Pershing Gold (NASDAQ: PGLC) has published a positive preliminary economic assessment (PEA) on the past producing Relief Canyon heap leach gold mine near Reno, NV showing it could produce 88,500 oz of gold annually over a 5.8-year mine life.
“This is a major milestone for us. We had indicated we would get it out in the second quarter. We’re excited to have done that,” Jack Perkins, the company’s vice-president of investor relations, says. “It shows the quality of the project, the low cost nature of the project, and the leverage to the gold price for our investors.”
The PEA assesses the economics of two different mining scenarios at Relief Canyon, including self-mining – where Pershing will use its workforce and equipment – and contract mining.
While the annual production and mine life would remain the same under both scenarios, the costs and economics will vary.
Start-up costs are US$22 million for self-mining versus US$12.2 million for contract mining.
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