LAKEWOOD, Colo., April 4, 2017 /CNW/ -- Pershing Gold Corporation
(NASDAQ:PGLC) (TSX: PGLC) (FWB:7PG1) ("Pershing Gold" or the
"Company"), the emerging Nevada
gold producer advancing the Relief Canyon Mine, today announced
that it has entered into a Mining Sublease (the "Sublease") with
Newmont USA Limited ("Newmont")
which further consolidates the Antelope Springs mining district in
the Pershing Pass area south of the Relief Canyon Mine.
"This Sublease is the last of seven parcels that we needed to
consolidate the highly prospective Blackjack Project Area," stated
Stephen Alfers, Chairman, CEO, and
President of Pershing Gold. "The Blackjack Project is comprised of
seven historic mercury and antimony mines. The consolidation of
this historic mining district for the first time is the crucial
catalyst for the Company's district-wide gold exploration efforts."
"Relief Canyon remains open in three directions. Pershing Gold
plans to continue expanding the deposit in the near term. However,
Blackjack is important to the Company because it presents a very
real opportunity to extend the life of the entire project through
the discovery of satellite deposits," Alfers said. "This Sublease
is important to Pershing Gold because it unlocks the Blackjack
Project. The Sublease is centrally located and, as private
land, it strengthens Pershing Gold's control over the entire
project."
Pershing Gold geologists look forward to an aggressive mapping
and sampling program to include the newly acquired Newmont
lands. This work is being completed by Pershing Gold
geologists and consulting geologists. Core drilling is
expected to begin within a month.
Under the terms of the Sublease, Pershing Gold has the exclusive
right to prospect, explore for, develop, and mine minerals on these
areas. The Sublease has an initial term of ten years and may
be extended by Pershing Gold until December
3, 2034 and so long thereafter as any mining, development,
or processing operations are being conducted continuously.
The Sublease calls for Pershing Gold to make minimum work
expenditures for the first four years of the Sublease, followed by
annual Advanced Minimum Royalty Payments to Newmont to maintain the
Sublease in good standing. The Sublease may be terminated
anytime after the required minimum work commitment of US$500,000 has been satisfied within the first
two years of the Sublease.
The areas covered by this Sublease are labeled in Figure 1 below
as Newmont Sublease.
Figure 1
PDF -
http://mma.prnewswire.com/media/485900/Blackjack_PR_Figure_v3__1.pdf
Additionally, Pershing Gold agrees to pay to Newmont, a 2.0% NSR
royalty on any of its precious metals production from the property,
after recoupment of AMR payments previously made to Newmont and a
2.0% NSR on two sections of Pershing Gold's claims adjacent to the
Newmont lands.
Gold mineralization in the Pershing Pass Area is spatially
associated with mercury and antimony mineralization along
Northwest-trending ridges. The cumulative strike length of
these ridges exceeds three miles. With the acquisition of the
Newmont Sublease, Pershing Gold now controls 100% of the
prospective ground in its Blackjack Project Area. Detailed
geologic mapping on claims controlled by Pershing Gold (see Figure
1) as well as sampling and IP resistivity surveys have helped
defined potential gold targets.
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.
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visit:http://www.prnewswire.com/news-releases/pershing-gold-consolidates-new-district-through-land-transaction-300433782.html
SOURCE Pershing Gold Corporation