LAKEWOOD, Colo., Nov. 19, 2015 /PRNewswire/ -- Pershing Gold
Corporation (NASDAQ:PGLC) (FWB:7PG1) ("Pershing Gold" or the
"Company"), an emerging Nevada
gold producer, announces preliminary internal economics for the
Relief Canyon project in Pershing County,
Nevada.
Preliminary internal economics on the Relief Canyon project are
based on the NI 43-101 resource estimate published in June 2015 and
use assumed prices of $1,100 per
ounce ("/oz") of gold ("Au") and $14.25/oz of silver. Based on these assumptions,
the Company estimates that Relief Canyon will have an initial
capital expenditures ("CAPEX") of approximately $11 million, cash costs in the range of
approximately $695-745/oz Au,
and all in sustaining costs ("AISC") in the range of approximately
$725-775/oz Au, on a
constrained in-pit resource over an initial estimated mine life of
six years. The Company anticipates an approximately 3:1 strip ratio
over the life-of-mine for this project. Initial CAPEX principally
includes costs to construct leach pad space for near-term
operations, plant upgrades, optimization and relocation of the
crusher facility, mobilization of contract mining equipment and
start-up equipment and supplies.
"We are pleased to report preliminary internal economics for
Relief Canyon. The open-pit, low strip ratio and low CAPEX
nature of this project validate our belief that Relief Canyon has
the potential to be one of the lowest-cost, near-term gold
producers in North America. These
initial economics do not incorporate the results of our 2015
drilling program, where we continue to encounter multiple
high-grade intercepts in all target areas," stated Stephen D. Alfers, Pershing Gold's Chairman and
CEO.
Pershing Gold is currently in the process of finishing its
approximately 177 hole, 95,000 foot, 2015 drilling program, which
is more than 90% complete. The Company intends to publish an
updated NI 43-101 resource estimate incorporating these drilling
results in the second quarter of 2016.
"Building on the success of our previous drilling programs, an
increased resource estimate based on this years' drilling should
significantly enhance what we already believe are robust economics
for Relief Canyon," commented Alfers.
Pershing Gold intends to publish a third-party Preliminary
Economic Assessment ("PEA") on Relief Canyon in the second quarter
of 2016 using this new resource estimate. The Company is currently
conducting detailed mine planning and additional metallurgical
testing for the project and intends to announce a decision on
start-up and when to commence commercial mining and processing
activities at Relief Canyon after the release of the third-party
PEA.
Non-GAAP Measures
Cash costs is a non-GAAP financial
measure calculated by the Company as set forth below, and may not
be comparable to similar measures reported by other companies. Cash
costs include all direct and indirect costs that would generate
gold ounces for sale to customers, including mining of mineralized
materials and waste, leaching, processing, refining and
transportation costs, on-site administrative costs and royalties,
net of by-product credits for silver ounces sold. Cash costs do not
include depreciation, depletion, amortization, exploration
expenditures, reclamation and remediation costs, sustaining
capital, financing costs, income taxes, or corporate general and
administrative costs not directly or indirectly related to the
Relief Canyon project. Cash costs are divided by the number of gold
ounces produced for the period to arrive at cash costs per gold
ounce produced.
Cost of sales is the most comparable financial measure,
calculated in accordance with GAAP, to cash costs. As compared to
cash costs, cost of sales includes adjustments for changes in
inventory and excludes net revenue from by-product, refining and
transportation costs, which are reported as part of revenue in
accordance with GAAP.
AISC is a non-GAAP financial measure calculated by the Company
as set forth below, and may not be comparable to similar measures
reported by other companies. AISC includes cash costs, as defined
above, plus exploration costs at the Relief Canyon project and
sustaining capital expenditures (including additional leach pads,
permitting and customary improvements to the operations over the
life of the project). AISC are divided by the number of gold ounces
produced for the period to arrive at all-in sustaining costs per
gold ounce produced.
About Pershing Gold Corporation
Pershing Gold is an
emerging gold producer whose primary asset is the Relief
Canyon Mine in Pershing County,
Nevada. Relief Canyon 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.
Pershing Gold is listed on the NASDAQ Global Market under the
symbol PGLC and the Frankfurt Stock Exchange under the symbol
7PG1.
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 preliminary
internal economic estimates of certain cost and metal output
assumptions; expectations regarding the results of the 2015
drilling program, the potential update of and expansion of the
Relief Canyon resource and publication of an updated NI 43-101
resource estimate and third party PEA in the second quarter 2016
and the planned announcement of a date for commencement of
commercial mining and processing activities at Relief Canyon
following the PEA release; management's belief that the
economics of mining Relief Canyon are robust and will be enhanced
by the anticipated increased NI 43-101 resource based on the 2015
drilling program; 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, less favorable
results from and impact on Relief Canyon economics of results from
the 2015 exploration program than currently anticipated;
insufficient or insufficiently favorable information to include
portions of the deposit in the Jasperoid and Southwest target areas
in the Company's next updated resource; interpretations or
reinterpretations of geologic and metallurgical information or
unfavorable exploration results that could negatively affect
estimates of resources of project economics; delays in publishing
the updated NI 43-101 resource estimate, PEA and date for
commencement of commercial activities at Relief Canyon; less
favorable results of the 43-101 resource estimate update and PEA
than currently anticipated; the availability of additional external
financing to fund the Company's ongoing business and commencement
of mining and processing activities on acceptable terms or at all;
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