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January 8, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that recent drilling returned high-grade oxide gold intercepts from the Kayali and Karaayi zones (collectively, the K2 trend) on the TV Tower property in western Turkey.

Highlights include: 

  •  0.80 grams/tonne gold (g/t Au) over 119.8 metres (m) in KRD-03 (Karaayi Zone), including

            o   2.00 g/t Au over 35.0 m

  • 1.96 g/t Au over 33.1 m in KYD-51(Kayali Zone), including

            o   3.42 g/t Au over 17.4 m

Drill holes KRD-03 and KYD-51 are located approximately three kilometres apart along the K2 trend, a four-kilometre-long, near-surface sheet of gold mineralization. KRD-03 yielded the highest-grade results ever returned for the Karaayi zone, with assay intervals up to 10.8 g/t Au. 

“2013 was a milestone year at K2,” said Matt Lennox-King, President and CEO, Pilot Gold. “Drilling and exploration work confirmed that the K2 gold system has a large mineralized footprint that can be mapped across a broad four-kilometre trend, containing structurally controlled zones of high-grade oxide gold.”

Hole KYD-51 is a step-out hole drilled at the east end of the Kayali zone. The mineralized zone was also encountered in holes near KYD-51 and remains open to the southeast. Previous indications of high-grade mineralization at Kayali include 15.9 g/t Au over 3.0 metres from surface in KYD-46R.

Geological mapping and soil and rock sampling are ongoing at Karaayi ahead of further definition and step-out drilling in 2014. 

For a comprehensive table of results related to gold mineralization at Kayali, please click: http://www.pilotgold.com/sites/default/files/KayaliDrillResults1401.pdf

For a comprehensive table of results related to gold mineralization at Karaayi, please click: http://www.pilotgold.com/sites/default/files/KaraayiDrillResults1401.pdf 

For a map highlighting drilling at K2, please click: http://www.pilotgold.com/sites/default/files/K2Map1401.pdf

Pilot Gold drilled 3,586 metres in 17 holes at Kayali and 1,319 metres in five holes at Karaayi in 2013. All significant gold intervals from the 2013 drilling at K2 have been released. Copper intervals from K2 drill holes will be released separately. 

K2 geology:

K2 is an oxidized, high sulphidation epithermal gold system. Oxide gold mineralization along the K2 trend is hosted in a thick sheet of massive and vuggy quartz-altered volcaniclastic rocks cut by west-northwest striking, south-dipping, hematite-cemented breccia zones and fractures hosting elevated gold grades. Surface mapping, sampling and drilling suggest that Kayali gold mineralization extends westward through the Karaayi target for a total length of over four kilometres, making the K2 trend the most extensive Au-in-soil anomaly at TV Tower.

All true widths are 50-100% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. 

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.

TV Tower encompasses 91 square kilometres containing more than a dozen 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. 

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 0.2, 0.5, 1.0 and 3.0 g/t Au. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch.

About Pilot Gold:

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on TV Tower, including the ability to incur the minimum annual Expenditure Requirements to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our AIF, available under Pilot Gold’s SEDAR profile at www.sedar.com.

 

Western Flank mineralization remains open to south toward the Right Spot, a priority drill target in 2014

January 12, 2014

VANCOUVER, B.C. –  Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that new drilling at Kinsley Mountain’s Western Flank target has intersected significant gold in drill holes spaced over a 500-metre trend that remains open to the north and south.

Hole PK091CA, which returned 8.53 g/t gold (Au) over 36.6 metres, is at the centre of the trend (see press release dated November 18th, 2013). New drill highlights along trend include:

  • 5.00 g/t Au over 7.6 metres and 4.71 g/t over 7.3 metres in PK096C  
  • 2.50 g/t Au over 24.4 metres in PK104C
  • 6.34 g/t Au over 5.9 metres in PK106C, including

                    o   9.91 g/t Au over 3.4 metres

Stratigraphic units hosting the gold in the Western Flank zone rise to the surface, 500 metres to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot demonstrate a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t Au in grab samples. These features suggest that the Right Spot surface mineralization may result in a gold mineralized zone stretching more than one kilometre in length.

“The high-grade results from the Western Flank and recent fieldwork in the Right Spot area suggest that the Western Flank and Right Spot are part of a connected gold mineralized system, similar in nature to the system our team defined at Long Canyon,” said Moira Smith, Chief Geologist, Pilot Gold. “We will begin our 2014 drill program in late January by prioritizing further drilling at the Western Flank and testing the surface mineralization at the Right Spot and other areas to the south.”

Pilot Gold drilled approximately 14,200 metres in 58 holes in its 2013 Kinsley program, with assays pending for three holes.

For a table of 2013 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillResults1402.pdf

For a drill map outlining the area covered by the Plan of Operations, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1402.pdf

The Western Flank target is located 550 metres northwest of the past-producing pits at Kinsley. It comprises north-northeast-plunging zones of mineralization hosted in up to three receptive stratigraphic horizons intersected by one or more steep breccia zones that may have served as conduits and porous hosts for gold mineralization. Pilot Gold drilling has shown that high-grade gold also occurs within a lower limestone unit that was not identified or tested by previous operators.

The Western Flank area hosts numerous features that are similar to the geology at the Long Canyon deposit, including evidence of potential boudinage of a 100-metre-thick dolomite horizon and focusing of gold mineralization in and around this boudin neck area, which strikes north-northeast. Long Canyon was explored and developed by Pilot Gold’s Kinsley team, prior to the project’s sale as part of Newmont Mining Corporation’s $2.3 billion acquisition of Fronteer Gold.

