LAKEWOOD, Colo., July 27, 2016 /PRNewswire/ -- Pershing Gold Corporation (NASDAQ:PGLC) (FWB:7PG1) ("Pershing Gold" or the "Company"), the emerging Nevada gold producer advancing the Relief Canyon Mine, today announces the start of its 2016 Drilling Program (the "Program").
The 2016 Drilling Program is currently planned to have two phases. Phase 1 is focused on increasing the resource at Relief Canyon and continuing to upgrade the project's pit economics. This phase is planned to include approximately 20 holes, consisting of a mix of HQ and PQ drill holes around the western and northern margin of the deposit. Phase 1 will be completed with one core-drilling rig. The Company has contracted with Titan Drilling, Ltd of Butte, Montana to initiate the Program.
Phase 2 of the Program is planned to start during the third quarter of this year. This phase will test targets currently being developed to the south and east of the existing pits. Pershing Gold is completing geophysical surveys at Relief Canyon to develop these targets, including an induced polarization and chargeability survey over an approximately two square mile area. Zonge International of Reno, Nevada is completing this survey.
"The 2016 Drilling Program implements the recommendations of the recently published PEA on Relief Canyon, which highlights that the gold resource at Relief Canyon continues to be open to the west, east and south, and therefore presents the opportunity for growth in the mineral resource through continued drilling," said Stephen D. Alfers, Pershing Gold's Chairman and CEO.
"Expanding the gold resource could significantly improve the economics outlined in the PEA. Additionally, we plan to continue developing high potential targets on our 25,000-acre land package. A satellite discovery could add to the production planned at our fully built and permitted processing facility," explained Alfers. "While conducting this Program, the Company is simultaneously evaluating the self and contract mining options outlined in the PEA in order to make a production decision. We continue to anticipate initial production within approximately six to nine months from investment decision and obtaining full financing for the project," he continued.
High priority targets are defined through a combination of the IP/resistivity signature as well as coincident gold indicator trace elements anomalies in soil. The areas planned for drilling in Phase 1 and Phase 2 of the Program are outlined below in Figure 1. The Company has budgeted approximately $2 million for the Program, with roughly $1 million allocated for each phase of drilling.
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 open-pit mines, expanding adjacent open-pit-able gold deposits, 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 under the symbol PGLC and the Frankfurt Stock Exchange under the symbol 7PG1.
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. All statements, other than statements of historical fact, including plans for our 2016 drilling program, including areas planned for drilling, anticipated outcomes and benefits, the budget and timing of phases 1 and 2 of the program, expectations regarding the ability to expand the mineral resource through future drilling and the impact on project economics, ongoing work to be conducted at Relief Canyon and in adjoining areas and the potential results of such efforts, the anticipated timing of production at Relief Canyon after investment decision and obtaining full financing for the project, 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, 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; fluctuating mineral and commodity prices, final investment approval and the ability to obtain necessary financing on acceptable terms or at all. 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. The Company assumes no obligation to update any of the information contained or referenced in this press release.