Sign up USA
Proactive Investors - Run By Investors For Investors

Pershing Gold reaches major milestone with Relief Canyon pre-feasibility study

The project was given a pre-tax net present value (NPV) of $144.6 million.
Pershing Gold reaches major milestone with Relief Canyon pre-feasibility study
The Relief Canyon mine in Nevada

Pershing Gold Corporation's (NASDAQ:PGLC, TSE: PGLC) plans for the Relief Canyon Mine in Nevada got a huge boost today - as it today unveiled an NI 43-101 resource and preliminary feasibilty study (PFS) for the project.

Notably, the consultants who completed the PFS have recommended that the site is advanced to a production decision stage.

The project is given a pre-tax net present value (NPV), or in other words, an overall value,  of $144.6 million.

"The PFS is a major milestone for Pershing Gold," Stephen D. Alfers, Pershing Gold's chairman and chief executive told investors.

"We announced an upgraded mineral resource that includes proven and probable reserves of approximately 635,000 ounces of gold and 1.6 million ounces of silver," he said.

"The PFS is based on a mine plan and financial model with an annual average production of over 90,000 ounces of gold per year over a mine life of approximately six years.

Open in three directions...

"The Relief Canyon deposit remains open in three directions, presenting the opportunity for continued expansion and extension of this mine," he added.

Initial capital spend is put at $23.6mln - up from $12.2mln in the preliminary economic assessment (PEA), while the all in sustaining costs (AISC) are stated as $802 per ounce ($804 per ounce in the PEA).

The life of mine is 5.6 years, down  a tad from 5.8 years in the PEA, but average production over that time is put at 93,900 ounces, compared to 88,500 ounces in the earlier PEA.

"The company will be reviewing various options to cover future capital needs, including debt, royalty or stream financing, gold off-take agreements, investment from strategic investors, or combinations of those approaches," added Alfers.

Favorable economics reinforced...

The favorable economics of Relief Canyon are reinforced throughout the PFS, the group also told investors.

The report points to the viability of contract-mining and conveyor stacking to bring the project into production.

The PFS categories around 80% of the gold ounces and 73% of the tons within the NI 43-101 measured and indicated resource at Relief Canyon as proven and probable reserves.

So far, more than 1,100 holes and approximately 500,000 feet of drilling have been completed at Relief Canyon. 

This includes 430 core holes and nearly 290,000 feet of drilling completed by the company.

The total measured (the highest confidence category) gold ounces is put at 327,000 ounces, while the measured silver ounces is put at 1.325mln ounces.

Shares in Toronto added 2.65% to $3.87 each.

View full PGLC profile View Profile

Pershing Gold Timeline

Related Articles

Picture of drill rig
May 03 2018
The Strickland project covers over 100 strike kilometres of greenstone belts and straddles the Evanston and Yuinmery Shear Zones.
Picture of territory at Piedmont Lithium Project
April 29 2018
The company has acquired 630 acres in four separate transactions between September 2017 and March 2018.
February 06 2018
Coro Mining is on the move in Chile, with feasibility work nearing completion and new ground to work on

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use