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometre, SE-NW strike extent. The property consists of 380 claims and 7,650 acres (3,095 hectares) on U.S. Bureau of Land Management ("BLM") land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Gold mineralization is primarily oxidized and occurs in strataform zones and fault collapse breccias within a sequence of Cambrian-Ordovician shelf carbonates. At depth, Pilot Gold has also drilled high-grade transitional and sulfide mineralization.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. There are furthermore no assurances that the geological similarities to the Long Canyon project or other projects displaying high-grade collapse breccia zones will result in the establishment of any resource estimate at Kinsley’s Western Flank, or, if found to exist, that it will be of a similar grade or quantity that is found at Long Canyon or those other deposits, or that the Kinsley project can be advanced in a similar timeframe. 

Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley. Pilot Gold holds a 78% interest in Kinsley and sole-funded a $3.4-million program in 2013.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
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 within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at 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 AIF, available under Pilot Gold’s SEDAR profile at www.sedar.com

 

Winter program targets Western Flank discovery and Right Spot target

January 15, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce a 17,000-metre, $4.5-million drill program at Kinsley Mountain for 2014. The initial 3,700-metre winter program begins January 18, 2014 and will focus on infilling and extending the Western Flank discovery towards the Right Spot target, where host rocks returned significant gold in road cut sampling. Drill results from the Western Flank and Right Spot sampling suggest that the targets may result in a gold mineralized zone stretching more than one kilometre.

“2013 was a pivotal year at Kinsley Mountain, with a new high grade discovery at the Western Flank target and ‘proof of concept’ of Pilot Gold’s exploration model,” said Dr. Moira Smith, Chief Geologist, Pilot Gold. “The 2014 exploration program is designed to build on our success to date, demonstrate the district scale potential of Kinsley and reinforce its status as the leading exploration project in Nevada.” 

2013 drill highlights from Kinsley Mountain include:

  • 8.53 g/t gold (Au) over 36.6 metres in PK091CA, including

                 o   29.4 g/t Au over 7.6 metres

  • 5.00 g/t Au over 7.6 metres and 4.71 g/t over 7.3 metres in PK096C  
  • 2.50 g/t Au over 24.4 metres in PK104C
  •  1.65 g/t Au over 24.4 metres in PK074  
  •  6.34 g/t Au over 5.9 metres in PK106C, including

              o   9.91 g/t Au over 3.4 metres

Additional 2014 exploration drilling will focus on targets south of the Western Flank and past producing Kinsley Mine where prior drilling, geologic mapping and geochemistry defined a series of robust targets hosted in the Candland Shale and Secret Canyon Shale. Candland Shale is a historically exploited regional gold host while the underlying Secret Canyon Shale provides a new host horizon discovered last year, with drill hole PK091CA. Targets will be drilled within the historic mine area, where the Secret Canyon Shale remains untested. These southern targets are drill ready and permitted under the existing Kinsley Plan of Operations.

Drill testing of priority exploration targets up to seven kilometres north of the Kinsley Mine will occur upon receipt of an Amended Plan of Operations. Large geochemical anomalies, strong gold values in surface rock samples and extensive geologic mapping have confirmed the presence of key structures and regional stratigraphic gold hosts at ‘Kinsley North’ and defined drill targets. An amendment to the existing Plan of Operations was submitted on November 6, 2013.

Pilot Gold holds an approximately 78% interest in Kinsley. Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley. Intor has notified Pilot Gold of its intention to fund its $941,000 share of the proposed program in 2014.

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometre trend. The property consists of 380 claims and 7,650 acres (3,095 hectares) on U.S. Bureau of Land Management ("BLM") land, and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Gold mineralization is primarily oxidized and occurs in stratiform zones and fault collapse breccias within a sequence of Cambrian-Ordovician shelf carbonates. At depth, Pilot Gold has also drilled high-grade transitional and sulfide mineralization.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.

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 technical information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NaCN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold, under the Company's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
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: 604-809-8750This 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 within the meaning of applicable securities laws, including statements that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at 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 AIF, available under Pilot Gold’s SEDAR profile at www.sedar.com

 

Extensive supergene copper zone, indications of two porphyry Cu-Au systems along K2 trend   

January 20, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that drill results from the four-kilometre-long K2 trend reveal the presence of an extensive blanket of supergene copper mineralization underlying the oxide gold zones. In addition, drilling and surface work suggest that two or more copper-gold porphyry systems are present at K2, which includes the Kayali and Karaayi targets in the southern portion of TV Tower. 

“The discovery and recognition of this copper component markedly changes the complexion of the K2 target and may be a game changer for the entire TV Tower property,” said Matt Lennox-King, President and CEO, Pilot Gold. “It is potentially the most significant new development in the Biga district since the 2006 discovery of our Halilaga copper-gold porphyry deposit, 15 kilometres to the southeast of K2.”

Supergene copper drill highlights from K2 include:

  • 1.29% copper (Cu) over 34.1 metres in KYD-39, including

               o   1.90% Cu over 20.8 m

  • 0.35% Cu over 65.0 m in KYD-43
  • 0.35% Cu over 64.2 m in KYD-34
  • 0.33% Cu over 57.0 m in KYD-03
  • 0.63% Cu over 41.7 m in KRD-005, including

                o   1.07% Cu and 0.10 g/t gold over 21.8 m

K2 porphyry systems:

Indications of porphyry Cu-Au mineralization at Karaayi were noted in surface outcrops to the south of, and under, the gold-bearing silica cap. Drilling by prior operators encountered gold and copper mineralization over significant lengths in the subsurface. Pilot Gold drilled two holes (KRD002 and KRD004) to target Cu-Au porphyry mineralization near the historic holes.

Karaayi Cu-Au porphyry target highlights:

  • 0.30% Cu and 0.13 g/t Au over 224.8 m in KRD002, including

               o   0.59% Cu and 0.18 g/t Au over 37.0 m

  •  0.16% Cu and 0.18 g/t Au over 154.4 m in KRD004
  • 0.19% Cu and 0.17 g/t Au over 257.2 m in KAD02
  •  0.29% Cu and 0.20 g/t Au over 93.0 m in KC03  

Quartz stockwork and phyllic alteration consistent with the upper levels of a porphyry system were also noted immediately below the high sulphidation silica cap in KRD001 and KRD005. This suggests that porphyry alteration and mineralization may extend well outside of the currently defined porphyry target. 

