LAKEWOOD, Colo., July 6, 2015 /CNW/ -- Pershing Gold
Corporation (NASDAQ:PGLC) ("Pershing Gold" or the "Company")
announces an upgraded NI 43-101 compliant resource estimate (the
"resource") for its Relief Canyon Project in Pershing County, Nevada. The upgraded
resource shows a Measured and Indicated Resource of 739,000
ounces of gold and an Inferred Resource of 70,000 ounces of
gold (see Table 1). This new resource shows a 34% increase
in the Measured and Indicated total compared to the 552,000
ounces of Measured and Indicated Resource in our March 2014 estimate (see Figure 1).
"This resource update immediately creates additional shareholder
value. The last phase of the 2014 drilling program focused on
development drilling to tighten up drill hole spacing in the
high-grade zones of the North Target Area," stated Stephen D. Alfers, Pershing Gold President, CEO,
and Executive Chairman. "We expect the 34% increase in the measured
and indicated resource and the additional ounces identified in the
stockpile will expand and upgrade the in-pit resource and
correspondingly increase the current net asset value of the
project. For the remainder of 2015, we plan to continue to
aggressively drill the deposit to build on the high-grade
intercepts encountered earlier this year, and to further add ounces
as we move Relief Canyon towards production," Alfers
said.
Table 1: 2015
Relief Canyon Resource
|
Category
|
Cutoff
|
Tons
|
Gold
Grade
|
Total
Gold
|
(opt
Au)
|
(oz/ton)
|
(gpt)
|
(Ounces)
|
Measured-
Oxide
|
0.005
|
12,182,000
|
0.024
|
0.822
|
290,000
|
|
|
|
|
|
|
Indicated –
Oxide
|
0.005
|
24,736,000
|
0.017
|
0.582
|
426,000
|
Indicated -
Sulfide
|
0.020
|
417,000
|
0.054
|
1.849
|
23,000
|
Indicated
Total
|
Variable
|
25,153,000
|
0.018
|
0.616
|
449,000
|
|
|
|
|
|
|
Measured
&
Indicated Total
|
Variable
|
37,335,000
|
0.020
|
0.685
|
739,000
|
|
|
|
|
|
|
Inferred -
Oxide
|
0.005
|
6,928,000
|
0.010
|
0.342
|
70,000
|
Inferred -
Sulfide
|
0.020
|
2,000
|
0.025
|
0.856
|
>100
|
Inferred
Total
|
Variable
|
6,930,000
|
0.010
|
0.342
|
70,000
|
Notes:
|
|
|
|
1.
|
Canadian Institute of
Mining, Metallurgy and Petroleum definitions were used to
categorize the Mineral
Resource.
|
|
2.
|
Mine Development
Associates Geologist, Paul Tietz, is the qualified person
responsible for this resource estimate.
|
|
3.
|
This updated resource
estimate includes the results from the 141 core hole drilling
program (~80,000 feet, 24,000 meters) completed in 2014 and early
2015 in the North Target Area and pit areas.
|
|
4.
|
Rounding may cause
apparent inconsistencies.
|
Pershing Gold has identified an Inferred Resource of 24,000
ounces of gold in an historic stockpile located just southwest of
the existing pits. The gold ounces remaining in the
stockpile, which are included in the tabulation of Inferred-Oxide
Resource shown in Table 1, are the result of much higher cutoff
grades used by past operators. Gold-bearing material from this
stockpile is planned to be processed in the first year of
production at Relief Canyon.
The Company is currently in the process of executing its 2015
drilling program, which is planned to include 100 core holes and
approximately 75,000 feet (nearly 23,000 meters) of
drilling. Pershing Gold currently has two core rigs
drilling on site and expects to add two additional drill rigs later
this week. The third core-drill rig will be operating in the
Jasperoid Target Area. The fourth drill rig will be working
on the Buffalo Pediment, an exploration target located
approximately one and a half miles north of the existing
pits. The Relief Canyon deposit remains open in all
directions. The Company plans to incorporate the results of this
aggressive 2015 drilling program into a further updated NI 43-101
resource estimate upon completing of the 2015
program.
With the completion of the upgraded resource Pershing Gold plans
to conduct a thorough economic study on Relief Canyon, including
estimates of production rates, cash costs, all-in-sustaining-costs,
life-of-mine, net asset value estimates, and other key metrics. The
mine plan supporting this study will include all measured and
indicated ounces and the inferred ounces in the southwest
stockpile. The Company plans to consider the timing of a
start-up decision at Relief Canyon based on this economic
study.
Figure 1
The upgraded resource includes the results from the Company's
2014 through January 2015 drilling
program, which included 141 core holes and approximately 80,000
feet (24,000 meters) of drilling. Since initiating its work
in the fall of 2011 to expand the Relief Canyon deposit, Pershing
Gold has drilled a total of 304 holes and approximately 164,000
feet (50,000 meters). The updated resource is based on data
from these holes plus many of the 588 holes drilled by previous
owners of the mine.
This resource was prepared following the definitions and
guidelines adopted by the Canadian Institute of Mining, Metallurgy
and Petroleum. These definitions and guidelines satisfy the
requirements of Canadian National Instrument 43-101. It was
completed by Mine Development Associates of Reno, Nevada, under the direction of
Paul Tietz, CPG, and was effective
June 26, 2015. Geologic modeling of
the deposit was completed in collaboration with Pershing Gold's
geologists. Standard practices were followed including the
development of gold domain grade boundaries. Gold domains
represent natural grade populations that occur within a specific
geologic setting. The gold domain boundaries are used to
control the estimation of grade thereby reducing the risk of
over-estimating the volume (tons) of higher-grade material within
the resource model.
About Pershing Gold Corporation
Pershing Gold is the
emerging Nevada gold producer
restarting 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
listed on the NASDAQ Global Market under the symbol PGLC.
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.
Cautionary Note to United States Investors Regarding
Estimates of Measured, Indicated, and Inferred
Resources
This press release uses the terms "Measured,"
"Indicated" and "Inferred resources", which are defined in Canadian
Institute of Metallurgy guidelines, the guidelines widely followed
to comply with Canadian National Instrument 43-101. We advise
U.S. investors that these terms are not recognized by the United
States Securities and Exchange Commission (the "SEC"). The
estimation of measured and indicated resources involves greater
uncertainty as to their existence and economic feasibility than the
estimation of proven and probable reserves. Mineral resources
are not mineral reserves, and U.S. investors are cautioned not to
assume that measured or indicated mineral resources will be
converted into reserves. Inferred mineral resources have a high
degree of uncertainty as to their existence, and their economic and
legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource exists, or is economically or legally
viable. US investors are urged to consider closely the disclosure
in our Form 10-K 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
anticipated parameters of the 2015 drilling program, 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; our plans to complete a thorough
economic study on Relief Canyon and our consideration of a plan to
start up the mine at Relief Canyon based on the results and
anticipated timing of future 43-101 reports;, 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
exploration and development of plans for and the potential
reopening and commencement of production at the Relief Canyon Mine;
results of planned exploration; results of the planned economic
study on Relief Canyon; our ability to maintain property rights;
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,
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