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12-01

Pilot Gold Inc. (TSX:PLG) is pleased to report a project-first, independent resource estimate for the Halilağa copper-gold porphyry deposit in northwestern Turkey.

The mineral resource estimate is based on results from 30,004 metres of drilling in 72 drill holes (69 core; 3 reverse circulation), and consists of:

Sulphide Resource, using a 0.2% copper equivalent cut-off grade:

  • An Indicated Resource of 1.665 million ounces gold at an average grade of 0.31 g/t gold, and 1.112 billion pounds of copper at an average grade of 0.30% copper (168,167,000 tonnes)
  • An Inferred Resource of 1.661 million ounces gold at an average grade of 0.26 g/t gold, and 1.007 billion pounds of copper at an average grade of 0.23% copper (198,668,000 tonnes).

(See table below).

Due to the differing metallurgical characteristics and anticipated metal extraction methods, the oxide resources are reported below separately. Although the gold resources are extractable, it is not expected that the base metals within the oxide zone will be recoverable.

Oxide Resource, using a 0.2 g/t gold cut-off grade:

  • An Inferred Resource of 95,000 ounces gold at an average grade of 0.60 g/t gold (4,914,000 tonnes)

The resource estimate was completed by James N. Gray, P.Geo. of Advantage Geoservices Ltd., an Independent Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).  Further details of the estimation methods and procedures will be available in an updated NI 43-101 report, which will be filed on SEDAR (www.sedar.com), within 45 days from the date of this release.  

Halilağa is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (TMST) (60%), a Turkish subsidiary of Teck Resources Limited (Teck).

Drilling at Halilağa has focused on defining a significant resource at the property’s Kestane Zone where copper-gold porphyry mineralization currently extends over a strike length of 1,200 metres and a width of up to 850 metres, with mineralized intercepts of over 600 metres. Drilling has intersected a higher grade copper-gold zone starting at surface with 19 intersections assaying an average of 0.8% copper and 0.6 g/t gold over intervals of 12 to 60 metres. The resource remains open down plunge to the east and along portions of its southern margin.  Assays from 10 additional holes completed in 2011, but not included in the resource, are pending.

PROJECT  RESOURCE  (as of Oct. 17, 2011)

 

Tonnes
(1,000s)

          Grade

Contained Metal (1,000s)

 

Cu

Au

Mo

Cu

Au

Mo

 

(%)

(g/t)

(%)

(lb)

(oz)

(lb)

Sulphide Resource (1)

             

Indicated

168,167

0.30

0.31

0.006

1,112,223

1,665

20,391

Inferred

198,668

0.23

0.26

0.007

1,007,361

1,661

29,783

Oxide Resource (2)

           

Inferred

4,914

0.08

0.60

0.004

 

       95

           
 

Strip Ratio:

2.5 : 1

       
 

(1) At a 0.2% copper equivalent cut-off grade.

     
 

(2) at a 0.2 g/t gold cut-off grade

       
 


Pilot Gold and Teck will continue to efficiently advance Halilağa through 2012 with a work-program comprised of:

  • Infill and exploration drilling
     
  • Ongoing community relations
     
  • Completion of a Preliminary Economic Assessment by year-end.
     

Pilot Gold was created as part of Newmont Mining Corporation’s acquisition of Fronteer Gold Inc. in April 2011. Pursuant to the Plan of Arrangement, Pilot Gold retained its interest in both Halilağa and the neighbouring TV Tower project, a new gold discovery in the region.

ESTIMATION METHODS

The mineral resources for the Halilağa Property disclosed in this press release were estimated by Mr. James N. Gray, P.Geo., of Advantage Geoservices Ltd., in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council, as amended. Block grades were estimated by inverse distance weighting to the second power (ID2) within domains based on the interpretation of geologic parameters logged in 72 drill holes. Sections spaced at 50 to 100 metres were used for the basic interpretations. Quality-control data, generated during the various drill programs conducted at Halilağa, were independently verified by Mr. Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd.,  as part of the project review. The mineral resources are confined within an optimized Lerchs-Grossman (LG) pit shell to ensure reasonable prospects of economic extraction. The pit shell was generated using a copper price of US$4.00/lb, applied to copper equivalent grade, and an overall pit slope of 45°. Copper equivalence (CuEq) was calculated using a ratio of Cu : Au : Mo of 1 : 370 : 5, and recoveries of 90%, 70% and 50%, respectively. At a 0.2% CuEq cut-off, the strip ratio within the LG shell is 2.5:1. Tonnage estimates are based on 2,466 bulk density measurements which were used to assign average values to lithologic domains of the block model. Bulk density for the main Halilağa mineralised rock averages 2.61 tonnes/m3. Mr. Kirkham and Mr. Gray are co-authors of a Technical Report on the Mineral Resource Estimate for the Halilağa deposit, to be filed within 45 days of this news release. Mr. Gray and Mr. Kirkham are independent of Pilot Gold and are “Qualified Persons” as defined by NI 43-101. Mr. Gray has reviewed and validated the resource information contained in this release.

CAUTIONARY NOTES

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimates referenced in this press release use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources." While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Pilot Gold is not an SEC registered company.

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, meaningful size and mining-friendly addresses. Our three key assets include interests in the Halilağa and TV Tower projects in Turkey, each of which alone has the ability to drive the company forward, and the Kinsley Mountain project in Nevada, a gold system analogous to Long Canyon. 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

For further details on Halilaga, please view the current NI 43-101 compliant technical report entitled "NI 43-101 Technical Report on the Halilağa Exploration Property, Canakkale, Western Turkey," dated February 15, 2011, as amended June 7, 2011, prepared by Ian R. Cunningham-Dunlop, P. Eng. and VP Exploration and Chief Operating Officer, Pilot Gold (formerly VP Exploration, Fronteer Gold Inc.) under Pilot Gold’s Issuer Profile on www.sedar.com.

All statements in this release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold ("Pilot Gold") within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, copper and molybdenum, 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, the timing of a preliminary economic assessment or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources.  Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", “plan”, "continue", estimate”, “expect”, "may", "will", "project", "predict", "potential", "targeting", “intends”, "could", "might", "should", "believe", “potential”,  and similar expressions.  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.  Although Pilot Gold believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information.  Factors that could cause actual results to differ materially from those in forward-looking information include, but are not limited to, risks related to the interpretation and actual results of current exploration and development activities, reliance on technical information provided by third parties on any of our exploration properties; 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 or financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company’s Amended Annual Information Form for the year ended December 31, 2010 dated May 12, 2011 (amended June 7, 2011), which is available 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.

Forward-looking statements are made as of the date hereof and, accordingly, are subject to change after such date.  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, except as required by applicable law. Readers should not place undue reliance on forward-looking information.

 

 

12-02

Pilot Gold Inc. (PLG – TSX) reports that our initial drilling has returned impressive intervals of gold mineralization at Kinsley Mountain, a system we believe is strongly analogous to the nearby Long Canyon gold deposit in northeastern Nevada.

Kinsley Mountain shares the same unique combination of stratigraphy, structure and mineralization as Long Canyon, a deposit our technical team defined and advanced to a multi-million-ounce resource prior to its acquisition by Newmont Mining Corp. in April last year. Kinsley Mountain is located approximately 90 kilometres to the southeast of Long Canyon. Pilot Gold has an option to earn up to a 65% interest on the Kinsley Mountain project (See Sept. 21, 2011 press release).

Our first work-program included 1,250 metres (six holes) of diamond-core drilling designed to confirm mineralization in historic reverse circulation holes near the margins of open pits at the past-producing Kinsley Mountain Mine. Many of the historic drill holes, averaging 65 metres in depth, stopped short of potentially mineralized zones. Approximately 138,000 oxide ounces were mined from seven pits by Alta Gold, which ceased operations in the late 1990s due to financial difficulties and low gold prices.

Our first six holes are near-twins of existing holes in two locations, one to the north of the main pit and one located between two satellite pits to the southeast. These drill results highlight the exceptional, untapped potential of this system.

Drill highlights from the 2011 program include (full table at bottom of release):

  • 5.91 g/t gold over 18.4 metres, including 11.93 g/t gold over 7.8 metres in hole PK-04;
     
  •  6.75 g/t gold over 7.5 metres, including 13.52 g/t gold over 3.2 metres in PK-03;
     
  • 6.23 g/t gold over 8.7 metres, including 12.05 g/t gold over 3.0 metres in hole PK-02.
     

Primary drill composites were calculated using a cut-off of 0.30 g/t, with variably higher cut-offs for the sub-intervals. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 60-100% of the reported lengths.

“Our technical team carries forward Fronteer Gold’s in-depth, working knowledge of Long Canyon and our strategy in Nevada was to identify a project with the same attributes and exploration potential as Long Canyon,” says Dr. Moira Smith, Pilot Gold’s Chief Geologist and previously Fronteer Gold’s Chief Geologist for Nevada. “I believe Kinsley Mountain has the framework for discovery and a clear path to building a significant, high-quality deposit in the near-term.”

2012 WORK PROGRAM

Kinsley Mountain is one of Pilot Gold’s three priority assets to be advanced in 2012. We plan on advancing Kinsley Mountain through detailed geological analysis, aggressive drilling and deposit modeling. The Kinsley Mountain project is under a joint venture option agreement with Nevada Sunrise Gold Corp. We anticipate earning an initial 51% interest in the project by Q2 2012. Our planned 2012 work-program includes:

  • Deposit modelling: Extensive historic databases were compiled and merged with new surface mapping and sampling. These data are being used to create a three-dimensional model of geology and mineralization to aid in selection of new drill targets. 
     
  • Drilling: 12,000 metres of infill and step-out drilling on mineralized zones identified in historic drill programs. In addition to near-mine and resource definition drilling, a comprehensive effort to identify new targets will be undertaken, encompassing both the original 141 claims as well as 128 claims staked by Pilot Gold to the north, a largely unexplored area.
     
  • Resource estimation: Anticipated completion of a project-first resource by year-end.
     
  • Development activities: Preliminary metallurgical work, hydrological, environmental and baseline studies; and, submission of a Plan of Operation to the U.S. federal government to allow for property-wide drilling.    

 FOR DOWNLOAD

2011 DRILL RESULTS

Hole                    ID

From                   (metres)

To              (metres)

Interval            (metres)

Gold             g/t

Silver              g/t

PK001C

88.5

105.3

16.8

1.64

3.3

           

PK002C

111.7

120.4

8.7

6.23

2.1

incl

117.3

120.4

3.0

12.05

3.5

and

131.7

135.0

3.4

0.33

1.9

           

PK003C

102.7

110.2

7.5

6.75

1.4

incl

107.0

110.2

3.2

13.52

2.3

           

PK004C

42.7

61.1

18.4

5.91

2.5

incl.

45.7

53.5

7.8

11.93

4.2

and

148.0

152.1

4.1

0.54

2.1

           

PK005C

36.9

39.6

2.7

0.65

0.2

and

159.6

165.0

5.5

0.58

1.6

 

166.7

167.6

0.9

0.06

2790.0

           

PK006C

53.0

63.4

10.4

0.95

2.8

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 is 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 60-100% 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

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, meaningful size and mining-friendly addresses. Our three key assets include interests in the Halilaga and TV Tower projects in Turkey, each of which alone has the ability to drive the company forward, and the Kinsley Mountain project in Nevada, a gold system analogous to Long Canyon. 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

All statements in this release, other than statements of historical fact, are “forward-looking information" with respect to Pilot Gold Inc. (“Pilot Gold”) within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, 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, or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “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, completion of expenditure obligations under the Kinsley Mountain Option Agreement, proposed exploration and development of the Kinsley Mountain property, future issuances of Common Shares to acquire the Kinsley Mountain Option Agreement from Animas Resources Ltd.; estimated future working capital, funds available, 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, 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, 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, financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company’s Amended Annual Information Form for the year ended December 31, 2010 dated May 12, 2011 (amended June 7, 2011), which is available 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.

Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Pilot Gold, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Pilot Gold does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

 

 

12-03

Pilot Gold Inc. (TSX:PLG) (“Pilot Gold” or the “Company”) reports that the Company has filed a National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) technical report entitled "Resource Estimate for the Halilaga Copper-Gold Property NI 43-101 Technical Report" (the “Report”), dated March 23, 2012, on SEDAR at http://www.sedar.com. The Report relates to the independent resource estimate for the Halilaga copper-gold porphyry deposit in northwestern Turkey, announced on February 8, 2012. The Report has also been posted on the Company's website.

The Report was prepared by Garth Kirkham, P.Geo. of Kirkham Geosystems Ltd., and James Gray, P.Geo. of Advantage Geoservices Ltd. Mr. Gray and Mr. Kirkham are independent of Pilot Gold and are “Qualified Persons” as defined by NI 43-101.

Halilaga is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited.

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, meaningful size and mining-friendly addresses. Our three key assets include interests in the Halilaga and TV Tower projects in Turkey, each of which alone has the ability to drive the Company forward, and the Kinsley Mountain project in Nevada, a gold system analogous to Long Canyon. 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

All statements in this release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, copper and molybdenum, 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, the timing of a preliminary economic assessment or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources.  Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", “plan”, "continue", estimate”, “expect”, "may", "will", "project", "predict", "potential", "targeting", “intends”, "could", "might", "should", "believe", “potential”, and similar expressions.  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.  Although Pilot Gold believes the expectations expressed in such forward-looking information are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information.  Factors that could cause actual results to differ materially from those in forward-looking information include, but are not limited to, risks related to the interpretation and actual results of current exploration and development activities, reliance on technical information provided by third parties on any of our exploration properties; 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 or financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company’s Amended Annual Information Form for the year ended December 31, 2010 dated May 12, 2011 (amended June 7, 2011), which is available 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.

Forward-looking statements are made as of the date hereof and, accordingly, are subject to change after such date.  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, except as required by applicable law. Readers should not place undue reliance on forward-looking information.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources
United States investors are advised that while terms such as "Measured", "Indicated" and "Inferred" Resources are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of a Mineral Resource is economically or legally mineable.

 

 

12-04

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) announces financial results and company highlights for the year ended December 31, 2011, and provides an update on company activities at our three key projects: Kinsley Mountain in Nevada, and TV Tower and Halilaga in Turkey.


OVERVIEW
Pilot Goldwas formed following the successful acquisition of Fronteer Gold Inc. ("Fronteer Gold") by Newmont Mining Corporation ("Newmont") on April 6, 2011. We are focused on advancing high-quality assets that host the key traits of mines, namely: grade, scope, size potential and access to infrastructure in mining friendly jurisdictions. We have a solid cash position of approximately $15.5 million, and marketable securities valued at $1.8 million, giving us the resources to execute on our current exploration plans, and the financial flexibility to react to additional opportunities if, and when, they present themselves.

Our key project in Nevada is Kinsley Mountain, a sediment-hosted, past producing gold system sharing common stratigraphy, structural setting and alteration to other key gold deposits in northeastern Nevada.

In Turkey, our portfolio is underpinned by two near-contiguous projects located in northwest Turkey:

  • TV Tower, a large gold system; and,
  • Halilaga, a copper-gold porphyry deposit.

Teck Resources Limited’s ("Teck") Turkish subsidiary, TMST is currently Pilot Gold’s joint venture partner and operator for each of these projects. Our technical teams have played a key role in establishing the prospectivity and gold endowment of this district.

 “In our first year we have set the foundation for strong growth in 2012 and the long-term. We have three projects with significant value yet to be unlocked. We aim to create significant shareholder value in 2012 through advancing exploration and drill programs on the Kinsley Mountain and TV Tower projects, and by building on the success of the project-first resource estimate at the Halilaga Project,” said Matt Lennox-King, Pilot Gold President and CEO.

HIGHLIGHTS FOR THE YEAR and events subsequent to December 31, 2011:

Kinsley Mountain Project

  • We acquired an advanced exploration project with great geology and an existing gold endowment.  On September 21, 2011, we purchased an option agreement on Kinsley Mountain, a sediment-hosted gold property located 90 kilometres southeast of the Long Canyon deposit. The option agreement gives us the right to earn-in to a 65% interest in the property. Through 2011, we  staked a further 2,596 acres, almost doubling the size of the project. We anticipate earning-in to the initial 51% interest before May, 2012.
     
  • Our initial drill program returned impressive intervals of gold mineralization. In November, 2011, we completed a Phase One 1,267 metre six-hole confirmation drill program. Subsequent to year end, we released drill results highlighting the potential of this well-mineralized sediment hosted gold system.  Most significantly drill hole PK-04 returned 5.91 grams per tonne gold over 18.4 metres, including 11.93 g/t gold over 7.8 metres (see February 10th, 2011 press release).
     
  •  On March 23, 2012 we subscribed to 6,250,000 common shares and 3,125,000 share purchase warrants of Nevada Sunrise Gold Corporation ("NSGC"). A subsidiary of NSGC will be our partner at the Kinsley Mountain Project following the initial earn-in.  The market value of our equity holdings of NSGC at the date of this release is approximately $1.42 million.
     
  • Through the year ended December 31, 2011, we incurred $1.13 million in expenditures at Kinsley Mountain, including $0.45 million in costs associated with the acquisition of the option.

TV Tower Project

  • In May, 2011, we announced final results from the 2010 Phase One drill program, which highlighted new gold discoveries at the Kucukdag (northern) target, and Kayali (southern) target. Both new discoveries are marked by long intervals of continuous gold mineralization starting at surface in both areas, with discovery holes returning 4.28 g/t gold, 0.68% copper, and 15.82 g/t silver over 136.2 metres in drill hole KCD-02 at Kucukdag, and 0.87 g/t gold over 114.5 metres in hole KYD-01 at Kayali (see May 10th, 2011 press release).
     
  • In August, 2011, we reported that ongoing drilling intersected additional gold-silver mineralization at the Kucukdag target. The mineralized footprint of this gold-silver target has been expanded by 100 metres to the northeast and successfully testing targets outside the main target area, with drill hole KCD-15 returning 1.87 g/t gold, 0.19% copper, and 7.26 g/t silver over 48 metres (see August 10th, 2011 press release).
     
  • In October, 2011, we reported that step-out core drilling had intersected thick intervals of high-grade near-surface silver mineralization at the Kucukdag target. This drilling expanded the footprint of the system by an additional 100 metres to the north, demonstrating the strong multi-element nature of the Kucukdag target-area, and greatly enhancing the overall grade potential. Drill hole  KCD -19, a PQ-core twin of the KCD-02 discovery hole (drilled to improve recovereies and supply material for future metallurgical work) returned 3.80 g/t gold, 0.82% copper, and 20.06 g/t silver over 131.80 metres and and KCD-18 returned 171.00 g/t silver over 47.5 metres (see October 4th, 2011 press release).
     
  •  A Phase One, 4,184 metre drill program was completed in January 2011, and a Phase Two, 14,876 metre drill program concluded in December 2011. Through the year ended December 31, 2011, our share of expenditures at TV Tower was $2.0 million.  A $3.0 million development and exploration program (funded 60% by our joint venture partner) is currently planned for 2012. The 2012 work-program will include detailed mining and engineering studies, as well as approximately 10,000-12,000 metres of core drilling. In 2012, we are also planning to continue detailed geological mapping and undertake geochemical sampling, ground geophysics, and reconnaissance in the western areas of the property.

