Pershing Gold announces positive study for Relief Canyon | nnbw.com

Pershing Gold announces positive study for Relief Canyon

LAKEWOOD, Colo. —— Pershing Gold Corporation (NASDAQ:PGLC) (TSX:PGLC) (FWB:7PG1), an emerging Nevada gold producer, today announced the completion of a NI 43-101 compliant resource and  Preliminary Feasibility Study (PFS) on its Relief Canyon Mine in Pershing County, Nevada.

Mine Development Associates, Kappes Cassidy & Associates, of Reno,  and Jorgensen Engineering and Technical Services, of Centennial, Colo., completed the study for the company's Relief Canyon gold mine with an effective date of May 26. The positive preliminary feasibility study by the associates recommends that Pershing Gold advance the Relief Canyon Project to a production decision.

Highlights from the study include a pretax net present value of $144.6 million, an internal rate of return of 89 percent and Net Cash Flow of $192.7 million. These figures assume pretax economics using $1,250 per ounce of gold, $16.75/oz of silver and a 5 percent discount rate.

"The PFS is a major milestone for Pershing Gold,” stated Stephen D. Alfers, Pershing Gold's chairman and CEO. “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. "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.

Additional information from the study are available online here.

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