Feasibility Study

Mine Development Associates, Kappes Cassidy & Associates, of Reno, NV and Jorgensen Engineering and Technical Services, of Centennial, CO, completed the Feasibility Study for the Company's Relief Canyon gold mine with an effective date of May 24, 2018. The positive Feasibility Study MDA recommends that Pershing Gold advance the Relief Canyon Project to a production decision. Highlights from the Feasibility Study include a pre-tax net present value of $154 million, an internal rate of return of 91% Net Cash Flow of $204 million and payback of 1.3 years. These economic results are based on a gold price of $1,290 per ounce of gold and a 5% discount rate.

Relief Canyon Feasibility Study Highlights

Life of mine (LOM) 5.6 years
Average LOM production (oz Au/year) 91,000
Cash Cost ($/oz Au) $769
All in Sustaining Cost ($/oz Au) $802
Initial capital expenditure (CAPEX) $23.6 M
Sustaining CAPEX $14.8 M
Pre-tax Net Present Value (NPV), 5% $154 M
Pre-tax Internal Rate of Return (IRR) 91%
Pre-tax Net Cash Flow $204 M
After-tax NPV, 5% $133 M
After-tax IRR 87%
After-tax Net Cash Flow $176 M
Technical Report And Feasibility Study For The Relief Canyon Project

The favorable economics of Relief Canyon are reinforced throughout the Feasibility Study including the viability of contract-mining and conveyor stacking to bring the project into production. Average life of mine (LOM) production is estimated at 91,000 oz Au/year over the 5.6 year life. The Feasibility Study highlights the low cost nature of this project with an average cash cost of $769/oz Au and All in Sustaining Cost (AISC) of $801/oz Au. The modest capital expense (CAPEX) for this project is $28.2 million.