LAKEWOOD, Colo., Jan 9, 2017 /PRNewswire/ -- Pershing Gold
Corporation (NASDAQ:PGLC) (TSX: PGLC) (FWB:7PG1) ("Pershing Gold"
or the "Company"), the emerging Nevada gold producer, today provides an update
on the progress towards production at its Relief Canyon Mine in
Pershing County, Nevada.
"With the recent volatility in the gold price, the economics for
Relief Canyon remain strong as a low cost, low CAPEX project in
comparison with our North American peers," stated Stephen D. Alfers, Pershing Gold President, CEO,
and Executive Chairman. "Early this year the Company plans to
publish a third-party Pre-Feasibility Study on Relief Canyon. This
study is expected to continue to bolster the confidence in the
Relief Canyon project," Alfers explained.
"Additionally, we have completed the 2016 Phase 1 Drilling
Program at Relief Canyon, which successfully extended high-grade
mineralization with step-out drilling to the west. We also report
promising results with our Phase 2 drilling, south of Relief
Canyon. We are currently evaluating the results of this drilling in
consideration of follow up drilling programs. That said, our
main focus will be re-starting the Relief Canyon mine," said
Alfers.
Pre-Feasibility Study and Progress Towards
Production
Pershing Gold is nearing the completion of the
third-party Pre-Feasibility Study ("PFS") on the Relief Canyon mine
that it initiated earlier this year. The PFS will refine the
underlying assumptions used in the 2016 Preliminary Economic
Assessment ("PEA") on Relief Canyon, which is available on the
Company's website at www.pershinggold.com. Mine Development
Associates, McLelland Laboratories, Inc. and Kappes, Cassiday and
Associates, all of Reno, NV, have
been commissioned to complete the PFS. Pershing Gold expects the
PFS to be published in early 2017.
The PFS is a key step to allow the Company to define reserves at
Relief Canyon under Canadian National Instrument 43-101 and is
expected to provide a higher degree of confidence in the Relief
Canyon project. Key components of the PFS include the
following:
- Incorporation of a geotechnical pit slope evaluation completed
by Golder Associates of Reno,
NV.
- Evaluation of an updated resource model incorporating new
exploration drilling.
- Detailed capital and operating cost comparison of contract
versus self-mining.
- Detailed capital and operating cost comparison of truck
stacking versus conveyor stacking of crushed and agglomerated ore
on the leach pad.
- Incorporation of additional metallurgical testing to establish
ore agglomeration parameters.
- Trade-off study of line versus generated electrical power.
Additionally, the PFS will provide refined costs for all capital
and operating expenses for the restart of Relief Canyon.
Permitting
On December 22,
2016, the Nevada Division of Environmental Protection
("NDEP")/Bureau of Mining Regulation and Reclamation Phase issued
the Reclamation Permit for Phase I expansion of the Relief Canyon
Mine. With the receipt of this permit, along with the Bureau
of Land Management ("BLM") approval of the Relief Canyon Mine
Expansion announced in August of 2016, Pershing Gold has received
the principal permits to initiate the restart and expansion of the
Relief Canyon Mine.
Similar to the previously approved BLM Plan of Operation, the
NDEP Reclamation Permit authorizes Pershing Gold to create 608.7
acres of surface disturbance on public and private land, expand and
deepen the open-pit mine, construct a new waste rock storage area,
and significantly increase the exploration drilling area to allow
testing of high-priority targets around the existing pit.
Other key items in the ongoing process of permitting the Relief
Canyon Mine include water pollution control and air quality
permits. On December 21, 2016,
NDEP issued a public notice stating that they had made the
tentative decision to approve Pershing Gold's application to modify
and renew the current Water Pollution Control Permit. With this
announcement, NDEP started the 30-day public comment period for
this permit. The comment period will end on January 20, 2017. Pershing Gold anticipates that
the NDEP will issue the Water Pollution Control Permit modification
and renewal shortly thereafter.
Pershing Gold is working closely with NDEP's Bureau of Air
Pollution Control to finalize the air quality permitting process.
The Company expects that NDEP will issue the air quality permits in
the first quarter of 2017.
2016 Drilling Program Phase 1 Final Results
Pershing
Gold has received the final results from Phase 1 of its 2016
Drilling Program (the "Program"), listed in Table 1 below. A
complete list of results received to date is available on our
website at www.pershinggold.com. Results are reported in feet
("ft") and meters ("m"), and in grams per tonne ("gpt") and ounces
per ton ("oz/ton") of gold ("Au") or silver ("Ag").
Notable intercepts from RC16-490 include:
- RC16-490
- including: 24.1 ft (7.3 m), 1.830 gpt, 0.053 oz/ton
Au
- including: 5.0 ft (1.5 m), 13.933 gpt, 0.407 oz/ton
Au
The Phase 1 Drilling Program was designed to extend the western
boundary of economic mineralization at Relief Canyon. RC16-490
continues to confirm that significant portions of the western
margin of the mineral zones remain open to the west. RC16-490 is a
550 ft (167.6 m) offset to RC16-462 and a 290 ft (88.4 m) offset to
RC16-475. The intercept in RC16-462 includes eight zones totaling
166.3 ft (50.7 m) with an average grade of 1.597 gpt, 0.046 oz/ton
Au, and 23.5 gpt, 0.70 oz/ton Ag that the Company reported on
September 9, 2016. A plan view
including these drill holes is shown below in Figure 1.
The Phase 1 drilling successfully expanded the North target area
resource to the west and southwest where it remains open.