1200m by 400m copper-gold soil anomaly:

Grid soil sampling by Pilot Gold southwest of the Karaayi silica cap has also partially defined a large gold and copper in soil anomaly approximately 400 metres by 1200 metres and open to the southeast. Individual samples returned up to 1600 ppm copper and up to 830 ppb gold. Assays are pending on additional soil sampling to the southeast. An initial drill test on two permitted sites in the centre of the soil anomaly is planned for 2014, and geological mapping and soil and rock sampling are continuing at Karaayi. Porphyry-related quartz stockwork alteration has been observed in outcrop at this second porphyry target.

Pilot Gold drilled 3,586 metres in 17 holes in Kayali and 1,319 metres in 5 holes at Karaayi in 2013. Members of the Pilot Gold team played an important role in the discovery of the nearby Halilaga copper-gold deposit (Teck Resources 60% / Pilot Gold 40%).

All true widths are 50-100% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing.

For a comprehensive table of results related to copper mineralization at Kayali, please click: KayaliDrillResults1404.pdf

For a comprehensive table of results related to copper mineralization at Karaayi, please click: KaraayiDrillResults1404.pdf

For a map of copper drill results at K2, please click:K2DrillMap1404.pdf

For a conceptual long section of copper-gold systems at Karaayi, please click:KaraayiCrossSection1404.pdf

K2 copper geology:

Throughout the K2 trend, gold is present in a shallow zone of strongly silicified and oxidized volcaniclastic rocks. The transition from oxide to sulphide below the gold zone hosts copper mineralization, primarily consisting of chalcocite and covellite. It is likely supergene in nature and derived from copper minerals originally deposited with, and subsequently leached from, the gold mineralization. While no metallurgical work has been carried out on this material, both chalcocite and covellite are typically amenable to heap leaching and/or extraction in a flotation circuit.

The supergene copper zone is up to 300 metres wide and 60 metres thick, and appears, based on limited drilling, to extend intermittently over the length of the K2 gold zone. The spatial juxtaposition of the epithermal and porphyry systems is significant, providing a telescoped (or collapsed) profile of continuous mineralization and a potentially deep rooted system.

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.

Located on the Biga Peninsula of northwest Turkey, the TV Tower project encompasses 91 square kilometres containing more than a dozen targets ranging from high- and low-sulphidation epithermal gold-silver to porphyry gold-copper.

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 being delineated as a mineral resource. There are furthermore no assurances that the geological similarities to Halilaga will result in the establishment of any resource estimate at the K2 target, or, if found to exist, that it will be of a similar grade or quantity to that found at Halilaga, or that the supergene copper zone at K2 can be advanced in a similar timeframe.

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 verified that the information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.2, 0.5, 1.0 and 3.0 g/t Au. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. 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. 

Holes KAD 1-10 were drilled by Chesser Resources Limited. Pilot Gold possesses original certificates, QA-QC data and reliable collar and downhole data such that Pilot Gold has no reason to believe that the information is inaccurate. Holes KC02-KC08 were drilled by Tuprag Metal Madencilik, a subsidiary of Eldorado Gold Corporation. Pilot Gold is in possession of collar and downhole data, and has reviewed copies of certificates and evidence that they carried out QA-QC programs.  Dr. Smith has no reason to believe that the information is inaccurate.

About Pilot Gold:

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 regarding the size of the supergene copper zone, the significance of the drill results to the overall development of the TV Tower project, that address timing of exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements 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 (“EIAs”); possible claims against the Company or its joint venture partners; resolution of claims and challenges to EIAs, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our AIF, available under Pilot Gold’s SEDAR profile at www.sedar.com.

 

996,000 Indicated and 351,000 Inferred gold-equivalent ounces support emerging TV Tower district

January 22, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce an initial independent resource estimate, with an effective date of November 6, 2013, for the Kucukdag (KCD) gold-silver-copper deposit, the first of several targets on the TV Tower property slated for intensive drilling, exploration and resource estimation.

KCD was divided into a lower gold zone and an overlying silver zone for reporting of the resource estimate, as gold and silver are found in largely spatially distinct zones.

“The KCD resource estimate is an important milestone in the evolution of TV Tower, and demonstrates the property’s potential to host meaningful precious metals deposits,” said Matt Lennox-King, President and CEO, Pilot Gold. “Over the 15 months that Pilot Gold has led TV Tower exploration, KCD has grown from a primarily gold system to a deposit hosting a sizeable silver resource that – on its own – is estimated to be Turkey’s third largest silver deposit1. The KCD resource provides a solid foundation on which to advance TV Tower, along with the potentially game-changing copper-gold discovery at the nearby K2 target.”

KCD will continue to progress through ongoing metallurgical testing and preliminary engineering. The Silver zone at KCD measures 600 x 600 metres at surface and remains open for expansion to the north and northwest.

Gold Zone Resource:

  • An Indicated Mineral Resource of 11.62 million tonnes at an average grade of 1.22 grams/tonne gold (“g/t Au”) containing 456,000 ounces gold (“Au”)
  • An Inferred Mineral Resource of 1.70 million tonnes at an average grade of 0.85 g/t Au containing 46,000 ounces gold

Silver Zone Resource:

  • An Indicated Mineral Resource of 11.44 million tonnes at an average grade of 46.7 g/t silver containing 17,182,000 ounces silver (“Ag”)
  • An Inferred Mineral Resource of 9.08 million tonnes at an average grade of 52.7 g/t Ag containing 15,367,000 ounces silver

In total on a gold equivalence basis, the KCD resource estimate, effective November 6, 2013, delineates an Indicated Mineral Resource of 996,000 gold equivalent “AuEq” ounces (23.06 Mt at 1.34 g/t AuEq) and an Inferred Mineral Resource of 351,000 AuEq ounces (10.77 Mt at 1.01 g/t AuEq).

