Karaayi agreement, strong initial drill results at Kayali, approved plan of operations at Kinsley highlight Q3 advancements 

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report its financial results for the nine months ended September 30, 2013, and update progress at TV Tower and Kinsley.  


  • Cash and short-term investments at September 30, 2013, totalled $24 million.
  • Acquired beneficial interest in the Karaayi property, consolidating ownership of a strategic exploration target at TV Tower and creating the dominant position in Turkey’s Biga Peninsula. The Karaayi tenure contains some of the strongest and most extensive gold-in-soil anomalies in the TV Tower District.
  • Reported mapping, soil sampling, rock sampling and compiled drill data that indicate the presence of a potential shallow, bulk-tonnage oxide gold-mineralized system at least four kilometres long between the Kayali and Karaayi targets at TV Tower.
  • Demonstrated strong continuity of oxide gold mineralization over a strike length of 450 metres from the Company’s first drill test at Kayali. Significant drill results from the Kayali target include1:

           o 15.9 g/t gold (Au) over 3 metres, within an interval grading 1.35 g/t Au over 45 metres,  in KYD-46

  • Continued to demonstrate encouraging drill results at TV Tower’s KCD target while expanding that target’s silver and gold mineralization. Significant drill results from KCD include2:

           o 6.99 g/t Au, 150 g/t silver (Ag), 10.1% copper (Cu) over 5.0 metres in KCD-164, including 14.3 g/t Au, 494 g/t Ag, 35.1% Cu over 1.1 metres

  • Completed the second milestone expenditure requirement toward earn-in to an additional 20% interest at TV Tower.
  • Increased the Company’s interest in Kinsley to 78%, and received approval for a Plan of Operations  allowing up to 70 acres of disturbance for exploration and development drilling on the core group of claims.  
  • Sold several portfolio property interests, reducing the cost of maintaining the assets while retaining an interest in the properties through net smelter return royalty interests or equity in the purchasers.

1As previously reported in press release dated November 1, 2013
2As previously reported in press release dated September 10, 2013

“We are very pleased with the progress achieved in Turkey and Nevada through drilling and other exploration work, permitting, land acquisitions and deal flow during Q3,” stated Matt Lennox-King, President and CEO, Pilot Gold.

“With our strong cash balance, the Karaayi transaction, the emergence of a potential bulk-tonnage oxide gold-mineralized system at TV Tower and our increased interest in Kinsley, we are uniquely positioned to fund programs through 2014 at two premier exploration properties in exceptional mining jurisdictions.”


Pilot Gold continued to make progress on its key exploration projects in the third quarter of 2013.

TV Tower:

On September 5, 2013 we announced a transaction to acquire the 1,956-hectare Karaayi property, consolidating ownership of a strategic exploration target for TV Tower and creating the dominant land position in the greater TV Tower District. The Karaayi target is contiguous and on strike with the Kayali target and has approximately 100 permitted drill sites. Orta Truva Madencilik, the Company’s joint venture partner at TV Tower, acquired a beneficial interest in Karaayi in exchange for 1,250,000 Pilot Gold common shares and $300,000 in cash.  Consideration for the acquisition is eligible toward earn-in to the additional 20% interest in TV Tower.

The Company has completed 16,781 metres of drilling at KCD, 3,586 metres of drilling at Kayali and 1,329 metres of drilling at Karaayi. Initial infill mapping and soil and rock sampling between Kayali and Karaayi demonstrate the presence of a contiguous oxide gold-mineralized system stretching four kilometres, linking the two targets and providing a significant extension on the Kayali mineralization. An initial resource of the KCD target is expected before year end, and a staged metallurgical testing program is underway. We received drill permits for the Sarp and Columbaz targets in October 2013 and have multiple permits pending.

During the nine months ended September 30, 2013, Pilot Gold incurred approximately $7.1 million in exploration expenditures at TV Tower (year ended December 31, 2012: $4.77 million). The budget for the 2013 program is $7.9 million. Including consideration paid for Karaayi, and net of a VAT receivable, the Company has $7.1 million remaining to complete the final earn-in expenditure requirement.

Pilot Gold currently holds a 40% interest in the project, and became project operator in 2012 with an option to increase the Company’s interest in TV Tower to 60%.  The Company completed the second year minimum committed expenditure amount during the quarter and has embarked on the final expenditure to complete the earn-in.  A subsidiary of Teck Resources Limited is the Company’s 60% joint venture partner at TV Tower.


Kinsley is a Carlin-style, sediment hosted project and past producer located along the Long Canyon Trend in North Eastern Nevada. Pilot Gold increased its interest in Kinsley Mountain to 78% during the quarter as Nevada Sunrise Gold Corporation elected not to participate in the 2013 program and budget. The revised budget at Kinsley is equal to what had previously been Pilot Gold’s share ($3.39 million).  The Company expects that the planned 20,000-metre RC and core drill program will conclude in November 2013. More than 13,700 metres have been completed to date under the 2013 program.