Halilaga Project

  •  In February, 2012, we reported an initial resource estimate for the Halilaga copper-gold porphyry. The mineral resource estimate, calculated as of October 17, 2011, included the results of 30,004 metres of drilling in 72 drill holes, and consists of:

     - an Indicated sulphide resource of 1.665 million ounces gold at an average grade of 0.31 g/t gold, and 1.112 billion pounds of copper at an average grade of 0.30% copper (168,167,000 tonnes);

    - an Inferred sulphide resource of 1.661 million ounces gold at an average grade of 0.26 g/t gold, and 1.007 billion pounds of copper at an average grade of 0.23% copper (198,668,000 tonnes); and,

    - an Inferred oxide resource of 95,000 ounces of gold at an average grade of 0.60 g/t gold (4,914,000 tonnes).

    Using a strip ratio of 2.5 : 1, the sulphide resource was calculated at a 0.2% copper equivalent cut-off grade; the oxide resource was calculated at  a 0.2 g/t gold cut-off grade. For more details, see February 8th, 2011 press release. The related technical report, effective March 23, 2012, entitled ‘Resource Estimate for the Halilaga Copper-Gold Property NI 43-101 Technical Report’ was filed on SEDAR on March 26, 2012.
     

  • Through the year ended December 31, 2011, our share of expenditures at Halilaga was $2.35 million. A $4.87 million development and exploration program (funded 60% by our joint venture partner) is planned for 2012. The 2012 work-program will include detailed mining and engineering studies, as well as approximately 15,000 metres of infill and exploration drilling.

FINANCIAL DATA

The following selected financial data is derived from our consolidated financial statements for the years ended December 31, 2011 and 2010, as prepared in accordance with International Financial Reporting Standards (“IFRS”). As described in our audited consolidated financial statements, the comparative periods and a portion of the current year, reflect the application of continuity of interest accounting.

 

    Twelve months ended December 31

      

2011

2010

Loss for the period

($11,840,930)

($1,507,202)

Loss and comprehensive loss for the year

($13,420,480)

($1,463,261)

Basic and diluted loss per share

($0.21)

($0.03)

       
 

           As at

 

December 31,
2011

December 31,
2010

Cash and short-term investments

$18,420,354

$86,966

Working capital

$17,845,526

$326,385

Total assets

$37,493,262

$7,905,170

Current liabilities

$1,049,986

$74,807

Non-current liabilities

$73,673

$2,550

Shareholder’s equity

$36,369,603

$7,827,813

       

  • For the year ended December 31, 2011, we reported a net loss of $11.84 million compared to a net loss of $1.51 million for the year ended December 31, 2010.  The most significant contributors to the loss for the year ended December 31, 2011 were the non-cash impact of stock based compensation expense ($5.9 million), and costs associated with property investigation ($1.71 million).
     
  • Current assets increased significantly to $18.90 million as at December 31, 2011 (December 31, 2010: $0.4 million), and comprise primarily cash and short term investments of $18.42 million (December 2010: $0.09 million). The increase reflects the receipt of $24.4 million cash pursuant to the closing on June 14, 2011, of a bought-deal offering, and the receipt of $9.8 million upon the close of the Fronteer Arrangement on April 4, 2011, off-set by those cash outflows and liabilities recorded at period end related to exploration and corporate activities through the twelve-months ended December 31, 2011.

This press release should be read in conjunction with Pilot Gold’s audited consolidated financial statements and Management’s Discussion and Analysis for the year ended December 31, 2011. These documents can be found on the Company’s website (www.pilotgold.com) or on SEDAR at www.sedar.com. The Company’s Annual Information Form has also been filed on SEDAR. Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request. All amounts are presented in United States dollars unless otherwise stated. Pilot Gold will be hosting its annual general meeting on May 10, 2011, in Vancouver, British Columbia.

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, meaningful size and mining-friendly addresses. Our three key assets include interests in the Halilaga and TV Tower projects in Turkey, each of which alone has the ability to drive the company forward, and the Kinsley Mountain Project in Nevada, a past producing sediment hosted gold system. 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Details on the adoption and application of IFRS are provided in the Company’s Management’s Discussion and Analysis and in the notes to our audited consolidated financial statements for the year ended December 31, 2011.

The mineral resources for the Halilaga Property were estimated by Mr. James N. Gray, P.Geo., of Advantage Geoservices Ltd., in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Mineral Reserves, adopted by CIM Council, as amended. Block grades were estimated by inverse distance weighting to the second power (ID2) within domains based on the interpretation of geologic parameters logged in 72 drill holes. Sections spaced at 50 to 100 metres were used for the basic interpretations. Quality-control data, generated during the various drill programs conducted at Halilağa, were independently verified by Mr. Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd., as part of the project review. The mineral resources are confined within an optimized Lerchs-Grossman (LG) pit shell to ensure reasonable prospects of economic extraction. The pit shell was generated using a copper price of US$4.00/lb, applied to copper equivalent grade, and an overall pit slope of 45°. Copper equivalence (CuEq) was calculated using a ratio of Cu : Au : Mo of 1 : 370 : 5, and recoveries of 90%, 70% and 50%, respectively. At a 0.2% CuEq cut-off, the strip ratio within the LG shell is 2.5:1. Tonnage estimates are based on 2,466 bulk density measurements which were used to assign average values to lithologic domains of the block model. Bulk density for the main Halilağa mineralised rock averages 2.61 tonnes/m3. Due to the differing metallurgical characteristics and anticipated metal extraction methods, the oxide resources are reported separately. Although the gold resources are extractable, it is not expected that the base metals within the oxide zone will be recoverable.

The National Instrument 43-101 Standards of Disclosure for Mineral Projects  ("NI 43-101") technical report authored by James Gray, P.Geo.of Advantage Geoservices Ltd., And Garth Kirkham, P.Geo., of Kirkham Geosystems Ltd., entitled “Resource Estimate for the Halilaga Copper-Gold Property NI 43-101 Technical Report” dated March 23, 2012, which includes the project-first resource on the Halilaga Project, is available under Pilot Gold’s SEDAR profile at http://www.sedar.com. The mineral resources estimates contained therein are only estimates and no assurance can be given that any particular level of recovery of minerals will be realized or that an identified resource will ever qualify as a commercially mineable or viable deposit which can be legally and economically exploited. In addition, the grade of mineralization ultimately mined may differ from the one indicated by drilling results and the difference may be material. The estimated resources described herein should not be interpreted as assurances of mine life or of the profitability of future operations.

 Ian Cunningham-Dunlop, P. Eng., VP Exploration and Chief Operating Officer for Pilot Gold, and a “Qualified Person” within the meaning of NI 43-101, is responsible for compiling the technical information contained in this release. 

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future prices of gold, copper and molybdenum, 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, the timing of a preliminary economic assessment or other study, proposed exploration and development of our exploration properties and the estimation of mineral reserves and resources. 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, Pilot Gold’s ability to fund cash-calls made by Teck Madencilik Sanayi Ticaret A.S. for ongoing expenditure on the Halilaga Project and the TV Tower Project; current and proposed exploration activities and the development of the Halilaga Project and the TV Tower Project; estimated future working capital, uses of funds, future capital expenditures; information with respect to exploration results, the timing and success of exploration activities generally; the costs and timing of the development of new deposits, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation; the timing, timeline and possible outcome of permitting or license renewal applications; the ability to maintain or convert the underlying licenses in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, and limitations on insurance coverage 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 certain of our exploration properties, reliance on technical information provided by TMST or Teck at the Halilaga Project and the TV Tower Project, or other third parties as related to any of our other exploration properties; 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, financing or in the completion of exploration as well as those factors discussed in the section entitled "Risk Factors" in 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

Cautionary notes to United States investors
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimates referenced in this press release use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources." While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Pilot Gold is not an SEC registered company.

Further details relating to Pilot Gold are also available in the Company’s Annual Information Form (“AIF”) for the year ended December 31, 2011 dated March 28, 2012, available under Pilot Gold’s SEDAR profile at http://www.sedar.com.

 

 

12-05

Pilot Gold Inc.  (“Pilot Gold” or the “Company”)  (PLG – TSX) is pleased to announce it has completed its earn-in to 51% of the Kinsley Mountain gold property and has elected to increase its interest to 65% within 5 years.

Over the past seven months, we have tested some key exploration concepts at Kinsley Mountain with encouraging results, and have quickly earned a controlling interest in this project.  Results from our Phase 1 program included 5.91 g/t gold over 18.4 metres starting at a depth of 42.7 metres in drill hole PK-04 (see February 10th, 2012 press release).

The Kinsley Project in northeastern Nevada is the site of a past-producing, open pit, oxide heap leach mine. Building on an extensive historical exploration archive, Pilot Gold is focusing its efforts on testing numerous targets at different stratigraphic levels both proximal to, and to the north of, the historic pits. Our 2012 exploration program commenced on March 20th with 4,000 metres of a planned 12,000 metres completed to date. Assays for all 2012 drill holes are pending.  In addition, an extensive geochemistry and geological mapping program will take place outside of the historic mine area to identify additional drill targets.

Phase 1 earn-in details:
Under the terms of the earn-in agreement, Pilot Gold was required to spend $US 1.18 million in exploration by March 30, 2013 to earn the initial 51% interest. After meeting these requirements, the project will be held in a joint-venture company owned 51% by Pilot Gold and 49% by Intor Resources Corporation a subsidiary of Nevada Sunrise Gold Corporation.  Pilot Gold has elected to increase its interest to 65% by incurring an additional $US 3-million in exploration expenditures within 5 years.

Technical report:
For more detailed information on the Kinsley Mountain project, please refer to the recently published 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.

ABOUT PILOT GOLD    
Pilot Gold is a gold exploration company with interests in three key assets: the Kinsley Mountain project in Nevada and the Halilaga and TV Tower projects in Turkey. In addition, Pilot Gold has a pipeline of 15 exploration-stage Nevada projects characterized by large land positions and district-wide potential both on and off major gold trends. For more information, visit www.pilotgold.com or contact:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Ian Cunningham-Dunlop, P. Eng., VP Exploration and Chief Operating Officer for Pilot Gold, and a “Qualified Person” within the meaning of NI 43-101, is responsible for compiling the technical information contained in this release. 

All statements in this release, other than statements of historical fact, are “forward-looking information" with respect to Pilot Gold Inc. (“Pilot Gold”) within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, 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, or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “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, 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.; estimated future working capital, funds available, 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, 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, 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, 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.

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.

Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Pilot Gold, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Pilot Gold does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

 

 

12-06

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) reports financial results for the first quarter ended March 31, 2012, and announces work plans for 2012.

“We have made several key advances already in 2012, including earning a majority interest in the Kinsley Mountain project, and completing a project first resource estimate at Halilaga,” says Pilot Gold President and CEO Matt Lennox-King.  “We look forward to building on our success to date with aggressive exploration and drilling programs in 2012 at Kinsley, TV Tower and Halilaga.”

HIGHLIGHTS TO DATE

  • Reported a project-first independent resource estimate on the Halilaga copper-gold porphyry.
  • Released drill results from a Phase One 1,267 metre six-hole core drill program at Kinsley Mountain, including 5.91 g/t gold over 18.4 metres.
  • Subsequent to period end, earned an initial 51% interest at the Kinsley Mountain Project, and elected to earn-in to a 65% interest in the property.

2012 WORK PROGRAMS

Kinsley Mountain Project  - 12,000 metre drill program
Our 2012 work program includes 12,000 metres of RC drilling and detailed geologic modelling and analysis. It is designed to confirm and expand the historic gold footprint and to test priority exploration targets at depth and along strike. Drilling commenced on March 20, 2012.  We also recently submitted an amendment to the existing Notice of Intent on the property to the United States Bureau of Land Management ("BLM") to increase our allowable area of disturbance on the property.  We plan to submit a Plan of Operations with the BLM early in 2012 to further increase the area on which we can actively explore. Having achieved the initial 51% earn-in on May 9, 2012, Pilot Gold has elected to earn an additional 14% interest (to an aggregate of 65%) in the project by making a further $3 million in expenditures on the property before May, 2017. We have already invested $0.9 million in exploration expenditures toward this second option. Nevada Sunrise Gold Corporation is Pilot Gold’s joint venture partner.  Our total budget at Kinsley Mountain for the year is $2.7 million.

TV Tower Project  - 12,000 metre drill program
Our 2012 work program includes approximately 12,000 metres of core drilling with a focus on the Kucukdag and Kayali targets, along with detailed geological mapping, geochemical sampling, ground geophysics, and reconnaissance in the western areas of the property.  Initial groundwork has commenced with drilling expected to begin in Q2, 2012.  Teck Resources Limited’s Turkish subsidiary, TMST, is Pilot Gold’s 60% joint venture partner for the project. Our share of budgeted expenditures for 2012 is currently $1.2 million.

Halilaga Project - 15,000 metre drill program  On February 8, 2012, we announced the first resource estimate for the Halilaga project. We plan to build on this resource with 15,000 metres of infill and exploration drilling. Phase One of the program commenced on March 27, 2012, and includes 5,000 metres of infill core drilling with a focus on resource expansion and conversion. Additional economic, engineering and metallurgical studies have also been initiated. TMST is also the Company’s 60% partner for this project. Budgeted expenditures for 2012 are $4.87 million, with Pilot Gold’s share totalling $1.95 million. 

FINANCIAL DATA
The following selected financial data is derived from our consolidated financial statements for the three month period ended March 31, 2012, as prepared in accordance with International Financial Reporting Standards. As described in our audited consolidated financial statements, a portion or the comparative period reflects the application of continuity of interest accounting.

 

Three months ended  March 31              
  (in 000s except per share data)

      

     2012

        2011

 Loss for the period

                          ($1,461)

($414)

 Loss and comprehensive loss for the year

                        ($1,138)

($214)

 Basic and diluted loss per share

($0.02)

($0.01)

       
 

             As at

 

March 31, 2012

(in 000s)

December 31, 2011

(in 000s)

Cash and short-term investments

$15,178

$18,420

Working capital

$14,628

$17,846

Total assets

$37,122

$37,493

Current liabilities

$1,109

$1,050

Non-current liabilities

$24

$74

Shareholder’s equity

$35,989

$36,370

  • For the three months ended March 31, 2012, we reported a net loss of $1.46 million compared to a net loss of $0.41 million for the three months ended March 31, 2011.  The loss per share for the three months ended March 31, 2012 was $0.02 (three months ended March 31, 2011: $0.01).  The most significant contributors to the losses for the three months ended March 31, 2012 were stock based compensation ($0.52 million) and wages ($0.46 million), however, these costs were offset by an income inclusion resultant from a change in fair value of our financial instruments ($0.8 million). In the comparative period, the most significant contributors to the losses were allocated depreciation and wages. 
  • The net balance of other comprehensive income for the three months ended March 31, 2012 was $0.32 million (March 31, 2011: income of $0.20 million).  The three months ended March 31, 2012 includes a $0.47 million gain (March 31, 2011: gain of $0.02 million) from the impact of exchange gains and losses arising from exchange differences further to the translation of our foreign operations with a non-United States dollar functional currency, and a net value loss on financial assets of $0.15 million during the three months ended March 31, 2012 (three months ended March 31, 2011, gain of $0.18 million) relating to the revaluation of common shares we hold in other publicly listed companies. The impact from exchange differences will vary from period to period depending on the rate of exchange; in the period between January 1, 2011 and March 31, 2012, there was a 1% change in the exchange rate between the United States and Canadian dollars.
     
  • Current assets decreased to $15.74 million as at March 31, 2012 (December 31, 2011: $18.90 million), and comprise primarily cash and short-term investments of $15.18 million (December 2011: $18.42 million).  The decrease reflects cash outflows related to exploration and corporate activities through the three months ended March 31, 2012. The remaining balance of current assets comprises receivables and prepayments of $0.56 million (December 31, 2011: $0.48 million) which have increased primarily due to receivables from Blue Gold for management services as well as from our associates due to work performed on properties.

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 quarter ended March 31, 2012. 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.

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, meaningful size and mining-friendly addresses. Our three key assets include interests in the Halilaga and TV Tower projects in Turkey, each of which alone has the ability to drive the Company forward, and the Kinsley Mountain Project in Nevada, a past-producing sediment hosted gold system. 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Ian Cunningham-Dunlop, P. Eng., VP Exploration and Chief Operating Officer for Pilot Gold, and a “Qualified Person” within the meaning of NI 43-101, is responsible for compiling the technical information contained in this release. 

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future prices of gold, copper and molybdenum, 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, the timing of a preliminary economic assessment or other study, proposed exploration and development of our exploration properties and the estimation of mineral reserves and resources. 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, completion of expenditure obligations under the Kinsley Mountain Option Agreement; Pilot Gold’s ability to fund cash-calls made by our joint venture partners for ongoing expenditures on our joint venture properties; current and proposed exploration and development, estimated future working capital, uses of funds, future capital expenditures; information with respect to exploration results, the timing and success of exploration activities generally; the costs and timing of the development of new deposits, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation; the timing, timeline and possible outcome of permitting or license renewal applications; the ability to maintain or convert the underlying licenses in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, and limitations on insurance coverage 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 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 other exploration properties; 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, financing or in the completion of exploration as well as those factors discussed in our AIF for the year ended December 31, 2011, 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 the Company’s Annual Information Form (“AIF”) for the year ended December 31, 2011 dated March 28, 2012, available under Pilot Gold’s SEDAR profile at http://www.sedar.com.

 

 

12-07

Pilot Gold (PLG – TSX) (“Pilot Gold” or “the Company”) is pleased to report that it has received the final assay results from the 2011 drill program at its 40% owned TV Tower project in Turkey. Drilling completed over the last quarter of 2011 intersected high-grade mineralization across multiple targets, highlighting the size potential of this large gold-bearing system in northwestern Turkey, led by drill hole KCD-37 which intersected 61.61 g/t silver over 39.0 metres, including 96.03 g/t silver over 15.3 metres at the North Target.

“TV Tower is a district scale, target rich property,” stated Ian Cunningham-Dunlop, COO and VP Exploration of Pilot Gold. “We are very encouraged by the results from the 2011 program, which continue to reinforce the grade and size potential of TV Tower.”

In total, more than 14,876 metres in 72 core holes were drilled at TV Tower in 2011, focused on following up the gold discoveries announced in May, 2011. 

NORTH TARGET (Kücükdag)
Drilling at the North Target (Kücükdag) has expanded the footprint of mineralization to 600 x 400 metres which remains open for expansion in multiple directions. Drilling to date has outlined a high grade, gold-rich breccia zone, overlain by a tabular, high grade silver zone.  Recent holes, located up to 100 metres outside the existing drilled footprint, returned significant intervals of near-surface, high-grade silver, as well as multiple gold and copper intercepts. Several drill holes ended in gold mineralization, indicating the potential for extending the gold rich portion of the system at depth.  Drill holes testing targets up to 600 metres outside the current footprint intersected gold, silver and copper mineralization, highlighting size and scale.  

Drill highlights from the North Target include:

  • 34.97 grams/tonne silver over 69.9 metres, including 146.44 g/t silver over 2.7 metres; and 0.70 g/t gold, 0.53% copper and 12.70 g/t  silver over 18.5 metres, including 2.24 g/t gold, 1.05% copper and 23.60 g/t silver over 3.0 metres in Hole KCD-20;
  • 50.25 g/t silver over 114.9 metres, including 132.60 g/t silver over 7.5 metres in KCD-28;
  • 33.38 g/t silver over 25.3 metres, and 64.09 g/t silver over 8.8 metres in KCD-35.
  • 61.61 g/t silver over 39.0 metres, including 96.03 g/t silver over 15.3 metres in drill hole KCD-37

All true widths are 60-90% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. A link to a comprehensive table of drill results to date, including new and non-reportable intercepts, is provided below.

