Pilot Gold Inc.

Pilot Gold Inc.

January 29, 2013 07:00 ET

Pilot Gold Reports 2.33 g/t Gold Over 93.5 Metres in Step-Out Drilling at TV Tower

Drilling extends gold mineralization 40 metres to the southeast, reveals additional high-grade infill intercepts in north-central portion of the gold zone

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 29, 2013) - Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to report additional results from seven diamond core holes from its ongoing drilling of TV Tower's KCD target in northwestern Turkey. In particular, step-out drilling in the southeast portion of the KCD target returned significant intervals of moderate to high-grade gold in three holes.

Southeast step-out drill highlights include:

  • 2.33 g/t gold (Au) over 93.5 metres in KCD-75, including
    • 17.4 g/t Au over 3.5 metres
  • 1.79 g/t Au over 78.6 metres in KCD-89, including
    • 7.01 g/t Au over 6.0 metres
  • 1.94 g/t Au over 14.3 metres in KCD-73, and
    • 1.12 g/t Au over 14.5 metres, and
    • 1.29 g/t Au over 11.5 metres

Core holes KCD-73 and KCD-75 were fanned from a single drill pad located approximately 40 metres southeast of KCD-65 (2.79 g/t Au over 61.3 metres, including 8.64 g/t Au over 10.5 metres). The results further extend the strike extent of the gold zone at KCD to over 350 metres. An additional hole was drilled down-dip to the northeast of KCD-75, with results pending. KCD-89 tested the down-dip extension to the northeast of mineralization in KCD-65, from the same pad. Additional drilling will test for gold mineralization further down-dip to the northeast of this hole.

High-grade infill drill highlights include:

  • 2.11 g/t Au over 58.0 metres in KCD-90, including
    • 11.6 g/t Au over 7.9 metres
  • 3.47 g/t Au, 63.1 g/t silver (Ag), 1.01% Copper (Cu) over 23.9 metres in KCD-86; including
    • 5.23 g/t Au, 103.8 g/t Ag, 1.74% Cu over 11.6 metres

Infill core holes KCD-86 and KCD-90 tested the area between recently reported KCD-79 (14.9 g/t Au over 14.1 metres) and KCD-50 (227 g/t Au over 12.0 metres) in the north-central portion of the gold mineralized zone and returned high-grade gold. Significantly, KCD-86 also intercepted high grades of silver and copper.

"Systematic drilling guided by the geological model continues to extend the mineralization at the KCD target," said Matt Lennox-King, President and CEO, Pilot Gold. "The gold-mineralized system remains very much open down-dip to the north and along strike to the northwest."

Hole ID From (m) To (m) Intercept (m) Au (g/t) Ag (g/t) Cu (%) Au (g/t) Cut-Off
KCD073 43.0 57.3 14.3 1.94 12.3 0.01 0.3
including 46.5 50.0 3.5 3.55 13.9 0.01 3.0
and 79.6 94.0 14.5 1.12 14.0 0.02 0.3
and 104.0 115.5 11.5 1.29 3.7 0.09 0.3
including 107.5 108.6 1.1 8.50 9.9 0.09 3.0
KCD075 38.5 132.0 93.5 2.33 9.1 0.17 0.3
including 44.0 47.5 3.5 17.4 21.6 0.02 3.0
including 44.0 46.0 2.0 24.2 28.3 0.03 10.0
including 109.0 113.2 4.2 12.0 17.1 0.81 3.0
including 110.0 113.2 3.2 13.0 13.3 0.57 10.0
KCD086 63.0 72.2 9.2 0.92 29.6 0.54 0.3
and 78.5 102.4 23.9 3.47 63.1 1.01 0.3
including 90.8 102.4 11.6 5.23 103.8 1.74 3.0
and 125.0 132.7 7.7 0.30 28.9 0.19 0.3
KCD089 83.3 161.9 78.6 1.79 7.9 0.34 0.3
including 140.8 148.1 7.3 3.23 9.4 1.06 3.0
including 152.3 158.3 6.0 7.01 23.9 1.54 3.0
including 153.8 155.6 1.8 13.50 55.6 3.78 10.0
KCD090 155.5 213.5 58.0 2.11 3.3 0.21 0.3
including 203.0 210.8 7.9 11.6 5.7 0.43 3.0
including 207.2 209.5 2.3 33.1 8.8 0.77 10.0

All true widths are 50-100% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. For a comprehensive table of results related to gold mineralization, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1305.pdf.

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1305.pdf.

The drill results form part of an aggressive exploration program consisting of 16,000 metres of diamond core drilling, property-wide airborne magnetic/EM geophysics and ongoing surface mapping and geochemical sampling. Approximately 13,304 metres in 66 holes at KCD have been completed since the program started in June 2012, with assays pending for 17 holes. Drilling in the near-term will continue to focus on infill and step-out drilling in the KCD target area.

Pilot Gold plans to undertake 25,000 to 30,000 metres drilling (total) at the KCD, Kayali and Sarp/Columbaz targets in 2013.

About TV Tower:

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited ("Teck"). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated June 21, 2012 for full details of the deal terms.)

Located on the Biga Peninsula of northwest Turkey, TV Tower encompasses 71 square kilometres. It contains a large number of targets ranging from high- and low-sulphidation epithermal gold-silver to porphyry gold-copper. The project has an extensive road network and targets to date all lie on land administered by Turkey's Ministry of Forestry. It is located immediately west of the Kirazli gold project (Alamos Gold) and approximately 10 kilometres northwest of the Halilaga copper-gold project (Teck/Pilot Gold).

First-pass drilling in 2010 resulted in new discoveries at the KCD and Kayali targets. Surface exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in recent rock chip sampling.

TV Tower 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 yielding 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 cut-offs of 0.3, 3.0 and 10.0 g/t Au. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Metallic screen techniques were employed to assay a 12-metre interval in KCD-50. Approximately 500 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. Ag and Cu were determined by aqua regia ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES (Cu). QA/QC included 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.


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 Mountain 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.

For more information, visit www.pilotgold.com.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey", effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.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 timing of exploration and development plans at the Company's mineral projects. 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 and mineral reserves, 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, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company's mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; 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; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; 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 (final) short form prospectus of the Company dated October 25, 2012, 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. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our Annual Information Form, available under Pilot Gold's SEDAR profile at www.sedar.com.

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