Todor Pichurov

Pershing Gold Corp. (OTCMKTS:PGLC) Climbs on High-Grade Reports

by Todor Pichurov February 12, 2015

After a bit of a rollercoaster ride in early 2015, yesterday Pershing Gold Corp. (OTCMKTS:PGLC, PGLC message board) climbed the charts by a solid 16%. The company dropped a press release yesterday morning before the open and the news contained in it jumpstarted the stock into shifting its biggest volume for the past three months, while climbing in double digits.

PGLC announced that it encountered an 87.9 grams per tonne or 2.57 ounces per tonne, high-grade intercept during its drilling in Relief Canyon Mine. This higher-grade stratum is part of a deeper, 30-foot intercept with a much lower concentration of 0.33 ounces per tonne.

We won't pretend that we worked as geologists in a past life or that we know everything about gold mining. However, considering the news comes on the heels of PGLC announcing 2.24 ounces per tonne, which used to be the best result the company ever achieved in Relief Canyon, it's no wonder the news pushed the price up. The company announced it expected additional drilling data from a further 15 holes.

PGLC is famous for being one of the companies in which Dr. Phillip Frost, CEO of NYSE-traded Opko Health Inc., is a 10%+ shareholder. Here is what PGLC last reported as of Sep 2014:

  • $10.4 million in cash
  • $678 thousand in current liabilities
  • zero revenues
  • $3.9 million in quarterly net loss

The company has so far gone through $111 million but if high-grade intercepts continue and new findings eventually transform into active production sites that generate revenue, the stock could go places despite the significant dilution it suffered in the last three quarters of 2014.

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