PROPERTY-WIDE
Drilling completed in 2011 also intersected mineralization at the South Target (Kayali), the second discovery announced in 2011, located 8 kilometres to the south of the North Target. 2011 work at the South Target was focused on testing areas peripheral to the main discovery zone.

Drill highlights from the South Target include:

  • 0.60 g/t gold over 31.2 metres in KYD-12A;
  • 0.59 g/t gold over 9.7 metres in KYD-15;
  • 0.49 g/t gold over 14.9 metres in KYD-13.

All true widths are 60-90% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. A link to a comprehensive table of drill results to date, including new and non-reportable intercepts, is provided below.

Further reconnaissance drilling at the Sarp target returned anomalous gold mineralization in several holes.

Eight high-priority targets have been identified which contain widespread epithermal to porphyry characteristics, gold mineralization in soils and rocks and IP anomalies analogous to those at other deposits in the district, including Alamos Gold’s Agi Dagi and Kirazli projects, and the Halilaga project jointly held by Pilot Gold and Teck Madencilik Sanayi Ticaret A.Ş. (TMST), a Turkish subsidiary of Teck Resources Limited (“Teck”). TMST is also Pilot Gold’s 60% partner and project operator at TV Tower.

There is the potential for multiple additional targets as more than a third of the property has yet to be systematically explored. Initial discovery drilling at TV Tower returned exceptional grades, including 4.28 g/t gold over 136.2m (see May 10, 2011, press release) and silver grades up to 171.00 g/t over 47.50 metres (see Oct. 4, 2011, press release).

For a map highlighting recent drilling, please click:
http://www.pilotgold.com/sites/default/files/TVTowerDrillMap_1207.pdf

For a PDF of comprehensive drill results to date, including new and non-reportable intercepts, please click:http://www.pilotgold.com/sites/default/files/TVTowerDrillResults_1207.pdf

All drill samples and analytical data for TV Tower are collected under the supervision of TMST, using industry standard QA-QC protocols.  Ian Cunningham-Dunlop, P. Eng, VP Exploration and Chief Operating Officer for Pilot Gold, and a “Qualified Person” within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), is responsible for compiling the technical information contained in this release.  Mr. Cunningham-Dunlop has not verified all of the assay data generated by TMST as project operator.  However, the grades and widths reported here agree well with the Company’s past results on the project and TMST has given him no reason to doubt their authenticity.

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, 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, a past-producing sediment-hosted gold system 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

For further details on TV Tower, please view the NI 43-101 technical report entitled "NI 43-101 Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey," dated February 15, 2011, as amended on June 7, 2011, prepared by Ian R. Cunningham-Dunlop, P. Eng. and VP Exploration and Chief Operating Officer, Pilot Gold (formerly VP Exploration, Fronteer Gold Inc.) under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

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 Pilot Gold’s ability to fund cash-calls made by Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”) for ongoing expenditure on the TV Tower and Halilaga properties, 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 TV Tower and Halilaga in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, limitations on insurance coverage 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 exploration at the TV Tower property, reliance on technical information provided by TMST at the TV Tower property; changes in project parameters as plans continue to be refined; current economic conditions; the future prices of gold, silver and copper, fluctuations in currency exchange rates; 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, financing or in the completion of exploration as well as those factors discussed in the section entitled "Risk Factors" in Pilot Gold’s Amended 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. 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.

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.

 

12-08

Pilot Gold (PLG – TSX) (“Pilot Gold” or “the Company”) is pleased to report that the 2012 work program at the Halilaga copper-gold porphyry in northwestern Turkey is underway. The 2012 program launched on March 27th, 2012 with two drill rigs. Drilling will be dedicated to expansion of the initial Halilağa resource area, resource conversion and infill drilling in the near surface high grade zone.

Teck Resources Limited’s Turkish Subsidiary, “TMST”, is Pilot Gold’s 60% joint venture partner and operator. TMST has informed Pilot Gold that the necessary operation permits have been received to keep the operation licenses covering the resource area in good standing until 2019. In conjunction with the drill program, metallurgical, hydrological and environmental studies are planned. Approximately 2,100 metres have been completed in 8 drill holes to date.

2011 Drill results
Final assays from the remaining 12 holes of the 2011 drill program have been received. The final step out holes returned broad intervals of mineralization and demonstrate strong grades from outside the current resource area.  These results were received after the resource cut-off date, and as a result, these assays were not included in the Halilaga resource estimate, reported on February 8, 2012.  Of the final 12 holes, 8 were drilled as step out holes beyond the drill footprint of the Halilağa resource area with the remaining 4 holes testing exploration targets elsewhere on the property.

Highlights from the final 2011 drill holes include:

  • 0.35 g/t gold and 0.19% copper over 278.0 metres, including 0.56 g/t gold and 0.30% copper over 47.4 metres in HD-107;
  • 0.65 g/t gold and 0.25 % copper over 19.9 metres in HD-103;
  • 0.28 g/t gold and 0.29% copper over 208.0 metres, including 0.31 g/t gold and 0.33% copper over 69.6 metres in HD-100; and
  • 0.34 g/t gold and 0.22% copper over 107.8 metres, including 0.53 g/t gold and 0.28% copper over 32.8 metres in HD-99A.

All true widths are 60-90% 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/HalilagaDrillResults1208.pdf

For a map highlighting recent drilling, please click:
http://www.pilotgold.com/sites/default/files/HalilagaDrillMap1208.pdf

All drill samples and analytical data for Halilağa are collected under the supervision of TMST, using industry standard QA-QC protocols.  Ian Cunningham-Dunlop, P. Eng, VP Exploration and Chief Operating Officer for Pilot Gold, and a “Qualified Person” within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), is responsible for compiling the technical information contained in this release.   Mr. Cunningham-Dunlop has not verified all the assay data generated by TMST as project operator, however the grades and widths reported here agree well with the Company’s past results on the project and TMST has given him no reason to doubt their authenticity.

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 Halilağa and TV Tower projects in Turkey, and the Kinsley Mountain project, a past-producing sediment-hosted gold system 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

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" (the “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 Pilot Gold’s ability to fund cash-calls made by Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”) for ongoing expenditure on the TV Tower and Halilaga properties, 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 TV Tower and Halilaga in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, limitations on insurance coverage 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 exploration at the Halilaga property, reliance on technical information provided by TMST at the Halilaga property; changes in project parameters as plans continue to be refined; current economic conditions; the future prices of gold, silver and copper, fluctuations in currency exchange rates; 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, financing or in the completion of exploration as well as those factors discussed in the section entitled "Risk Factors" in Pilot Gold’s Amended 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. 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. 

 

12-09

Pilot Gold Inc. (PLG - TSX) is pleased to report that it has entered into an agreement to increase its ownership in the TV Tower gold project (“TV Tower”) in northwestern Turkey from 40% to 60% (the “Agreement”). Pilot Gold will immediately become project operator and initiate a 16,000 metre core drilling program in the first year of the earn-in period.

“Pilot Gold’s team has been working in Turkey since 2004, and has been instrumental in establishing the growing metal endowment of the Biga District. Based on our experience in the district and previous successes at the Agi Dagi and Kirazli projects, we believe TV Tower hosts multiple significant gold systems that have only been partially tested.  As operator, we intend to accelerate exploration at TV Tower and advance the project through key near-term milestones,” stated Matt Lennox-King, President and CEO of Pilot Gold.

TV Tower is currently a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (“TMST”)(60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Upon satisfaction of the earn-in obligations, TMST will transfer shares equal to a 20% interest in the Turkish joint venture company that holds TV Tower to a subsidiary of Pilot Gold, effectively providing Pilot Gold a 60% interest in the property.

Located on the Biga Peninsula of northwest Turkey, TV Tower is host to numerous high-sulphidation epithermal gold-silver prospects. The large 7,109 hectare (71km2) project is road accessible, and 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).

Initial drilling at TV Tower in 2010 resulted in new gold discoveries at the high grade gold and silver, breccia-hosted Kucukdag (north target); and Kayali, the oxidized, disseminated southern target.  Both targets display encouraging grades over significant widths beginning at surface and remain open in multiple directions.

Highlights from 2011 drilling at the high grade gold-silver Kucukdag target include:

  • Hole KCD-02 returned 4.28 g/t gold, 15.82 g/t silver and 0.68% copper over 136.2 metres
  • Hole KCD-15 returned 1.87 g/t gold over 48.0 metres from 128.9 metres; including 13.83 g/t gold and 25.29 g/t silver over 5.4 metres
  • Hole KCD-18 returned 171.00 g/t silver over 47.5 metres
  • Hole KCD-28 returned 50.25 g/t silver over 114.9 metres from 7.5 metres, including 132.60 g/t silver over 7.5 metres from 27.1 metres
  • Hole KCD-37 returned 61.61 g/t silver over 39.0 metres including 96.03 g/t silver over 15.3metres

Highlights from 2011 drilling at the Kayali target, 8 kilometres to the south, include:

  • Hole KYD-01 returned 0.87 g/t gold over 114.5 metres
  • Hole KYD-02 returned 0.78 g/t gold over 88.6 metres
  • Hole KYD-15 returned 0.59 g/t gold over 9.7 metres
  • Hole KYD-13 returned 0.49 g/t gold over 14.9 metres

(Refer to press releases issued May 10, 2011, August 10, 2011, October 4, 2011 and May 18, 2012)

On the eastern half of TV Tower, six large target areas have been defined by geochemistry and geophysics; of these, four have received initial drill testing, with anomalous gold in all four targets. The western half of the property remains mostly unexplored but has strong indications of epithermal gold-silver and porphyry-style mineralization.

For a PDF of comprehensive drill results to date, including non-reportable intercepts, please click:
http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1209.pdf

For a location map of TV Tower, please click:
http://www.pilotgold.com/sites/default/files/TVTowerLocationMap1209.pdf

For a map of TV Tower targets, please click:
http://www.pilotgold.com/sites/default/files/TVTowerTargetMap1209.pdf

DEAL TERMS:

The following is the consideration for Pilot Gold to earn the additional 20% interest:

Share consideration:

a)    Subject to prior approval of the TSX, Pilot Gold shall, as soon as practicable after signing the Agreement, issue an aggregate of 3,275,000 Pilot Gold common shares and 3,000,000 common share purchase warrants (“Pilot Warrants”) to TMST.  Each Pilot Warrant is exercisable for a period of three years from the date of issue and shall be exercisable for one common share of Pilot Gold at an exercise price of C$3.00 per share; and

b)    Subject to approval by the TSX, Pilot Gold shall issue 1,637,500 Pilot Gold common shares to TMST on each of the first and second anniversaries of the date the Agreement was signed, should Pilot Gold elect to continue with the earn-in.

Expenditure commitment:

c)    Incur $21 million in exploration expenditures (“Expenditures”) over three years, as follows:

  • $5 million in the twelve months from the Effective Date;
  •  $7 million in the second year from the Effective Date; and
  •  $9 million in the thirdyear from the Effective Date.

The aggregate Expenditure in the first year is a committed amount to maintain the Agreement in good standing.   Pilot Gold can accelerate annual expenditures at its sole discretion, and thus has an opportunity to complete the earn-in before the third year. The planned 2012 program has already commenced, with a budget of $5 million.

Additional consideration:

Following completion of the third year Expenditure, the Company must make a one-time cash payment to TMST of $20 per ounce of gold for 20% of the gold ounces delineated in excess of 750,000 ounces (Measured, Indicated and Inferred) in a NI 43-101 resource estimate identified at TV Tower.

“This is a transformative agreement for Pilot Gold. To be able to operate and advance two high potential properties, TV Tower and Kinsley Mountain,  enables our team to quickly accelerate exploration to meet tangible project milestones in the near-term and beyond,” added Matt Lennox-King. “Together with our significant resource at Halilaga and current capital strength, we are well positioned to build on the successes we’ve had since listing in 2011.”

Upon completion of the earn-in, and assuming no further issuances of common shares, Pilot Gold will have 65,735,286 shares outstanding with Teck directly or indirectly through TMST holding a 10.13% pro forma ownership in Pilot Gold (14.05% fully diluted with Teck warrants only). Teck joins Newmont Mining Corporation (currently holding a 17.05% ownership interest) as a strategic shareholder. 

All technical information contained in this release has been reviewed and approved by Ian Cunningham-Dunlop, P. Eng., Chief Operating Officer and Vice President Exploration, Pilot Gold, and a “qualified person” within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). 

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, meaningful size and 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 alone has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

For further details on TV Tower, please view the NI 43-101 compliant technical report entitled "NI 43-101 Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey," dated February 15, 2011, as amended on June 7, 2011, prepared by Ian R. Cunningham-Dunlop, P. Eng. and VP Exploration and Chief Operating Officer, Pilot Gold (formerly VP Exploration, Fronteer Gold Inc.) under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com). 

Drill samples and analytical data for TV Tower reported in this release were collected under the supervision of TMST, using industry standard QA-QC protocols.  Mr. Cunningham-Dunlop has not verified all of the assay data generated by TMST.  However, the grades and widths reported here agree well with the Company’s past results on the TV Tower project and TMST has given him no reason to doubt their authenticity.

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 Pilot Gold’s ability to fund cash-calls made by Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”) for ongoing expenditure on the  Halilaga property, successful earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements, 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; achievement of identified tangible project milestones on the Kinsley Mountain, TV Tower or Halilaga properties, 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 TV Tower and Halilaga in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, limitations on insurance coverage 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 exploration at the TV Tower property, reliance on technical information provided by TMST at the TV Tower property; changes in project parameters as plans continue to be refined; current economic conditions; the future prices of gold, silver and copper, fluctuations in currency exchange rates; 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, financing or in the completion of exploration as well as those factors discussed in the section entitled "Risk Factors" in Pilot Gold’s Amended 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. 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.

 

 

12-10

Pilot Gold (PLG – TSX) (“Pilot Gold” or “the Company”) is pleased to report strong intervals of gold mineralization in step-out holes at the Kinsley Mountain project, including 5.48 grams per tonne gold over 20.4 metres in hole PK014C, located 150 metres northeast of hole PK002 which returned 6.23 g/t gold over 8.7 metres in 2011 drilling.

“These results from the core drilling portion of our 2012 program demonstrate Kinsley’s ability to host gold mineralization to the north of the mined pits and previously identified gold trend.  Future drilling will continue to target frontier areas to the northeast and southwest of the mine to further expand the gold mineralized footprint and identify the high grade structures we are beginning to see,” said Moira Smith, Chief Geologist for Pilot Gold.

Assays from the 14 hole diamond core drilling program returned mineralization in step-out holes 100 metres to 150 metres north of the historic main pit area, where Pilot Gold’s 2011 drilling was focused.

Highlights from the 2012 core drilling program include:

  •  5.48 g/t gold over 20.4 metres, including 16.43 g/t gold over 5.5 metres in PK014C;
  • 1.40 g/t gold over 10.5 metres in PK019C; and,
  •  0.92 g/t gold over 28.8 metres in PK031C.

All true widths are 60-90% 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/KinsleyDrillResults_1210.pdf

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1210.pdf

Detailed mapping over the entire Kinsley Mountain claim block has identified a number of north, northeast and northwest-trending high-angle faults with jasperoid alteration up to 7 km north of the mine. Jasperoids are an important structural and alteration marker of Carlin-style sediment-hosteddeposits, as they are often indicative of deep hydrothermal mineralizing systems. Rock samples from the Kinsley jasperoids have returned up to 2.8 g/t Au and highly anomalous pathfinder elements consistent with the presence of sediment-hosted gold mineralization at depth.

The 2012, 12,000-metre drill program commenced on March 20th, with one diamond core drill and one RC drill. Drilling is primarily focused on expanding the mineralized footprint identified by previous operators in the 1980s and 1990s, and following up on the high grade intercepts from Pilot Gold’s initial drill program in late 2011. The majority of holes drilled to date by Pilot Gold have encountered gold mineralization, with deeper RC holes targeting gold in deeper stratigraphic intervals than were previously tested.

In conjunction with the 2012 drill program, regional exploration, data compilation and modeling, and environmental studies are underway. Activities include rock chip sampling, detailed geologic mapping and digitizing and 3D modeling of historic data including over 1,100 drill holes and 72,000 blast hole samples leading to the first comprehensive 3D model for the project. The model allows for more accurate targeting of mineralization and potential high-grade structures beyond the limit of historic workings. Additionally, a Plan of Operations permit application was submitted to U.S. Bureau of Land Management (BLM) which will allow for expanded exploration activities beyond the previously disturbed areas.

Exploration continues with one reverse circulation drill, operating over a wider area along the northern margin of the previously-defined zone of gold mineralization.  Results from the RC portion of the program are currently pending.    

Kinsley Mountain is a sediment-hosted gold system and past-producing mine. Stratigraphic and structural controls are similar to those at the nearby Long Canyon project (Newmont Mining Corp.) and Bald Mountain mine (Barrick Gold Corp.). Kinsley is being advanced by the same technical and management team that defined the Long Canyon project under Fronteer Gold.

Nevada Sunrise Gold Corporation is Pilot Gold’s 49% joint venture partner on Kinsley Mountain.  Pilot Gold is currently earning up to 65% of the project from its current 51% ownership.

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 towww.metalseconomics.com

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, a past-producing sediment-hosted gold system 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

For more detailed information on the Kinsley Mountain project, please refer to the recently published 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.

All statements in this release, other than statements of historical fact, are “forward-looking information" with respect to Pilot Gold Inc. (“Pilot Gold”) within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, 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, or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”,

“estimate”, “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, 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.; estimated future working capital, funds available, 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, 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, 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, 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.

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.

Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Pilot Gold, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Pilot Gold does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

 

 

12-11

Pilot Gold Inc. (TSX: PLG) (“Pilot Gold” or the “Company”) announced today that it has entered into an agreement (the “Agreement”) with Rae-Wallace Mining Company (OTC: RAEW) (“Rae-Wallace”) whereby the Company will not exercise its option (the “Option”) to acquire up to a 51% interest  in certain mineral properties held by Rae-Wallace in Peru (the “Projects”) in exchange for, among other things, an increased shareholding in the capital of Rae-Wallace. The Option was initially transferred to Pilot Gold from Fronteer Gold Inc. (“Fronteer Gold”) pursuant to the acquisition of Fronteer Gold by Newmont Mining Corporation.

Pursuant to the Agreement, in consideration for the termination of the Option by the Company, Rae-Wallace has issued to Pilot Gold 1,985,100 ordinary shares in the capital of Rae-Wallace (the “Initial Shares”) resulting in the Company owning 15.8% of the issued and outstanding capital of Rae-Wallace and has extended the expiration date of the 1,000,000 ordinary Rae-Wallace share purchase warrants (the “Warrants”) currently held by Pilot Gold to the later of July 23, 2014 or the date that is 24 months following the closing of a going public transaction (the “Transaction”) which would result in the listing of Rae-Wallace shares on a recognized stock exchange. Additionally, subject to Rae-Wallace completing the Transaction, the Company will receive the following additional consideration from Rae-Wallace:

(i)            a 2% net smelter royalty on all the Projects except Rae-Wallace’s Liscay Project;

(ii)           additional shares in the capital of Rae-Wallace to maintain Company’s 15.8% ownership of Rae-Wallace after giving effect to the Transaction;

(iii)          additional Rae-Wallace share purchase warrants exercisable for an additional 9.99% of the shares of Rae-Wallace after giving effect to the Transaction (the “Additional Warrants”); and

(iv)         a right of first offer in the event that Rae-Wallace wishes to explore or develop any of the Projects with a third party.

