Upload
redchip-companies-inc
View
3.377
Download
1
Tags:
Embed Size (px)
Citation preview
October 2013
1
Pershing Gold: An Emerging Nevada Producer Fast-Tracked to Resume Production
Relief Canyon Mine
Forward-looking Statements
Cautionary Note Regarding Forward Looking Statements: Statements made regarding matters which are not historical facts, such as the Company’s strategy to create shareholder value, its plans to expand and upgrade the Relief Canyon resource, fast-track Relief Canyon to production and cash flow and explore and acquire additional properties; the Company’s risk profile and Company valuation and interpretations and estimates of resources and
geologic potential are “forward looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated, or implied including delays in plant recommissioning, operating problems or accidents, permitting problems or delays; metals price volatility, lower metals prices than anticipated and their
impact on the achievement of cash flow; operating, exploration and development risks and results; changes in interpretation of geologic information; world economic and capital markets conditions; inability to raise sufficient external financing and other risks identified in our most recent Annual Report on Form 10-K and other SEC
filings. Cautionary Note to United States Investors Regarding Estimates of Measured, Indicated and Inferred Resources: We use certain terms in this presentation, 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. US 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 Form 10-K 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.
2
Pershing Gold’s Relief Canyon Mine is Situated in a Known Gold and Silver Trend
3
Expert Technical Team
Senior-level expertise in geology, engineering and metallurgy • Doug Prihar – Manager of Exploration
• Robert Casaceli – Senior Geologist & Geophysicist • Pete Dilles – Project Geologist
• Bill Houston – Landman
• Tim Janke – Mining Engineer • Earl Shortridge – Metallurgical Advisor
4
Proven track record of discovering and developing gold mines in Nevada
Experienced Management Team
Management Team has the complete suite of business, legal, environmental permitting, financial and mine management skills to put Relief Canyon back into production:
• Steve Alfers – Executive Chairman, CEO & President • Debra Struhsacker – Corporate VP
• Eric Alexander – VP Finance & Controller • Larry Hillesland – VP Exploration & Development
• Stephen Tibbals – Mine Manager, Relief Canyon Mine
5
Proven track record of discovering and developing gold mines in Nevada
Pershing Gold’s Key Assets
• Plant- • Fully operational and permitted processing facilities
• Mine- • Identified NI 43-101 compliant gold resource • 463,000 Measured & Indicated ounces of gold
• 101,000 Inferred ounces of gold • Land-
• Consolidated land position controlling 25,000 acres
• Permits- • On track to be fully permitted in 2015
6 Fast-tracked to become a Nevada gold producer
Key Asset: Permitted Processing Facility • State of the art heap leach facility
• Capacity to treat eight million tons per year • Permitted leach pad with 21 million ton capacity
• Ideally situated to process future discoveries from satellite deposits
7
We have the permits we need to run this plant
Key Asset: Open Pit Mine and In-Pit Gold Resource
8
• Brownfields project that has been mined since the 1980s
• 740 holes drilled with drilling ongoing to expand resource
• 43-101 compliant in-pit resource (January 2013)
1. Mine Development Associates 43-101 Technical Report 2. Roscoe Postle Associates Inc. 43-101 Technical Report
113K oz Au
42K oz Au
44K oz Au
419K oz Au
101K oz Au
1 2
Key Asset: Consolidated Land Position
9
• April 2012: Two deals secured control of private lands and claims surrounding Relief Canyon
• March 2012: Landmark deal consolidated Relief Canyon Mining District
• February 2013: Landholdings at Relief Canyon Expanded
0
5,000
10,000
15,000
20,000
25,000
Aug 2011 Feb 2013
25,200
1,100
Acres Controlled
Key Asset: Current Landholdings
10
Key Asset: Consolidated Landholdings Allow Mine Expansion in All Directions
11
Strategic consolidation of land position at Relief Canyon gives Pershing Gold control of the Relief Canyon gold deposit identified to date plus adjacent property with high potential for mine expansion
Principal Permits Required for Mine Expansion
Target Permit Submittal Date
Plan of Operations Amendment US Bureau of Land Management
January 2014
Reclamation Permit Amendment NV Division of Environmental Protection
January 2014
Water Pollution Control Amendment NV Division of Environmental Protection
February 2014
Mercury Emission Control Permits NV Division of Environmental Protection
March 2014
Air Quality Permit Amendment NV Division of Environmental Protection
April 2014
Special Use Permit Amendment Pershing County Commissioners
May 2014
12
Key Asset: Permit Amendment Applications Planned for 2014
2013 Technical Program
• Continue drilling program to expand new Lower Zone discovery and test for additional high-grade zones
• Complete engineering and metallurgy to recommission the processing facility
• Update 43-101 compliant resource
• Implement permitting process to authorize resumption of mining
• Complete a Preliminary Economic Assessment of the Relief Canyon Mine
13
2013 Drilling1 Program: Initial Results Discover High-Grade Gold
Drill Hole From (,)
To (,)
Length (,)
Gold (opt)
Silver (opt)
