Pilot Gold shares advance again after hitting new zone
Shares in Pilot Gold (TSE:PLG) jumped nearly 3% on Monday after another set of strong results from drilling at its Kinsley Mountain project in Nevada defined a new gold zone.
In lunchtime trade the Vancouver-based junior was changing hands at $1.43, up 2.9% on the Toronto Exchange, at its highs for the day.
The $146 million company's stock is down from March highs, but year to date the company is still up a whopping 65%.
The company reported last week drilling at Kinsley Mountain’s Right Spot target – around 1km from the Western Flank zone discovered last year – has returned long runs of predominantly oxide gold mineralization.
The Right Spot target is located along the 2 kilometre-long NNE Western Flank trend, 1 kilometre south of the recently discovered high-grade zone. Highlights from Right Spot include:
- 3.35 g/t (grams per tonne) gold over 41.1 metres in PK144, including – 5.11 g/t gold over 4.6 metres;
- 3.08 g/t gold over 19.8 metres in PK138;
- 2.43 g/t gold over 19.8 metres in PK139;
- 1.75 g/t gold over 22.9 metres in PK142;
Matt Lennox-King, President and CEO said "“We are at a tipping point in the evolution of Kinsley Mountain, with compelling near surface oxidized mineralization complementing the high grade Western Flank zone,” stated Matt Lennox-King, President and CEO.
The company expanded its 2014 summer exploration program by $1.57 million and 8,600 additional metres of drilling. Drilling at Kinsley is ongoing with two RC and one diamond core rig.
Targets currently being tested include extensions to high-grade mineralization in the Western Flank target area and an initial test of near-surface and deeper targets in the Secret Spot target area, located 1 km to the southwest of the Right Spot. Since inception of the summer drilling program, a total of 5,018 metres in four core and 13 RC holes has been drilled, with assays pending for 10 holes, the company said in a statement.
Pilot Gold said the Western Flank target, located 550 metres northwest of the past-producing pits at Kinsley, remains open in all directions. Western Flank drilling has returned such intercepts as 8.53 grams gold over 36.6 metres and 10.5 grams gold over 42.7 metres.
In late May 2014 Pilot Gold leased five patented claims (66 acres) located to the south of the historic Kinsley mine where prior operators intersected gold mineralization at and near surface within the Candland Shale. Pilot also conducted surface mapping and sampling to refine targets in the southern portion of the property.
Pilot Gold was created as part of Newmont Mining’s acquisition of Fronteer Gold in 2011. The company owns 78% of Kinsley and is also advancing projects in Labrador and Turkey.