Prior to the issuance of the Initial Shares, the Company held 2,000,000 Rae-Wallace shares and the Warrants, which collectively represented 8.6% of the issued and outstanding capital of Rae-Wallace on a non-diluted basis or 12.9% of Rae-Wallace’s issued and outstanding capital calculated on a partially-diluted basis assuming the exercise of any Warrants that have vested as of the date hereof.    Pilot Gold now holds 3,985,100 Rae-Wallace shares, representing 15.8% of Rae-Wallace’s current issued and outstanding capital, or 19.0% calculated on a partially-diluted basis. Assuming that the Company does not acquire any additional securities of Rae-Wallace other than those provided for in the Agreement or dispose of any of its securities of Rae-Wallace, upon completion of the Transaction, the Company will own 15.8% of Rae-Wallace on a non-diluted basis or 26.1% on a partially diluted basis, excluding the exercise of the Warrants, assuming the full exercise of the Additional Warrants and assuming the consent of Rae-Wallace with respect to the exercise of that number of Additional Warrants which, if exercised, would result in the Company holding in excess of 19.99% of the issued and outstanding shares of Rae-Wallace.

All of the securities held by the Company in Rae-Wallace, including the shares and warrants described in this news release, are held directly by Pilot Gold and are being held for investment purposes. The Company may in the future take such actions in respect of its Rae-Wallace securityholdings as it deems appropriate in light of the market circumstances then existing, including the potential purchase of additional shares of Rae-Wallace through open market purchases or privately negotiated transactions, or the sale of all or a portion of such holdings in the open market or in privately negotiated transactions to one or more purchasers.

An early warning report regarding Pilot Gold’s shareholdings in Rae-Wallace pursuant to the termination of the Option will be filed on SEDAR and will be available under Rae-Wallace’s profile at www.sedar.com.

ABOUT RAE-WALLACE MINING COMPANY

Rae-Wallaceis a mineral exploration company, existing under the law of the Cayman Islands, that plans to explore and develop properties to the mineral production stage. Rae-Wallace is currently considered to be in the exploration stage and its principal assets and sole material properties are the 100% owned Liscay gold-silver project and the Toro Blanco gold project each located in southwest Peru.

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, meaningful size and 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 alone has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

MattLennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

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 states 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 the ability of Rae-Wallace to close the Transaction, the ultimate receipt of additional shares and warrants of Rae-Wallace, the ultimate ability to exercise any Rae-Wallace share purchase warrants held by Pilot Gold, and Pilot Gold’s intentions with respect to the Rae-Wallace ordinary shares and warrants 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 current economic conditions; the future prices of gold, silver and copper, fluctuations in currency exchange 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, financing or in the completion of exploration as well as those factors discussed in the section entitled "Risk Factors" in Pilot Gold’s Amended 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. 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. 

 

 

12-12

Pilot Gold (PLG – TSX) (“Pilot Gold” or the “Company”) is pleased to report that the first round of assays from the 2012 work program at the Halilaga copper-gold porphyry in northwestern Turkey has returned broad intervals of continuous copper-gold mineralization in all holes, including 0.64 g/t gold and 0.52% copper over 134.90 metres in HD-115 (1.50 g/t AuEq)*.

The 2012 drill program which began on March 27th, 2012 is designed for resource conversion and expansion.  Of the eight holes completed to date, six were infill holes within the defined resource while the remaining two, HD-108 and HD-110, were drilled beyond the resource area and at least 100 metres from the nearest previously reported drill holes.  All holes intersected copper-gold porphyry-style mineralization, including notable high-grade intervals in holes HD-108, HD-109 and HD-115.

“We are excited to be intercepting higher-grade, near-surface results,” stated Pilot Gold CEO Matt Lennox-King. “The fundamentals of the Halilaga deposit continue to improve as we move the project forward with ongoing hydrology, geo-technical, and economic studies.”

Initial highlights from the 2012 program include:

- 0.26 g/t gold and 0.23% copper over 194.0 metres, including 0.87 g/t gold and 0.69% copper over 28.5 metres in HD-108 (0.64 g/t AuEq over 194.0 meters);

- 0.76 g/t gold and 0.60% copper over 35.2 metres in HD-108A (1.75 g/t AuEq);

- 0.23 g/t gold and 0.35% copper over 401.2 metres, including 0.65 g/t gold and 1.84% copper over 35.7 metres in HD-109 (0.81 g/t AuEq over 401.2 metres);

- 0.40 g/t gold and 0.29% copper over 132.2 metres, including 0.56 g/t gold and 0.41% copper over 51.5 metres in HD-110 (0.88 g/t AuEq over 132.2 metres);

- 0.23 g/t gold and 0.20% copper over 169.5 metres in HD-111 (0.56 g/t AuEq);

- 0.64 g/t gold and 0.52% copper over 134.90 metres, including 0.78 g/t gold and 0.60% copper over 81.40 metres in HD-115 (1.50 g/t AuEq )

All true widths are 60-90% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. Holes HD-108A and HD-109A were terminated prematurely due to ground conditions.

* AuEq based on $1,200/oz gold and $2.90/lb copper. For a comprehensive table of drill results to date, including new and non-reportable intercepts, please click: http://www.pilotgold.com/sites/default/files/HalilagaDrillResults1212.pdf

Project Description

The Halilaga property is located in northwestern Turkey in a regional industrialized zone that includes large open pit coal mines, a major power plant, ceramics factories, and deep water ports.  On February 8, 2012, a project-first, independent resource estimate demonstrated Halilaga to be the largest copper-gold deposit in the Biga District with:

- An Indicated Resource of 1.665 million ounces gold at an average grade of 0.31 g/t gold, and 1.112 billion pounds of copper at an average grade of 0.30% copper (168,167,000 tonnes)

- An Inferred Resource of 1.661 million ounces gold at an average grade of 0.26 g/t gold, and 1.007 billion pounds of copper at an average grade of 0.23% copper (198,668,000 tonnes).
(Refer to February 8, 2012 news release)

A key attribute of the deposit is a sizeable near-surface zone with significantly higher grades in both copper and gold. 

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/HalilagaDrillMap1212.pdf

To view a table of the Halilaga Resource Estimate, please click: http://www.pilotgold.com/halilaga-resource-estimate

Teck Resources Limited’s Turkish Subsidiary, “TMST”, is Pilot Gold’s 60% joint venture partner and project operator. An ongoing program of infill and exploration drilling is planned throughout 2012, with concurrent economic, metallurgical, hydrological and environmental studies.

All drill samples and analytical data for Halilaga are collected under the supervision of TMST, using industry standard QA-QC protocols.  Ian Cunningham-Dunlop, P. Eng, VP Exploration and Chief Operating Officer for Pilot Gold, and a “Qualified Person” within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), is responsible for compiling the technical information contained in this release.   Mr. Cunningham-Dunlop has not verified all the assay data generated by TMST as project operator, however the grades and widths reported here agree well with the Company’s past results on the project and TMST has given him no reason to doubt their authenticity.

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 or contact:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

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" (the “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.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimates referenced in this press release use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources." While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Pilot Gold is not an SEC registered company.

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 Pilot Gold’s ability to fund cash-calls made by Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”) for ongoing expenditure on the Halilaga property, successful earn-in on the TV Tower project, including the ability to incur the minimum annual expenditure requirements, 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 TV Tower and Halilaga in accordance with the requirements of the Turkish Mining Law, 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 exploration at the Halilaga property, reliance on technical information provided by TMST at the Halilaga property; changes in project parameters as plans continue to be refined; current economic conditions; the future prices of gold, silver and copper, fluctuations in currency exchange rates; 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 Environmental Impact Assessments and challenges thereon; title disputes or claims against the project, the operator or Pilot Gold, limitations on insurance coverage, financing or the Company’s ability to complete exploration on Halilaga, TV Tower, Kinsley and the rest of the portfolio projects, as well as those factors discussed in the section entitled "Risk Factors" in Pilot Gold’s Amended 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. 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.

 

 

12-13

Pilot Gold (PLG – TSX) (“Pilot Gold” or “the Company”) is pleased to announce that it has commenced a 16,000 metre resource definition and exploration drill program at the TV Tower Project in northwestern Türkiye. As Operator, Pilot Gold plans to drill 9,000 metres by year-end, focused on the  Kücükdag (KCD) target, where previous drilling returned exceptional grades, including 4.28 g/t gold over 136.2 metres and silver grades up to 171.00 g/t silver over 47.50 metres.

“We are thrilled to commence our 2012 drill campaign at TV Tower. This is an extremely large and prospective land package that has already produced two significant new discoveries on the property, verified by drilling. We believe TV Tower will ultimately yield multiple additional discoveries, leading to a large mineral endowment property-wide. Our goal is to establish TV Tower as the premier gold exploration project in western Türkiye,” stated Matt Lennox-King, President and CEO of Pilot Gold.  

Initial work in 2010 identified seven primary targets which led to discoveries at the KCD and Kayali (KYD) targets in 2011. Pilot Gold’s team has been conducting surface exploration since mid-March of 2012, and has already identified a number of additional exploration targets, with large areas of the property still remaining virtually unexplored. The 2012 drill campaign will primarily focus on aggressive infill drilling of the discovery zone at the KCD target and additional surface exploration on the remaining targets. Two diamond core drills began operating in the first week of August, with a third drill scheduled to arrive in September. 

PROPERTY OVERVIEW
Located on the Biga Peninsula of northwest Türkiye, TV Tower is host to numerous high-sulphidation epithermal gold-silver prospects. The large 7,109 hectare (71km2) project is road accessible, and 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). Pilot Gold currently owns 40% of TV Tower and is earning in to a majority 60% interest from Teck Madencilik Sanayi Ticaret A.S. (“TMST”), a Turkish subsidiary of Teck Resources Limited (“Teck”).

KCD target highlights:
The KCD target is the premier discovery at TV Tower to date, where recent drilling has outlined a high-grade gold zone overlain by a high-grade silver zone.  The discovery zone has a significant footprint, measuring approximately 600 x 400 metres and remains open for expansion in multiple directions. Past drilling has returned some of the highest gold, silver and copper grades in the Biga District, including:

  • 4.28 grams/tonne gold over 136.2 metres, including 9.51 g/t gold over 57.8 metres in KCD-02;
  • 1.87 g/t gold over 48.0 metres, including 13.83 g/t gold over 5.4 metres in KCD-15;
  • 171.00 g/t silver over 47.5 metres, including 259.67 g/t silver over 27.9 metres in KCD-18;
  • 50.25 g/t silver over 114.9 metres, including 132.60 g/t silver over 7.5 metres in KCD-28; and
  • 61.61 g/t silver over 39.0 metres, including 96.03 g/t silver over 15.3 metres in KCD-37.

See May 10, 2011, October 4, 2011 and May 18,2012 press releases. All true widths are 30-90% 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/TVTowerDrillResults1209.pdf

The 2012 drilling program at the KCD target is designed to aggressively infill the discovery zone and to significantly expand the mineralization both laterally and at depth.

Property-wide potential
TV Tower is covered largely by strongly altered volcanic rocks.  Alteration types include vuggy silica and advanced argillic alteration typical of a high sulphidation epithermal environment. High sulphidation gold-silver deposits typically comprise some of the largest gold deposits in the world, including Yanacocha, South America’s largest gold producer with over 25 million ounces in past production and resources, and Pueblo Viejo in the Dominican Republic, also with a resource of over 25 million ounces of gold.  Other deposit types on the property include low sulphidation gold-silver veins with bonanza grades, and copper-gold porphyry.

At Kayali (KYD), the site of the second gold discovery in 2011, drilling to date has returned significant intervals of gold mineralization with KYD-01 returning 0.87 g/t gold over 114.5 metres, and KYD-02 returning  0.78 g/t gold over 88.6 metres. Gold mineralization is associated with oxidized, intensely silicified and either fractured or locally brecciated intervals within a high sulphidation system. Oxidation at Kayali is deep, averaging 100-200m in depth. Our surface work in 2012 provides clear guidance for future drilling with a high probability of success.

Ongoing programs of rock and soil sampling across the remainder of the property continue to yield new areas of interest and early-stage targets.  Progress and results to date have been extremely encouraging, and large altered and highly prospective areas of this property still remain unexplored. As a result, the current surface program is designed to assess the seven targets originally defined, and to generate additional targets through the application of geophysics, geochemistry, structural interpretation and geologic mapping. 

The program has met with significant success to date, with several new zones of mineralization identified by the Pilot Gold team since the start of field work in March. Highlights include the Sarp-Columbaz target (drill-tested in 2011), where two new areas have been identified for future drill testing, including low-sulphidation veins assaying 39g/t gold and 294 g/t silver in recent sampling.

 For a location map of TV Tower, please click: http://www.pilotgold.com/sites/default/files/TVTowerLocationMap1213.pdf

 For a property map of TV Tower, please click:
http://www.pilotgold.com/sites/default/files/TVTowerPropertyMap1213.pdf

All drill samples and analytical data for TV Tower to date were collected under the supervision of TMST, using industry standard QA-QC protocols.  Ian Cunningham-Dunlop, P. Eng, VP Exploration and Chief Operating Officer for Pilot Gold, and a “Qualified Person” within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), has been responsible for compiling the technical information disclosed in previous releases and has approved the technical information in this press release.  Mr. Cunningham-Dunlop has not verified all of the assay data generated by TMST as previous project operator.  However, the grades and widths reported in prior releases agree well with the Company’s past results on the project and TMST has given him no reason to doubt their authenticity. The potential quantity and grade of the mineralization described herein are currently conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

 UPDATED TECHNICAL REPORT

Pilot Gold is also pleased to announce the filing of a NI 43-101 technical report entitled “Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Türkiye”, dated August 3rd, 2012, in support of future exploration at the TV Tower project.

The report was prepared by Paul Gribble of Tetra Tech WEI Inc.  Mr. Gribble is independent of Pilot Gold and is a “Qualified Person” as defined by NI 43-101. Mr. Gribble, as a Qualified Person for the TV Tower project, has reviewed, verified and approved the contents of this release. The full NI 43-101 Technical Report will be available on www.sedar.com and on Pilot Gold’s web site at www.pilotgold.com.  

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, meaningful size in mining-friendly addresses. Our three key assets include interests in the Halilaga and TV Tower projects in Türkiye, 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

For further details on TV Tower, please view the NI 43-101 technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Türkiye”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology for Tetra Tech WEI Inc. under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

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 Pilot Gold’s ability to fund cash-calls made by Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”) for ongoing expenditure on the Halilaga property, successful earn-in on the TV Tower project, including the ability to incur the minimum annual expenditure requirements, 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 raise sufficient funds through future issuances of Common Shares to continue to execute on the Company’s programs, 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 exploration at the TV Tower property, reliance on technical information provided by TMST at the TV Tower property; changes in project parameters as plans continue to be refined; current economic conditions; the future prices of gold, silver and copper, fluctuations in currency exchange rates; 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, the ability to maintain or convert the underlying licenses that comprise TV Tower and Halilaga in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, limitations on insurance coverage, the ability to raise adequate funds, or to complete exploration, as well as those factors discussed in the section entitled "Risk Factors" in Pilot Gold’s Amended 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.

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. Except as required by law, 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.

 

 

12-14

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) reports financial results for the second quarter ended June 30, 2012, and provides an update on exploration activities.

“During the second quarter of 2012, we became operator at TV Tower, earned a controlling interest at Kinsley while continuing to expand the extent of gold mineralization, and completed a robust maiden resource estimate on our Halilaga copper-gold project," stated Pilot Gold President and CEO Matt Lennox-King.  “With drilling already underway at TV Tower, an active drill program at Kinsley and ongoing drilling and economic studies at Halilaga, we will continue to make significant headway at all three of our key projects throughout the remainder of the year.”


HIGHLIGHTS TO DATE

  • Assumed operational control at TV Tower with an option to increase ownership;
  • Commenced a 16,000 metre, year-one resource definition and exploration drill program;
  • Released final 2011 drill results for TV Tower, including 61.61 g/t silver over 39.0 metres in hole KCD-37;
  • Earned an initial 51% interest at Kinsley Mountain, and elected to earn-in to a 65% interest in the property;
  • Announced the first round of 2012 drill results from Kinsley Moutain, including 5.48 g/t gold over 20.4 metres in hole PK014C;
  • Reported a project-first independent resource estimate at the Halilaga copper-gold project; 
  • Reported initial 2012 drill results at Halilaga, including 0.64 g/t gold and 0.52% copper over 134.9 metres in hole HD-115; and
  • Continued to rationalize non-core assets acquired further to the Fronteer Arrangement in relinquishing the Rae-Wallace option in exchange for an increased equity position in Rae-Wallace Mining.

WORK PROGRAM UPDATES

TV Tower Project - Year One,  16,000 metre drill program

Pilot Gold is earning-in to an additional 20% interest at TV Tower (from our current 40% interest) and assumed operatorship over the program and budget as of June 20, 2012.  The Company expects to drill 9,000 metres in 2012 as part of our 16,000 metre, “Year One” drill campaign, with an initial focus on the KCD (Kücükdag) target where previous drilling returned exceptional grades in gold and silver. Two diamond core drills began operating in the first week of August, with two more scheduled to arrive in the fall. The first two holes are already complete and awaiting assays.

A property-wide effort including detailed geological mapping, geochemical sampling, ground geophysics, and general reconnaissance has been underway since March.  Our revised 2012 budget, as project operator, is $4.1 million, with a goal to deliver results quickly as we commence the first year, $5 million committed expenditure.  Teck Resources Limited’s Turkish subsidiary, TMST, is Pilot Gold’s 60% joint venture partner for the project.

Kinsley Mountain Project - 12,000 metre drill program

The 2012 work program includes 12,000 metres of core and RC drilling with detailed geologic modelling and analysis designed to confirm and expand the historic gold footprint and to test priority exploration targets at depth and along strike. We have also submitted a Plan of Operations with the United States Bureau of Land Management that would increase the area on which we can actively explore.  We achieved the initial 51% earn-in on May 10, 2012, and have elected to earn an additional 14% interest (to an aggregate of 65%) in the project by making a further $3 million in expenditures on the property before May 2017. We have already incurred approximately $1.9 million in eligible expenditures toward this second option. Nevada Sunrise Gold Corporation, Pilot Gold’s joint venture partner, currently has a 49% interest.  Our revised budget at Kinsley Mountain for the year is $2.9 million.  We have begun testing high priority targets approximately 500 metres to the northwest of the historic mine area.  Assay results from the continuing program are expected in the coming weeks.

Halilaga Project - 15,000 metre drill program

A 5,000 metre, Phase One drill program at Halilaga is expected to be completed in August, with a Phase Two, 3,750 metre program planned to follow immediately after. The Phase One program, focused on infill core drilling as part of a larger planned infill and exploration drill program yielded results that continue to demonstrate the robust potential of this property.  Highlights from the initial results of Phase One include0.64 g/t gold and 0.52% copper over 134.9 metres in hole HD-115.  Throughout the year we have been working with TMST, the Company’s 60% partner at Halilaga, on enhancing the existing resource with ongoing economic, metallurgical, hydrological and environmental studies.   Several assays from ongoing drilling are pending.