Mineralized Zone and Altera>on Minerals
RC13-‐115 Including Including
389 418.4 513.4
618.8 542.2 515.4
229.8 123.8 2
0.025 0.044 1.321
0.2 0.33 1.608
Lower Lower Lower w/white clay & fluorite
RC13-‐116 Including
445 454.2
475 460.4
30 6.2
0.270 0.992
0.752 2.96
Lower Lower w/white clay & fluorite
RC13-‐117 353 385 32 0.021 0.172 Lower
RC13-‐118 Including
352.8 392
393 393
40.2 1
0.018 0.206
0.079 0.277
Lower Lower w/white clay & fluorite
RC13-‐119 467 508.4 636
497 524.5 707.6
30 15.6 71.6
0.019 0.021 0.023
0.348 0.314 0.227
Lower Lower Black Jasperoid
RC13-‐120 302 350 48 0.044 0.220 Lower Zone
RC13-‐121 Including Including
333.5 354.2 377.4
460.9 357 378.7
127.7 2.8 1.3
0.058 0.43 0.38
0.201 1.656 0.324
Lower
14
Drilling is Ongoing to Expand the Lower Zone and Explore for Higher-Grade Zones
1. All drilling results are available on the Company’s website.
2013 Drilling Program: Discovery of Lower Zone
15
2013 Drilling Program: Lower Zone High-Grade Intercepts
16
Sec 17 Sec 16
Sec 21Sec 20
OPEN
OPENOPEN
0.992 opt Au
0.270
0.267
0.245
0.642
0.2000
0.369
0.20
88LRC_053A
DH_9714
SBG12-D02
DH_9706
LRC_055
LRC_051
DH_9719
0.206
0.309
0.2930
0.225
0.238
0.436
0.220
RC12-021
SPRC_104
DH_9619
DH_8711
SPRC_002
0.288
SPRC_073
0.330
DVR_10
0.236
0.304
SPRC_044
0.20
SPRC_040
SPRC_042
0.262
0.215
LRC_060
0.207
LRC_098ALRC_106
LRC_083
0.230
0.9610.221
DVR_15
LRC_190
0.2700.296
0.718
0.4020.452
RCM07_39
SBG12-D05
DH_9635
0.797DVR_03
0.379
LRC_007
DH_9605
RCM07_72
RCM07_73
RCM07_74
DH_9629
DH_9603DVR_12
0.2120.331
0.454
0.2400.363
0.7590.245
0.211
0.328
0.298
0.735, 0.2000.560, 1.50
0.642
0.256
0.428
0.2550.252 0.300
0.202
0.293
0.260
0.3630.242
SBG12-D030.312
NT08_D04
NT08_04
LRC_152
SBG11-D07
DH_9723
DVR_37
NT08_03
DH_9637
SBG11-D02
NT08_02
0.212
0.209
RC13-121
North Pit
0.390
DVR_28
****
LEGEND
*Historical Holes with intercepts > 0.2opt
2013 Holes with intercepts > 0.2 opt
RC13-119
RC13-120
FIGURE 3- Distribution of High Grade GoldIntercepts in Drill Holes At Relief CanyonDrilled 1980 to August 2013
2013-2014 Mine Development Program: Next Steps
• Complete drilling to expand existing resource • File amendments to plan of operations and
other permits
• Complete column tests and other metallurgy
• Complete engineering and geotechnical work • Complete updated 43-101 compliant resource
• Complete 43-101 compliant Preliminary Economic Assessment
17
Pershing’s Value Proposition
• Pershing is an emerging producer because of its assets and its short timeline to production
• Emerging producers trade at an industry premium
• Pershing’s performance on the ground should drive the Company’s valuation
• Continuing progress towards near-term production should make Pershing a strong emerging producer
18
Peer Group Performance Comparison
19 Adjusted Market Cap per Recoverable Oz based on BMO Gold Pages, October 7, 2013
Pershing Gold’s Low Risk Profile
20
Key factors in place to progress toward production
Key Takeaway: Reducing Risk Should Drive Valuation
21
• Progress toward production • Processing facility is fully paid for, built and permitted
• Metallurgical studies underway • Engineering work for mine planning in process
• Preliminary Economic Assessment planned for Q2 2014
• Expanding resource
• Listing on major stock exchange • Financing to cash flow
Pershing Gold Corporation
1658 Cole Boulevard, Building 6, Suite 210
Lakewood, CO 80401
720.974.7248
E-mail: [email protected] www.pershinggold.com
22
Capital Structure
CAPITAL STRUCTURE
Shares issued and outstanding* 273,292,023
Warrants 26,231,031
Stock options 33,400,000
Conversion of Series E Convertible Preferred Stock 33,555,000
Total fully diluted shares as of October 25, 2013** 366,491,644
Share price as of October 25, 2013 $0.369
Market capitalization as of October 25, 2013 $100,844,756
Debt $0.00
Gross proceeds from financing*** $11,100,000
OTCQB:PGLC
23
*Common Shares outstanding as of October 25, 2013. ** Based on Common Shares outstanding plus the conversion of all convertible securities outstanding on October 25, 2013. *** as of August 2013
Share Price and Volume for Past Six Months
24