The Company received an Approved Record of Decision from the United States Interior Department’s Bureau of Land Management for a Plan of Operations in August 2013.  Upon receipt, the Company expanded exploration and expects to drill multiple targets beyond the previously disturbed areas on this past-producing property.

Through September 30, 2013 the Company had capitalized approximately $2.04 million in expenditures at Kinsley (year ended December 31, 2012: $3.67 million). 

TV Tower and Kinsley are both early stage exploration projects; neither 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.


The following selected financial data is derived from the Company’s unaudited condensed interim consolidated financial statements for the nine month period ended September 30, 2013, as prepared in accordance with International Financial Reporting Standards.

(Expressed in 000s, except per share data)

Three months ended            September 30,

Nine months ended September 30,






Loss for the period





Loss and comprehensive loss for the period





Basic and diluted loss per share







             As at


September 30, 2013

(in 000s)

December 31, 2012

(in 000s)

Cash and short-term investments



Working capital



Total assets



Current liabilities



Non-current liabilities



Shareholder’s equity



Total assets decreased to $72.01 million as at September 30, 2013 (December 31, 2012: $72.39 million), and comprise primarily expenditures capitalized to the earn-in to TV Tower of $18.13 million (December 31, 2012: $7.24 million), the value of the Company’s investment in its associates of $15.03 million (December 31, 2012: $11.93 million) and cash and short-term investments of $23.98 million (December 31, 2012: $37.38 million).  Notwithstanding an ongoing exploration program whereby the majority of expenditures are capitalized, the decrease reflects the write down of deferred exploration expenditures ($1.37 million) relating to the New Boston and Buckskin North properties and cash outflows related to corporate activities through the nine months ended September 30, 2013. The increased values of the earn-in to TV Tower and the Company’s investment in its associates reflects the inclusion of the value of common shares ($5.99 million) issued pursuant to the TV Tower Agreement and as partial consideration for the acquisition of Karaayi.

For the three and nine months ended September 30, 2013, Pilot Gold reported a net loss of $1.22 million and $7.57 million respectively, compared to net losses of $1.81 million and $4.66 million for the same periods in the prior year.  The losses per share for the three and nine month periods ended September 30, 2013 were $0.01 and $0.09 respectively (three and nine months ended September 30, 2012: $0.03 and $0.08 per share).  The most significant contributors to the loss for the nine months ended September 30, 2013 were the impairment and write down of deferred exploration expenditures ($1.37 million) at the New Boston and Buckskin North properties, the recognition of non-cash stock based compensation ($1.91 million) and the cost of wages and benefits ($1.31 million). These costs were offset by management fees received as part of the TV Tower Agreement ($0.62 million) and interest earned on the Company’s cash deposits of $0.33 million. The most significant contributors to the comparative period loss were stock based compensation expenses and wages, offset by changes in the fair value of the Company’s financial instruments. 

Other comprehensive gains and losses for the three and nine months ended September 30, 2013 were a $0.50 million gain and $1.85 million loss, respectively (comprehensive gains of $0.49 million and losses of $0.17 million for the same periods in the prior year). The loss for the nine month period ended September 30, 2013 includes a $1.83 million loss (nine months ended September 30, 2012: $0.81 million gain) from the impact of exchange gains and losses arising from exchange differences on the translation of Pilot Gold’s foreign operations with a non-United States dollar functional currency, net of losses relating to fair value changes in our financial assets and the impact of reclassification of the value of previously impaired equity. The impact from exchange differences will vary from period to period depending on the rate of exchange. In the period between January 1, 2013 and September 30, 2013, there was a 3.3% change in the exchange rate between the United States and Canadian dollars.

Liabilities at September 30, 2013 and at December 31, 2012 reflect primarily accounts payable and accruals recorded at period end arising from ongoing activities.

This press release should be read in conjunction with Pilot Gold’s unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis for the nine months ended September 30, 2013. These documents can be found on the Company’s website (www.pilotgold.com) or on SEDAR at www.sedar.com. All amounts are presented in United States dollars unless otherwise stated.


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 or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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Ian Noble, Director, Corporate Communications
Phone: 604-809-8750This email address is being protected from spambots. You need JavaScript enabled to view it.

For more information on the TV Tower, Halilaga or Kinsley Mountain properties refer to the following technical reports filed on the Company’s website at www.pilotgold.com and under Pilot Gold’s SEDAR profile at : “Updated Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012 prepared by Paul Gribble, C.Eng., FIMMM; “Preliminary Economic Assessment Technical Report for the Halilaga Project, Turkey” effective August 27, 2012 and dated October 10, 2012 prepared by Gordon Doerksen, P.Eng., James Gray, P.Geo., Garth Kirkham, P.Geo., Dino Pilotto, P.Eng., Maritz Rykaart, P.Eng, and Kevin Scott, P.Eng.; and “Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.” effective February 15, 2012 and dated March 26, 2012 prepared by Michael Gustin, CPG and Moira Smith, Ph.D., P.Geo.

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 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; 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; 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 of the Company dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at .

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 the AIF, available under Pilot Gold’s SEDAR profile at