Pilot Gold Inc.
TSX : PLG

Pilot Gold Inc.

November 18, 2013 06:30 ET

Pilot Gold Reports 8.53 G/T Gold Over 36.6 Metres At Kinsley Mountain, Nevada

Results confirm and expand high grade gold mineralization at the Western Flank Target

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 18, 2013) - Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to announce that the 2013 program returned the highest-grade intercept in more than 1,300 holes drilled to date at the Kinsley Mountain project - 8.53 g/t gold (Au) over 36.6 metres, including 29.43 g/t gold over 7.6 metres in HQ core drill hole PK091CA.

Assay results from the Western Flank target, located 550 metres northwest of the past-producing pits at Kinsley, also expand the area of high-grade gold mineralization and demonstrate the potential for Kinsley to host significant high-grade gold mineralization. Drill hole highlights include:

  • 8.53 g/t Au over 36.6 metres in PK091CA, including
    • 29.43 g/t Au over 7.6 metres
  • 15.6 g/t Au over 3.0 metres in PK083C
  • 2.21 g/t Au over 10.7 metres in PK073
  • 1.65 g/t Au over 24.4 metres in PK074
  • 2.51 g/t Au over 16.8 meters in PK102

"Results released today mark a sea change for Kinsley, providing 'proof of concept' that our technical team's model from Long Canyon is valid and applicable at our flagship Nevada property," stated Dr. Moira Smith, Chief Geologist, Pilot Gold. "Prior operators believed Kinsley mineralization was restricted to past-producing, northwest trending structural corridors and hosted primarily in the Candland Shale. However, today's breakthrough drill results confirm that Kinsley's gold mineralization is also controlled by north and north-northeast trending structures and hosted within a limestone and shale sequence beneath the Candland Shale. We believe these results support district-scale potential at Kinsley."

Pilot Gold has drilled approximately 14,200 metres in 58 holes to date for its 2013 Kinsley program, with assays pending for 26 holes.

For a table of 2013 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillResults1325.pdf

For a drill map outlining the area covered by the Plan of Operations, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1325.pdf

For a photograph of PK091CA please here: http://www.pilotgold.com/sites/default/files/CorePhoto.pdf

Since August 30, 2013, when the U.S. Bureau of Land Management ("BLM") approved a Plan of Operations permitting exploration activities on the core group of claims at Kinsley Mountain, Pilot Gold has been drilling and constructing road access in three key areas, including the Western Flank, Candland Canyon and the Ken Jasperoid target.

Drilling in 2013 at the Western Flank has identified significant oxide and sulfide gold mineralization along a corridor stretching approximately 500 metres in a north-south direction. Mineralization occurs in gently west-dipping, tabular zones up to 150 metres wide and hosted within the Cambrian Candland Shale, the main gold host within the original Kinsley Mine.

Importantly, recent drilling has shown that significant gold also occurs within a lower zone of silty limestone below the Candland Shale. This host horizon was neither identified nor tested by previous operators. Recent core drilling suggests that the tabular zones of mineralized, favourable host rock are cut by one or more high-angle structures causing collapse breccia zones where the mineralization becomes thicker and higher-grade. Pilot Gold drill hole PK091CA contains high-grade collapse breccia zones similar to those seen at Newmont Mining's Long Canyon project and other world class Carlin deposits.

From the south edge of the Western Flank target, mineralization is open and becomes shallower to the south over a distance of 500 meters to the Wrong Spot target, a 350-metre long NNE-trending exposure of surface jasperoids returning 1-3 g/t Au in grab samples. It has not yet been drill tested.

The Western Flank area hosts numerous features that are similar to the geology at the Long Canyon deposit, including evidence of potential boudinage of a 100 metre-thick dolomite horizon and focusing of gold mineralization in and around this boudin neck area, which strikes north-northeast. Long Canyon was explored and developed by Pilot Gold's Kinsley team, prior to the project's sale as part of Newmont Mining Corporation's $2.3 billion acquisition of Fronteer Gold.

The existence of similar features as the Long Canyon deposit does not mean that a mineral resource will be found to exist in the Western Flank or, if found to exist, that it will be of similar grade or quantity that is found at Long Canyon.

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometre, SE-NW strike extent. The property consists of 380 claims and 7,650 acres (3,095 hectares) on BLM land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Gold mineralization is primarily oxidized, and occurs in strataform zones and fault collapse breccias within a sequence of Cambrian-Ordovician shelf carbonates. At depth, Pilot Gold has also drilled high-grade transitional and sulfide mineralization.

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"). There are no assurances that the geological similarities to the Long Canyon project or other project along the Long Canyon Trend, will result in the establishment of any resource estimates at Kinsley, or that the Kinsley project can be advanced in a similar timeframe. 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.

Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley. Pilot Gold holds a 78% interest in Kinsley and is sole-funding a $3.4-million program in 2013.

Vance Spalding, B.Sc., CPG, Pilot Gold Vice President, Exploration, 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.

For more information, visit www.pilotgold.com

For more information on the TV Tower, Halilaga or Kinsley Mountain properties refer to the following technical reports filed on the Company's website at www.pilotgold.com and under Pilot Gold's SEDAR profile at www.sedar.com: "Updated Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey", effective July 15, 2012 and dated August 3, 2012 prepared by Paul Gribble, C.Eng., FIMMM; "Preliminary Economic Assessment Technical Report for the Halilaga Project, Turkey" effective August 27, 2012 and dated October 10, 2012 prepared by Gordon Doerksen, P.Eng., James Gray, P.Geo., Garth Kirkham, P.Geo., Dino Pilotto, P.Eng., Maritz Rykaart, P.Eng, and Kevin Scott, P.Eng.; and "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A." effective February 15, 2012 and dated March 26, 2012 prepared by Michael Gustin, CPG and Moira Smith, Ph.D., P.Geo.

Reference to certain legacy data relating to the Kinsley Project developed by previous operators is provided for informational purposes only. Pilot Gold gives no assurance as to its reliability and relevance to the Company's current results and proposed exploration program at Kinsley. Pilot Gold has not completed any quality assurance program or applied quality control measures to the legacy data, nor has a Qualified Person done sufficient work to verify the source of the legacy data. Accordingly, the legacy data should not be relied upon. While Pilot Gold plans to verify some or all of the legacy data, the anticipated timing and results of that data verification cannot be ascertained at this time. Confirmation work may produce results that differ substantially.

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; 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; 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 Annual Information Form of the Company dated March 27, 2013 (the "AIF") 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 the AIF, available under Pilot Gold's SEDAR profile at www.sedar.com.

Contact Information

  • Investors:
    Patrick Reid, VP Corporate Affairs
    Phone: 604-632-4677 or Toll Free 1-877-632-4677
    info@pilotgold.com

    Media:
    Ian Noble, Director, Corporate Communications
    Phone: 604-809-8750
    inoble@pilotgold.com