LAKEWOOD, Colo., May 12, 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 the
start of its 2015 drilling program at Relief Canyon.
2015 Drilling Program
Pershing Gold has initiated
phase 1 of its 2015 core-drilling program at the Relief Canyon
Mine, Pershing County, Nevada. The
Company has three main objectives for this core-drilling program,
all of which are focused on adding gold ounces to the resource
estimate at Relief Canyon. The three areas targeted in this program
are the Southwest Target Area, the North Target Area and the
Jasperoid Target Area. These target areas are highlighted on the
map included below in Figure 1.
Objective 1 will target growth ounces to build the
resource in the Southwest Target Area, where previous results
indicate mineralization is open to the south. The Southwest Target
Area is located approximately 250 feet (76 meters) to the south of
the existing South Pit.
Objective 2 will focus on expanding and better defining
the controls on the high-grade gold intercepts encountered in the
North Target Area. The Company plans to drill core-holes designed
to offset the high-grade gold intercepts of greater than 1 ounce
per ton ("opt") encountered in the recently concluded 2014 and
early 2015 drilling program. The North Target Area is located
approximately at the north rim of the North Pit of the Relief
Canyon Mine and extends nearly 700 feet (213 meters).
Objective 3 will be to demonstrate continuity of
subsurface mineralization intercepted in the Jasperoid Zone during
the 2013 and 2014 core-drilling programs with known gold
mineralization in the Jasperoid Target Area. The Jasperoid Target
Area is located directly to the east of the North Target Area.
"Through our 2015 drilling program we will continue to upgrade
and grow the resource at Relief Canyon. The Jasperoid Zone has
never been drilled from the surface. This program will focus on
testing for near surface high-grade mineralization previously
identified at depth in the Jasperoid Zone," said Stephen D. Alfers, Pershing Gold's Chairman and
CEO. "Additionally, we plan offset drilling to develop the
high-grade zone in the North Target Area that we announced earlier
this year. Drilling in the Southwest Target Area is to test the
continuity of known zones of mineralization into terrain not
previously drilled."
The Company has selected West-Core Drilling of Elko, Nevada to initiate the program.
Currently Pershing Gold has one core-rig operating in the Southwest
Target Area. A second core-rig is scheduled to begin drilling in
June of this year with a potential third rig anticipated later in
the quarter. The Company plans to complete approximately 100
additional core-holes at Relief Canyon in this core-drilling
program. The drilling is planned to include approximately 75,000
feet (nearly 23,000 meters). The current cost estimate for this
phase 1 drilling is approximately $3.5
million.
Figure 1
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Updated NI 43-101 Resource Estimate
The 2015 drilling
program is designed to build on the results of the core-drilling
program Pershing Gold concluded at the end of January, which
encountered several high-grade gold intercepts. These results
include intercepts of 76.8 grams per tonne ("gpt"), 87.9 gpt,
and 123.9 gpt gold ("Au") or 2.24 opt, 2.57 opt and 3.62 opt
Au. The results of this recently concluded program are
currently being incorporated into an updated 43-101 compliant
resource estimate, which the Company expects to release in the
second quarter of this year.
Upon completion of the updated NI 43-101 compliant resource
estimate the Company plans to conduct a thorough economic study on
Relief Canyon. This study should provide estimates of production
rates, cash costs, all-in-sustaining-costs, life-of-mine, net asset
value estimates, and other key metrics. Pershing Gold intends to
consider a plan to start-up the mine at Relief Canyon based on this
economic study.
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.
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 and the timing thereof;
anticipated expansion and upgrade of the Relief Canyon deposit as a
result of drilling; planned drilling program for 2015, the
anticipated cost of the program and its focus on expanding the
Relief Canyon resource and high-grade zones in the North, Southwest
and Jasperoid Target Areas; planned economic study regarding the
restart of production at the Relief Canyon mine and processing
facilities and the timing thereof; planned consideration of a plan
to start up the Relief Canyon mine based on the results of the
economic study; 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 possible plans for and the reopening and
commencement of production at the Relief Canyon Mine, planned
exploration, or to maintain property rights or the Company's
business; 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 or the results of the
economic study; 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