Pershing Gold Releases Positive PFS for Relief Canyon Mine

Pershing Gold Corp. (TSX:PGLC,NASDAQ:PGLC) announced that it’s completed a preliminary feasibility study (PFS) for its Nevada-based Relief Canyon mine.
As quoted in the press release:

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.

Stephen D. Alfers, chairman and CEO of Pershing Gold, commented:

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. 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.
The Company will be reviewing various options to cover future capital needs, including debt, royalty or stream financing, gold off-take agreements, investment from strategic investors, or combinations of those approaches.
Click here to read the full Pershing Gold Corp. (TSX:PGLC,NASDAQ:PGLC) press release.