Pershing Gold Corporation (OTCBB: PGLC)
An Emerging Nevada Gold Producer Fast-Tracked to Resume Production
Pershing Gold Corporation (Pershing Gold) is an emerging Nevada gold producer uniquely positioned to create shareholder value by fast-track reopening of the Relief Canyon Mine. Pershing Gold’s strategy to create shareholder value has four elements:
- Confirm, expand and upgrade the gold resource at Relief Canyon.
- Re-commission existing heap-leach processing facility at Relief Canyon to fast-track the Company to production.
- Explore strategically located 25,000-acre contiguous land package around Relief Canyon.
- Create value through strategic acquisitions.
Relief Canyon Mine and Processing Facility
The Relief Canyon Mine property includes three open-pit mines and a state-of-the-art, fully permitted and constructed heap leach processing facility. The plant has the capacity to treat eight million tons per year. The permitted leach pad can hold 21 million tons and can be readily expanded. The facility is ideally situated to process ore from future discoveries of satellite deposits.
These assets present Pershing Gold with a unique opportunity to capitalize upon the synergies of an existing processing facility adjacent to a mine that has additional resources to achieve a fast-track path to production at the Relief Canyon Mine.
Putting the Relief Canyon Mine Back into Production
Located about 100 miles northeast of Reno, in Pershing County, the Relief Canyon Mine consists of three open-pit mines and a recently refurbished and upgraded heap leach gold ore processing facility. The mine, which has produced gold intermittently since 1984, has been in a care and maintenance status for several years.
PGC is confident the drilling program currently underway at Relief Canyon will be successful and in expanding and upgrading the currently known gold resource (approximately 155,000 indicated and inferred ounces) into a discovery of additional gold reserves that can be put into production in the foreseeable future. PGC’s Relief Canyon land position covers over 1.5 miles of the Black Ridge Fault, which is a major geologic structure that controls the mineralization at Relief Canyon. Several other mines in the Pershing Gold and Silver Trend (Rochester, Nevada Packard, and Spring Valley) are also located along this fault.
Since launching an aggressive exploration drilling campaign at Relief Canyon in September 2011, we have completed drilling 19 reverse circulation and rotary holes (roughly 18,900 feet of drilling). We are cautiously optimistic about some of the preliminary drilling results and will soon make an announcement about these results. We intend to conduct sufficient drilling in 2012 to support preparation of an updated evaluation of the Relief Canyon mineral resource. Based on our drilling results to date, we are optimistic that we will be able to redevelop the mine and resume gold production from the existing heap leach facility.
The Relief Canyon Mine
The Relief Canyon Gold Processing Facility
The Pershing Gold and Silver Trend – One of the Hottest New Exploration Target in Nevada
PGC believes that the Pershing Gold and Silver Trend – especially lands in the vicinity of Relief Canyon – has great potential for new gold and silver discoveries. There are several large operating gold and silver mines and new gold discoveries in the Pershing Gold and Silver Trend near Relief Canyon. These neighboring mines and discoveries include: 1) the Rochester Mine, which has produced over 100 million ounces of silver and 1 million ounces of gold; 2) the Florida Canyon Mine, which has produced over 2 million ounces of gold; 3) the Standard mine which produced about 500,000 ounces of gold; 4) Spring Valley, which is a new discovery with at least 1.8 million indicated and inferred ounces of gold discovered to date; and 5) the Wilco Project, another new discovery with 625,500 ounces of gold (measured and indicated) and 1,124,700 ounces of gold (inferred).
Secondly, the Pershing Gold and Silver Trend is under-explored compared to other northern Nevada gold districts. For decades, most of the exploration conducted in northern Nevada has focused mainly on gold districts like the Carlin Trend and the Getchell Trend which are located east of Pershing County. Consequently, there is a significant window of opportunity to acquire promising gold targets in Pershing County and to discover new gold deposits. The recent discoveries at nearby Spring Valley and Wilco are proof that Pershing County is an excellent place to look for gold and find new gold deposits.
A key element of PGC’s business model is to acquire Pershing County mineral targets with excellent exploration and discovery potential. These acquisitions will bring value and synergies to PGC by capitalizing on our understanding of the geology of this region and our expertise in identifying targets and exploring for gold in the Pershing Gold and Silver Trend.
PGC Makes First Move to Consolidate its Land Holdings in the Pershing Gold and Silver Trend
As the first step in executing upon the objective to acquire mineral targets in the Pershing Gold and Silver Trend, PGC purchased roughly 9,700 acres of mining claims from Silver Scott Mines, Inc. in early March 2012. This new property asset is located just south of the Relief Canyon Mine and represents a significant addition to the Company’s land portfolio in Pershing County. PGC believes there are many attractive, untested gold targets on the newly acquired land. With this acquisition, PGC is well on the way to controlling the southern portion of the Pershing Gold and Silver Trend.