The Classified Mineral Resource estimate is quoted at a cut-off grade of 0.50 grams per tonne (“g/t”) gold equivalent (“AuEq”). At a 0.50 g/t AuEq cut-off, the strip ratio is 1.47:1. Gold equivalence was calculated using a ratio of Au:Ag of $1200:$20, at 75% recovery and copper (“Cu”) at $3/lb at 70% recovery.

At KCD, as is typical in high sulphidation systems, gold grades are highly variable and required careful and pragmatic treatment on interpolation. This estimate was completed by ordinary kriging and high grades were controlled by a combination of assay capping and range restriction above grade thresholds, by rock type. An uncapped estimate yields over 40% more gold than this capped estimate.

Table 2 (below) shows that at higher cut-off grades there is a modest reduction in the number of contained gold ounces while the average gold grade increases significantly. This reflects the high-grade nature of the gold endowment and the spatially discrete zones for gold and silver.

For example, using a 1.0 g/t AuEq cut-off in the Gold Zone, 86% of the gold resource ounces remain and provide:

  • an Indicated inventory of 393,000 ounces at an average grade of 2.03 g/t Au (6.02 million tonnes), and
  • an Inferred inventory of 35,000 ounces at an average grade of 1.45 g/t Au (0.74 million tonnes).

KCD Metallurgy:

Preliminary metallurgical testing by Hazen Research Inc., encompassing leach and concentrate tests of oxide and sulphide material, is still ongoing and very preliminary in nature. To date, this testing shows a wide range of recoveries by material type. Oxide and transition materials are amenable to conventional cyanide leaching. Oxide (sulfide sulfur <0.50%) gold resource extraction ranges from 70 to 97 percent and transitional material (sulfide sulfur >0.50% and <3.0%) ranges from 40 to 90 percent.  Oxide and transition silver resources (sulfide sulfur <3.0%) are more refractory than gold and cyanide extraction ranges from 40 to 80 percent.  In general, sulphide material would be generally amenable to flotation to produce a rougher concentrate ranging from 80-94 percent recovery for Cu, 55 to 95 percent for Au and 60 to 75 percent for Ag, with an unoptimized range of first cleaner recovery, for the main Gold Zone, ranging from 60-90% for Cu, 60-87% for Au and 30-65% for Ag.  Sulfide materials contain elevated levels of some undesirable elements such as arsenic and antimony (As, Sb).

The KCD deposit measures approximately 650 metres by 600 metres. It remains open to the north and northwest with an emerging oxide gold zone located above the silver zone. Located in the heart of the Biga District, the KCD deposit is located close to roads, power and deep-water ports.

For a graphic detailing the KCD block model, please, click:
http://www.pilotgold.com/sites/default/files/KCDResourceSection1405.pdf

Table 1: KCD Resource Summary at 0.5 g/t AuEq cut-off

 

Tonnes

Au

Ag

Cu

AuEq

Metal (x103)

(x106)

(g/t)

(g/t)

(%)

(g/t)

Au(oz)

Ag(oz)

Cu(lb)

Gold Zone

Indicated

11.62

1.22

8.8

0.23

1.74

456

3,298

59,470

 

Inferred

1.70

0.85

8.5

0.15

1.23

46

464

5,591

Silver Zone

Indicated

11.44

0.04

46.7

0.08

0.94

14

17,182

19,388

 

Inferred

9.08

0.02

52.7

0.05

0.97

6

15,367

9,292

Total

Indicated

23.06

0.63

27.6

0.16

1.34

470

20,479

78,859

 

Inferred

10.77

0.15

45.7

0.06

1.01

53

15,831

14,883

Table 2: KCD Gold Zone Mineral Inventory by AuEq Cut-off

     

INDICATED

INFERRED

Cut-off
(g/t AuEq)

Tonnes

Au

Metal (x103)

Tonnes

(x106)

Au

Metal (x103)

 

(x106)

(g/t)

Au(oz)

(g/t)

Au(oz)

 

0.5

11.62

1.22

456

1.70

0.9

46

 

1.0

6.02

2.03

393

0.74

1.5

35

 

1.5

3.84

2.75

340

0.39

2.1

26

 

2.0

2.68

3.42

295

0.25

2.6

20

 
                     

ESTIMATION METHODS

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”) in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended.  Estimation methods are summarized below. Further details of the estimation methods and procedures will be available in a NI 43-101 technical report, to be co-authored and released by SRK Consulting (Canada) Inc. (“SRK”), which will be filed on SEDAR (www.sedar.com), within 45 days from the date of this release.  

The resource estimate is based on results from 37,860 metres of drilling in 169 drill holes (160 core and nine reverse circulation). Quality-control data generated during the various drill programs conducted at KCD, were independently verified by SRK, as part of the project review. The resource model consists of a detailed three-dimensional geological model including lithological domains and structural domains derived from 25 metre-spaced sections. These, in turn, were used to constrain the interpolation of gold, silver and copper grades.  Block grades were estimated by ordinary kriging. Blocks measure 10 x 10 x 5 metres. A total of 26,173 individual assay intervals averaging 1.4 metres in length were composited into a total of 12,981 composite intervals of 3 metre length. Gold, silver and copper assay data were reviewed statistically to determine appropriate grade capping levels by domain.  A total of 71 gold assays, 48 silver assays and 33 copper assays were capped prior to compositing based on the evaluation of probability plots by major rock type. In addition to the capping of assay data, the impact of anomalously high gold values was controlled by restricting their range of influence in the estimation process.

