Pilot Gold Intersects 19.8 Metres of 2.30 g/t Gold, Extending Mineralization Over 2.2 Kilometres at Kinsley Mountain, Nevada
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/27/12 -- Pilot Gold (TSX: PLG) ("Pilot Gold" or "the Company") is pleased to report that reverse-circulation (RC) step-out drilling at the Company's Kinsley Mountain Project in northeast Nevada has returned up to 2.30 g/t gold over 19.8 metres on the western flank of the Kinsley Range, 550 metres northwest of the nearest historic pit. Additionally, a newly discovered zone of mineralization, Candland Canyon, was identified 250 metres east of historic mining operations. Mineralization at Kinsley Mountain now extends over a distance in excess of 2.2 kilometres and is interpreted to extend under cover to the north.
"These results are very significant because they change the complexion of the Kinsley Project and may indicate the presence of a widespread gold system that extends well beyond the limits of historical mining," stated Matt Lennox-King, President and CEO.
NEW DRILL RESULTS
Western flank of Kinsley Range: Ongoing RC drilling approximately 550 metres northwest of the nearest historic pit is testing a prospective area with limited historic drilling. To date, results have been received for two holes:
-- 1.73 g/t gold over 15.2 metres in PK056
-- 2.30 g/t gold over 19.8 metres in PK057
Candland Canyon: This represents a new mineralized zone approximately 250 metres north of the easternmost pit, and will be followed up with additional drilling. Drilling returned:
-- 1.08 g/t gold over 10.7 meters in PK039.
Step-out holes: Drilling primarily located to the north and east of the main pit area, where core drilling by Pilot Gold in 2011 and 2012 returned up to 6.23 g/t gold over 8.7 metres in hole PK002C and 5.48 g/t gold over 20.4 metres in Hole PK014C (see news releases dated February 10 and July 16, 2012) returned:
-- 3.20 g/t gold over 6.1 metres in PK051(100 metre step out north of
PK014C); and
-- 3.13 g/t gold over 3.0 metres in PK052 (150 metre step out north of
PK014C).
Stratigraphic testing: The drill program also included a small number of holes extending through the known mineralized horizons and into underlying dolomite and limestone previously assumed to be unmineralized. Drilling in these units returned encouraging results, including:
-- 0.41 g/t gold over 13.7 metres in PK011 (within the dolomite); and
-- 0.72 g/t gold over 4.6 metres in PK036 (in limestone below the
dolomite).
All true widths are 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/KinsleyDrillResults1215.pdf
For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1215.pdf
Regional program and other activities
In conjunction with the 2012 drill program regional exploration, data compilation and modeling, and environmental studies are underway. A Plan of Operations permit application was submitted to U.S. Bureau of Land Management (BLM) in June, which will allow for expanded drilling activities beyond the previously disturbed areas.
The regional mapping and sampling program has identified a large number of new structures that host jasperoid alteration, a hallmark of Carlin-style sediment-hosted mineralization. Jasperoid alteration can be found within mineralization, but commonly extends to areas above, and lateral to, mineralization. Jasperoids highly enriched in the gold-associated pathfinder elements such as arsenic, antimony and thallium have been recognized up to eight kilometres north of the mine. At the completion of the regional program, drill targets in these areas will be selected. Jasperoid samples from closer to the mine in strata interpreted as immediately overlying mineralized horizons at the mine have returned up to 3.34 g/t gold.
For a map of surface sampling results, click here: http://www.pilotgold.com/sites/default/files/KinselySurfaceSamplingMap1215.pdf
Nevada Sunrise Gold Corporation is Pilot Gold's 49% joint venture partner on Kinsley Mountain. Pilot Gold is currently earning a 65% interest in the project.
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 72-element geochemical suite by ICP-MS. Data citing ounces mined from historical production is attributed to www.metalseconomics.com.
HALILAGA UPDATE
The Company has been informed that the Turkish Ministry of Environment and Urban Planning (the "Ministry") has been served a legal petition by certain claimants in Turkey to annul the Ministry's recent approval of a baseline Environmental Impact Assessment report (the "EIA") prepared in relation to the Halilaga copper-gold project in Turkey. The EIA contemplates a small-scale copper-gold test mining scenario as part of an ongoing effort to advance understanding of the project.
The Company's interest in Halilaga is held through a 40% shareholding in Truva Bakir Maden Isletmeleri A.S. ("Truva Bakir"), a Turkish joint stock company. Teck Resources Limited's Turkish subsidiary, Teck Madencilik Sanayi Ticaret A.S., is Pilot Gold's 60% joint venture partner and project operator at Halilaga.
The petition allegedly filed with the Canakkale Administrative Court (the "Court") names the Ministry as the respondent and does not name Truva Bakir or its shareholders. The petition also purportedly requests suspension of any activities contemplated in the EIA by way of an interim decision to be granted by the Court.
The Company believes the petition is without merit, and even if the petition is successful, and the EIA is annulled, the ability to continue the planned 2012 exploration program on Halilaga is unaffected. Should the EIA be annulled, the shareholders of Truva Bakir would revisit the EIA process in order to address identified issues, and update for the result of ongoing economic and environmental studies. The Company has also been advised that there is no direct threat to the underlying tenure on the licenses that comprise Halilaga.
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 and meaningful size in mining-friendly addresses. Our three key assets include interests in the Halilaga and TV Tower 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.
For more detailed information on the Kinsley Mountain project, please refer to the NI 43-101 technical report dated March 26, 2012, entitled Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A. available on SEDAR at www.sedar.com.
For further details on Halilaga, please view the NI 43-101 technical report entitled "Resource Estimate for the Halilaga Copper-Gold Property NI 43-101 Technical Report", dated March 23, 2012, prepared by Garth Kirkham, P.Geo. of Kirkham Geosystems Ltd., and James Gray, P.Geo. of Advantage Geoservices Ltd. filed under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com). Mr. Gray and Mr. Kirkham are independent of Pilot Gold and are "Qualified Persons" as defined by NI 43-101.
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", " 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. 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 as well as to the 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.; Pilot Gold's ability to fund cash-calls made by Teck Madencilik Sanayi Ticaret A.S. ("TMST") for ongoing expenditure on the Halilaga property, estimated future working capital, 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; the costs and timing of the development of new deposits; the timing and possible outcome of any pending litigation, permitting timelines, the ability to maintain or convert the underlying licenses that comprise Halilaga in accordance with the requirements of the Turkish Mining Law, and/or the potential outcome of challenges filed relating to Environmental Impact Assessment ("EIA") reports, government regulation of exploration and mining operations, and the results of any future development programs 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 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; reliance on technical information provided by TMST at the Halilaga property; changes in project parameters as plans continue to be refined; 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, permits or licenses; environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of EIAs and challenges thereon; title disputes or claims against the project, the operator or Pilot Gold, limitations on insurance coverage, 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.
Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date Except as required by applicable securities laws. Pilot Gold does not undertake to update any forward-looking statements that are included in this document 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.
Contacts:
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