Pershing Gold Announces Final Permits Approved to Start Mining at Relief Canyon
LAKEWOOD, Colo., Oct. 6, 2014 /PRNewswire/ -- Pershing Gold Corporation (OTCQB: PGLC) ("Pershing Gold" or the "Company") is pleased to announce that state and federal regulatory authorities have approved the final permits needed to start mining at Pershing Gold's Relief Canyon Mine in Pershing County, Nevada. The permits issued by the Winnemucca District Office of the U.S. Bureau of Land Management ("BLM") and the Nevada Division of Environmental Protection/Bureau of Mining Regulation and Reclamation ("NDEP") authorize mining within the existing open-pit mine. These agencies had already issued permits for the heap leach mineral processing facilities at Relief Canyon.
"This is a landmark event in the history of the Relief Canyon Mine," stated Stephen D. Alfers, Pershing Gold's Chairman and CEO. "For the first time in nearly 25 years, the Relief Canyon Mine has all of the permits needed to begin mining the deposit and to operate the heap leach gold processing facilities."
Mining has not occurred at Relief Canyon since 1989. In 2008, the previous owner permitted and built new heap leach processing facilities but did not seek permits to resume mining. Consequently, the new heap leach facilities have remained largely unused and currently have roughly 21-million tons of capacity on the permitted leach pad.
"Now that we have all of the permits in place, we are in an ideal position to optimize our mine plan and fine-tune our processing facilities," commented Alfers. "Securing these permits puts us in the driver's seat in deciding when to start the mine and enables us to make an informed decision based on a thorough review of all of the pertinent technical and economic parameters."
While preparations are underway to start mining and mineral processing, the 2014 exploration and development drilling programs are ongoing. Pershing Gold anticipates that the 2014 drilling results will increase the gold resource at the Relief Canyon deposit. The Company is planning to incorporate the results from the 2014 drilling program into an updated third-party National Instrument 43-101 resource estimate later this year or in early 2015.
Pershing Gold worked closely with BLM and NDEP regulators during their review of the Company's plans to start mining. "We would like to thank BLM and NDEP for their efforts in reviewing our plans and evaluating the reclamation bonding requirement for the project," said Alfers. "We look forward to working with them during the start-up phase of the mine."
The newly issued BLM and NDEP permits require Pershing Gold to increase its reclamation bond for Relief Canyon by about $150,000. The Company is in the process of increasing its current $5.0 million bond to satisfy this requirement. Pershing Gold is planning to modify these permits in the future to increase the size of the open-pit mine. The permitted heap leach facilities will not require additional permitting because they have adequate pad space to support mining operations for the next several years.
Qualified Person
Debra W. Struhsacker (CPG 8259), a qualified person as defined by National Instrument 43-101, has supervised the preparation of the information that forms the basis for this news release and has approved the disclosure herein. Ms. Struhsacker has designed, implemented, and managed the Company's efforts to secure permits for the Relief Canyon Mine. She is not independent of Pershing Gold, as she is the Senior Vice President and holds common shares and incentive stock options.
About Pershing Gold Corporation
Pershing Gold is an emerging Nevada gold producer on a fast-track to re-open the Relief Canyon Mine, which includes three open-pit mines and a state-of-the-art, fully permitted and constructed heap leach processing facility. Pershing Gold's landholdings cover over 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.
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 the potential reopening of the Relief Canyon Mine under the currently held permits, anticipated increase in the Relief Canyon gold resource based on 2014 drilling results, planned third party update of the Relief Canyon mineral resources and the timing thereof, mine plan and processing facilities optimization, technical and economic analysis of mine start-up, planned future permit modifications to increase the size of the open-pit mine at Relief Canyon of and 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, whether the Company will be able to obtain external financing to fund the development of plans for and the reopening and commencement of production at the Relief Canyon Mine, results of planned exploration and infill and step-out drilling, interpretations or reinterpretations of geologic information or unfavorable exploration results that could negatively affect estimates of mineralized material and gold resources at Relief Canyon; delay or failure to obtain a third party update of the Company's resource estimate, delay or inability to obtain permits required for potential mine expansion, including permits to mine the deposit below the water table, for exploration and other activities; 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, 2013. The Company assumes no obligation to update any of the information contained or referenced in this press release.
SOURCE Pershing Gold Corporation
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