LAKEWOOD, Colo., Sept. 6, 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 initial results from Phase 1 of its 2016 Drilling Program (the “Program”).
Pershing Gold is executing a three phase drilling program for 2016-2017 designed to test opportunities identified in the Company’s recently published Preliminary Economic Assessment (“PEA”). Phase 1 includes step-out drilling to test potential extensions of the high-grade zones at Relief Canyon discovered in the North Target Area in 2014-2015. Pershing Gold has 16 additional holes planned for Phase 1 in 2016. Results are reported in feet (“ft”) and meters (“m”), and in grams per tonne (“gpt”) and ounces per ton (“oz/ton”) of gold (“Au”) or silver (“Ag”).
“We are excited about RC16-462 for a number of reasons. First, with a 200-foot step-out from previous drilling, we have intersected all three zones of mineralization known at the Relief Canyon deposit; the Main Zone, the Lower Zone and the Jasperoid Zone,” stated Stephen D. Alfers, Pershing Gold’s Chairman, President and CEO. “These three zones carry excellent grades that are more than twice the average grade of the existing Relief Canyon PEA and 43-101 resource. Finally, we believe that the mineralization encountered here is open pit-able, with an overall strip ratio expected to be around 4:1. This discovery not only brings the potential to add ounces and extend the Relief Canyon mine life, but also to further improve the overall economics of the Relief Canyon project,” said Alfers.
Phase 1 Initial Results
Pershing Gold has received the results from the first four core drill holes from Phase 1 of its 2016 Drilling program. Full results are listed in Table 1 below. A plan view and cross section of these drill holes are listed below in Figures 1 and 2.
The eight intercepts (Table 1) encountered in RC16-462 include all three mineral zones previously identified at Relief Canyon; the Main Zone, the Lower Zone and the Jasperoid Zone. These intercepts have a cumulative thickness of 166.3 feet (50.7m), an average grade of 1.597 gpt, 0.046 oz/ton Au, and 23.5 gpt, 0.70 oz/ton Ag, and assume a minimum ten-foot drill width.
Notable intercepts from RC16-462 include:
The Company believes that these drill intercepts will expand the PEA pit limit as well as the mineralized grade shells to the east and west. These zones also encounter increasing silver grades with depth, including an intercept of 20.9 feet (6.4 m) of 129 gpt, 3.759 oz/ton Ag from 620.9 to 641.8 feet (189.3 to 195.6 m) in RC16-462. All intercepts are 95-100% of true width.
“The PEA makes clear that the Relief Canyon deposit remains open to the west, south and southeast. This Phase 1 drilling should expand the PEA pit limit and expand and upgrade the in-pit resource. The three Phase 1 drill holes completed to date have extended the high-grade mineralization discovered in 2014-2015 beyond the west limit of the PEA pit,” Alfers said. “The mineralization of Relief Canyon is still open, and this drilling indicates that the project should continue to get bigger and higher grade.”
All of the zones encountered in RC16-462 are above the sulfide boundary and are logged as oxide/mixed. Cyanide soluble gold assay results confirm the leach-ability of all intercepts. RC16-462 corroborates a northwest trend in this area for the Lower and Jasperoid Zones encountered in this hole. RC16-462 should extend economic mineralization 200 feet (61 m) west of the currently defined pit limits. Both the Lower and Jasperoid Zones remain open for expansion and additional holes are planned in this area.
Drill holes RC16-459 and RC16-460 are part of a program to test the sulfide/mixed/oxide zone boundary of an area along the northern limits of the PEA pit wall where significant mineralization was excluded from economic contribution in the PEA due to its classification as sulfide mineralization. This program will include additional metallurgical testing of samples from previous drill holes to determine if any of this material can be economically processed. The results for RC16-460 show leachable mineralization and should expand recoverable ounces. Conversely, the leach-ability test for RC16-459 indicated that the mineralization is sulfide and unsuitable for heap leach processing. RC16-459 results did not have an economic impact as this area was already excluded in the PEA.
Figure 1: Plan View
Phase 1 of the Program is focused on increasing the resource at Relief Canyon and continuing to upgrade the project’s resources and economics. This phase is planned to include approximately 20 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 Elko, Nevada to initiate the Program.
Figure 2: Cross Section
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.
Scientific and Technical Data
All scientific and technical information related to drill and surface samples for the Relief Canyon project has been reviewed and approved by Larry L. Hillesland, Certified Professional Geologist #11720, who is a Qualified Person under the definitions established by Canadian National Instrument 43-101. Drill core at Relief Canyon is boxed and sealed at the drill rig and moved to the Relief Canyon logging and sample preparation facilities by trained personnel. The core is logged and split down the center using a typical table-fed circular rock saw. One half of the core is sent for assay to Skyline Assayers & Laboratories of Sparks, Nevada, while the other half is returned to the core box and stored at Relief Canyon in a secure, fenced-off, area. Pershing Gold Corporation QA/QC includes the regular use of blanks, standards, and duplicate samples.
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 Phase 1 and Phase 2 of our 2016 drilling program including areas planned for drilling, initial drill and solubility test results from the Phase 1 program and the interpretation of those results as having potential to PEA pit and resource, 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; and fluctuating mineral and commodity prices. 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.
SOURCE Pershing Gold Corporation