Pilot Gold Inc.

TSX : PLG


Pilot Gold Inc.

October 09, 2012 07:00 ET

Pilot Gold Reports 4.6 Metres of 9.5 g/t Oxide Gold at Kinsley Mountain, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 9, 2012) - Pilot Gold (TSX:PLG) (the "Company") is pleased to report the results of the six remaining holes in its 2012 drilling program at the Kinsley Mountain Project in Nevada. These holes were focused on the western side of Kinsley Mountain and targeted a recently-discovered north-south-trending zone of gold mineralization located more than 600 metres from the historic workings.

"We believe that these results continue to validate the 'Long Canyon' model developed by our technical team that predicted the presence of north- to northeast-trending mineralized zones extending from the historic, northwest-trending series of open pits," stated Matt Lennox-King, President and CEO. "We intend to follow up on these higher-grade structures with a regional exploration strategy to drill test evidence of mineralization."

NEW DRILL RESULTS

Western Flank of Kinsley Range: This growing zone, located approximately 600 metres northwest of the nearest historic pit, measures at least 600 metres long by 100 metres wide, and is characterized by two stacked lenses of mineralization that remain open in all directions. New RC drilling up to 150 metres north of hole PK061 (6.03 g/t gold over 13.7 metres) returned:

  • 9.50 g/t gold over 4.6 metres in hole PK067
    • including 20.5 g/t gold over 1.5 metres
  • 2.48 g/t gold over 6.1 metres in hole PK066

All true widths are believed to represent 30-100% 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 drill results to date, including new and non-reportable intercepts, please click: http://www.pilotgold.com/sites/default/files/KinsleyDrillResults1218.pdf

For a map highlighting 2012 drilling, please click: http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1218.pdf

2012 PROGRAM HIGHLIGHTS

Over the course of the 2012 program, 12,000 metres of infill and step-out core & RC drilling were completed to define and expand the mineralized zones identified by previous operators. In conjunction with drilling, a comprehensive regional effort to identify new targets was completed, encompassing both the original 141 claims, as well as 128 claims staked by Pilot Gold to the north in a largely unexplored area. Through this work, a new mineralized zone was intersected in drilling (Candland Canyon) and the Western Flank Zone has been expanded to now cover an area 600 metres by 100 metres. Previously-released drill highlights from the 2012 program include:

  • 6.03 g/t gold over 13.7 metres in hole PK061
    • including 15.18 g/t gold over 4.6 metres
  • 5.48 g/t gold over 20.4 metres in hole PK014C
    • including 16.43 g/t gold over 5.5 metres
  • 2.30 g/t gold over 19.8 metres in hole PK057

A three-dimensional model of geology and mineralization was created in order to aid in the selection of new, high-grade drill targets. Surface soil and rock samples show anomalous pathfinder geochemistry extending seven kilometres to the north of the historic open pits, consistent with the presence of a large mineralized system. A Plan of Operations was submitted to the U.S. Bureau of Land Management to allow for property-wide drilling in 2013 throughout the southern claim block.

NEW CLAIMS

On September 1st, 2012, Pilot Gold staked 41 unpatented lode mining claims on BLM administered land over highly prospective land held prior to that date by another company. The claims were filed with the BLM and Elko County, Nevada in the first week of October. 36 of the claims are located between two previously separate claim blocks at Kinsley, creating a contiguous property and consolidating access to the main mineralized trends to the North. The additional ground brings the total to 332 claims. Mapping, rock and soil sampling are all underway on the newly added ground.

For a map of the property showing the newly staked claims, please click here:
http://www.pilotgold.com/sites/default/files/KinsleyPropertyMap1218.pdf

The Kinsley Mountain project is a 51%/49% joint venture with a subsidiary of Nevada Sunrise Gold Corporation ("NEV"). To earn a further 14% interest in the project, Pilot Gold must spend $3 million in exploration. To date, the Company has incurred approximately $2.6 million in expenditures toward the second earn-in, and anticipates earning a 65% interest at Kinsley in early 2013. NEV will be responsible to fund its share of expenditures from that point forward.

Moira Smith, P. Geo., Pilot Gold Chief Geologist, 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 accurate. Drill composites were calculated using a cut-off of 0.30 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. 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. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS. Data citing ounces mined from historical production is attributed to www.metalseconomics.com.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates 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. Further information is available in the technical report entitled: "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", dated March 26, 2012, and prepared by Michael M. Gustin, CPA and Senior Geologist for Mine Development Associates, Inc., available under Pilot Gold's issuer profile on SEDAR at www.sedar.com.

ABOUT PILOT GOLD

Pilot Gold is a 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 the TV Tower and Kinsley gold projects and a 40% interest in the Halilaga copper gold porphyry project, each of which alone has the ability to drive the Company forward. For more information, visit www.pilotgold.com.

Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking information" concerning the business, operations and financial performance and condition of Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "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. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to differ materially from those anticipated in such forward-looking information. Such forward-looking information, including, but not limited to, statements that address future mineral production, reserve potential, exploration drilling, 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 exploration and development of our exploration properties, potential quantity and/or grade of minerals, potential type(s) of mining operation and the estimation of mineral reserves and resources, completion of expenditure obligations under the Kinsley Mountain Option Agreement, proposed exploration and development of the Kinsley Mountain property, future issuances of Common Shares as consideration to complete the acquisition of the Kinsley Mountain Option Agreement from Animas Resources Ltd.; estimated future working capital, funds available, uses of funds, future capital expenditures, exploration expenditures and other expenses for specific operations; information with respect to exploration results, the timing and success of exploration activities generally, 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 and actual results of historical production at Kinsley Mountain, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Kinsley Mountain property as well as specific historic data associated with and drill results from the property, information from Nevada Sunrise LLC and Nevada Sunrise Gold Corporation, the license and lease owners respectively on the Kinsley Mountain property, current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; 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 section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2011 dated March 28, 2012, which is available 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.

Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Pilot Gold, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Pilot Gold does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

Contact Information

  • Pilot Gold Inc.
    Matt Lennox-King
    President & CEO
    604-632-4677 or Toll Free 1-877-632-4677

    Pilot Gold Inc.
    Patrick Reid
    VP Corporate Affairs
    604-632-4677 or Toll Free 1-877-632-4677
    info@pilotgold.com
    www.pilotgold.com