Revised budgeted expenditures, contingent on final approval from Teck, for 2012 are $4.87 million, with Pilot Gold’s share totalling $1.95 million. 

FINANCIAL DATA

The following selected financial data is derived from our consolidated financial statements for the six month period ended June 30, 2012, as prepared in accordance with International Financial Reporting Standards. As described in our unaudited condensed interim consolidated financial statements, a portion of the comparative period reflects the application of continuity of interest accounting.

(Expressed in 000s, except per share data)

Three months ended June 30,

Six months ended June 30,

 

2012

2011

2012

2011

Loss for the period

($1,383)

($7,270)

($2,844)

($7,684)

Loss and comprehensive loss for the period

($2,362)

($7,210)

($3,500)

($7,424)

Basic and diluted loss per share

($0.02)

($0.14)

($0.05)

($0.15)

 

As at

 
 

June 30, 2012

(in 000s)

December 31, 2011

(in 000s)

Cash and short-term investments

$10,821

$18,420

 

Working capital

$10,584

$17,846

 

Total assets

$39,645

$37,493

 

Current liabilities

$1,190

$1,050

 

Non-current liabilities

$26

$74

 

Shareholders’ equity

$38,429

$36,370

 
         
  • For the three months ended June 30, 2012, we reported a net loss of $1.38 million compared to a net loss of $7.27 million for the three months ended June 30, 2011. The loss per share for the three months ended June 30, 2012 was $0.02 (three months ended June 30, 2011: $0.14). The most significant contributors to the loss for the three and six months ended June 30, 2012 were stock based compensation ($0.51 and $1.03 million respectively) and the cost of wages and benefits not directly relating to exploration on any of the Company’s properties ($0.44 and $0.90 million respectively). Expenses for the six months ended June 30, 2012 were offset by income resultant from a change in fair value of our financial instruments ($0.68 million). In the comparative period, the most significant contributors to the losses were also stock based compensation and wages. In the three months ended June 30, 2012, we wrote-back up the previously impaired value of the option to acquire up to two properties held by Rae-Wallace Mining Company (“Rae-Wallace”) further to the termination of that option in exchange for a significantly increased interest in Rae-Wallace.
  • Other comprehensive loss for the three and six months ended June 30, 2012 was $0.98 million and $0.66 million respectively (three and six months ended June 30, 2011: income of $0.06 million and $0.26 million, respectively).  The six months ended June 30, 2012 includes a net value loss on financial assets of $0.66 million (six months ended June 30, 2011, loss of $0.03 million), relating to the revaluation of common shares we hold in other publicly listed companies. Other comprehensive loss for the six months ended June 30, 2012 also includes a $0.01 million gain (June 30, 2011: gain of $0.29 million) from the impact of exchange gains and losses arising from exchange differences further to the translation of our foreign operations with a non-United States dollar functional currency.
  • Current assets decreased to $11.77 million as at June 30, 2012 (December 31, 2012: $18.90 million), and comprise primarily cash and short-term investments of $10.82million (December 31, 2011: $18.42 million).  The decrease reflects cash outflows related to exploration and corporate activities through the six months ended June 30, 2012. The remaining balance of current assets comprises receivables and prepayments of $0.77 million (December 31, 2011: $0.48 million) which have increased primarily as a result of an increase in receivables due from certain of our associates further to exploration activities in those entities, as well as amounts due from Blue Gold Mining Inc., for management services, and $0.17 million relating to the Rae-Wallace property option terminated in July 2012 and classified as held for sale.
  • The value of the shares and warrants issued to TMST relating to the TV Tower earn-in option ($4.4 million) has been capitalized to the balance sheet.  This non-current asset also includes the value of legal costs paid to secure the earn-in option.  
  • The new cash outflow relating to operating activities through the six months ended June 30, 2012 was $2.53 million, compared to a new cash outflow of $1.38 million in the same period of the prior year.   The most significant components of which were wages and benefits and office-related costs (aggregate of $1.69 million and $1.11 million through the six months ended June 30, 2012 and 2011 respectively). The Company’s cash outflows relating to our continuing investment in mineral properties was $2.41 million and $2.18 million through the six months ended June 30, 2012 and 2011 respectively.
  • The number of issued and outstanding shares at June 30, 2012 was 62,460,286 (June 30, 2011: 59,085,286). The increase reflects primarily the shares issued to TMST to secure the TV Tower earn-in option.

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 six months ended June 30, 2012. 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.

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, meaningful size and 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 alone 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:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Ian Cunningham-Dunlop, P. Eng., VP Exploration and Chief Operating Officer for Pilot Gold, and a “Qualified Person” within the meaning of NI 43-101, is responsible for compiling the technical information contained in this release. 

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future prices of gold, copper and molybdenum, 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, the timing of a preliminary economic assessment or other study, proposed exploration and development of our exploration properties and the estimation of mineral reserves and resources. 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, completion of expenditure obligations under the Kinsley Mountain Option Agreement; funding cash-calls made by Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”) for ongoing expenditure on the  Halilaga property, successful earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuances of Common shares as consideration to complete the earn-in agreement, ability to fund cash-calls made by our joint venture partners for ongoing expenditures on our joint venture properties; current and proposed exploration and development, estimated future working capital, uses of funds, future capital expenditures; information with respect to exploration results, the timing and success of exploration activities generally; the costs and timing of the development of new deposits, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation; the timing, timeline and possible outcome of permitting or license renewal applications; the ability to maintain or convert the underlying licenses in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, and limitations on insurance coverage 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 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 other exploration properties; 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, financing or in the completion of exploration as well as those factors discussed in our AIF for the year ended December 31, 2011, 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 the Company’s Annual Information Form (“AIF”) for the year ended December 31, 2011 dated March 28, 2012, available under Pilot Gold’s SEDAR profile at http://www.sedar.com.

 

 

12-15

Pilot Gold (PLG – TSX) (“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 or contact:


Matt Lennox-King, President & CEO

Patrick Reid, VP Corporate Affairs

Phone 604-632-4677 or Toll Free 1-877-632-4677

This email address is being protected from spambots. You need JavaScript enabled to view it.

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.Ş. (“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.

 

 

12-16

Pilot Gold (PLG – TSX) (the “Company”) is pleased to report that step-out drilling on the western flank of the Company’s Kinsley Mountain Project in Nevada has returned up to 6.03 g/t gold over 13.7 metres, 600 metres northwest of the nearest historic pit. Recent drilling in the Western Flank area has identified a north-trending zone of higher-grade mineralization that is at least 400 metres by 100 metres and remains open in all directions.

Pilot Gold is nearing the end of the 2012 drill program at Kinsley; however, drilling on the Western Flank area on the west side of the range has been expanded with additional holes targeting higher-grade intercepts. Assays are pending from the final 6 holes of the 12,000 metre program. 

“These exciting results validate the ‘Long Canyon’ model developed by our technical team that predicted the presence of north to northeast trending mineralized zones extending from the historic, northwest-trending pits,” stated Matt Lennox-King, President and CEO. “In addition, high grades are being intercepted at deeper stratigraphic levels than previously encountered, and as a result the potential for the presence of a large, untapped system continues to grow.”

NEW DRILL RESULTS

Western Flank of Kinsley Range:Reverse Circulation drilling in an area approximately 600 metres northwest of the nearest historic pit and 120 metres north of PK057 (2.30 g/t gold over 19.8 metres; see news release dated August 27th, 2012) returned:

  • 6.03 g/t gold over 13.7 metres in PK061;

o   including 15.18 g/t gold over 4.6 metres;

o   and 6.25 g/t gold over 1.5 metres.

  • 3.91 g/t gold over 3.0 metres in PK063.
  • 1.52 g/t gold over 6.1 metres in PK058.

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/KinsleyDrillResults1216.pdf

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1216.pdf

A subsidiary of Nevada Sunrise Gold Corporation (“NEV”) is Pilot Gold’s 49% joint venture partner on Kinsley Mountain.  To earn a further 14% interest in the project Pilot Gold must spend $3 million in exploration.  To date, the Company has incurred approximately $2.4 million toward the second earn-in, and anticipates earning a 65% interest at Kinsley in 2013.  NEV will be responsible to fund its share of expenditures from that point forward.

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 51 multi-element geochemical suite by ICP-MS. Data citing ounces mined from historical production is attributed to www.metalseconomics.com

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 or contact:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

For more detailed information on the Kinsley Mountain project, please refer to the recently published 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.

All statements in this release, other than statements of historical fact, are “forward-looking information" with respect to Pilot Gold Inc. (“Pilot Gold”) within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, 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, or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “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, 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.; estimated future working capital, funds available, 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, 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, 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, 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.

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.

Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Pilot Gold, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Pilot Gold does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

 

 

12-17

Pilot Gold Inc. (PLG - TSX) is pleased to report that the first two drill holes of the 2012 program at the Kucukdag (KCD) target at the TV Tower project in Turkey have returned long intervals of high grade gold, silver and copper. Highlighted is drill hole KCD-39, which returned 5.94 grams per tonne gold, 12.6 g/t silver and 0.53% copper over 137.1 metres, which extends the high-grade gold/silver/copper breccia zone in discovery hole KCD-02 over 50 metres to the south.  Pilot Gold assumed operatorship of the project in July, 2012 (see press release dated June 21, 2012).

“We are thrilled with the fact that this is the highest gram x metre gold interval ever drilled by our team on any of our projects over the years,” stated Matt Lennox-King, President & CEO of Pilot Gold. “These first holes drilled by Pilot Gold reinforce TV Tower as the premier exploration project in northwest Turkey.”

Drill Highlights include:

  • 5.94 g/t gold, 12.6 g/t silver, and 0.53% copper over 137.1 metres in KCD-39, including
    • 18.88 g/t gold, 13.1 g/t silver and 1.36% copper over 27.0 metres, including
      • 55.75 g/t gold, 30.7 g/t silver and 3.33% copper over 3.0 metres.
  • 0.93 g/t gold, 7.0 g/t silver, and 0.51% copper over 69.0 metres in KCD-38.

For a full table of 2012 drill results, please click:
http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1217.pdf

For a map highlighting recent drilling, please click:
http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1217.pdf

These results mark the start of an aggressive exploration program consisting of 16,000 metres of diamond core drilling, property-wide airborne geophysics and ongoing surface mapping and geochemical sampling. 

Nine thousand metres of drilling will be focused on the KCD target and is designed to infill and expand the mineralized footprint. Approximately 2,500 metres comprising 12 holes have been completed to date, with assays pending for 10 holes.  A third drill was recently added to the project, with a fourth rig anticipated to arrive by the end of September.  All drilling for the remainder of 2012 will focus on infill and step-out drilling in the KCD (northern) target area, followed by systematic testing of other high-priority targets in early 2013.

Past drilling at the KCD zone has returned some of the highest-grade gold, silver and copper drilling intervals in northwestern Turkey, including:

  • 4.28 g/t gold, 15.82 g/t silver and 0.68% copper over 136.2 metres, including 9.51 g/t gold, 34.54 g/t silver and 1.51% copper over 57.8 metres in KCD-02;
  • 1.87 g/t gold, 7.26 g/t silver and 0.19% copper over 48.0 metres, including 13.83 g/t, 25.29 g/t silver and 0.31% copper gold over 5.4 metres in KCD-15;
  • 171.00 g/t silver over 47.5 metres, including 259.67 g/t silver over 27.9 metres in KCD-18; and,
  • 50.25 g/t silver over 114.9 metres, including 132.60 g/t silver over 7.5 metres in KCD-28.

See May 10, 2011, October 4, 2011 and May 18, 2012 press releases. All true widths are 30-90% 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 previous drill results, including non-reportable intercepts, please click:
http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1209.pdf

About TV Tower:
Located on the Biga Peninsula of northwest Turkey, TV Tower encompasses 71 km2 containing a large number of targets ranging from high- and low-sulphidation epithermal gold-silver to porphyry gold-copper. The project is road accessible, and 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). Drilling in 2010 resulted in new discoveries at the KCD high grade breccia and Kayali oxide gold targets. Ongoing exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz epithermal vein system that returned 39 g/t gold and 290 g/t silver in recent rock chip sampling. 

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. TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (“TMST”) (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”).

The TV Tower project is an early stage exploration project and does not contain any mineral resource estimates as defined by 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. 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). 

Moira Smith, Ph.D., 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 is accurate. Drill composites were calculated using cut-offs of 0.30, 3.0 and 10.0 g/t Au. 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 AcmeLabs in Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge by ICP-ES, or if over 10.0 g/t were re-assayed and completed with a gravimetric finish. Ag and Cu were determined by 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 finish (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 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 the TV Tower and Kinsley gold projects and a 40% interest in the Halilaga copper gold porphyry project, each of which alone has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

For further details on TV Tower, please view the NI 43-101 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 2012 assay data presented herein have been verified by Moira Smith, Ph.D.,P.Geo. a Qualified Person and Chief Geoscientist for Pilot Gold.  Drill samples and analytical data for TV Tower prior to 2012 reported in this release were collected under the supervision of Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”), using industry standard QA-QC protocols. Pilot Gold has not verified all of the assay data generated by TMST, However, the grades and widths previous reported agreed well with the Company’s past results at TV Tower and TMST gave Pilot Gold no reason to doubt their authenticity.

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 statements 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, Pilot Gold’s ability to fund cash-calls made by TMST for ongoing expenditure on the  Halilaga property, successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements, 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; achievement of identified tangible project milestones on the Kinsley Mountain, TV Tower or Halilaga properties, 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 TV Tower and Halilaga in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, limitations on insurance coverage 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 exploration at the TV Tower property, reliance on technical information provided by TMST at the TV Tower property; changes in project parameters as plans continue to be refined; current economic conditions; the future prices of gold, silver and copper, fluctuations in currency exchange rates; 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, financing or the completion of exploration as well as those factors discussed in the section entitled "Risk Factors" in Pilot Gold’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. 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.

 

 

12-18

Pilot Gold (PLG – TSX) (the “Company”) is pleased to report the results of the six remaining holes in its 2012 drilling program at the Kinsley Mountain Project in Nevada. These holes were focused on the western side of Kinsley Mountain and targeted a recently-discovered north-south-trending zone of gold mineralization located more than 600 metres from the historic workings.

“We believe that these results continue to validate the ‘Long Canyon’ model developed by our technical team that predicted the presence of north- to northeast-trending mineralized zones extending from the historic, northwest-trending series of open pits,” stated Matt Lennox-King, President and CEO. “We intend to follow up on these higher-grade structures with a regional exploration strategy to drill test evidence of mineralization.”

NEW DRILL RESULTS
Western Flank of Kinsley Range: This growing zone, located approximately 600 metres northwest of the nearest historic pit, measures at least 600 metres long by 100 metres wide, and is characterized by two stacked lenses of mineralization that remain open in all directions.  New RC drilling up to 150 metres north of hole PK061 (6.03 g/t gold over 13.7 metres) returned:

  • 9.50 g/t gold over 4.6 metres in hole PK067
      o   including 20.5 g/t gold over 1.5 metres
  • 2.48 g/t gold over 6.1 metres in hole PK066

All true widths are believed to represent 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/KinsleyDrillResults1218.pdf

For a map highlighting 2012 drilling, please click:  http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1218.pdf

2012 PROGRAM HIGHLIGHTS
Over the course of the 2012 program, 12,000 metres of infill and step-out core & RC drilling were completed to define and expand the mineralized zones identified by previous operators. In conjunction with drilling, a comprehensive regional effort to identify new targets was completed, encompassing both the original 141 claims, as well as 128 claims staked by Pilot Gold to the north in a largely unexplored area.  Through this work, a new mineralized zone was intersected in drilling (Candland Canyon) and the Western Flank Zone has been expanded to now cover an area 600 metres by 100 metres. Previously-released drill highlights from the 2012 program include:

  • 6.03 g/t gold over 13.7 metres in hole PK061
    o   including 15.18 g/t gold over 4.6 metres
  • 5.48 g/t gold over 20.4 metres in hole PK014C
    o   including 16.43 g/t gold over 5.5 metres
  • 2.30 g/t gold over 19.8 metres in hole PK057

A three-dimensional model of geology and mineralization was created in order to aid in the selection of new, high-grade drill targets.  Surface soil and rock samples show anomalous pathfinder geochemistry extending seven kilometres to the north of the historic open pits, consistent with the presence of a large mineralized system.  A Plan of Operations was submitted to the U.S. Bureau of Land Management to allow for property-wide drilling in 2013 throughout the southern claim block.   

NEW CLAIMS
On September 1st, 2012, Pilot Gold staked 41 unpatented lode mining claims on BLM administered land over highly prospective land held prior to that date by another company. The claims were filed with the BLM and Elko County, Nevada in the first week of October. 36 of the claims are located between two previously separate claim blocks at Kinsley, creating a contiguous property and consolidating access to the main mineralized trends to the North. The additional ground brings the total to 332 claims. Mapping, rock and soil sampling are all underway on the newly added ground.

For a map of the property showing the newly staked claims, please click here:
http://www.pilotgold.com/sites/default/files/KinsleyPropertyMap1218.pdf

The Kinsley Mountain project is a 51%/49% joint venture with a subsidiary of Nevada Sunrise Gold Corporation (“NEV”).  To earn a further 14% interest in the project, Pilot Gold must spend $3 million in exploration.  To date, the Company has incurred approximately $2.6 million in expenditures toward the second earn-in, and anticipates earning a 65% interest at Kinsley in early 2013.  NEV will be responsible to fund its share of expenditures from that point forward.

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 51 multi-element geochemical suite by ICP-MS. Data citing ounces mined from historical production is attributed to www.metalseconomics.com

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by 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.    Further information is available in the technical report entitled: “Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.”, dated March 26, 2012, and prepared by Michael M. Gustin, CPG and Senior Geologist for Mine Development Associates, Inc., available under Pilot Gold’s issuer profile on SEDAR at www.sedar.com.

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, meaningful size and mining-friendly addresses. Our three key assets include the TV Tower and Kinsley gold projects and a 40% interest in the Halilaga copper gold porphyry project, each of which alone has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

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”, “estimate”, “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, 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.; estimated future working capital, funds available, 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, 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, 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, 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.

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.

Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Pilot Gold, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Pilot Gold does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

 

 

12-19

Project generates 26% IRR and $675 million pre-tax NPV

Pilot Gold (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce the completion of a Preliminary Economic Assessment (“PEA”) for the Halilaga copper-gold porphyry deposit in northwestern Turkey (“Halilaga” or the “Project”). Pilot Gold holds a 40% interest in Halilaga, with Teck Resources Limited’s Turkish subsidiary, Teck Madencilik Sanayi Ticaret A.S. (“TMST”) as its 60% joint venture partner and project operator. The PEA demonstrates the economic benefits from higher grades of copper and gold at surface and available infrastructure for mine development.

All dollar amounts in this release are stated in US currency. The disclosure set forth below is derived from the PEA unless otherwise expressly noted. 

PEA HIGHLIGHTS:

  • Pre-tax NPV7% of $675 million, 26% IRR and 2.1 year payback ($1,200/oz gold, $2.90/lb copper);
  • After-tax NPV7% of $474 million, 20% IRR and 2.7 year payback ($1,200/oz gold, $2.90/lb copper);
  • Average life of mine (“LOM”) strip ratio of 1:1;
  • LOM payable production of 1.290 million ounces gold and 1.247 billion pounds copper;
  • Total project capital costs of $1.17 billion (including contingency of $200 million), with potential to reduce initial capital costs through contract mining or equipment leasing and project optimization through more advanced studies.

