Majority Owner and Operator of District Scale Project in NW Turkey
Pilot Gold Inc. (PLG - TSX) ("Pilot Gold" or the "Company") is pleased to announce that it has earned a 60% interest in the TV Tower project in northwest Turkey. TV Tower is a joint venture between Pilot Gold (60%) and Teck Madencilik Sanayi Ticaret A.S. ("Teck") (40%), a Turkish subsidiary of Teck Resources Limited. Pilot Gold is project operator at TV Tower and completed its earn-in through sole funding of exploration over a two-and-a-half-year period.
The TV Tower project has delivered six gold, silver and copper-gold discoveries over the past four years, and hosts numerous untested targets. The Company expects to begin the 2015 program shortly. With its joint venture partner now funding its pro-rata share of the exploration budget, the Company expects to complete significantly more drilling at a lower overall cost to Pilot Gold.
"The completion of our earn-in at TV Tower is a milestone in the evolution of Pilot Gold. Over the past 2½ years we've created significant value at TV Tower while moving towards 60% ownership," stated Matt Lennox-King, President & CEO of Pilot Gold. "We look forward to building on our recent discoveries with our partner Teck and continuing to establish TV Tower as a strategic asset in an emerging copper-gold district".
TV Tower
TV Tower is located in the heart of the Biga District and hosts numerous high-sulphidation epithermal and porphyry gold-copper occurrences and is a key component of an emerging prolific mineral district. The team at Pilot Gold, its predecessor company Fronteer Gold and its long time JV partner Teck, have been instrumental in pulling this district together over the past 10 years and defining its outstanding potential.
In 2014 alone, the Company defined Turkey's 3rd largest silver deposit with significant gold credits in a project-first resource estimate on the KCD target (see press release of January 23, 2014). In addition, Pilot Gold discovered or confirmed three new copper-gold porphyry deposits (Valley, Hilltop and Columbaz) in close proximity to one another which led to the development of a geochemical and geophysical "fingerprint", and from it, recognition of several compelling targets for further investigation in 2015.
TV Tower is road-accessible and is located in an area featuring numerous open pit coal, quartz and clay mines, ceramics factories and a major power plant. The project has an extensive road network and drill targets all lie on land administered by Turkey's Ministry of Forestry. There are no settlements or agriculture on the property.
The Earn-In
Since June 2012, Pilot Gold has incurred $21 million in exploration expenditures to complete the earn-in. The Company has also issued common shares and warrants to Teck such that Teck holds a 7.35% interest in Pilot Gold.
ABOUT PILOT GOLD
With a proven technical team and strong treasury Pilot Gold continues to discover and upgrade high-quality projects featuring strong grades, meaningful size in mining-friendly locales. Our cornerstone assets include interests in the Kinsley Mountain project in Nevada and the TV Tower and Halilaga projects in Turkey, each potentially being a foundational company asset. The Company also has a pipeline of projects defined by strong gold occurrences, large land positions and district-scale potential.
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 verified that the information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.3, 0.5, 1.0 and 2.0 g/t AuEq. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be approximately 50 to 80% 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. Ag and Cu were determined by 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 finish (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.
For more information, visit www.pilotgold.com or contact:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
[email protected]
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 TV Tower, reliance on technical information provided by our joint venture partner or other third parties as related to TV Tower; changes in project parameters as plans continue to be refined; 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 exploration and 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; the impact of archaeological, cultural or environmental studies within the property area, the inability to finalize the conveyance of the Karaayi license, labour disputes; delays in obtaining governmental approvals or financing as well as those factors discussed in the Annual Information Form for the year ended December 31, 2013, 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.