VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 10, 2014) - Pilot Gold Inc. (PLG.TO) ("Pilot Gold" or the "Company") is pleased to report highlights from ongoing drilling and an update on other activities at the Kinsley Mountain Project in eastern Nevada.
Since the kick-off of the summer drilling program, a total of 16,772 metres in 16 core and 29 RC holes has been drilled to date, with assays pending for 5 holes. The Kinsley land package has increased, with the Company adding five patented claims (66 acres / 26 Ha) and an additional 40 federal lode claims (800 acres / 324 Ha). Pilot Gold has also secured 1,080 acre feet of water rights, and initiated metallurgical studies at the Western Flank.
Highlights from recent drilling in the Western Flank area include:
- 6.19 g/t (grams per tonne) gold over 45.7 metres in PK175CA, including
- 13.8 g/t gold over 19.2 metres
- 3.91 g/t gold over 18.3 metres in PK159C, including
- 8.15 g/t gold over 7.6 metres
- 2.89 g/t gold over 19.1 metres in PK162C, including
"A successful project is more than just our high-grade drill intercepts," stated Matt Lennox-King, President & CEO of Pilot Gold. "At Kinsley Mountain we continue building value beyond the drill bit by adding to our land package, securing water rights, advancing permits, and getting a head-start on metallurgy."
Step-out drilling at the Western Flank has continued to target high-grade mineralization in the Secret Canyon / Clark Springs formations, and the near-surface Candland Shale unit. The high-grade Western Flank footprint now covers 250 by 200 metres and remains open to the south, north-northeast and southeast. Mineralization in the Candland Shale trends north-northeast and is open to the south. Drilling at the Western Flank has not encountered any groundwater, which may simplify permitting in a development scenario.
Drilling at the Secret Spot target, located two kilometres to the south of the Western Flank target, resulted in the discovery of a thick zone of gold mineralization in the Secret Canyon shale, which is the same host for high-grade mineralization in the Western Flank. The existence of gold mineralization in the same unit two kilometres from the Western Flank suggests that mineralization could be wide-spread in this unit; follow up drilling is planned to test the extent of gold mineralization in this area.
Highlights from recent drilling at the Secret Spot target include:
- 1.34 g/t gold over 25.9 metres and
- 1.09 g/t over 13.7 metres and
- 3.02 g/t over 6.1 metres in PK153
The discovery of significant surface oxide mineralization brought early success to the Right Spot area, where new targets are being developed based on this drilling and additional surface work. Initial drill tests for deep mineralization under the existing pits returned anomalous gold and elevated pathfinders in the Secret Canyon shale. A follow-up program to vector towards higher grades is being developed for this area.
For a table of 2014 Kinsley Mountain drill results to date, please click here:
http://www.pilotgold.com/sites/default/files/Kinsley_DrillResults1427.pdf
For drill maps outlining the Western Flank/Right Spot area, please click here:
http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1427.pdf
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 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 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 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.
ABOUT KINSLEY MOUNTAIN
Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 469 claims on U.S. Bureau of Land Management land plus 6 leased patents totalling 9,520 acres (3,853 hectares) and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.
The Company holds approximately 79.1% of Kinsley. 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 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.", 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 Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, 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 14, 2014 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.