News from our partly owned Pershing Gold Pershing Gold Announces Positive Preliminary Feasibility Study for Relief Canyon
LAKEWOOD, Colo., June 5, 2017 /PRNewswire/ -- Pershing Gold Corporation (NASDAQ:PGLC) (TSX:PGLC) (FWB:7PG1) ("Pershing Gold" or the "Company"), the emerging Nevada gold producer, today announces 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 ("MDA"), Kappes Cassidy & Associates, of Reno, NV and Jorgensen Engineering and Technical Services, of Centennial, CO, completed the PFS for the Company's Relief Canyon gold mine with an effective date of May 26, 2017. The positive PFS by MDA recommends that Pershing Gold advance the Relief Canyon Project to a production decision. Highlights from the PFS include a pre-tax net present value ("NPV") of $144.6 million, an internal rate of return ("IRR") of 89% and Net Cash Flow of $192.7 million. This NPV, IRR and Net Cash Flow assume pre-tax economics using $1,250 per ounce ("/oz") of gold ("Au"), $16.75/oz of silver ("Ag") and a 5% discount rate. Further highlights from the PFS are listed below in Table 1 (showing updates to the Preliminary Economic Assessment ("PEA") the Company announced on June 24, 2016), and PFS gold price sensitivities are listed below in Table 2.
"The PFS is a major milestone for Pershing Gold. 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," stated Stephen D. Alfers, Pershing Gold's Chairman and CEO. "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.
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