("gpt"), 87.9
gpt, and 123.9 gpt gold ("Au") or 2.24 ounces per ton ("opt"), 2.57
opt and 3.62 opt Au were recently encountered. In
addition, this program will focus on expanding the resource to the
southwest, northeast, and to the west with step-out drilling from
known zones of gold mineralization. This step-out drilling will be
conducted with the goal of increasing the aerial extent of the
resource, thereby increasing the total geologic limit of the gold
mineralization for future resource estimates. Figure 1 highlights
the areas planned for drilling in 2015.
"Recent drilling at Relief Canyon confirms that the deposit has
many Carlin style characteristics,
including multiple stacked zones of sediment hosted mineralization
with a high-grade core. Our planned 2015 drilling program is
designed to build on this success and continue to develop
additional ounces and higher grades at Relief Canyon," said
Stephen D. Alfers, Pershing Gold's
Chairman and CEO. "Over the past few years our exploration team has
had extraordinary success expanding the resource at Relief Canyon,
from a measured and indicated ("M&I") resource of 113,000
ounces with 42,000 inferred ounces in August of 2011 when the
Company acquired Relief Canyon, to our 2014 M&I resource
estimate of 552,000 ounces with 165,000 inferred ounces. This
represents a more than 450% increase in the resource in a few short
years. With recent drilling showing consistently higher grades than
have been historically encountered, we anticipate increased ounces
and higher grade in the updated resource estimate expected later
this quarter."
In addition to the exploration adjacent to the currently defined
deposit, the Company plans to test early exploration targets
currently being identified to the north, west and south of the
Relief Canyon Mine. High-quality target selection is based on a
thorough review of a large database of geophysical data as well as
geologic mapping and geochemical results. The Company has
defined several high quality targets and will prioritize and
evaluate them during the 2015 program. Pershing Gold plans to
initiate its 2015 drilling program in May of this year.
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Updated NI 43-101 Resource Estimate
Pershing Gold
recently completed a 134 hole core-drilling program totaling more
than 74,000 feet (about 22,500 meters) at Relief Canyon. Up
to three core-drill rigs were on-site from May 2014 to January
2015. Among the results of this drilling are multiple
core-holes with high-grade intercepts including RC15-264, RC15-265A
and RC15-279, that include gold intercepts of 76.8 grams per
tonne ("gpt"), 87.9 gpt, and 123.9 gpt gold ("Au") or 2.24 ounces
per ton ("opt"), 2.57 opt and 3.62 opt Au, respectively.
These, and many other intercepts encountered in the recent drilling
program, include grades that are significantly higher than the
historic average grade at Relief Canyon of approximately 1 gpt
Au (0.0292 opt Au).
Pershing Gold is currently in the process of incorporating the
results of this drilling program into an updated NI 43-101 resource
estimate. The Company expects the drilling results will
improve and increase the gold resource at Relief Canyon. All assay,
logging, survey and geotechnical data have been entered into the
Company's databases. Geologic modeling and analyses are in
progress and the Company expects to complete an updated NI 43-101
compliant resource estimate in the second quarter of 2015.
Economic Study and Start-Up Decision
Upon completion
of the updated NI 43-101 compliant resource estimate expected in
the second quarter of this year, the Company plans to conduct a
thorough economic study on Relief Canyon. This study will
provide estimates of production rates, cash costs,
all-in-sustaining-costs, life-of-mine, net asset value estimates,
and other key metrics. Pershing Gold plans to consider a plan
to start-up the mine at Relief Canyon based on this economic
study.
Permitting Update
Permitting for the Relief Canyon
Mine is proceeding as planned and is on schedule. The Company
already has all of the state and federal permits it needs to start
mining in the existing open-pit mine, and in a small area adjacent
to the northern rim of the North Pit. These permits also authorize
operating the heap leach processing facilities.
In late March 2015, Pershing Gold
submitted a Plan of Operations Modification to the US Bureau of
Land Management and the Nevada Division of Environmental Protection
covering expansion of the pit in all directions around the current
pit boundary as shown in Figure 2. The proposed expansion would
involve three years of mining and five years of heap leaching. This
first phase expansion would produce a pit bottom elevation that
would remain above the water table. No new leach pad space or
changes to the processing plant are needed to accommodate the
mineralized material that would be mined from the expanded pit.
Additional permitting will be required in the future for the next
phase of mining, which would deepen the pit below the water table
and require additional leach pad capacity.
The agencies are currently conducting a completeness review to
verify that the Plan of Operations Modification contains all of the
necessary information about the project so they can begin their
environmental review process. The agencies typically take about one
month to review an application for completeness.
Prior to submitting the Plan of Operations Modification, the
Company retained experts to perform extensive environmental
baseline studies of the Relief Canyon project area including
hydrogeologic investigations, plant and wildlife surveys, cultural
resources surveys, pit slope stability studies, and geochemical
tests to characterize the rocks to be mined. These studies
demonstrate that there are no sensitive environmental issues
associated with the proposed pit expansion. Consequently, the
Company anticipates permitting for the Plan of Operations
Modification will be a straightforward and timely process that will
take about a year to complete.