“The combination of higher grades that are mineable in the first three years, combined with Halilaga’s favourable infrastructure and location in a jurisdiction that is open to mine development, makes this a compelling development project,” stated Matt Lennox-King, President and CEO of Pilot Gold. “The PEA confirms our view that Halilaga has the potential to be a straightforward open pit mine, utilizing conventional milling and flotation concentration with robust economics.  While TV Tower and Kinsley continue to be our focus projects, the robust economics of Halilaga will provide Pilot Gold and our partner with a number of strategic options in the future.”

In management’s view, the economics concluded by the PEA provide a strong incentive for continued resource conversion and expansion, as well as geotechnical, metallurgical and engineering studies.  Pilot Gold believes there are excellent opportunities to refine various project elements and improve the economics through gold recovery optimization, possible use of contract mining, and potential tax incentives available in Turkey.

The PEA, prepared by SRK Consulting (Canada) Inc. (“SRK”) is based on a mineral resource estimate first presented in the March 23, 2012 Technical Report titled “Resource Estimate for the Halilaga Copper-Gold Property NI 43-101 Technical Report” and authored by Garth Kirkham, P. Geo. Of Kirkham Geosystems Ltd., and James Gray, P. Geo. of Advantage Geoservices Ltd. The resource therein outlined an Indicated Mineral Resource of 168 million tonnes grading 0.31 g/t gold (1.665 million gold ounces) and 0.30% copper (1.112 billion pounds of copper), and an Inferred Mineral Resource of 198 million tonnes grading 0.26 g/t gold (1.661 million gold ounces) and 0.23% copper (1.007 billion pounds copper), using a 0.2% copper equivalent cut-off.

All mineralized material classified as Indicated (56%) and Inferred (44%) Mineral Resources was considered in the optimization and mine plan. The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the PEA will be realized.

Under the base case (Case A: $1,200/oz gold price and $2.90/lb copper price), the Project’s pre-tax discounted net present value (NPV7%) is US$675 million with a pre-tax internal rate of return (“IRR”) of 26% on an unleveraged 100% equity basis, and a pay-back period of only 2.1 years.  The after-tax NPV7% is $474 million, with a 20% IRR and a 2.7 year payback. (See table below).

Parameter

Unit

Pre-Tax Results

After-Tax Results

Case A Base Case ($1,200/oz Au; $2.90/lb Cu)

NPV0%

M$

1,418

1,115

NPV7%

M$

675

474

IRR

%

26

20

Payback Period

Years

2.1

2.7

Case B ($1,350/oz Au; $3.30/lb Cu) LME fixed 3  year average price

NPV0%

M$

2,099

1,660

NPV7%

M$

1,081

799

IRR

%

35

27

Payback Period

Years

1.5

2.1

Case C ($1,500/oz Au; $3.70/lb Cu) LME fixed 2 year average price

NPV0%

M$

2,779

2,204

NPV7%

M$

1,487

1,124

IRR

%

43

34

Payback Period

Years

1.2

1.6

PEA Highlights – Case A ($1,200/oz Au; $2.90/lb Cu)

Total gold produced (payable)

1.290 million ounces

Total copper produced (payable)

1.247 billion pounds

Average gold grade

0.30 g/t

Average copper grade

0.28%

Average annual gold production (payable)

92,140 ounces

Average annual copper production (payable)

89,070,000 pounds

Life of mine

14 years

Net Pre-Tax Operating Income

$2,587 million

Total Capital Cost

$1,168 million

(including mining pre-strip, equipment, mill and processing, infrastructure & site costs, tailings and waste facilities, buildings, owners’ costs, and miscellaneous  indirect costs, contingency of $200.4  million, sustaining capital of $51.6 million and closure costs of $75 million)

Note: This PEA is preliminary in nature as it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves at this time, and as such there is no certainty that the preliminary assessment and economics set forth in the PEA will be realized. The authors of this Technical Report believe the Project should be taken to the next level of engineering study and economic assessment, typically a Pre-Feasibility Study. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

PROJECT DESCRIPTION

The Halilaga property is located in northwestern Turkey in a regional industrialized zone that includes large open pit coal mines, a major power plant, ceramics factories, and deep water ports.  The Halilaga site has road access and electrical grid power. Labour, supply centers and industrial service providers are available in the region.

PROJECT DEVELOPMENT PLAN

The proposed project concept is to develop a green-fields copper-gold deposit with open pit mining and conventional milling and flotation concentration methods. The production rate was assumed to be 50,000 tonnes per day with about 243 million tonnes of mineralized material mined and processed during the project life. The overall strip ratio (the ratio of waste rock to economic mineralized rock) of the mine is approximately 1:1.   It is assumed that the copper-gold concentrate would be shipped to an existing smelter in Asia, Europe or North America.

The PEA forecasts a mine life of 14 years, during which time 243.3 million tonnes of ore could be mined and processed with 234.0 million tonnes of waste. Throughout the life-of-mine, an estimated 1,290,000 ounces gold would be produced at an average grade of 0.30 g/t gold. Better than average grades and more than 125,000 ounces of gold per year would be payable in years one through three, with peak production of 135,000 ounces of gold in year three. For copper, more than 159 million pounds would be payable in years one through three with peak production of 240 million pounds payable in year one. 

METALLURGY AND PROCESSING

The metallurgical testing results used in the PEA were conducted in 2007 and 2011 by G & T Metallurgical Services Ltd. of Kamloops, B.C. Canada. The results show that the mineralized material is of moderate competency and hardness and is amenable to grinding in a conventional SAG mill / ball mill circuit.  Flotation testing indicated that 85.6% of the copper and 60.8% of the gold are recovered to the final concentrate, which results in a concentrate grade of 30% copper and 21 g/t gold.

OPPORTUNITIES TO ENHANCE VALUE

Several opportunities exist to increase overall value of the project while simultaneously reducing total costs. These include:

  • Use of contract mining or equipment leasing;
  • Utilize Turkish Government tax incentives; and
  • Additional metallurgical tests to determine the potential to recover gold from flotation tails.

PREPARATION OF PEA

The PEA has been prepared by SRK with input from Ausenco Solutions Canada Inc., Kirkham Geosystems Ltd., and Advantage Geoservices Ltd.

An updated National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) Technical Report, titled “Preliminary Economic Assessment Technical Report for the Halilaga Project, Turkey” (the “Technical Report”), has been filed on SEDAR and is available at Pilot Gold’s website (www.pilotgold.com).

Qualified Persons

The Technical Report was prepared by the following Qualified Persons (“QP”), as such term is defined in NI 43-101, each of whom is independent of Pilot Gold and have read and confirmed that this news release fairly and accurately reflects the contents of the PEA report:

  • Gord Doerksen, P.Eng
  • James Gray, P.Geo
  • Garth Kirkham, P.Geo
  • Dino Pilotto, P.Eng
  • Maritz Rykaart, P.Eng
  • Kevin Scott, P.Eng

Jim Lincoln, P. Geo., Pilot Gold Vice President, Operations, is the Company's designated QP for this news release within the meaning of NI 43-101 and has reviewed and validated that the information contained in the release is consistent with that provided by the QPs responsible for the PEA.

UPDATE ON ENVINRONMENTAL IMPACT ASSESSMENT

In December 2011 Truva Bakir submitted an Environmental Impact Assessment (“EIA”) report to the Turkish Ministry of Environment and Urban Planning (the “Ministry”) in connection with an application to advance the principal licenses that comprise Halilaga. The license and EIA contemplate a small-scale copper-gold test mining scenario as part of an ongoing effort to advance understanding of Halilağa. On March 20, 2012 TMST notified Pilot Gold that the EIA had been accepted by the Ministry of Forest and Environment in Turkey. An approval letter was received from the undersecretary of the Turkish Minister of Environment further to the review by the Turkish Mining Bureau committee of the EIA. Truva Bakir has concurrently applied for, and awaits approval of a business operating permit relating to the Project.

In August 2012, Truva Bakir was informed that the Ministry had been served a legal petition by certain claimants in Turkey to annul the Ministry’s approval of the EIA report. The petition 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 requests suspension of any activities contemplated in the EIA by way of an interim decision to be granted by the Court. Truva Bakir has been advised that the Ministry is expected to respond to the petition in the 4th quarter of 2012.

Pilot Gold believes the petition is without merit, and even if successful and the EIA is annulled, the ability to continue the planned 2012 exploration program at Halilaga will be unaffected.  Should the EIA be annulled, Truva Bakir would revisit the EIA process and resubmit an updated EIA to address identified issues. Truva Bakir has also been advised that the petition does not challenge or impact the underlying tenure on the licenses that comprise Halilaga. In the event that a different or larger project is contemplated it would then require a separate EIA and be subject to public disclosure.

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, meaningful size and mining-friendly addresses. Our three key assets include the TV Tower and Kinsley gold projects and a 40% interest in the Halilaga copper-gold porphyry project, each of which alone has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

Matt Lennox-King, President& CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

For further details on Halilaga, please view the NI 43-101 technical report entitled Technical Report, entitled “Preliminary Economic Assessment Technical Report for the Halilaga Project, Turkey”, dated August 27, 2012, prepared by Gordon Doerksen, P. Eng of JDS Energy and Mining Inc., Dino Pilotto, P.Eng and Maritz Rykaart, P.Eng of SRK Consulting (Canada) Inc., Kevin Scott, P.Eng of Ausenco Solutions Canada Inc., Garth Kirkham, P.Geo. of Kirkham Geosystems Ltd., and James Gray, P.Geo. of Advantage Geoservices Ltd. (collectively, the “authors”) filed under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com) and available at Pilot Gold’s website (www.pilotgold.com). The authors are independent of Pilot Gold and are “Qualified Persons” as defined by NI 43-101.

The mineral resource estimates referenced in this press release use the terms "Indicated Mineral Resources" and "Inferred Mineral Resources." While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission ("SEC"). "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant "reserves" as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Pilot Gold is not an SEC registered company.

The PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

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 Pilot Gold’s ability to fund cash-calls made by Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”) for ongoing expenditure on the Halilaga property, amount or timing of proposed production figures; estimated future working capital, uses of funds, anticipated 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 TV Tower and Halilaga in accordance with the requirements of the Turkish Mining Law, 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 exploration at the Halilaga property, reliance on technical information provided by TMST at the Halilaga property; changes in project parameters as plans continue to be refined; inability to upgrade inferred mineral resources to indicated or measured mineral resources; inability to convert mineral resources to mineral reserves; current economic conditions; the future prices of gold, silver and copper, fluctuations in currency exchange rates; 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 Environmental Impact Assessments and challenges thereon; title disputes or claims against the project, the operator or Pilot Gold, limitations on insurance coverage, financing or the Company’s ability to complete exploration on Halilaga, TV Tower, Kinsley and the rest of the portfolio projects, as well as those factors discussed in the section entitled "Risk Factors" in Pilot Gold’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. 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.

 

 

FOR IMMEDIATE RELEASE
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc., and including Canaccord Genuity, CIBC World Markets Inc., Haywood Securities Inc. and Scotia Bank (collectively, the “Underwriters”) pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 12,500,000 units of the Company (the “Units”) at a price of C$1.65 per Unit (the “Issue Price”) for gross proceeds to the Company of C$20,625,000 (the “Offering”). Each Unit will consist of one common share of Pilot Gold (each, a “Common Share”) and one half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of Pilot Gold at a price of C$2.20 at any time prior to the date which is two years following completion of the Offering.

In addition, Pilot Gold has granted the Underwriters an option (the “Underwriters’ Option”), exercisable in whole or in part, to sell up to 1,875,000 additional Common Shares and/or 937,500 additional Warrants on the same terms and conditions as the Offering, until the date that is 30 days after the date of the closing of the Offering.

The net proceeds of the offering will be used to fund exploration and development of Pilot Gold’s mineral projects and for general working capital purposes.

Pilot Gold intends to file with the securities commissions and other similar regulatory authorities in the provinces of Canada, other than Quebec, a preliminary short form prospectus relating to the issuance of the Units by October 17, 2012. 

The Offering is scheduled to close on or about November 1, 2012 and is subject to a number of conditions including, but not limited to, receipt of all necessary approvals including the approval of the Toronto Stock Exchange and applicable securities regulatory authorities.

The offered securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and may not be offered or sold to, or for the account or benefit of, any person in the United States or a “U.S person”, as such term is defined in Regulation S under the Securities Act, absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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, meaningful size and mining-friendly addresses. Our three key assets include the TV Tower and Kinsley gold projects and a 40% interest in the Halilaga copper-gold porphyry project, each of which has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

MattLennox-King, President & CEO
PatrickReid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future prices of gold, copper and molybdenum, 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, the timing of a preliminary economic assessment or other study, proposed exploration and development of our exploration properties and the estimation of mineral reserves and resources. 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, anticipated size, timing and closing of the Offering; anticipated use of proceeds of the Offering; the exercise by TMST or Newmont of their rights to participate in the Offering; the ability to fund cash-calls made by our joint venture partners for ongoing expenditures on our joint venture properties; future issuances of Common shares as consideration to complete earn-in agreements relating to the TV Tower project, the  Kinsley Mountain and the Griffon property, current and proposed exploration and development, estimated future working capital, uses of funds, future capital expenditures; information with respect to exploration results, the timing and success of exploration activities generally; the costs and timing of the development of new deposits, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation; the timing, timeline and possible outcome of permitting or license renewal applications; the ability to maintain or convert the underlying licenses in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, and limitations on insurance coverage 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 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 other exploration properties; 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, financing or in the completion of exploration as well as those factors discussed in our Annual Information Form (“AIF”) for the year ended December 31, 2011, dated March 28, 2012, 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 http://www.sedar.com.

 

 

12-21

FOR IMMEDIATE RELEASE
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) is pleased to announce that it has increased its previously announced bought deal financing from C$20,625,000 to C$25,575,000. Lead underwriter National Bank Financial Inc., along with Canaccord Genuity, CIBC World Markets Inc., Haywood Securities Inc. and Scotia Bank (collectively, the “Underwriters”) have agreed to purchase, on a bought deal basis, 15,500,000 units of the Company (the “Units”) at a price of C$1.65 per Unit (the “Issue Price”) for gross proceeds to the Company of C$25,575,000 (the “Offering”). Each Unit will consist of one common share of Pilot Gold (each, a “Common Share”) and one half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one common share of Pilot Gold at a price of C$2.20 at any time prior to the date which is two years following completion of the Offering.

In addition, Pilot Gold has granted the Underwriters an option (the “Underwriters’ Option”), exercisable in whole or in part, to sell up to 2,325,000 additional Common Shares and/or 1,162,500 additional Warrants on the same terms and conditions as the Offering, until the date that is 30 days after the date of the closing of the Offering.

The net proceeds of the offering will be used to fund exploration and development of Pilot Gold’s mineral projects and for general working capital purposes.

Pilot Gold intends to file with the securities commissions and other similar regulatory authorities in the provinces of Canada, other than Quebec, a preliminary short form prospectus relating to the issuance of the Units by October 17, 2012.

The Offering is scheduled to close on or about November 1, 2012 and is subject to a number of conditions including, but not limited to, receipt of all necessary approvals including the approval of the Toronto Stock Exchange and applicable securities regulatory authorities.

The offered securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and may not be offered or sold to, or for the account or benefit of, any person in the United States or a “U.S person”, as such term is defined in Regulation S under the Securities Act, absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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, meaningful size and mining-friendly addresses. Our three key assets include the TV Tower and Kinsley gold projects and a 40% interest in the Halilaga copper-gold porphyry project, each of which has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future prices of gold, copper and molybdenum, 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, the timing of a preliminary economic assessment or other study, proposed exploration and development of our exploration properties and the estimation of mineral reserves and resources. 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, anticipated size, timing and closing of the Offering; anticipated use of proceeds of the Offering;; the ability to fund cash-calls made by our joint venture partners for ongoing expenditures on our joint venture properties; future issuances of Common shares as consideration to complete earn-in agreements relating to the TV Tower project, the Kinsley Mountain and the Griffon property, current and proposed exploration and development, estimated future working capital, uses of funds, future capital expenditures; information with respect to exploration results, the timing and success of exploration activities generally; the costs and timing of the development of new deposits, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation; the timing, timeline and possible outcome of permitting or license renewal applications; the ability to maintain or convert the underlying licenses in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, and limitations on insurance coverage 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 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 other exploration properties; 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, financing or in the completion of exploration as well as those factors discussed in our Annual Information Form (“AIF”) for the year ended December 31, 2011, dated March 28, 2012, 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 http://www.sedar.com.

 

 

FOR IMMEDIATE RELEASE
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

12-21

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) is pleased to announce that it has received a notice (the “Notice”) of intention from Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”) a subsidiary of Teck Resources Limited, to subscribe for units of the Company (“Units”) at a price of C$1.65 per Unit on a private placement basis (the “Placement”).  Pursuant to a participation right granted by the Company to TMST in connection with the TV Tower property joint venture letter agreement dated June 20, 2012, TMST has the right (the “Participation Right”) to subscribe for and purchase Units on the same terms as the bought deal financing announced October 12, 2012 (the “Offering”), such that TMST is able to maintain its current shareholding of 5.41% of the common shares of the Company after giving effect to the Offering.

On October 12, 2012, the Company notified TMST that the Participation Right would arise in connection with the Offering and on October 16, 2012, TMST delivered the Notice to the Company.  Units issued to TMST will consist of one common share and one-half of one common share purchase warrant (each whole warrant, a Warrant”).  Each Warrant will entitle TMST to acquire one common share of Pilot Gold at a price of C$2.20 at any time prior to the date which is two years following completion of the Offering and Placement.

Pursuant to the Notice, TMST has also advised Pilot Gold that if the Company issues any securities pursuant to the over-allotment option granted to the Underwriters in connection with the Offering, that TMST intends to subscribe for such additional number of securities such that TMST is able to maintain its then current shareholding of common shares of the Company after giving effect to such over-allotment option.

No fees will be payable to the Underwriters of the Offering for any securities that are issued to TMST under the Placement. The net proceeds of the Placement will be used to fund exploration and development of Pilot Gold’s mineral projects and for general working capital purposes.

The Placement is scheduled to close on or about November 1, 2012, concurrent with the Offering, and is subject to a number of conditions including, but not limited to, receipt of all necessary approvals including the approval of the Toronto Stock Exchange and applicable securities regulatory authorities.  Securities issued to TMST under the Placement and in connection with the over-allotment option will be subject to a four month hold period from the closing date. 

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, meaningful size and mining-friendly addresses. Our three key assets include the TV Tower and Kinsley gold projects and a 40% interest in the Halilaga copper-gold porphyry project, each of which has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

MattLennox-King, President & CEO
PatrickReid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future prices of gold, copper and molybdenum, 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, the timing of a preliminary economic assessment or other study, proposed exploration and development of our exploration properties and the estimation of mineral reserves and resources. 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, anticipated size, timing and closing of the Offering or the Placement, anticipated use of proceeds of the Offering or the Placement, the ability to fund cash-calls made by our joint venture partners for ongoing expenditures on our joint venture properties; future issuances of common shares as consideration to complete earn-in agreements relating to the TV Tower project, the Kinsley Mountain project and the Griffon property, current and proposed exploration and development, estimated future working capital, uses of funds, future capital expenditures; information with respect to exploration results, the timing and success of exploration activities generally; the costs and timing of the development of new deposits, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation; the timing, timeline and possible outcome of permitting or license renewal applications; the ability to maintain or convert the underlying licenses in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, and limitations on insurance coverage 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 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 other exploration properties; 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, financing or in the completion of exploration as well as those factors discussed in our Annual Information Form (“AIF”) for the year ended December 31, 2011, dated March 28, 2012, 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.

