Pilot Gold Inc.
TSX : PLG

Pilot Gold Inc.

June 27, 2016 06:30 ET

Pilot Gold-RC/Core Drill Results, Goldstrike Oxide Gold Project-Utah

Core Hole PGS054C: 58.8 m grading 2.24 g/t Au, including 36.2 m grading 2.77 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 27, 2016) - Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to announce additional drill results from 6 Reverse Circulation (RC) and 4 diamond core holes at the 100% controlled Goldstrike Oxide Gold Project in southwestern Utah. The primary target is Carlin-style shallow, oxide gold mineralization on the 7 km long, 2 km wide "Historic Mine Trend", between and down-dip to the north of historic open pits.

Highlights from infill and step-out drilling include:

  • 0.87 grams per tonne gold (g/t Au) over 45.4 metres (m) in PGS046C - core hole
  • 0.76 g/t Au over 67.1 m in PGS053, including 1.91 g/t Au over 6.1 m
  • 2.24 g/t Au over 58.8 m in PGS054C, including 2.77 g/t Au over 36.2 m, including 6.04 g/t Au over 3.0 m - core hole
  • 0.96 g/t Au over 76.2 m in PGS058, including 1.98 g/t Au over 19.8 m
  • 0.46 g/t Au over 29.5 m in PGS059CA - core hole
  • 0.52 g/t Au over 25.9 m and 0.42 g/t Au over 25.9 m in PGS064

Nine of the ten released holes contain reportable oxide gold intercepts. The mineralized intercept in drill hole PGS054C is a follow-up to PGS026, which returned 57.9 m grading 1.19 g/t Au (see press release dated April 12, 2014), PGS027, which returned 47.2 m grading 1.14 g/t Au (see press release dated May 10, 2016) and PGS51C, which returned 41.1 m grading 2.64 g/t Au (see press release dated June 17, 2016). This is a new zone of mineralization down-dip of a historic surface showing and demonstrates the potential for discovery of higher-grade and more extensive mineralization in the shallow subsurface.

Key Points:

  • Continued drilling of the main gold host horizon, the Claron Formation, has resulted in the discovery of new areas with high grade feeder structures, including mineralization encountered in PGS058. A more concentrated RC drill pattern will be used to define these mineralized zones.
  • Continued drilling to date confirms gold mineralization with significant width and grade over virtually the entire Goldstrike Graben over an east-west distance of 1.4 km by 200 to 400 m north-south.
  • An additional 30 drill holes are proposed within this area before extending the infill step-out drill program up to 4.5 km to the west and 1 km to the east following the historical mine trend.
  • New drill intercepts indicate the possibility of thicker zones of mineralization in newly-tested areas, with some intercepts, including PGS058, of up to 76 m drilled thickness.

For photographs of representative core samples and corresponding assays for the full mineralized intercepts in core holes PGS46C, PGS54C, PGS056C and PGS59CA, please click here: http://pilotgold.com/sites/default/files/GoldstrikePR1615CorePhotos.pdf.

Mineralization in most holes is strongly oxidized, with AuCN assays typically between 70% and 100% of conventional fire assays.

For a complete table of drill results for the current 10 holes, please click here: http://pilotgold.com/sites/default/files/GS_Intercepts06202016.pdf.

For a complete table of results for all drilling by Pilot Gold at Goldstrike in 2015 and to date in 2016, please click here: http://pilotgold.com/sites/default/files/GS_Intercepts2015to06202016.pdf.

For a map of drill collars and traces for the current release, please click here: http://pilotgold.com/sites/default/files/GoldStrike_PR16_15Map.pdf.

RC drilling is ongoing, with on average 5 RC drill holes completed per week.

Goldstrike Property

Goldstrike is located in the eastern Great Basin, immediately adjacent to the Utah/Nevada border, and is a Carlin-style gold system, similar in many ways to the prolific deposits located along Nevada's Carlin trend. Like Kinsley Mountain and Newmont's Long Canyon deposit, Goldstrike represents part of a growing number of Carlin-type systems located off the main Carlin and Cortez trends in largely underexplored parts of the Great Basin. The Goldstrike Property comprises 96 km2 of US federal lode claims, patented (private) claims and Utah State leases. Previous mining at Goldstrike(1) occurred from 1988 to 1994, with 209,000 ounces of gold produced from 12 shallow pits, at an average grade of 1.2 g/t Au.

(1) Previous mining data sourced from: Willden, R., 2006, Goldstrike Mining District, Washington County, Utah: in Bon, R.L., Gloyn, R.W., and Park, G.M., eds., Mining Districts of Utah: Utah Geological Association Publication 32, p. 458-476.

Moira Smith, Ph.D., P.Geo., Vice-President Exploration and Geoscience, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-90% of the reported lengths. Drill samples were assayed by ALS Limited in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an additional cyanide leach analysis is done where the sample is treated with a 0.25% NaCN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS. ALS Geochemistry-Reno is ISO 17025:2005 Accredited, with the Elko prep lab listed on the scope of accreditation.

Goldstrike is an early-stage exploration project and does not contain any mineral resource estimates as defined by NI 43-101, except for that which is noted in a NI 43-101 technical report prepared for a previous operator entitled, "Technical Report on the Mineral Mountain Property, Washington County, Utah, USA", dated February 16, 2010, prepared by Kenneth P. Puchlik, of Puchski GeoConsultants, a "Qualified Person" as defined by NI 43-101. The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.

ABOUT PILOT GOLD

Pilot Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our two core projects are Goldstrike in Utah and Kinsley Mountain in Nevada. The Company also holds important interests in two Turkish assets, Halilaga and TV Tower, and has a pipeline of Western US projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results and/or the reliance on technical information provided by third parties as related to the Company's mineral property interests; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 17, 2016 in the section entitled "Risk Factors", under Pilot Gold's SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

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