Pilot Gold (TSE:PLG) rallied 13.42% to $1.69 after announcing 6.85 g/t gold over 41.7 metres at its Kinsley Mountain project located in Nevada.
The exploration company is focussed on projects in the USA and Turkey. Pilot Gold was created as part of Newmont Mining Corporation’s acquisition of Fronteer Gold Inc. in April 2011.
Year to date Pilot Gold is up 96.51%.
Here is the full news release.
Pilot Gold Reports 6.85 g/t Gold Over 41.7 Metres at Western Flank, Kinsley Mountain
VANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 27, 2014) –Editors note: There are two images associated with this press release.Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to announce that new drilling to follow up the recent high-grade discovery at Kinsley Mountain's Western Flank target has intersected additional high grade gold mineralization, including 6.85 grams per tonne gold ("g/t Au") over 41.7 metres in PK127C.Holes PK127C and PK126C are step-outs located approximately 30 metres east and 30 metres west, respectively, of PK91CA, which returned 8.53 g/t Au over 36.6 metres (see press release dated November 18, 2013).Highlights from the 2014 drill program's first two holes include:
- 6.85 g/t Au over 41.7 metres in PK127C, including
- 16.3 g/t Au over 8.5 metres (oxide), and
- 20.5 g/t Au over 3.6 metres (oxide)
- 1.70 g/t Au over 13.7 metres in PK126C, including
- 7.10 g/t Au over 1.5 metres
These assay results better define the size and shape of the high grade zone at the Western Flank target. Intercepts in both holes are located at the approximate elevation of PK91CA, suggesting that the high-grade zone is nearly flat lying in an east-west orientation. The bottom portion of the PK127C intercept is in highly oxidized rock that returned strong gold recoveries in cyanide soluble assays. The high grade zone is located in a previously unrecognized stratigraphic horizon below the limit of prior drilling. Assay results from four additional holes, drilled 25-50 metres to the north and south of PK91CA and PK127C, are pending.
"Recent results confirm that the newly discovered zone of high-grade mineralization is open in all directions," stated Matt Lennox-King, President and CEO, Pilot Gold. "Prospective stratigraphy and structure occurs over 1.7 kilometres in the Western Flank and also includes areas under and to the south of the historic Kinsley Mine. As a result, the scale of potential has increased markedly at Kinsley Mountain."
Gold at the Western Flank is hosted in multiple units. The upper stratigraphic unit (Candland Shale) rises to the surface 500 metres to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot identified a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t gold in grab samples. Stratigraphic gold host units lying below the Candland Shale appear to surface an additional 500 metres to the south of the Right Spot target, where gold-bearing jasperoids are also present. Initial drill results from the Right Spot target are pending.
The Western Flank area hosts numerous features that are similar to the geology at the nearby 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. There are no assurances that the geological similarities to the Long Canyon project will result in the establishment of any resource estimate at Kinsley's Western Flank, or, if found to exist, that it will be of a similar grade or quantity that is found at Long Canyon or those other deposits, or that the Kinsley project can be advanced in a similar timeframe. 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.
For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillResults1407.pdf
For a drill map and long section showing conceptual target stratigraphic units in the Western Flank/Right Spot area, please click here: http://www.pilotgold.com/sites/default/files/KinsleyMap1407.pdf
The Western Flank target is located 550 metres northwest of the past-producing pits at Kinsley. It comprises north-northeast-plunging zones of mineralization hosted in three or more receptive stratigraphic horizons intersected by one or more steep breccia zones that may have served as conduits and porous hosts for gold mineralization. In addition to mineralization in stratigraphic units exploited in the previous mining operation, Pilot Gold drilling has revealed that high-grade gold occurs within a lower limestone unit that was neither identified nor tested by previous operators.
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 U.S. Bureau of Land Management 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"). 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, a subsidiary of Nevada Sunrise Gold Corporation, is the Company's joint venture partner at Kinsley. Pilot Gold holds a 78% interest in Kinsley.
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 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.
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 27, 2013 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.