 

 

FOR IMMEDIATE RELEASE
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

 

12-22 

 

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) is pleased to announce that it has received a notice (the “Notice”) of intention from Newmont Mining Corporation (“Newmont”), to subscribe for units of the Company (“Units”) at a price of C$1.65 per Unit on a private placement basis (the “Placement”).  Pursuant to a participation right granted by the Company to Newmont in connection an arrangement agreement among Newmont, Fronteer Gold Inc. and the Company dated February 3, 2011, Newmont or an affiliate has the right (the “Participation Right”) to subscribe for and purchase Units on the same terms as the bought deal financing announced October 12, 2012 (the “Offering”), such that Newmont is able to maintain its current shareholding of 16.15% of the common shares of the Company after giving effect to the Offering.

 

On October 12, 2012, the Company notified Newmont that the Participation Right would arise in connection with the Offering and on October 17, 2012, Newmont delivered the Notice to the Company.  Units issued to Newmont will consist of one common share and one-half of one common share purchase warrant (each whole warrant, a “Warrant”).  Each Warrant will entitle Newmont to acquire one common share of Pilot Gold at a price of C$2.20 at any time prior to the date which is two years following completion of the Offering and Placement.

 

Pursuant to the Notice, Newmont has also advised Pilot Gold that if the Company issues any securities pursuant to the over-allotment option granted to the Underwriters in connection with the Offering, that Newmont intends to subscribe for such additional number of securities such that Newmont is able to maintain its then current shareholding of common shares of the Company after giving effect to such over-allotment option.

 

No fees will be payable to the Underwriters of the Offering for any securities that are issued to Newmont under the Placement. The net proceeds of the Placement will be used to fund exploration and development of Pilot Gold’s mineral projects and for general working capital purposes.

 

The Placement is scheduled to close on or about November 1, 2012, concurrent with the Offering, and is subject to a number of conditions including, but not limited to, receipt of all necessary approvals including the approval of the Toronto Stock Exchange and applicable securities regulatory authorities.  Securities issued to Newmont under the Placement and in connection with the over-allotment option will be subject to a four month hold period from the closing date. 

 

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, meaningful size and mining-friendly addresses. Our three key assets include the TV Tower and Kinsley gold projects and a 40% interest in the Halilaga copper-gold porphyry project, each of which has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

 

MattLennox-King, President & CEO
PatrickReid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future prices of gold, copper and molybdenum, 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, the timing of a preliminary economic assessment or other study, proposed exploration and development of our exploration properties and the estimation of mineral reserves and resources. 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, anticipated size, timing and closing of the Offering or the Placement, anticipated use of proceeds of the Offering or the Placement, the ability to fund cash-calls made by our joint venture partners for ongoing expenditures on our joint venture properties; future issuances of common shares as consideration to complete earn-in agreements relating to the TV Tower project, the Kinsley Mountain project and the Griffon property, current and proposed exploration and development, estimated future working capital, uses of funds, future capital expenditures; information with respect to exploration results, the timing and success of exploration activities generally; the costs and timing of the development of new deposits, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation; the timing, timeline and possible outcome of permitting or license renewal applications; the ability to maintain or convert the underlying licenses in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, and limitations on insurance coverage 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 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 other exploration properties; 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, financing or in the completion of exploration as well as those factors discussed in our Annual Information Form (“AIF”) for the year ended December 31, 2011, dated March 28, 2012, 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.

 

 

12-23

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) is pleased to announce that it has completed its previously announced bought deal financing, including the full amount of the over-allotment option, for aggregate gross proceeds of C$29,411,250 (the “Offering”). In addition, Pilot Gold has raised a further C$8,085,078 through private placements with subsidiaries of Newmont Mining Corporation (“Newmont”) and Teck Resources Limited (“Teck”), each of which has subscribed for and purchased additional securities in connection with participation rights each hold to maintain their pro rata interest in Pilot Gold.

The net proceeds of the Offering will be used to fund exploration and development of Pilot Gold’s mineral projects in Turkey and Nevada, and for general working capital purposes.

“TV Tower and Kinsley Mountain are Pilot Gold’s cornerstone projects, and this funding will allow us to continue advancing exploration and development of these key properties,” said Matt Lennox-King, President & CEO, Pilot Gold. “We appreciate the strong response to the Offering, and are pleased that Teck and Newmont – two global mining leaders – have shown confidence in our team and our projects through their investments today.” 

Lead underwriter National Bank Financial Inc., along with Canaccord Genuity Corp., CIBC World Markets Inc., Haywood Securities Inc. and Scotia Bank purchased, on a bought deal basis, 17,825,000 units of the Company (the “Units”) at a price of C$1.65 per Unit. Each Unit consists of one common share of Pilot Gold and one half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder to acquire one common share of Pilot Gold at a price of C$2.20 until October 31, 2014. The Warrants will be listed on the Toronto Stock Exchange under the symbol "PLG.WT".

Newmont, Teck participate in concurrent private placements
Pursuant to rights granted under the arrangement agreement dated February 3, 2011 between the Company, Newmont and Fronteer Gold Inc., Newmont, the Company's largest shareholder with approximately 16.15% of the Company's issued and outstanding shares, has subscribed for and purchased 3,669,482 Units of the Company on the same terms as those issued under the Offering to maintain its pro rata interest (the “Newmont Subscription”).

Pursuant to rights granted under the TV Tower Property Joint Venture Letter Agreement dated June 20, 2012 between the Company, Teck, Teck Madencilik Sanayi Ticaret A.Ş. (“TMST”) and Orta Truva Madencilik Sanayi ve Ticaret A.Ş., TMST has subscribed for and purchased 1,230,565 Units on the same terms as those issued under the Offering to maintain its pro rata interest (the “Teck Subscription”).  TMST, a subsidiary of Teck, is the Company's joint venture partner at the Halilaga and TV Tower properties in northwest Turkey and holder of approximately 5.41% of the Company's issued and outstanding shares, Units purchased by Newmont and TMST will be subject to a four-month statutory hold period.  Proceeds of the Newmont Subscription and the Teck Subscription will be used to fund exploration and development of Pilot Gold’s mineral projects and for general working capital purposes.

The offered securities have not been registered under the United States Securities Act of 1933, as amended (the "Securities Act") or any state securities laws, and may not be offered or sold to, or for the account or benefit of, any person in the United States or a “U.S. person”, as such term is defined in Regulation S under the Securities Act, absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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, meaningful size and mining-friendly addresses. Our three key assets include the TV Tower and Kinsley gold projects and a 40% interest in the Halilaga copper-gold porphyry project, each of which has the ability to drive the Company forward. For more information, visit www.pilotgold.comor contact:

Investors:
Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold Inc. ("Pilot Gold") within the meaning of applicable securities laws, including statements that address intended use of proceeds and 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, molybdenum 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, anticipated use of proceeds and timing of exploration and development plans at the Company’s mineral projects, 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 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 other exploration properties; 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; 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 (final) short form prospectus of the Company dated October 25, 2012, 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 Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com.

 

 

12-24

Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) reports financial results for the third quarter ended September 30, 2012 and provides an update on exploration activities.

“We achieved significant advancements on Pilot Gold’s key projects in the third quarter, including exceptional results at both TV Tower and Kinsley Mountain," stated Matt Lennox-King, Pilot Gold President and CEO. “The momentum has continued into the fourth quarter, as we released a robust PEA on Halilağa, reported strong intercepts from Kinsley, and raised C$37.5 million as a result of a bought-deal financing, the full exercise of the over-allotment option and private placements by our strategic partners, Newmont Mining and Teck Resources.”

RECENT HIGHLIGHTS:

  • Raised aggregate gross proceeds of C$37.5 million on November 1st from bought-deal financing led by National Bank Financial Inc. and a syndicate of underwriters (the “Offering”), and concurrent private placements with subsidiaries of Newmont Mining and Teck Resources
  • Announced positive results of a preliminary economic assessment (“PEA”) for the Halilağa copper-gold project in northwest Turkey
  • Reported initial results from the high-grade KCD target at TV Tower that included 5.94 g/t gold, 12.6 g/t silver and 0.53% copper over 137.1 metres in KCD039
  • Released strong drill results from Kinsley Mountain that demonstrate mineralization extending over a 2.2 kilometre trend, including  5.48 g/t gold over 20.4 metres in PK14C, 2.3 g/t gold over 19.8 metres in PK057, and 6.03 g/t gold over 13.7 metres in PK061
  • Assumed operational control at TV Tower with an option to increase to 60% ownership and commenced a 16,000-metre, year-one resource definition and exploration drill program
  • Earned an initial 51% interest at Kinsley, and elected to earn-in to a 65% interest in the property

WORK PROGRAM UPDATES

TV Tower

Pilot Gold became project operator at TV Tower on June 20, 2012 and holds an option to increase its interest in TV Tower to 60% over the next three years. Our 2012 program includes 9,000 metres of core drilling designed to infill and expand the mineralized footprint of the KCD target.

Initial drilling by Pilot Gold at KCD has returned one of the highest-grade gold, silver and copper drill intervals ever reported in Turkey, including KCD-39, which returned 5.94 g/t gold, 12.6 g/t silver and 0.53% copper over 137.1 metres.  Approximately 6,075 metres in 29 holes have been completed at the KCD target, with assays pending for 27 holes.  Three drills are operating at TV Tower. In addition to drilling, a property-wide effort including detailed geological mapping, geochemical sampling, airborne geophysics, and target definition has been underway since March. This work has identified several additional high-potential targets, including gold-silver bearing quartz veins with multi-ounce gold and silver grades. Systematic drill testing of other high-priority targets will begin in early 2013. Through the nine months ended September 30, 2012, we incurred $1.51 million in earn-in eligible expenditures in accordance with the TV Tower Agreement. Our 2012 budget is $4.13 million.

Teck Resources Limited’s Turkish subsidiary, Teck Madencilik Sanayi Ticaret A.S. (“TMST”), is Pilot Gold’s 60% joint venture partner at TV Tower.

Kinsley Mountain:

In mid-September, the Company concluded an 11,864 metre drill program focused on expanding the mineralized footprint around the historic open pits on Kinsley Mountain and testing targets located 600 metres to the northwest of the historic operation.  Through September 30, 2012, we had capitalized $3.31 million (year-ended December 31, 2011: $1.13 million) in expenditures at Kinsley, compared to a revised budget of $2.9 million for the year.  Capitalized costs include values attributable to stock-based compensation, share issuances and other non-cash items directly relating to the advancement of the property that are not eligible toward earn-in.

Highlights to date include:

  • 2.30 g/t gold over 19.8 metres in PK057, extending mineralization over a 2.2-kilometre trend length
  • 6.03 g/t gold over 13.7 metres in PK061, 600 metres northwest of the nearest historic pit
  • 5.48 g/t gold over 20.4 metres in PK014C
  • Staked 41 additional claims, consolidating our land position
  • Submitted a Plan of Operations for expanded exploration activities

The 2012 program identified a north-trending zone of higher-grade mineralization measuring at least 400 metres by 100 metres. This north-trending zone remains open in all directions in the Western Flank area. Drilling has also intercepted high grades at deeper stratigraphic levels than previously encountered and identified a new zone of mineralization, Candland Canyon on the northeast side of the mine trend.

During Q2 2012, Pilot Gold submitted a Plan of Operations for 100 acres of disturbance to the Bureau of Land Management (“BLM”) that will allow for expanded exploration activities. The Company has a permit in place for additional drilling at the Western Flank target.  Pilot Gold plans to apply for an additional Notice of Intent permit for drilling the northern claim blocks. 

In September 2012, Pilot Gold added significantly to the property position at Kinsley by staking 41 unpatented lode mining claims underlain by highly prospective geology on BLM-administered ground held prior to that point by another company. The majority (36) of the new claims are located between two previously separate claim blocks at Kinsley, creating a contiguous property and consolidating access to the main mineralized trends to the north. The additional staking brings the total to 332 claims. Surface work including mapping and rock and soil sampling are underway on the newly added ground.

Pilot Gold completed an earn-in to an initial 51% interest at Kinsley during the second quarter of 2012, and elected to exercise an option to earn a further 14% interest in the property. The Company has already incurred approximately 90% of the expenditure requirement to attain that 65% interest, and anticipates completing earn-in in early 2013. A subsidiary of Nevada Sunrise Gold Corporation is our joint venture partner at Kinsley.

Halilaga:

On October 10th, 2012 the Company released the results of a PEA that highlights the economic benefits of the higher grades of gold and copper at surface, as well as the benefit from available infrastructure for mine development. The results of the Halilağa PEA provide convincing support for continued resource conversion and expansion drilling, as well as geotechnical, metallurgical and engineering studies.

PEA Highlights (Base Case: USD$1,200/oz. Au and USD$2.90/lb. copper) include:

  • Pre-tax IRR of 26%; After-tax IRR of 20%
  • Pre-tax NPV7% of $675 million; After-tax NPV7% of $474 million
  • 2.1 year pre-tax payback; 2.7 year after-tax payback
  • Approximately a 1:1 strip ratio

The Halilağa PEA is preliminary in nature. It includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the PEA will be realized.

Highlights for the quarter from resource expansion and conversion drilling included 0.64 g/t gold and 0.52% copper over 134.9 metres in HD-115. A total of 7,484 metres comprising 20 completed drill holes have been completed in 2012. Results from eight holes are currently pending.

Budgeted expenditures for 2012 are $4.87 million, with Pilot Gold’s share totalling $1.95 million. Our share of actual expenditures through the end of the first nine months in 2012 was $1.31 million.

The Halilağa PEA recommends metallurgical, environmental and engineering studies, and community activities to continue to advance and de-risk the project.  We expect to continue discussions with TMST, our 60% partner at Halilağa, on strategic next steps for this compelling development project.

FINANCIAL DATA

The following selected financial data is derived from our consolidated interim financial statements for the three and nine months ended September 30, 2012, 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,

 

2012

2011

2012

2011

Loss for the period

($1,814)

($2,058)

($4,658)

($9,742)

 

Loss and comprehensive loss for the period

($1,328)

($4,479)

($4,828)

($11,903)

 

Basic and diluted loss per share

($0.03)

($0.03)

($0.08)

($0.18)

 
                 
 

As at

 
 

September 30, 2012

(in 000s)

December 31, 2011

(in 000s)

Cash and short-term investments

$7,151

$18,420

 

Working capital

$7,088

$17,846

 

Total assets

$38,560

$37,493

 

Current liabilities

$937

$1,050

 

Non-current liabilities

$31

$74

 

Shareholders’ equity

$37,592

$36,370

 
         


As described in our unaudited condensed interim consolidated financial statements, a portion of the comparative period reflects the application of continuity of interest accounting.  Pursuant to the application of continuity of interest accounting, balances recognized and transactions recorded through March 30, 2011, reflect an allocation of cash flows, expenditures and activities based on the amounts recorded by Fronteer Gold Inc. (“Fronteer”) attributable to Pilot Gold’s assets and business.  March 30, 2011 was determined to be the effective date for accounting purposes of the arrangement agreement between Fronteer and Newmont Mining, pursuant to which Pilot Gold ceased to be a wholly-owned subsidiary of Fronteer and Newmont acquired all the outstanding common shares of Fronteer.

  • For the three months ended September 30, 2012, we reported a net loss of $1.81 million compared to a net loss of $2.06 million for the three months ended September 30, 2011.  The loss per share for the three months ended September 30, 2012 was $0.03 (three months ended September 30, 2011: $0.03).  The most significant contributors to the loss for the three and nine months ended September 30, 2012 were stock based compensation ($0.33 million and $1.37 million respectively), the cost of wages and benefits not directly relating to exploration on any of the Company’s properties ($0.41 million and $1.31 million respectively), as well as $0.54 million (for both three and nine months) for the write down of mineral property interests the Company determined that it will no longer actively pursue. Expenses for the nine months ended September 30, 2012 were offset by income resultant from a change in fair value of our financial instruments ($0.56 million) and the write up of a VAT receivable in Turkey re-designated as recoverable ($0.39 million). In the comparative periods, the most significant contributors to the losses were also stock based compensation and wages as well as property investigation expenses.
  • Other comprehensive income (loss) for the three and nine months ended September 30, 2012 was $0.49 million and a loss of $0.17 million, respectively (three and nine months ended September 30, 2011: loss of $2.42 million and $2.16 million, respectively).  The nine months ended September 30, 2012 includes a net value loss on financial assets of $0.98 million (nine months ended September 30, 2011, loss of $0.08 million), relating to the revaluation of common shares the Company holds in other publicly listed companies. Other comprehensive loss for the nine months ended September 30, 2012 also includes a $0.81 million gain (September 30, 2011: loss of $2.08 million) from the impact of exchange gains and losses arising from exchange differences further to the translation of our foreign operations with a non-United States dollar functional currency.
     
  • Current assets decreased to $8.03 million as at September 30, 2012 (December 31, 2011: $18.90 million), and comprise primarily cash and short-term investments of $7.15 million (December 31, 2011: $18.42 million).  The decrease reflects cash outflows related to exploration and corporate activities through the nine months ended September 30, 2012. The remaining balance of current assets comprises receivables and prepayments.
  • The value of the initial shares and warrants issued to TMST relating to the TV Tower Earn-in Option ($4.4 million) has been capitalized to the balance sheet.  This non-current asset also includes the value of legal costs paid to secure the earn-in option, and certain exploration expenditures incurred on TV Tower.  
     
  • The net cash outflow relating to operating activities through the nine months ended September 30, 2012 was $3.61 million, compared to a net cash outflow of $3.13 million in the same period of the prior year.   The most significant components of which were wages and benefits and office-related costs (aggregate of $2.47 million and $1.78 million through the nine months ended September 30, 2012 and 2011 respectively).  Cash outflows relating to our continuing investment in mineral properties was $3.90 million and $4.49 million through the nine months ended September 30, 2012 and 2011, respectively.
     
  • At September 30, 2012, there were 62,485,286 issued and outstanding shares (September 30, 2011: 59,085,286).  The increase reflects primarily the shares issued to TMST to secure the TV Tower earn-in option.  Subsequent to period end, the Company issued an aggregate of 22,725,048 additional common shares as part of the Offering and concurrent private placements.

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 three and nine months ended September 30, 2012. 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.

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, meaningful size and mining-friendly addresses. Our three key assets include the TV Tower and Kinsley gold projects and a 40% interest in the Halilağa copper-gold porphyry project, each of which has the ability to drive the Company forward. For more information, visit www.pilotgold.com or contact:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

TECHNICAL INFORMATION:

Moira Smith, P. Geo., Pilot Gold Chief Geologist, 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 technical information contained in this release is accurate. 

Unless stated otherwise, information of a scientific or technical nature in this press release regarding the TV Tower, Halilaga or Kinsley Mountain properties are summarized, derived or extracted from, the following technical reports: “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 of which technical reports have been filed under the Company’s issuer profile on SEDAR at www.sedar.com.

