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onewhoknows2much

05/28/14 9:29 AM

#2401 RE: smallcapplayer #2400

INVESTMENT POSITIVES
Past producing mine - The Relief Canyon Mine has a history of production in which 131,000 oz of gold along with 111,000 oz of silver have been mined in the late eighties.

Rapid resource growth - Since June 2010, a global resource of 155,000 oz has grown by 363% to reach 717,000 oz as of March 2014. The estimated 2014 drilling budget for Relief Canyon will total $1.5M and encompass between 7,000-8,000 meters.

Exploration upside – Of the over 25,000 acres of claims, less than 10% has been explored. In fact, the deposit itself at Relief Canyon is only about 50%-60% explored according to management. We note that operations are in a known gold & silver trend which since 2011 has had nearly $7M in exploration drilling.

The Relief Canyon mine is located 6 miles south of Coeur Mining’s CDE-NYSE, CDM-TSX; Not Rated) Rochester Mine that is expected to produce 28,000 – 31,000 oz. of gold and 4.1 – 4.4M oz. of silver in 2014 as well as two other operations within 15 miles distance. Fully permitted processing facility – Currently on care & maintenance, the processing facility is expected to be re-commissioned along with all necessary ancillary support facilities on the Relief Canyon mine site. The processing plant has a capacity to treat 8M tons per year. Moreover, the permitted leach pad has a 21M ton capacity. The plant is relatively new, having been built in 2008. The re-commissioning is expected for the first half of 2015.

Excellent management pedigree – Chairman and CEO Stephen Alfers was the founder and CEO of NewWest Gold Corporation from 2002-2007, where he led the development of several notable gold projects including Long Canyon, Sandman, and Northumberland, all projects now owned and being developed by Newmont. Alfers was a senior executive at Franco-Nevada Corporation from its founding in 2007 until he joined Pershing in 2012.

Pershing’s Nevada based group includes VP and General Manager Dan Moore has over 27 years of mining engineering and operations experience at several mines including Round Mountain, Florida Canyon and Cortez and Corporate VP, Debbie Struhsacker, with more than 30 years’ experience in gold exploration and permitting and regulatory matters. Larry Hillesland leads a group of experienced exploration and development geologists.

Nevada has a long history of gold mining seeing as the State contributes approximately three-quarters of total U.S. Production. All major players such as Barrick Gold (ABX-NYSE/TSX, Not rated), Newmont Mining (NEM-NYSE,Not rated), Goldcorp (GG-NYSE/G-TSX, Not rated), and Kinross Gold (KGC-NYSE/K-TSX, Not rated) have major operations in the State, mining from world class mines such as Carlin, Gold Quarry, Goldstrike, Marigold, Cortez, and Round Mountain.

A smaller Nevada based peer group comprising of Allied Nevada (ANVNYSE/TSX, Not rated), Midway Gold (MDW-NYSE/TSX, Not Rated), Rye Patch Gold (RPM-TSXV, Not Rated), Klondex Mines (KDX-TSXV, Not Rated), and Comstock Mining (LODE-AMEX, Not Rated) have been
assembled for purposes of comparable analysis.

Blindsquirrel

05/28/14 10:34 AM

#2403 RE: smallcapplayer #2400

Do you have a link for this alert? I dont see it anywhere.