Resource World Magazine

54 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 7 Relief Canyon Mine, Pershing County, Nevada. Photo courtesy of Pershing Gold Corp. MINING PERSHING GOLD CORP. [PGLC-TSX, NASDAQ] has completed the preliminary feasibility work required to bring the Relief Canyon Mine back into production. Pershing has in hand a positive prelimi- nary feasibility study as of June 5th, and all the necessary permits required to com- mence operations at the open pit, heap leach, gold mine in Pershing County, Nevada. The Relief Canyon Mine is situ- ated at the southern edge of the Pershing gold and silver trend along the Humboldt Range. Jack Perkins, Vice President, Investor Relations for Pershing Gold, said there are a few things to take care of like mov- ing the crusher and improving roads but much construction has been completed; the heap leach pads are 25% built out. He told Resource World, "Right now, what we are looking at is more of a sequence of events. The PFS, which we put out on June 5th, is in front of our board of directors for review. They have the task of making that production decision. If they do that, it will be from six to nine months to production – to be cautious, we believe 12 months is quite reasonable. The board is currently evaluating financing opportunities to implement the PFS recommendations." The PFS came out with estimated initial CAPEX of about $24 million and as per Pershing Gold's last financials they had no debt and just shy of $7 million in the bank. Perkins said, "We are looking at a pretty small number here to get this project over the line. So we are looking at debt, royal- ties, gold off-take agreements and gold loans as well as strategic investments." He said because the number is relatively low, "I think you are going to likely see some combination of those. That is a key piece we need before that announcement can be made by the board." The NPV, IRR and Net Cash Flow assume pre-tax economics using US $1,250 per ounce of gold, US $16.75/oz of silver and a 5% discount rate. The company also reported upgraded mineral resource that includes NI 43-101 proven and probable reserves of approximately 635,000 ounces of gold and 1.6 million ounces of silver. Highlights from the PFS include: • Life of Mine 5.6 years • Gold Production: 93,900 ounces • Cash cost: $770 per ounce • AISC: $802 per ounce • Initial CAPEX: $23.6 million • Sustaining CAPEX: $22.8 million • Working Capital: $11.0 million • Pre-tax NPV, 5%: $145 million, After-tax • NPV, 5%: $126 million • Pre-tax IRR: 89%, After-tax IRR: 85% • Pre-tax Net Cash Flow: $192.7 million, • After-tax Net Cash Flow: $167.7 million Pershing Gold ready to reopen Relief Canyon Mine by Kathrine Moore

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