For mineralization in the Gold Zone to be classified as Indicated the following criteria were used: two holes within 25 metres or three holes within 36 m.  Indicated classification for the Silver Zone is based on a minimum of two holes within 35 metres or three holes within 50 metres.  All other material within the pit shell was classified as Inferred. The mineral resources are confined within a Whittle pit shell generated by SRK to ensure reasonable prospects of economic extraction. 

The pit shell was based on the following parameters: Au: $1,335/oz; Ag: $22/oz; Cu: $3.60/lb; Mining: $2.00/t; Milling, General and Administrative and sustaining CapEx: $15/t milled; Recovery: Au and Ag = 75%; Cu = 70%; Overall pit slope: 50o. At a 0.5 g/t AuEq cut-off, the strip ratio is 1.47:1. Tonnage estimates are based on 6,027 density measurements which were used to assign average values to lithologic domains of the block model. Bulk density for the main KCD gold mineralized rock unit averages 2.38 tonnes/m3.

Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. Metallic screen techniques were employed to assay a 12-metre interval in KCD-50. Approximately 500 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. Ag and Cu were determined by aqua regia ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES (Cu). QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. 

ABOUT 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.

TV Tower is comprised of 9 contiguous Exploration-type and Operation-type licenses. The KCD Exploration license is due for conversion to Operation type in 2014, and will require an approved Environmental Impact Assessment (“EIA”) as part of that process. The required form and content for an EIA in Turkey is currently evolving, and although the Company expects to submit an EIA in accordance with requirements, the changing process, delays in obtaining governmental approvals and the resolution of any potential claims and challenges to EIAs or other uncertainties may materially affect the potential development of the mineral resources described herein. The Ministry of Forest’s approvals process to permit drilling is also evolving in Turkey delaying, in certain cases the receipt of permission to undertake drilling.  Although permits are in place to conduct the currently planned 2014 program at the KCD target, permitting delays for new targets may impact additional drilling at KCD.  

QUALIFIED PERSONS

James Gray of Advantage Geoservices Limited 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, non-metallurgical information contained in the release is accurate. Mr. Gray is independent of Pilot Gold and is a “Qualified Person” as defined by NI 43-101.  Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is also the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and verified that the geological and metallurgical information contained in the release is accurate.

Each of Dr. Smith and Mr. Gray has consented to the disclosure of such information and of their names 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.

TV Tower is an early stage exploration project and, except for the mineral resources at the KCD deposit, as summarized herein, does not contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone of TV Tower is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at K2 will yield a mineral resource.

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.

1 Source SNL Metals & Mining

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 resource potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estmimates, timing of other exploration and development plans at the Company’s mineral projects. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources and mineral reserves, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 (the “AIF”) in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our AIF, available under Pilot Gold’s SEDAR profile at www.sedar.com

 

February 3, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) ("Pilot Gold" or the "Company") announces the approval and adoption by its Board of Directors of an advance notice policy (the "Policy"). The purpose of the Policy is to provide shareholders, directors and management of the Company with a clear framework for nominating directors of the Company. The Company is committed to: (i) facilitating an orderly and efficient annual general meeting or, where the need arises, special meeting, process; (ii) ensuring that all shareholders receive adequate notice of the director nominations and sufficient information regarding all director nominees; and (iii) allowing shareholders to register an informed vote after having been afforded reasonable time for appropriate deliberation. The Policy is intended to further these objectives.

The Policy, among other things, includes a provision that requires advance notice to the Company in certain circumstances where nominations of persons for election to the Board of Directors are made by shareholders of the Company. The Policy fixes a deadline by which such director nominations must be submitted to the Company prior to any annual or special meeting of shareholders and sets forth the information that must be included in the notice to the Company. No person will be eligible for election as a director of the Company unless nominated in accordance with the Policy.

In the case of an annual meeting of shareholders, notice to the Company must be made not less than 30 days and not more than 65 days prior to the date of the annual meeting; provided, however, that, in the event that the annual meeting is to be held on a date that is less than 50 days after the date on which the first public announcement of the date of the annual meeting was made, notice may be made not later than the close of business on the 10th day following such public announcement.

In the case of a special meeting of shareholders called for the purpose of electing directors (whether or not called for other purposes), notice to the Company must be made not later than the close of business on the 15th day following the day on which the first public announcement of the date of the special meeting was made.

The full text of the Policy is available under the Company's profile at http://www.sedar.com. The Policy is effective and in full force and effect as of the date it was approved. Pursuant to the terms of the Policy, the Company will seek shareholder approval of the Policy at its next annual general meeting of shareholders. If the Policy is not confirmed at the meeting by ordinary resolution of shareholders, the Policy will terminate and be of no further force and effect following the termination of the AGM.

ABOUT PILOT GOLD
Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

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 statements of historical fact relating to Pilot Gold Inc., certain information contained herein constitutes "forward-looking statements". Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "considers", "intends", "targets", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Pilot Gold Inc.'s public filings, which may be accessed at www.sedar.com. Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

 

High-grade gold extends 30 metres east and west of hole PK91CA, remains open in all directions

February 26, 2014

VANCOUVER, B.C. –  Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that new drilling to follow up the recent high-grade discovery at Kinsley Mountain’s Western Flank target has intersected additional high grade gold mineralization, including 6.85 grams per tonne gold (“g/t Au“) over 41.7 metres in PK127C.

Holes PK127C and PK126C are step-outs located approximately 30 metres east and 30 metres west, respectively, of PK91CA, which returned 8.53 g/t Au over 36.6 metres (see press release dated November 18, 2013).