Kinsley Mountain and TV Tower are early-stage exploration projects and do 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.

The Halilağa PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the Halilağa PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

FORWARD-LOOKING INFORMATION

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 and timing of obtaining permits or completing earn-in obligations 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, molybdenum 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, timing of exploration and development plans at the Company’s mineral projects, completion of expenditure obligations under the Kinsley Mountain Option Agreement; funding cash-calls made by TMST for ongoing expenditure on the  Halilaga property, successful earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuances of Common shares as consideration to complete the earn-in agreement, ability to fund cash-calls made by our joint venture partners for ongoing expenditures on our joint venture properties; current and proposed exploration and development, estimated future working capital, uses of funds, future capital expenditures; information with respect to exploration results, the timing and success of exploration activities generally; the costs and timing of the development of new deposits, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation; the timing, timeline and possible outcome of permitting or license renewal applications; the ability to maintain or convert the underlying licenses in accordance with the requirements of the Turkish Mining Law, government regulation of exploration and mining operations, environmental risks, including satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments, title disputes or claims, and limitations on insurance coverage 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 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 other exploration properties; 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, financing or in the completion of exploration as well as those factors discussed in the Company’s Annual Information Form (“AIF”) for the year ended December 31, 2011 and the Company’s (final) short form prospectus dated October 25, 2012, each in sections 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. 

 

 

12-25

Strong assay results expand high-grade KCD target

Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that assay results from 11 new diamond drill holes from the 2012 program at the TV Tower project in Türkiye expand previously reported long intervals of high grade gold, silver and copper mineralization.

Drill hole KCD-49 highlights the second set of strong assay results at the Kucukdag (KCD) target, returning 11.63 g/t gold over 32.5 metres. This intercept is collared approximately 50 metres to the southeast of hole KCD-39*, which was released earlier in 2012 and returned 5.94 grams per tonne gold, 12.6 g/t silver and 0.53% copper over 137.1 metres.

“Since becoming project operator, our team has done an excellent job of successfully targeting high-grade mineralization and revealing the exceptional grades and growth potential of this project,” stated Matt Lennox-King, President & CEO of Pilot Gold. “We are extremely encouraged by these recent results, which continue to expand the high-grade KCD target and reinforce TV Tower’s status as a superior exploration project.”

The KCD target is composed of a high-grade gold-silver-copper zone, marked by both breccia hosted and stratigraphically hosted mineralization, overlain by a thick silver-only zone starting at surface. It has a mineralization style similar to the high-sulphidation epithermal Au-Ag-Cu deposits of La Coipa (Chile) and Chelopech (Bulgaria).

Drill Highlights from the gold-silver-copper zone include:

  • 11.63 g/t gold, over 32.5 metres, including 21.67 g/t gold over 15.7 metres in KCD-49
  • 3.40 g/t gold over 87.0 metres, including 6.66 g/t gold over 9.5 metres in KCD-47
  • 10.03 g/t gold, 46.25 g/t silver, and 3.89% copper over 15.2 metres in KCD-46, including
    - 17.51 g/t gold, 78.3 g/t silver and 6.76% copper over 8.5 metres
  • 1.13 g/t gold and 12.76 g/t silver over 13.5 metres and 5.06 g/t gold over 21.0 metres in KCD-40

*See September 19, 2012 press release.

All true widths are 30-90% 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 from 2012, including new and non-reportable intercepts, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1225.pdf

For a map highlighting recent drilling, please click:
http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1225.pdf

The geologic model for the KCD zone has evolved from strictly breccia-hosted mineralization, to a configuration involving high-grade stratiform mineralization, which increases the tonnage potential of KCD significantly. The stratiform mineralization is hosted in three or more gently dipping porous tuff and siltstone horizons, as seen in holes KCD-40 and KCD-47. Gold is primarily associated with vuggy silica, alunite, dickite, pyrite and enargite as disseminations, veins and replacements of clasts. 

These results form part of an aggressive first-year exploration program consisting of 16,000 metres of diamond core drilling, property-wide airborne magnetic/EM geophysics and ongoing surface mapping and geochemical sampling.  In excess of nine thousand metres of drilling will be focused on the KCD target to infill and expand the 300 metre by 500 metre mineralized footprint.

As project operator, Pilot Gold has completed approximately 6,686 metres in 32 holes, with assays pending for 21 holes. Drilling for the remainder of 2012 will focus on infill and step-out drilling in the KCD target area, followed by systematic testing of other high-priority targets in early 2013.

About TV Tower:
Located on the Biga Peninsula of northwest Türkiye, the TV Tower project encompasses 71 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 Türkiye’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).

First pass drilling in 2010 resulted in new discoveries at the KCD and Kayali epithermal gold systems.  Ongoing exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in recent rock chip sampling.

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (“TMST”) (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).

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.

Vance Spalding, B.Sc., CPG, Pilot Gold Vice President, Exploration, 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 0.30, 3.0 and 10.0 g/t Au. 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 AcmeLabs in Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge by ICP-ES, or if over 10.0 g/t were re-assayed and completed with a gravimetric finish. Ag and Cu were determined by 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 finish (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 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 Halilaga and TV Tower projects in Türkiye, and the Kinsley Mountain project in Nevada, each of which alone 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 Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:

Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Türkiye”, 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 Inc. ("Pilot Gold") within the meaning of applicable securities laws, including statements that address intended use of proceeds and 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, potential quantity and/or grade of minerals, 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 (final) short form prospectus of the Company dated October 25, 2012, 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 Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com.

 

 

Third set of assay results confirm and expand continuity of high-grade target
 

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 3, 2012) - Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is very pleased to report that assay results from eight new diamond drill holes from the 2012 program at the TV Tower project in Türkiye continue to return long intervals of gold, silver and copper mineralization with areas of exceptionally high grades.

Drill hole KCD-50 highlights the third consecutive set of strong assay results at the Kucukdag (KCD) target, returning 193 g/t gold, 9.8 g/t silver and 0.46% copper over 12.0 metres. Visible gold (see photo: http://media3.marketwire.com/docs/plg123_VG.jpg) was confirmed in several veins within this interval, which is located at a vertical depth of 100 metres from surface.

"Our recent results reinforce that our drilling program is targeted and effective, and will help us further refine our drilling strategy to highlight high-potential targets going forward," said Moira Smith, Pilot Gold's Chief Geologist. "The location of the intercept and the near-perpendicular orientation of the gold-bearing veins relative to the hole orientation suggest this intercept may reflect true width of the zone. The intervals form part of a newly recognized stratiform zone of mineralization that may have significant dimensions."

Assays from this 12.0 metre interval in KCD-50 were sampled at 1.5 meter intervals, and range from a high of 681 g/t Au to a low of 12.8 g/t Au. Four samples out of a total of eight samples returned >100 g/t Au. Results in this high-grade interval in KCD-50 include:


from (m) To (m) g/t*
117.5 119.0 47.9
119.0 120.5 12.8
120.5 122.0 338.0
122.0 123.5 236.0
123.5 125.0 73.0
125.0 126.5 681.0
126.5 128.0 17.2
128.0 129.5 140.0


Due to extremely high grades and the presence of visible gold, samples from this interval are undergoing metallic screen assay verification. Results will be released when received.

Hole KCD-50 was collared approximately 70 metres to the northwest of hole KCD-39, which returned 5.94 g/t gold, 12.6 g/t silver and 0.53% copper over 137.1 metres (released September 19th, 2012). KCD-50 is interpreted to lie within the same tabular stratiform zone that comprises the lower zone of mineralization in KCD-39.

The geologic model for the KCD zone has evolved from strictly breccia-hosted mineralization to a configuration involving high-grade stratiform mineralization, which increases the tonnage potential of KCD significantly. The stratiform mineralization is hosted in three or more gently dipping porous tuff and siltstone horizons, as seen in holes KCD-40 and KCD-47.

Additional recent drill highlights from the gold-silver-copper zone include:

  • 2.11 g/t gold, 7.4 g/t silver and 0.046% copper over 43.1 metres, and 2.69 g/t gold, 4.0 g/t silver, 0.39% copper over 22.5 metres in KCD-58
  • 1.11 g/t gold, 12.5 g/t silver, 0.318% copper over 23.9 metres in KCD-57


All true widths are 30-90% 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 previous drill results, including non-reportable intercepts, please click: http://media3.marketwire.com/docs/plg-DrillResults1226.pdf.

For a map highlighting recent drilling, please click: http://media3.marketwire.com/docs/plg-TV-Tower-DM_1226.pdf.

These results form part of an aggressive first-year exploration program consisting of 16,000 metres of diamond core drilling, property-wide airborne magnetic/EM geophysics and ongoing surface mapping and geochemical sampling. In excess of 9,000 metres of drilling will be focused on the KCD target to infill and expand the 300 metre by 500 metre mineralized footprint.

Approximately 8,400 metres in 45 holes at KCD have been completed, with assays pending for 24 holes. Drilling for the remainder of 2012 will continue to focus on infill and step-out drilling in the KCD target area, followed by systematic testing of other high-priority targets in early 2013.

About TV Tower:

Located on the Biga Peninsula of northwest Türkiye, the TV Tower project encompasses 71 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 Türkiye'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).

First pass drilling in 2010 resulted in new discoveries at the KCD and Kayali epithermal gold systems. Ongoing exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in recent rock chip sampling.

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. ("TMST") (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.)

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.

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 cut-offs of 0.30, 3.0 and 10.0 g/t Au. 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 AcmeLabs in Ankara, Türkiye and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge by ICP-ES, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Ag and Cu were determined by 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 finish (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 Türkiye, 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 Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
//pilotgold.com/news/This email address is being protected from spambots. You need JavaScript enabled to view it.">This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
//pilotgold.com/news/This email address is being protected from spambots. You need JavaScript enabled to view it.">This email address is being protected from spambots. You need JavaScript enabled to view it.

Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Türkiye", 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 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 (final) short form prospectus of the Company dated October 25, 2012, 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 Annual Information Form, available under Pilot Gold's SEDAR profile at www.sedar.com. Pilot Gold Inc. 

 

 

12-27

New assay results expand area of gold mineralization at Pilot Gold’s KCD target

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that new assay results from seven diamond drill holes at the Kucukdag (KCD) target show long runs of strong gold, silver and copper grades and further extend an area of shallow, high-grade gold mineralization at the TV Tower project in western Turkey.

Recent drill highlights include:

  • 2.79 g/t gold (Au), 10.1 g/t silver (Ag) and 0.67% copper (Cu) over 61.3 metres in KCD-65, including
    • 8.64 g/t Au, 35.2 g/t Ag and 2.21% Cu over 10.5 metres;
  • 3.31 g/t Au, 6.9 g/t Ag and 0.70% Cu over 46.7 metres in KCD-56, including
    • 10.02 g/t Au, 9.5 g/t Ag and 0.87% Cu over 8.5 metres;
  • 2.37 g/t Au, 8.3 g/t Ag and 0.35% Cu over 33.7 metres in KCD-63, including
    • 4.81 g/t Au, 18.6 g/t Ag and 0.67% Cu over 6.9 metres

KCD-63 and KCD-65 extend gold mineralization 50 metres southeast of drill hole KCD-49, which was announced November 14, 2012 and returned 11.63 g/t gold over 32.5 metres. The central zone of gold mineralization now covers an area measuring 300 metres by 200 metres and contains previously announced high-grade drill holes including KCD-39 (5.94 g/t gold over 137.1 metres), KCD-50 (193 g/t gold over 12.0 metres¹), and KCD-46 (10.03 g/t gold over 15.2 metres). The gold zone is capped by a blanket-style, shallow silver zone. Testing of the silver zone over an area measuring approximately 300 metres by 500 metres shows the zone extends to the north and is wide open for expansion.

“Step-out holes KCD-65 and KCD-63 confirm that a substantial area of strong gold mineralization continues to grow and remains open down-dip to the north and along strike to the northwest and southeast,” said Moira Smith, Pilot Gold’s Chief Geologist. “We are encouraged that step-out drilling based on our geological model is predictive and successful and, in turn, the results have helped further refine our interpretation of key stratigraphic and structural controls.”

Detailed recent drill highlights from the gold, silver and copper zone include:

Hole ID

From         (m)

To             (m)

Intercept          (m)

Gold  (g/t)

Silver  (g/t)

Copper
(%)

Gold cut-off g/t

KCD065

102.5

163.8

61.3

2.79

10.1

0.67

0.3

including

113.0

123.5

10.5

8.64

35.2

2.21

3.0

including

113.0

115.0

2.0

24.60

130.5

5.91

10.0

including

156.8

163.8

7.0

5.38

14.6

1.45

3.0

KCD056

57.6

71.3

13.7

1.25

0.2

5.61

0.3

and

102.7

149.4

46.7

3.31

0.7

6.96

0.3

including

128.1

136.6

8.5

10.02

0.9

9.51

10.0

KCD063

81.5

115.2

33.7

2.37

8.3

0.35

0.3

including

84.2

91.1

6.9

4.81

18.6

0.67

3.0

KCD054

62.5

94.2

31.7

0.94

16.4

0.33

0.3

and

202.1

217.0

14.9

3.38

2.9

0.17

0.3

including

202.1

206.6

4.5

9.30

6.7

0.39

3.0

including

203.6

205.1

1.5

12.90

13.2

0.66

10.0

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 previous drill results, including non-reportable intercepts, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1227.pdf

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1227.pdf

These results form part of an aggressive first-year exploration program consisting of 16,000 metres of diamond core drilling, property-wide airborne magnetic/EM geophysics and ongoing surface mapping and geochemical sampling.

Approximately 10,750 metres in 54 holes at KCD have been completed, with assays pending for 26 holes.Drilling through January 2013 will continue to focus on infill and step-out drilling in the KCD target area, followed by systematic testing of other high-priority targets in early 2013.

¹Due to extremely high grades and the presence of visible gold, samples from KCD-50 are undergoing metallic screen assay verification. Results will be released when received.

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 71 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).

First pass drilling in 2010 resulted in new discoveries at the KCD and Kayali epithermal gold systems. Ongoing exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in recent rock chip sampling.

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.

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 cut-offs of 0.30, 3.0 and 10.0 g/t Au. Silver and copper intercepts reported in the table are referenced to gold intercepts.  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 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. Ag and Cu were determined by 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 finish (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 Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

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 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 (final) short form prospectus of the Company dated October 25, 2012, 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 Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com

 

 

 New assay results expand area of gold mineralization at Pilot Gold’s KCD target

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 18, 2012) - The following corrects and replaces the release issued for Pilot Gold at 7:00 am ET on December 18, 2012. In the detailed drill results table in the release, silver and copper drill results for KCD-056 were switched and therefore reported incorrectly. The results for KCD-056 are corrected in the following release.

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that new assay results from seven diamond drill holes at the Kucukdag (KCD) target show long runs of strong gold, silver and copper grades and further extend an area of shallow, high-grade gold mineralization at the TV Tower project in western Turkey.

Recent drill highlights include:

  • 2.79 g/t gold (Au), 10.1 g/t silver (Ag) and 0.67% copper (Cu) over 61.3 metres in KCD-65, including
    • 8.64 g/t Au, 35.2 g/t Ag and 2.21% Cu over 10.5 metres;
  • 3.31 g/t Au, 6.9 g/t Ag and 0.70% Cu over 46.7 metres in KCD-56, including
    • 10.02 g/t Au, 9.5 g/t Ag and 0.87% Cu over 8.5 metres;
  • 2.37 g/t Au, 8.3 g/t Ag and 0.35% Cu over 33.7 metres in KCD-63, including
    • 4.81 g/t Au, 18.6 g/t Ag and 0.67% Cu over 6.9 metres

KCD-63 and KCD-65 extend gold mineralization 50 metres southeast of drill hole KCD-49, which was announced November 14, 2012 and returned 11.63 g/t gold over 32.5 metres. The central zone of gold mineralization now covers an area measuring 300 metres by 200 metres and contains previously announced high-grade drill holes including KCD-39 (5.94 g/t gold over 137.1 metres), KCD-50 (193 g/t gold over 12.0 metres¹), and KCD-46 (10.03 g/t gold over 15.2 metres). The gold zone is capped by a blanket-style, shallow silver zone. Testing of the silver zone over an area measuring approximately 300 metres by 500 metres shows the zone extends to the north and is wide open for expansion.

“Step-out holes KCD-65 and KCD-63 confirm that a substantial area of strong gold mineralization continues to grow and remains open down-dip to the north and along strike to the northwest and southeast,” said Moira Smith, Pilot Gold’s Chief Geologist. “We are encouraged that step-out drilling based on our geological model is predictive and successful and, in turn, the results have helped further refine our interpretation of key stratigraphic and structural controls.

Detailed recent drill highlights from the gold, silver and copper zone include:

Hole ID

From         (m)

To             (m)

Intercept          (m)

Gold  (g/t)

Silver  (g/t)

Copper
(%)

Gold cut-off g/t

KCD065

102.5

163.8

61.3

2.79

10.1

0.67

0.3

including

113.0

123.5

10.5

8.64

35.2

2.21

3.0

including

113.0

115.0

2.0

24.60

130.5

5.91

10.0

including

156.8

163.8

7.0

5.38

14.6

1.45

3.0

KCD056

57.6

71.3

13.7

1.25

5.6

0.19

0.3

and

102.7

149.4

46.7

3.31

6.9

0.70

0.3

including

128.1

136.6

8.5

10.02

9.5

0.87

10.0

KCD063

81.5

115.2

33.7

2.37

8.3

0.35

0.3

including

84.2

91.1

6.9

4.81

18.6

0.67

3.0

KCD054

62.5

94.2

31.7

0.94

16.4

0.33

0.3

and

202.1

217.0

14.9

3.38

2.9

0.17

0.3

including

202.1

206.6

4.5

9.30

6.7

0.39

3.0

including

203.6

205.1

1.5

12.90

13.2

0.66

10.0

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 previous drill results, including non-reportable intercepts, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1227.pdf

For a map highlighting recent drilling, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1227.pdf

These results form part of an aggressive first-year exploration program consisting of 16,000 metres of diamond core drilling, property-wide airborne magnetic/EM geophysics and ongoing surface mapping and geochemical sampling.

Approximately 10,750 metres in 54 holes at KCD have been completed, with assays pending for 26 holes. Drilling through January 2013 will continue to focus on infill and step-out drilling in the KCD target area, followed by systematic testing of other high-priority targets in early 2013.

¹Due to extremely high grades and the presence of visible gold, samples from KCD-50 are undergoing metallic screen assay verification. Results will be released when received.

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 71 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).

First pass drilling in 2010 resulted in new discoveries at the KCD and Kayali epithermal gold systems. Ongoing exploration by Pilot Gold continues to uncover robust new targets, including the bonanza-grade Columbaz low sulphidation epithermal vein system that returned 39 g/t gold and 290 g/t silver in recent rock chip sampling.

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.

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 cut-offs of 0.30, 3.0 and 10.0 g/t Au. Silver and copper intercepts reported in the table are referenced to gold intercepts.  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 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. Ag and Cu were determined by 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 finish (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 Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
This email address is being protected from spambots. You need JavaScript enabled to view it.

Media:
Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
This email address is being protected from spambots. You need JavaScript enabled to view it.

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 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 (final) short form prospectus of the Company dated October 25, 2012, 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 Annual Information Form, available under Pilot Gold’s SEDAR profile at www.sedar.com.