In a press release this morning, Pershing Gold (OTC: PGLC) gave an update on its mining operations. The company is currently exploring areas outside of the existing pit mine on its Relief Canyon Mine, which it bought out of bankruptcy a little over a year ago. The exploration program has already found new mineralized zones. Assets on the Relief Canyon Mine give Pershing Gold a possible fast track toward production that other mining companies may have to wait years to accomplish. Steven Alfers, the CEO and President and Executive Chairman of Pershing Gold, said the company is poised to become Nevada’s newest gold producer. He also targeted 2014 as the year for the start of gold production. In order to access the prospects, traders must also speculate on the price of gold in two years.
The news sent traders panning for shares. The stock opened higher by two pennies from yesterday’s closing price to start the trading day at $0.40. Sellers kept selling their nuggets through the morning hours, and the stock hit an intraday low of $0.39 before traders began ordering lunch. The stock traded in a narrow range for most of the day until buyers decided to get off of their horses in the final hour of the trading day. Right before the closing bell, shares traded at an intraday high of $0.43. The stock closed Tuesday’s session with a gain of over 11% to finish just a fraction below the high for the day.
Even though the price of gold has shined brightly this year, shares of Pershing Gold have for the most part looked like pyrite. Almost one year ago, the stock traded at its high of $1.30. Within weeks of the high trade for the year, share prices dropped dramatically by 60% to less than $0.50. In late March, the stock nearly doubled to $1.00 on news that it had reached an agreement to acquire mining property from Victoria Resources. By mid-May, shares traded for $0.25, which marked a new 52-week low. When the Federal Reserve announced its policy of open-ended money printing on September 13, 2012, the price of gold rocketed and Pershing hitched a ride. Since last Thursday’s policy statement, Pershing Gold share prices have increased by 30%. Traders will wonder how high this rally can go.
In other related news, the company completed a financing deal with Coeur d’Alene Mines (NYSE: CDE) where Pershing Gold received $4 million in exchange for 10.9 million shares of common stock priced at $0.32 per share.
Promoters have been rather quiet about the company over the recent months. A total of 13 promotions touting the stock can be read on Stockpromoters.com. Several comments made today can be found on Twitter. Last night, @StockGarage added Pershing Gold to its stocks to watch. The stock was also mention by @Penny_Stock_Wiz.
The company, formerly known as Sagebrush Gold, focuses on the exploration of gold and other mineral resources. Pershing Gold holds the rights to explore on two properties located in Lander County, Nevada, plus ownership of the Relief Canyon Mine in Pershing County. The Lakewood, Colorado, company was founded in 2007.