Highlights from the 2014 drill program’s first two holes include:

  • 6.85 g/t Au over 41.7 metres in PK127C, including

                 o   16.3 g/t Au over 8.5 metres (oxide), and

                 o   20.5 g/t Au over 3.6 metres (oxide)

  • 1.70 g/t Au over 13.7 metres in PK126C, including

                 o   7.10 g/t Au over 1.5 metres

These assay results better define the size and shape of the high grade zone at the Western Flank target. Intercepts in both holes are located at the approximate elevation of PK91CA, suggesting that the high-grade zone is nearly flat lying in an east-west orientation. The bottom portion of the PK127C intercept is in highly oxidized rock that returned strong gold recoveries in cyanide soluble assays. The high grade zone is located in a previously unrecognized stratigraphic horizon below the limit of prior drilling. Assay results from four additional holes, drilled 25-50 metres to the north and south of PK91CA and PK127C, are pending.

“Recent results confirm that the newly discovered zone of high-grade mineralization is open in all directions,” stated Matt Lennox-King, President and CEO, Pilot Gold. “Prospective stratigraphy and structure occurs over 1.7 kilometres in the Western Flank and also includes areas under and to the south of the historic Kinsley Mine. As a result, the scale of potential has increased markedly at Kinsley Mountain.” 

Gold at the Western Flank is hosted in multiple units. The upper stratigraphic unit (Candland Shale) rises to the surface 500 metres to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot identified a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t gold in grab samples. Stratigraphic gold host units lying below the Candland Shale appear to surface an additional 500 metres to the south of the Right Spot target, where gold-bearing jasperoids are also present. Initial drill results from the Right Spot target are pending.

The Western Flank area hosts numerous features that are similar to the geology at the nearby Long Canyon deposit, including evidence of potential boudinage of a 100-metre-thick dolomite horizon and focusing of gold mineralization in and around this boudin neck area, which strikes north-northeast. There are no assurances that the geological similarities to the Long Canyon project will result in the establishment of any resource estimate at Kinsley’s Western Flank, or, if found to exist, that it will be of a similar grade or quantity that is found at Long Canyon or those other deposits, or that the Kinsley project can be advanced in a similar timeframe. Long Canyon was explored and developed by Pilot Gold’s Kinsley team, prior to the project’s sale as part of Newmont Mining Corporation’s $2.3 billion acquisition of Fronteer Gold. 

For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillResults1407.pdf

For a drill map and long section showing conceptual target stratigraphic units in the Western Flank/Right Spot area, please click here: http://www.pilotgold.com/sites/default/files/KinsleyMap1407.pdf

The Western Flank target is located 550 metres northwest of the past-producing pits at Kinsley. It comprises north-northeast-plunging zones of mineralization hosted in three or more receptive stratigraphic horizons intersected by one or more steep breccia zones that may have served as conduits and porous hosts for gold mineralization. In addition to mineralization in stratigraphic units exploited in the previous mining operation, Pilot Gold drilling has revealed that high-grade gold occurs within a lower limestone unit that was neither identified nor tested by previous operators.

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometre, SE-NW strike extent. The property consists of 380 claims and 7,650 acres (3,095 hectares) on U.S. Bureau of Land Management land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Gold mineralization is primarily oxidized and occurs in strataform zones and fault collapse breccias within a sequence of Cambrian-Ordovician shelf carbonates. At depth, Pilot Gold has also drilled high-grade transitional and sulfide mineralization.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. 

Intor Resources Corporation, a subsidiary of Nevada Sunrise Gold Corporation, is the Company's joint venture partner at Kinsley. Pilot Gold holds a 78% interest in Kinsley.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
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 within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 27, 2013 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law. 

 

February 27, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) has filed a National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) technical report entitled  "Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey" (the "Report"), effective January 21, 2014 and dated February 20, 2014, on SEDAR at http://www.sedar.com.

The Report relates principally to the independent resource estimate for the Kucukdag ("KCD") gold-silver-copper deposit at TV Tower in northwestern Turkey, announced on January 23, 2014. KCD is the first of several targets on the 91 km2 TV Tower property slated for intensive drilling, exploration and resource estimation.

The Report also covers exploration results from the 2013 program at TV Tower, including acquisition, exploration and drilling at the Karaayi and Kayali targets (“K2”). Karaayi and Kayali host a four kilometre-long zone of silicified volcaniclastic rocks hosting oxide gold, underlain by a blanket of supergene copper mineralization and what appears to be two or more areas of copper-gold porphyry alteration.

There are no material differences between the results announced in the January 23, 2014 news release and results contained in the Report. The Report has also been posted on the Company's website at www.pilotgold.com.

The Report was prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc.; James N. Gray, P. Geo. of Advantage Geoservices Ltd.; and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC. Mr. Hetman, Mr. Gray and Mr. Simmons are independent of Pilot Gold and are “Qualified Persons” as defined by NI 43-101.   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 approved the scientific and technical information contained herein.

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.

TV Tower is an early stage exploration project and, except for the mineral resources at the KCD deposit as summarized in the Report, does not contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone of TV Tower is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at K2 or other targets at TV Tower will yield a mineral resource.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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.

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES

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. 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.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address potential size and expansion of a mineralized zone and the timing of future resource estimates.  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 based upon a number of assumptions of management, including among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including risks related to TV Tower, reliance on technical information provided by our joint venture partner or other third parties as related to TV Tower; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; the costs and timing of exploration and development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; 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; delays in obtaining governmental approvals or financing as well as those factors discussed in the Annual Information Form for the year ended December 31, 2012, dated March 27, 2013 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law. 

 

100 metre step-out extends high grade zone and remains open in all directions; Right Spot drilling extends Western Flank over 1.7 km 

March 11, 2014

VANCOUVER, B.C. –  Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that step-out drilling at Kinsley Mountain’s Western Flank target has intersected high grade gold mineralization, including 18.3 grams per tonne gold ("g/t Au") over 22.9 metres in PK131C. Drilling 500 metres south at the Right Spot target returned a near surface, oxide gold interval of 3.57 g/t Au over 11.5 metres in PK130C.

