LAKEWOOD, Colo., Jan. 27, 2014 (GLOBE NEWSWIRE) -- Pershing Gold Corporation (OTCQB:PGLC) ("Pershing Gold" or the "Company") is pleased to announce the results for 16 diamond core holes drilled in late 2013 at the Relief Canyon Mine in Pershing County, NV. These latest results continue to verify the presence of three stacked mineralized zones. The Lower Zone and the Jasperoid Zone are previously unidentified mineral zones, which Pershing Gold geologists delineated in the 2012 and 2013 drilling programs.
Fifteen of the 16 holes encountered gold mineralization; 13 have intercepts with gold grades that are higher than the average grade of 0.643 grams per tonne ("gpt") gold ("Au")/0.019 ounces per ton ("opt") Au used in our January 2013 NI 43-101 compliant Measured and Indicated gold resource estimate. Drilling indicates these zones have the potential for further expansion in several directions.
"These results are a game changer for a couple of reasons," stated Stephen Alfers, Pershing Gold's Chairman and CEO. "The first game changer is the discovery that the deposit is comprised of three stacked mineralized zones that are controlled by low-angle structures. We believe we will be able to significantly expand both the size and the overall grade of the deposit, because both the Lower and Jasperoid Zone drill results show higher grade than the previously mined Main Zone.
"Second," said Alfers, "this drilling program was designed to test targets in the Lower and Jasperoid Zones. We successfully encountered numerous gold-mineralized intercepts in both zones, with ten holes hitting the Lower Zone and 13 holes drilled into the underlying Jasperoid Zone. We have also expanded the lateral extent of both zones."
Highlights from the 15 mineralized holes include the following results:
|RC13-141:||177 feet of 1.614 gpt/0.047 opt Au, which includes 3.2 feet of 37.005 gpt/1.081 opt Au;|
|RC13-145:||20.5 feet of 6.441 gpt/0.188 opt Au, which includes 5 feet of 19.645 gpt/0.574 opt Au;|
|RC13-149:||55 feet of 2.504 gpt/0.073 opt Au, which includes 19 feet of 6.514 gpt/0.190 opt Au;|
|RC13-150:||40.4 feet of 1.802 gpt/0.053 opt Au and 41.6 feet of 2.76 gpt/0.081 opt Au; and|
|RC13-151:||43.5 feet of 7.680 gpt/0.224 opt Au, which includes 15.1 feet of 10.734 gpt/0.313 opt Au and 5 feet of 31.401 gpt/0.917 opt Au|
Table 1 presents the detailed drilling results. Figure 1 shows the drill hole locations and the superposition of the three stacked mineralized zones in plan view. Figure 2 is a cross section illustrating the stacked configuration of the deposit.
|Summary of Drill Results|
|Lower Zone Intercepts|
|Notes:||1. The reported width is not the true width of the intercept.|
|2. The cumulative footage for these ten holes is approximately 6,600 feet.|
|3. Holes RC13-122M through RC13-126M were large-diameter metallurgical core holes drilled in the pits. Results for the metallurgical holes will be reported on www.pershinggold.com.)|
|4. Results from all intervals for which we have received and verified results will be posted on our website at www.pershinggold.com.|
Table 1 shows that many of the mineralized intercepts with gold grades higher than the 0.643 gpt/0.0188 opt Au used in the 2013 resource estimate occur in the Lower and Jasperoid Zones. Additionally, six holes in the Lower Zone and 11 of the 12 holes in the Jasperoid Zone have intercepts with grades that exceed the 1.028 gpt/0.03 opt Au average grade of the ore mined in the late 1980s as reported in the 2007 NI 43-101 Technical Report prepared for the previous owner, Firstgold Corp.
Mining at Relief Canyon during the 1980s developed only the mineralization in the Main Zone; it did not reach the Lower Zone or the underlying Jasperoid Zone. Moreover, the most recent resource estimate (January 2013) included only a limited part of the Lower Zone and did not include any gold mineralization from the Jasperoid Zone. Data from drilling in these newly discovered mineral zones will be included in the resource estimate update currently in preparation.
The Company has engaged an independent consultant that is currently preparing an updated resource estimate, which is planned to be completed in Q1 2014. "We anticipate that the 2014 resource estimate will grow in terms of ounces and will be higher grade than our 2013 estimate," stated Stephen Alfers.
The 2013 drilling results show that the Lower Zone is at least 1,500 feet long and 1,000 feet wide. As currently defined by drilling, the Jasperoid Zone is about 1,200 feet long and approximately 800 feet wide. The Company believes that additional drilling will continue to expand the boundaries of the Lower and Jasperoid Zones, which remain open to the north, south, and east. There also may be potential to expand these Zones to the west.
The Company has submitted an application to seek authorization from the Bureau of Land Management ("BLM") to drill more holes to delineate and expand the Lower and Jasperoid Zones north of the North Pit. Once the BLM approves this drilling, Pershing Gold is planning to drill at about 20 new sites. The Company has sufficient financial resources to pursue this planned drilling program and estimates these additional holes will cost approximately $500,000.
About Pershing Gold
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.
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 Robert B. Hawkins, P.Geo, 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 Inspectorate America Corp., 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.
Cautionary Note to United States Investors Regarding Estimates of Measured, Indicated and Inferred Resources
We use certain terms, or refer to reports that use these terms, in this press release such as "measured", "indicated" and "inferred resources", that are defined in Canadian National Instrument 43-101; however, these terms are not recognized under the U.S. SEC Industry Guide 7. U.S. investors are cautioned not to assume that any or all of measured, indicated or inferred resources are economically or legally mineable or that these resources will ever be converted into reserves. "Inferred mineral resources" have a high degree of uncertainty as to their existence and it cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. U.S. investors are urged to consider closely the disclosure in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other SEC filings. You can review and obtain copies of these filings from the SEC's website at http://www.sec.gov/edgar.shtml.
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, are forward-looking statements including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein including the planned and potential future drilling and other exploration on Pershing Gold's Relief Canyon property, results of drilling, interpretations and significance of exploration results and other geologic information at Relief Canyon including the extent of the Lower and Jasperoid Zones, potential for a significantly higher-grade deposit than the previously mined mineralization or that reported in the January 2013 resource estimate, anticipated expansion of the resource at the Relief Canyon properties and the expected timing of an updated resource estimate. 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, inability to obtain external financing to fund the Company's future activities including maintaining its land position; interpretations, changes in interpretation or reinterpretations of geologic information; unfavorable exploration results or failure of future results to confirm the significance of the current drilling results in the Lower and Jasperoid Zones; delays in obtaining exploration results or new resource analysis or reports; inability to obtain or substantial delays in obtaining permits required for future exploration or development or production; general economic conditions and conditions affecting the industries in which the Company operates; the uncertainty of regulatory requirements and approvals; fluctuating mineral and commodity prices; and risks of junior exploration and pre-production activities. 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, 2012 and each subsequently filed Quarterly Report on Form 10-Q and Current Report on Form 8-K. The Company assumes no obligation to update any of the information contained or referenced in this press release.
Source:Pershing Gold Corporation