Pershing Gold Continues to Expand North Target Area High-Grade Gold Zone and Increases the Number of Drill Rigs at Relief Canyon

LAKEWOOD, Colo., Oct. 29, 2014 /CNW/ -- Pershing Gold Corporation (OTCQB:PGLC) ("Pershing Gold" or the "Company") is pleased to announce that the ongoing step-out core drilling program at Relief Canyon in Pershing County, Nevada has hit additional significant intercepts of high-grade gold in the North Target Area, located to the North of the existing North Pit. As shown in Table 1, RC14-225 (Relief Canyon 2014 drill hole 225) contains 55.0 feet of 0.117 ounces per ton ("opt") gold ("Au")/4.020 grams per tonne ("gpt") Au.

The Company also announced that it is adding a third diamond core drill rig to the Relief Canyon Project for the remainder of 2014. "The deployment of a third drill rig to the project is an exciting milestone for Pershing Gold's geology team, well justified by the results to date," said Steve Alfers, Pershing Gold's Executive Chairman and Chief Executive Officer. "We set out to expand and upgrade the deposit, and this ramp up in the program will accelerate that effort."

The three drill rigs are deployed as follows: one drill rig will continue step-out drilling in the North Target Area. A second drill rig will focus on targets to the southwest extension of the Relief Canyon deposit. The third drill rig is deployed to the diamond drill program recently initiated at the Buffalo Mountain Project located approximately two miles North of the Relief Canyon Mine and approximately one mile south of the Packard Mine, a satellite project operated by Coeur Mining, Inc. (NYSE:CDE). KB Drilling of Mound House, Nevada is the contractor.  The Company is planning to drill up to 12 holes at Buffalo Mountain.

"Buffalo Mountain is an exciting new high-grade gold and silver target developed this year by Pershing Gold's exploration group. We are eager to drill the Buffalo Mountain Project Area because we believe Pershing Gold will be the first company to drill in this area," said Alfers. The Company has conducted detailed surface sampling, mapping and geophysical work to identify additional Buffalo Mountain drilling targets, both on the Humboldt Range front, and in the pediment to the West. The drilling of the southwest extension is to test the continuity of mineralization to the southwest of the Relief Canyon Main and Light Bulb pits.

The drill results listed in Table 1 provide an expanding picture of a zone of high-grade gold mineralization that augments the previously reported high-grade intercepts in holes drilled this year in the North Target Area. The high-grade gold zone discovered to date by the 2014 drilling program extends for about 900 feet in a north-south direction.

Table 1: Highlights of new drilling results in the North Target Area

Figure 1: Map Showing Gold Intercepts in the 2014 Drilling Program

As shown in Figure 1, the drill holes listed in Table 1 are located South of the drill holes with high-grade intercepts previously reported in the Company's September 15, 2014 and October 21, 2014 press releases and continue to add to the growing number of holes drilled this year with gold mineralization. The four holes shown in Table 1 also have wide intercepts of lower-grade mineralization at or near the surface. The long intercepts in RC14-222 and 223 include small zones below a gold cutoff grade and in an open pit mine scenario would potentially be waste. These intercepts illustrate the cumulative thickness of the stacked zones.

"The high-grade zone being delineated in the North Target Area by the 2014 drilling program is very significant because these holes define a much broader zone of high-grade gold mineralization than is included in the current resource estimate," commented Alfers. "We are still determining the ultimate dimensions of this high-grade zone, which could increase with additional step-out drilling," stated Alfers. Pershing Gold is planning more drilling this year to define the extent of this high-grade zone.

The March 31, 2014 resource estimate incorporates drill holes completed through calendar year 2013. The Company is planning to update the resource model in early 2015 to include the 2014 drilling results.

The current resource model in the vicinity of the holes listed in Table 1 shows a narrow, steeply dipping mineralized zone. In contrast, the 2014 drilling is defining a wider, flatter area with gold mineralization. Commenting on the emerging shape and size of the North Target Area high-grade zone, Alfers added, "we anticipate the 2014 drill results will add ounces to the resource estimate."

Like the drilling results discussed in recent news releases, the drill holes listed in Table 1 include intervals with gold grades that are significantly higher than the 0.02 opt Au average grade of the March 2014 resource estimate for the Relief Canyon deposit. The Company believes that the intercepts of even lower grade mineralization reported today are also significant because the lower grade zones encountered at or near the surface would probably be above the mine cut-off grade and could be mined as run-of-mine material with no stripping or with a very low stripping ratio.

Figure 2: Cross Section Showing Gold Intercepts in the Four Drill Holes in Table 1

The cross section shown in Figure 2 illustrates the continuity of mineralization in this area of the deposit, as well as highlighting the higher-grade intercepts and the at-the-surface or near-surface zones of lower-grade mineralization. The cross section also shows the stacked mineralized zones which generally dip to the west at 20 to 30 degrees. Both the Main and Lower Zones are present in this area.

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, 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 quality assurance/quality control (QA/QC) procedures include the regular use of blanks, standards, and duplicate samples.

About Pershing Gold Corporation
Pershing Gold is an emerging Nevada gold producer on a fast-track to re-open the Relief Canyon Mine, which includes three open-pit mines and a state-of-the-art, fully permitted and constructed heap leach processing facility. Pershing Gold's landholdings cover over 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.

Legal Notice and Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein including the potential reopening of the Relief Canyon Mine under the currently held permits, drill and assay results, expansion of the high-grade in the Relief Canyon deposit  and those statements preceded by or that include the words "believes," "expects," "given," "targets," "intends," "anticipates," "plans," "projects," "forecasts" or similar expressions, 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, whether the Company will be able to obtain external financing to fund the development of plans for and the reopening and commencement of production at the Relief Canyon Mine, results of exploration and infill and step-out drilling including drilling in the North Target highwall area and in the southern part of the deposit above the Main Zone, interpretations or reinterpretations of geologic information or unfavorable exploration results that could negatively affect estimates of mineralized material and gold resources at Relief Canyon; unfavorable of less favorable than anticipated results from 2014 drilling, delay or inability to obtain permits required for exploration and other activities; general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; decreases in gold and other mineral and commodity prices; risks of junior exploration and pre-production activities; and maintenance of important business relationships. 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 SEC including the Annual Report on Form 10-K for the year ended December 31, 2013. The Company assumes no obligation to update any of the information contained or referenced in this press release.

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SOURCE Pershing Gold Corporation