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Metallurgical Modeling and Test Work
Since acquiring
the property in 2011, Pershing Gold has completed several
metallurgical studies of the gold bearing rock at Relief
Canyon. The summary of current metallurgical studies is
presented in Section 13 of the November
2014 Technical Report on the Relief Canyon Mine,
Pershing County, Nevada, which is
available on the Company's website at www.pershinggold.com.
In addition to these studies, the Company has completed
systematic testing of gold recovery of all drill samples from as
early as 2012 with total gold assays greater than 0.2 gpt Au (0.006
opt Au) using a warm cyanide bearing solution for extraction. This
testing process typically shakes or agitates the solution and pulp
for approximately one hour before the gold analysis is
completed. The result is referred to as the cyanide gold
value ("CGV"). The amount of gold extracted, when compared to
the total gold assay, provides valuable data for predicting
recovery. Since 2012, more than 3,000 CGV analyses have been
completed and are an important part of the geologic
model.
Table 1 below shows the results of merging CGV results with the
degree of oxidation logged. Mineral Zone 1 includes
complete oxidation, is relatively shallow, and is controlled by
fractures or fault zones. Average CGV recovery for this zone is
85%. Mineral Zone 2, or the mixed zone, includes oxide and
sulfides and is by far the largest zone. Average gold
recovery in this zone is 77%. Zone 3, the sulfide zone, comprises a
relatively small part of the drilling, about 13%. Gold
recoveries for zone 3 average approximately 36%.
In 2014, Mine Development Associates reported a small sulfide
portion, about 3.2%, of the 2014 resource estimate. The cutoff
grade for sulfide material is higher, reflecting higher processing
costs. Most of the deposit as currently defined has excellent
recovery and is amenable to recovering gold using heap leach
processing techniques. The Company does not expect a
significant increase in the amount of sulfide mineralization within
the NI 43-101 resource estimate anticipated in the second quarter
of this year.
Table
1
Gold Recovery in
Warm CGV Shake Tests by Mineral Zone
|
Mineral
Zone
|
Number of
Samples
|
Percent of
Drilling
|
Average
Recovery
|
Oxide (1)
|
544
|
19%
|
85%
|
Mixed (2)
|
1970
|
68%
|
77%
|
Sulfide
(3)
|
400
|
13%
|
36%
|
Recently, McClelland Labs, Inc.
of Sparks, Nevada has commenced
work on two metallurgical tests; the first is designed to evaluate
gold recoveries from the Lower and Jasperoid zones and the second
study should define the optimal crush sizing.
Material for the Lower and Jasperoid zones was obtained from
three large diameter core holes (PQ) completed in January
2015. The large diameter core has generated more than 1,000
kilograms of material for use in column and bottle roll
tests. Final results of these tests are expected late in the
second quarter of 2015. Results of the warm CGV shake tests show
average recoveries greater than 75%.
The second metallurgical study will be completed using a
twelve-ton bulk ore sample that was collected from the existing
open pits. The goal of the tests in this study is to evaluate
gold leaching at crush sizes coarser than those previously
considered. For the largest of these tests, a seven-ton
split of the bulk sample was crushed to 100% passing 6". This
material was then loaded into a 3' diameter by 18' tall column, and
is currently under leach. Additional column leach tests are being
conducted on samples of the same material that have been crushed to
100% passing 3", 1.5", and 1". These tests are being conducted to
determine if high gold recoveries can be maintained when crushing
costs are reduced by using a coarser crush size. The results
from this test are expected in the third quarter of 2015.
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 approximately 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. The Company is
currently listed on the OTCQB and has submitted an application to
up-list to the NASDAQ stock exchange.
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.
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 expectations
regarding an updated resource report, the timing thereof and the
resulting expected increase in the gold resource; anticipated
expansion and upgrade of the Relief Canyon deposit as a result of
drilling; planned drilling program for 2015, the anticipate cost of
the program and its focus on expanding the Relief Canyon resource
and high-grade zones in the North Target Area and on testing early
exploration targets north, west and south of the Relief Canyon
mine; results of metallurgical modeling and test work and
additional metallurgical tests including additional column leach
tests, and the expected timing of results; anticipation regarding
timing and success of completing the Plan of Operations
Modification to expand the Relief Canyon pit above the water table
and lack of sensitive environmental issues associated with the
expansion; planned economic study regarding the restart of
production at the Relief Canyon mine and processing facilities and
the timing thereof and resulting potential decision regarding
whether to restart mining and processing at Relief Canyon.;
and 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 and
economic study planned for 2015; interpretations or
reinterpretations of geologic and metallurgical information or
unfavorable exploration results that could negatively affect
estimates of resources; delays in or unfavorable results of
metallurgical and other studies and analyses that could negatively
affect the results of the economic study and a potential decision
regarding restarting mining at Relief Canyon; delay or inability to
obtain permits required for planned modifications to the Plan of
Operations and pit expansions including permits to expand the mine
above 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, 2014. 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