The Gold Report - Thu, Mar 1, 2018

Analyst Sees Four Times Upside on Emerging Producer with Nevada Gold Project

H.C. Wainwright & Co., whose target price on this emerging producer is a quadruple, relayed the latest developments at this Nevada project.

Pershing Map

In a Feb. 27 research note, analyst Heiko Ihle with H.C. Wainwright & Co. reported that Pershing Gold Corp. (PGLC:NASDAQ; PGLC:TSX) started preconstruction at Relief Canyon in Nevada on Feb. 13, specifically the clearing of about 165 acres of land that will house the project's heap-leach pads, haul roads and waste rock storage facilities.

Once the company finalizes financing for Relief Canyon, which is currently in progress, it will start the six- to nine-month-long "construction of the heap-leach pads, overland conveyors, crushing facilities, contractor yards and optimization of the processing plant," Ihle indicated. During that period, contract mining staff should begin arriving at the property.

The analyst also noted that given the existing infrastructure there, the company can likely advance Relief Canyon to production, likely by sometime in Q1/19 or even sooner should financing details be ironed out quickly. "We expect substantial news flow regarding this throughout the year," he said.

Simultaneously, Pershing is conducting its 2018 drill program, which will focus on primarily four areas "to add near-term ounces to the current mine plan," explained Ihle. He went on to say that such a possibility exists, "given that several of the target areas were selected for follow-up drilling based on prior results that suggested potential for additional discoveries." The targets are the West Step-Out area, which remains open; the North East pit; the Main zone; and the South East Lightbulb pit. Drilling, which commenced in January and is expected to cost about $2.9 million, is slated to encompass 48 holes totaling 11,330 meters.

Additionally, Pershing's significant land package "offers the potential for additional satellite discoveries in proximity to Relief Canyon, namely areas that have seen no drilling thus far," Ihle wrote.

He reiterated H.C. Wainwright's Buy rating and $8.75 per share target price on Pershing, which represents nearly four times' upside from where the stock is currently trading, around $2.15 per share.

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click below for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

InvestorsGuru.com publishes interesting contributor articles in addition to its own content. We have not verified any of the above details.

Sign-up at InvestorsGuru.com (or blog.InvestorsGuru.com) for our Small Cap Stock Observer newsletter, and to set-up your own My Portfolio, My Watchlist & Alerts and News by Email preferences, or to post at our AnyTicker.com Bulletin Boards. Free!

Please note that nothing in this report should be taken as a recommendation in any way, and that everything from InvestorsGuru.com is subject to the terms of our Privacy Policy and Disclaimer.

comments powered by Disqus

Detailed Quote Portal

symbol lookup | (TSX add :ca)

Membership Privileges

  • Investors Guru Small Cap Stock Observer - newsletter emailed monthly!
  • Featured Stock Profiles - emailed on occasion!
  • News by Email - as it's released, according to your My Preferences!
  • My Portfolio - login to view or update your holdings, or have it emailed daily!
  • My Watchlist & Alerts - login to view or update your stock radar list, and set price triggers for email alerts!
  • Bulletin Boards - no need to request boards, just Quote it! Social Sign-on & Share your ideas, observations & trends!
  • Find it all! Find it Fast! Comprehensive stock research webpages. No more endless clicking!

Email: (see Privacy Policy)
Password: (4-15 characters)
Username: (4-15, BB posts etc)

unsubscribe anytime


Bookmark and Share

 Subscribe in a reader

Our Mobile Site