Pershing Gold Announces Positive Preliminary Feasibility Study for Relief Canyon

LAKEWOOD, Colo., June 5, 2017

Mine Development Associates ("MDA"), Kappes Cassidy & Associates, of Reno, NV and Jorgensen Engineering and Technical Services, of Centennial, CO, completed the PFS for the Company's Relief Canyon gold mine with an effective date of May 26, 2017. The positive PFS by MDA recommends that Pershing Gold advance the Relief Canyon Project to a production decision. Highlights from the PFS include a pre-tax net present value ("NPV") of $144.6 million, an internal rate of return ("IRR") of 89% and Net Cash Flow of $192.7 million. This NPV, IRR and Net Cash Flow assume pre-tax economics using $1,250 per ounce ("/oz") of gold ("Au"), $16.75/oz of silver ("Ag") and a 5% discount rate. Further highlights from the PFS are listed below in Table 1 (showing updates to the Preliminary Economic Assessment ("PEA") the Company announced on June 24, 2016), and PFS gold price sensitivities are listed below in Table 2.

"The PFS is a major milestone for Pershing Gold. 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," stated Stephen D. Alfers, Pershing Gold's Chairman and CEO. "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. The Relief Canyon deposit remains open in three directions, presenting the opportunity for continued expansion and extension of this mine," Alfers explained.  

Table 1: Relief Canyon PFS vs. PEA Highlights
	PFS	PEA
Life of mine ("LOM") ARIVA.DE Börsen-Geflüster Kurse Pershing Gold -   0,00% PERSHING GOLD CORPORATION -   0,00%	5.6 years	5.8 years
Average LOM production	93,900 oz Au/year	88,500 oz Au/year
Cash Cost	$770/oz Au	$772/oz Au
AISC	$802/oz Au	$804/oz Au
Initial CAPEX	$23.6 million	$12.2 million
Sustaining CAPEX	$22.8 million	$16.6 million
Working Capital	$11.0 million	$14.9 million
Pre-tax NPV, 5%	$145 million	$159 million
Pre-tax IRR	89%	125%
Pre-tax Net Cash Flow	$192.7 million	$206 million
After-tax NPV, 5%	$126 million	$121 million
After-tax IRR	85%	109%
After-tax Net Cash Flow	$167.7 million	$157.6 million
*The PEA evaluated the economics of two alternative mining scenarios: self-mining by the Company with its own manpower and equipment, and mining through mine contractors who supply the manpower and equipment to deliver material to the Company's processing facilities. The results shown are based on the contractor mining estimates.

"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," said Alfers.

"Pershing Gold thanks MDA, its staff, and its associated engineering and metallurgical groups assisting in the development of this PFS. The quality of the work and effort put into this study is apparent in the excellent report they have produced," stated Alfers.

Operating Cost and CAPEX
The favorable economics of Relief Canyon are reinforced throughout the PFS. The PFS indicates the viability of contract-mining and conveyor stacking to bring the project into production. Under the PFS, 525,790 oz Au are expected to be produced with average life of mine ("LOM") production of 93,900 oz Au/year over the 5.6 year LOM. The PFS highlights the low cost nature of this project with an average cash cost of $770/oz Au and All in Sustaining Cost ("AISC") of $802/oz Au. The modest capital expense ("CAPEX") nature of this project is reaffirmed with the PFS Initial CAPEX of $23.6 million. The full PFS will be posted within the next 45 days on the Company's website at www.pershinggold.com/relief-canyon/technical-reports.

Mineral Reserve and Resource Estimate
The PFS also allows for the categorization of approximately 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 (Table 3). This conversion percentage from resource to reserve highlights the quality and quantity of work in 2016 to upgrade the Relief Canyon deposit.  To date 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 Pershing Gold.

Table 3: 2017 Relief Canyon Oxide Reserve
Classification	Cutoff	Tons	Gold Grade		Total Gold
	(opt Au)	000's	(opt)	(gpt)	(Ounces)
Proven	0.005	13,095,400	0.024	0.822	308,500
Probable	0.005	17,434,300 Werbung Mehr Nachrichten zur Pershing Gold Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 08:56 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Accrol Group Holdings plc 08:55 - PR Newswire Samson Rock Capital LLP - Form 8.3 - Wincanton Plc 08:18 - PR Newswire Cohen & Steers Capital Management - Form 8.3 - Tritax Big Box REIT plc SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59