Drilling extends silver mineralization to the north; additional intercepts expand new oxide gold zone
VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that KCD drilling focused on extensions to the silver zone and the new upper oxide gold zone to the north continue to yield strong results and expand the area of silver and gold mineralization.
Silver results include 112.5 g/t silver (Ag) over 70.5 metres in KCD-169R and 47.8 g/t Ag over 75.3 metres in KCD-168, expanding the area of KCD silver mineralization to approximately 600 metres by 650 metres. KCD-169R bottomed out at 143.8 g/t Ag over 25.5 metres, and then was abandoned due to poor ground conditions.
KCD-169R also returned 0.56 g/t gold (Au) over 10.5 metres and 1.15 g/t Au over 7.5 metres, both within a 24.5 metre interval. The results extend newly discovered oxide gold mineralization exposed in surface outcrops at the top of KCD ridge down dip over 200 metres to the northeast1. Both the oxide/sulfide silver zone and the oxide gold zone remain open for expansion to the north.
Silver Zone step-out highlights:
- 112.5 g/t Ag over 70.5 metres in KCD-169R, including 143.8 g/t Ag over 25.5 metres
- 47.8 g/t Ag over 75.3 metres in KCD-168, including 158.4 g/t Ag over 13.5 metres
Upper Gold Oxide Zone highlights:
- 0.56 g/t Au, 7.9 g/t Ag over 10.5 metres in KCD-169R, and 1.15 g/t Au, 24.4 g/t Ag over 7.5 metres
“As the 2013 KCD drilling program winds down and we move into the modeling phase, we are encouraged to see continued strong silver results, a new oxide gold discovery and mineralization extending to the edge of permitted drilling in multiple directions,” said Matt Lennox-King, President and CEO, Pilot Gold. “Silver results in KCD-168 and KCD-169R suggest a zone of elevated silver borders the northeast margin of the silver zone, which we look forward to drill-testing in upcoming programs.”
Two additional holes in the new oxide gold zone will test for gold mineralization and strong silver mineralization down-dip up to 130 metres to the northwest. The zone is open down-dip to the north and along strike to the west. The Company plans additional step-out drilling at KCD to test the gold and silver zones.
Pilot Gold is advancing KCD towards initial resource definition while continuing to develop the district-scale potential across the TV Tower property by defining and testing additional high quality targets. Drilling is in progress at the oxide gold Kayali target and the KCD drill will be mobilized to the Karaayi tenure, which is on-strike with Kayali. Pilot Gold plans to complete 2,000 metres at the Kayali and Karaayi targets through the fall.
New zone of gold mineralization:
Several recent drill holes also discovered near-surface, oxidized gold mineralization from four drill sites spaced approximately 100 metres apart, overlying the silver zone and north of the high-grade sulfide gold zone. These oxide intercepts are related to a silicified tuff horizon exposed for over 300 metres along a WNW-ESE trending ridge at the top of the KCD ridge (see map link). Previous surface rock sampling in this area returned up to 1.1 g/t Au. The zone is open to the northwest. The same stratigraphic sequence is exposed as an up-thrown fault block on a ridge 0.5 kilometres north of the drill sites. Mapping and sampling of this sequence is in progress.
All true widths are 50-100% 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 results related to silver mineralization, please click: http://media3.marketwire.com/docs/TV%20TowerDrillResultsAg1321.pdf
For a comprehensive table of results related to gold mineralization, please click: http://media3.marketwire.com/docs/TV%20TowerDrillResultsAu1321.pdf
For a map highlighting recent drilling, please click: http://media3.marketwire.com/docs/TV%20TowerMap1321.pdf
Core and RC drilling, geologic modeling and ongoing surface work form an aggressive exploration program at KCD. Seventy drill holes and 16,411 metres have been completed at KCD this year, with assays pending for 4 holes. At the nearby Kayali bulk tonnage, oxide gold target, approximately 3,096 metres have been completed in 11 drill holes, with assays pending for all holes. A surface program is underway at the Karaayi property to define drill targets to be tested before year-end.
About TV Tower:
TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated September 12, 2012 for full details of the deal terms.)
Located on the Biga Peninsula of northwest Turkey, the TV Tower project encompasses 90 square kilometres. It contains a large number of targets ranging from high- and low-sulphidation epithermal gold-silver to porphyry gold-copper. The project has an extensive road network and targets to date all lie on land administered by Turkey’s Ministry of Forestry. It is located immediately west of the Kirazli gold project (Alamos Gold) and approximately 10 kilometres northwest of the Halilaga copper-gold project (Teck/Pilot Gold).
TV Tower 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 yielding a mineral resource.
1) The newly discovered oxide zone was first reported in Pilot Gold’s September 10, 2013 media release.
Vance Spalding, CPG, VP Exploration, 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 cut-offs of 10, 50 and 100 g/t Ag. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% 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. Metallic screen techniques were employed to assay a 12-metre interval in KCD-50. Approximately 500 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. Ag and Cu were determined by aqua regia 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 (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.
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 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 or contact:
Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
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Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.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 timing of exploration and development plans at the Company’s mineral projects. 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 and mineral reserves, 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, including, but not limited to, statements that address reserve or resource potential, 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 timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources 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 of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; 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 the 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; 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 for the year ended December 31, 2012, dated March 27, 2013 (the “AIF”) 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. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our AIF, available under Pilot Gold’s SEDAR profile at www.sedar.com.