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2010 Pershing Resources Update
This past year has seen a positive change in the investment climate for precious metals mining companies. A weakening dollar and gains in precious metal prices have enhanced the potential value of many mining ventures. At the same time, a contraction in the capital markets has limited our ability to expand our drilling and testing operations. In spite of these challenges, we have confidence in the potential of our property and the future of our company. One of the reasons Pershing acquired the Marcos Claims in 2004 was its proximity to other gold and silver producing properties. To the west lies the Coeur D’Alene (CDE) property which produces silver. To the east lies acreage owned by Newmont Mining (NEM). It is often said "to find gold you should look at where it is being produced now". We believe that the area surrounding the Marcos Claims could, by extension, suggest a potential for precious metals on our property. To that end, in 2009 we embarked on a mapping program used in identifying underground anomalies for precious metals. This program is used by both oil and gas producers along with mining companies. Called the "Tipper", this work, done by an independent third party, identified specific areas within the Marcos Claims which had a high potential for precious metal concentration. The Tipper Report has recommended we focus our attention on a particular area. Small sampling programs have been done using a register facility in Sparks, Nevada. The results have been encouraging and do suggest the potential for a commercially viable mine being developed on the Marcos claims. The company has engaged Dyer Engineering to file permits for additional drilling activity to complement our existing permit to extract and process 1,000 tons of material. Armed with this new data, our approach going forward would be two fold. First, aligning ourselves with a joint venture partner to fund development of the property would be the best plan. However, in todays credit market this continues to be a challenge. Our second option could allow us to lease the property to a producing entity and collect a royalty on the production. This approach would enable us to build our capital reserves and distribute revenue to our shareholders in the form of a consistent dividend. We believe in the value of our property but are being realistic in our financial limitations given the size of our company and the expense necessary to turn the Marcos project into a producing mine.
Management is making every attempt to unleash the potential of the Marcos project. Despite the challenges companies of our size and resources face, we are confident that through your continued support we can move forward with our project and become a producing precious metals company. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address exploration drilling, exploitation activities and events or developments that the company expects are forward looking statements. Although the company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits, licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation, and continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, investors should review the Company's website at www. PershingPM.com
On behalf of the Board of Directors Stephen D. Plumb President and CEO |