Western Flank Results:

Holes PK131C and PK132C are step-outs located approximately 25 metres north and 100 metres northwest, respectively, of PK91CA, which returned 8.53 g/t gold over 36.6 metres (see press release dated November 18th, 2013).

Highlights include:

  • 10.5 g/t Au over 42.7 metres in PK131C, including

o   18.3 g/t Au over 22.9 metres;

  • 7.53 g/t Au over 53.3 metres in PK132C, including

o   14.9 g/t Au over 22.9 metres, and

o   4.67 g/t Au over 7.6 metres

“We are thrilled to report these new results, with PK131C the best hole ever drilled at Kinsley,” stated Matt Lennox-King, President and CEO. “They underscore our long-held belief that the Kinsley project can host significant high-grade mineralization. What is most exciting is the fact that the high grade zone at the Western Flank remains completely open.”

Drill holes PK132C, 131C, 91CA and 127C (6.85 g/t Au over 41.7 metres; see press release dated February 28, 2014) are aligned along a NW-SE fence over a length of 150 metres. The strong results along this trend suggest that the mineralization may be, in part, an extension of the 2.2 kilometre long NW-SE “Kinsley Trend” structural zone, along which the historic pits are aligned. Consequently, in addition to ongoing testing the NNE-SSW “Western Flank” structure, drill holes will also be planned along the corridor between the Western Flank target and the historic Upper Pit, located 550 metres to the southeast. Shallow historic drilling in the pits stopped short of testing the stratigraphic horizon hosting high-grade mineralization in the Western Flank target, and thus the potential for mineralization below the limits of the pits may be extensive. 

Right Spot Results:

Gold is hosted at the Western Flank in multiple stratigraphic units. The upper stratigraphic units (Big Horse Limestone and Candland Shale, the main ore hosts in the historic mine) rise to the surface 500 metres to the south at the Right Spot target. Highlights from the Right Spot target include:

  • 3.57 g/t Au over 11.5 metres in PK130C, including

o   5.87 g/t Au over 3.1 metres (oxide), and

  • 0.89 g/t Au over 6.1 metres and 0.58 g/t Au over 15.5 metres in PK129C

Lower stratigraphic units hosting high-grade gold in the Western Flank target, including the Secret Canyon Shale, appear to surface an additional 500 metres to the south of the Right Spot target, extending the potential for mineralization over a 1.5 kilometre trend.

Mapping and rock sampling at the Right Spot identified a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t gold in grab samples. Hole PK130C was located 17 metres northeast of a 15-metre-long road cut channel sample averaging 2.0 g/t Au. Gold mineralization starts at 5.2 metres down-hole, and consists entirely of oxidized and silicified (jasperoidized) rocks.  Based on surface mapping and down-hole structural data, the intercept may be approximately 90% of true thickness. 

Shallow mineralization encountered in PK129C is hosted in a limestone unit within the Lamb Dolomite below the Candland Shale and confirms the presence of another potential host unit not previously recognized.  The Secret Canyon shale unit, host to high grade gold in PK131C, has not been tested to date at the Right Spot target.

For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillResults1409.pdf

For drill maps outlining the Western Flank/Right Spot area, please click here:
http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1409.pdf

For a long section showing conceptual target stratigraphic units in the Western Flank/Right Spot area, click here: http://www.pilotgold.com/sites/default/files/KinsleyLongSection1409.pdf

For a table of all 2013 Kinsley Mountain drill results, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/Kinsley2013DrillTable1409.pdf

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 412 claims and 8,208 acres (3,322 hectares) on U.S. Bureau of Land Management land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

The Company increased its interest in the project to approximately 79.1% as a consequence of sole funding activity at Kinsley through December 31, 2013. Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

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 within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 27, 2013 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

FOR IMMEDIATE RELEASE

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

March 11, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that it has entered into an agreement with National Bank Financial Inc. and Scotiabank as joint-bookrunners and co-lead underwriters, on behalf of a syndicate of underwriters (the “Underwriters”), for the issuance of 13,072,000 common shares (the “Shares”) of the Company, on a bought deal basis, at a price of C$1.53 per Share for gross proceeds of $20,000,160 (the “Offering”).

The Company will also grant to the Underwriters an option, exercisable at any time until 30 days following the Closing Date to purchase up to an additional 1,960,800 Shares.

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

The Offered Common Shares are to be issued under a short-form prospectus to be filed in all the provinces of Canada, except Quebec (collectively, the “Jurisdictions”) pursuant to the short form prospectus system contemplated by National Instrument 44-101 − Short Form Prospectus Distributions (“NI 44-101”) and offered in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

The Offering is scheduled to close on or about April 2, 2014 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.  The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons (as defined in Regulation S under the 1933 Act) absent such registration or an applicable exemption from such registration requirements.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

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 within the meaning of applicable securities laws, including statements with respect to theanticipated timing and closing of the Offering, anticipated use of proceeds of theOffering, continued discovery of projects and the grades, size and jurisdictions of such projects and the existing pipeline of 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, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, regulatory delays,  changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 27, 2013 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

March 16, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce its financial results and company highlights for the year ended December 31, 2013 and provides an update on company activities at our key projects in the United States and Turkey.

“Pilot Gold finished 2013 in a very strong position” stated Matt Lennox-King, Pilot Gold President & CEO. “We have continued to grow with significant discoveries at Kinsley and TV Tower. We have the structure and financial strength to advance our projects in Nevada and Turkey, and maintain flexibility to pursue other value opportunities that may arise.”

