Pilot Gold Inc.

TSX : PLG


Pilot Gold Inc.

March 12, 2014 06:30 ET

Pilot Gold Reports 10.5 g/t Gold Over 42.7 Metres at Western Flank, Kinsley Mountain

100 metre step-out extends high grade zone and remains open in all directions; Right Spot drilling extends Western Flank over 1.7 km

VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 12, 2014) -

Editors note: There are four images associated with this press release.

Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to announce that step-out drilling at Kinsley Mountain's Western Flank target has intersected high grade gold mineralization, including 18.3 grams per tonne gold ("g/t Au") over 22.9 metres in PK131C. Drilling 500 metres south at the Right Spot target returned a near surface, oxide gold interval of 3.57 g/t Au over 11.5 metres in PK130C.

Western Flank Results:

Holes PK131C and PK132C are step-outs located approximately 25 metres north and 100 metres northwest, respectively, of PK91CA, which returned 8.53 g/t gold over 36.6 metres (see press release dated November 18th, 2013).

Highlights include:

  • 10.5 g/t Au over 42.7 metres in PK131C, including
    • 18.3 g/t Au over 22.9 metres;
  • 7.53 g/t Au over 53.3 metres in PK132C, including
    • 14.9 g/t Au over 22.9 metres, and
    • 4.67 g/t Au over 7.6 metres

"We are thrilled to report these new results, with PK131C the best hole ever drilled at Kinsley," stated Matt Lennox-King, President and CEO. "They underscore our long-held belief that the Kinsley project can host significant high-grade mineralization. What is most exciting is the fact that the high grade zone at the Western Flank remains completely open."

Drill holes PK132C, 131C, 91CA and 127C (6.85 g/t Au over 41.7 metres; see press release dated February 28, 2014) are aligned along a NW-SE fence over a length of 150 metres. The strong results along this trend suggest that the mineralization may be, in part, an extension of the 2.2 kilometre long NW-SE "Kinsley Trend" structural zone, along which the historic pits are aligned. Consequently, in addition to ongoing testing the NNE-SSW "Western Flank" structure, drill holes will also be planned along the corridor between the Western Flank target and the historic Upper Pit, located 550 metres to the southeast. Shallow historic drilling in the pits stopped short of testing the stratigraphic horizon hosting high-grade mineralization in the Western Flank target, and thus the potential for mineralization below the limits of the pits may be extensive.

Right Spot Results:

Gold is hosted at the Western Flank in multiple stratigraphic units. The upper stratigraphic units (Big Horse Limestone and Candland Shale, the main ore hosts in the historic mine) rise to the surface 500 metres to the south at the Right Spot target. Highlights from the Right Spot target include:

  • 3.57 g/t Au over 11.5 metres in PK130C, including
    • 5.87 g/t Au over 3.1 metres (oxide), and
  • 0.89 g/t Au over 6.1 metres and 0.58 g/t Au over 15.5 metres in PK129C

Lower stratigraphic units hosting high-grade gold in the Western Flank target, including the Secret Canyon Shale, appear to surface an additional 500 metres to the south of the Right Spot target, extending the potential for mineralization over a 1.5 kilometre trend.

Mapping and rock sampling at the Right Spot identified a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t gold in grab samples. Hole PK130C was located 17 metres northeast of a 15-metre-long road cut channel sample averaging 2.0 g/t Au. Gold mineralization starts at 5.2 metres down-hole, and consists entirely of oxidized and silicified (jasperoidized) rocks. Based on surface mapping and down-hole structural data, the intercept may be approximately 90% of true thickness.

Shallow mineralization encountered in PK129C is hosted in a limestone unit within the Lamb Dolomite below the Candland Shale and confirms the presence of another potential host unit not previously recognized. The Secret Canyon shale unit, host to high grade gold in PK131C, has not been tested to date at the Right Spot target.

For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillResults1409.pdf

For drill maps outlining the Western Flank/Right Spot area, please click here:
http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1409.pdf

For a long section showing conceptual target stratigraphic units in the Western Flank/Right Spot area, click here: http://www.pilotgold.com/sites/default/files/KinsleyLongSection1409.pdf

For a table of all 2013 Kinsley Mountain drill results, including non-reportable intercepts, please click here:
http://www.pilotgold.com/sites/default/files/Kinsley2013DrillTable1409.pdf

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 412 claims and 8,208 acres (3,322 hectares) on U.S. Bureau of Land Management land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

The Company increased its interest in the project to approximately 79.1% as a consequence of sole funding activity at Kinsley through December 31, 2013. Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("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.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of 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 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) 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 addition 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.

Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

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, copper, silver 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 at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; 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 or its joint venture partners; 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 27, 2013 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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