This drilling continued to support the dominance of relatively low
angle structural controls and continuity of mineralization and
grade down dip. The Lower and Jasperoid Zones continue to produce
high grades of gold with very good cyanide soluble results at
depths to >900 ft (274 m).
Table 1: Phase 1
Results
|
Drill
|
From
|
To
|
Width
|
gpt
|
oz/ton
|
gpt
|
oz/ton
|
Hole
|
|
feet
|
|
gold
|
gold
|
silver
|
silver
|
RC16-490
|
504
|
521.4
|
17.4
|
0.210
|
.006
|
0
|
NS
|
|
849
|
873.1
|
24.1
|
1.830
|
.053
|
7
|
.2
|
|
894
|
899.0
|
5.0
|
13.933
|
.407
|
20
|
.6
|
|
1113.9
|
1120.2
|
6.3
|
0.522
|
.015
|
1
|
.03
|
*True width is
greater or equal to 90% of the intercept width.
|
Phase 1a Drilling Program
The Company is now
evaluating results from the 15,164 ft (4,622 m) of core drilling in
the 2016 Drilling Programs to follow-up on the successes there.
This Phase 1a Program and other follow up programs could include
step-out drilling to continue following the mineralization from
Relief Canyon down dip to the west and southwest as well as infill
drilling to expand the current economic pit limit at Relief Canyon.
Geologic modeling of the higher grades encountered in the area of
RC16-462 is currently in progress with additional drilling under
consideration for 2017.
Phase 2 Drilling Program
Pershing Gold has initiated
Phase 2 of its 2016 Drilling Program. Phase 2 is focused on
extending mineralization south of the South Pit and the Lightbulb
Pit, as well as on discovering satellite deposits that could be
processed at the existing heap leach and ADR facilities at Relief
Canyon.
Table 2: Phase 2
Results
|
Drill
|
From
|
To
|
Width
|
gpt
|
oz/ton
|
gpt
|
oz/ton
|
Hole
|
|
feet
|
|
gold
|
gold
|
silver
|
silver
|
RC16-493
|
390
|
395
|
5
|
0.548
|
0.016
|
12
|
0.35
|
RC16-496
|
398
|
403
|
5
|
0.514
|
0.015
|
0
|
NS
|
|
428
|
443
|
15
|
0.323
|
0.009
|
0
|
NS
|
RC16-498
|
424
|
434.1
|
10.3
|
1.130
|
0.033
|
2
|
0.06
|
|
456
|
468.2
|
12.2
|
0.343
|
0.01
|
0
|
NS
|
*True width is
greater or equal to 90% of the intercept width.
|
Phase 2 drilling at Pershing Gold Corporation's Relief Canyon
Mine has identified potential mineable grade intervals of gold in
drill hole RC16-498 with 10.1 ft (3.14 m) intervals averaging
1.13 gpt, 0.033 oz/ton Au, and 12.2 ft (3.7 m) at 0.343 gpt,
0.01 oz/ton Au. The Company is encouraged by the two
intervals in hole RC16-498 because they occur along the contact of
the South Humboldt Thrust where deformed siliciclastics of the
Grass Valley Formation are in thrust contact with the underlying
carbonates of the Cane Springs Formation. Both of these
intervals are found along altered gabbro contacts, which are
illustrated in Figure 2 below.
Figure 1
These structural contacts are key elements controlling the
distribution of gold in the resource at Relief Canyon.
Surface geological mapping and resistivity psuedosections indicate
the intercepts in drill hole RC16-498 are located along a steepened
thrust ramp. The depth to the South Humboldt Thrust shallows and
flattens to the northeast as noted in Section 17-01 in Figure 2
below. Another key element to potential for resource growth
at Relief Canyon is the presence of a strong N40W structural
corridor that cuts through the southeast extension target
area. This N40W structural corridor is a significant
structural control on gold at the Relief Canyon project.
The Phase 2 drilling program is wide spaced, with the drill hole
spacing averaging from 500 to 1,200 ft (152 to 366 m). This
drilling is testing coincident geological, geochemical, and
geophysical targets south and southeast of the old Relief Canyon
Mine pits. The great majority of this highly prospective area
has not previously been drilled. Phase 2 drilling completed to date
has vectored toward the Southeast Extension target area (Figure
1).
Figure 2
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 historic 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 and the
Toronto Stock Exchange under the symbol PGLC and on the Frankfurt
Stock Exchange under the symbol 7PG1.
Scientific and Technical Data
All scientific and
technical information in this press release 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 McClelland Laboratories,
Inc.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 QA/QC
includes 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 the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. All statements, other than statements of
historical fact, are "forward-looking statements," including the
timing for the release of a Pre-Feasibility Study on the Relief
Canyon mine and the expected contents and results of that study;
the interpretation of Phase 1 results including confirmation that
the deposit remains open to the west and southwest; the timing of
of the issuance of the Water Pollution Control Permit modification
and air quality permits; 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, interpretations or
reinterpretations of geologic information, unfavorable exploration
results, inability to obtain permits required for future
exploration, development or production, general economic conditions
and conditions affecting the industries in which the Company
operates; the uncertainty of regulatory requirements and approvals;
and fluctuating mineral and commodity prices. 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 Securities and Exchange
Commission, including the Annual Report on Form 10-K for the year
ended December 31, 2015, and on SEDAR
at www.sedar.com. The Company assumes no obligation to update any
of the information contained or referenced in this press
release.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/pershing-gold-concludes-2016-phase-1-drilling-program-and-shifts-focus-to-pre-feasibility-study-and-restart-of-relief-canyon-300387388.html
SOURCE Pershing Gold Corporation