Financial and operational highlights through and subsequent to year end:

  • Entered into an agreement with a syndicate of underwriters for the issuance of 13,072,000 common shares of the Company, on a bought deal basis, at a price of C$1.53 per Share for gross proceeds of C$20,000,160 (the “Offering”).
  • Welcomed Mr. Ken Engquist as VP Project Development and Engineering to the Pilot Gold team.   Mr. Engquist will be responsible for managing the transition of the Company’s project interests from advanced exploration through resource definition, economic analyses, and development.
  • Sold several portfolio property interests, reducing the cost of maintaining our portfolio while retaining an interest in the properties through net smelter return royalty interests or equity in the purchasers.
  • Cash and short-term investments at December 31, 2013, totalled approximately $19 million.

Exploration highlights and significant events through and subsequent to year end:

Kinsley Mountain

Kinsley is a Carlin-style, sedimentary-rock hosted gold system and past-producer located along the Long Canyon Trend in North Eastern Nevada. Pilot Gold increased its interest in Kinsley to approximately 79% during the year as a result of having sole-funded activity on the project, including allowable 2013 budget overruns.

Through December 31, 2013 the Company completed a 14,200 metre 2013 drill program and incurred approximately $3.85 million in expenditures at Kinsley (year ended December 31, 2012: $3.67 million).  Results at Kinsley to date confirm the presence of multiple stratigraphic horizons hosting mineralization in NNE-SSW and possible NW-SE orientations along the property’s Western Flank zone, including the discovery of high grade gold in the Secret Canyon Shale, a new stratigraphic host horizon beneath the previously exploited Candland Shale. The Candland Share is the main host for mineralization at the historical Kinsley Mine.  

Exploration highlights:

  • Drilled a new high grade gold discovery at Kinsley’s Western Flank target, within a new host horizon including:

           - 10.5 g/t Au over 42.7 metres in PK131C, including, 18.3 g/t Au over 22.9 m;

           -  7.53 g/t Au over 53.3 m in PK132C, including, 14.9 g/t Au over 22.9 m, and, 4.67 g/t Au  over 7.6 m;

           - 6.85 g/t Au over 41.7 m in PK127C, including,16.3 g/t Au over 8.5 m, and, 20.5 g/t Au over 3.6 m

          - 8.53 g/t Au over 36.6 metres in PK091CA, including, 29.43 g/t Au over 7.6 metres

  • Received approval for a Plan of Operations allowing up to 70 acres of disturbance for exploration and development drilling on the core group of claims.  The Company submitted an amendment to the Plan of Operations in November 2013, which if approved, will allow 20 acres of additional exploration drilling in the property’s northern claims.

A subsidiary of Nevada Sunrise Gold Corporation holds the remaining 20.9% interest in the property. The 2014 program and budget currently approved for Kinsley is $4.5 million, and includes a 17,000 metre drill program. The Company and its partner are each obligated to fund their pro rata share. The initial phase of the 2014 drill program was completed on March 9, 2014. Drilling is expected to resume in May 2014.

TV Tower

TV Tower is an extensive epithermal gold-silver and porphyry copper-gold property located in the Biga district of northwestern Turkey. Pilot Gold currently holds a 40% interest in TV Tower, and became project operator in June 2012 with an option to increase the Company’s interest in TV Tower to 60%.  The Company has completed the second year minimum committed expenditure amount and has begun the final expenditure to complete the option to earn-in.  “TMST”, a subsidiary of Teck Resources Limited is the Company’s 60% joint venture partner at TV Tower.

During the year ended December 31, 2013, Pilot Gold incurred approximately $10.2 million in exploration expenditures at TV Tower including the value of consideration paid to acquire Karaayi (year ended December 31, 2012: $4.77 million). In 2013 we drilled 16,781 metres in 73 holes at the KCD target, 3,586 metres in 17 holes at Kayali and 1,329 metres in 5 holes at Karaayi. Cash expenditures at TV Tower (not including consideration and costs to acquire Karaayi) exceeded the 2013 budget of $7.92 million by approximately $0.88 million due to higher than anticipated drill costs as we drilled a higher proportion of diamond drill holes than originally planned and extended the 2013 program to include drill targets at Karaayi.

Exploration highlights:

  • Reported an independent resource estimate for the KCD gold-silver-copper deposit at TV Tower.
  • Acquired beneficial interest in the Karaayi property, consolidating ownership of the K2 trend (Kayali and Karaayi), a strategic exploration target in the southern portion of TV Tower and creating the dominant position in Turkey’s Biga peninsula.
  • Demonstrated the potential for shallow oxide gold mineralization over a strike length of 4 kilometres. Significant drill results from the Kayali zone include: 15.9 g/t Au over 3 m, within an interval grading 1.35 g/t Au over 45 m, in KYD-46. Karaayi highlights include 2.00 g/t Au over 35.0 m in KRD-03
  • Announced that drill results from the K2 trend reveal the presence of an extensive blanket of supergene copper mineralization underlying the oxide gold zones at the Karaayi and Kayali targets.  Drilling and surface work also identified two or more copper-gold porphyry targets at Karaayi.

             • Supergene copper drill highlights from K2 include:  

                   - 1.29% copper (Cu) over 34.1 m in KYD-39, including 1.90% Cu over 20.8 m

             • Karaayi Cu-Au porphyry target highlights include:

                  - 0.30% Cu and 0.13 g/t Au over 224.8 m in KRD002

  • Five of the exploration licenses that comprise TV Tower were upgraded to “operations” status further to the receipt of approvals from the Turkish mining authority in January 2014.

The 2014 drill program, focused initially on the supergene copper zone and the two porphyry Cu-Au targets identified to date at K2 is expected to begin in April 2014.  Follow-up of initial metallurgical results at KCD is also planned. Drill permits for the Sarp and Columbaz targets have recently been received and there are valid permits in place allowing for additional drilling at KCD, Karaayi and Kayali. 

Including consideration paid to acquire Karaayi, and net of a VAT receivable, the Company has approximately $5.5 million remaining to complete the final earn-in expenditure requirement.

Halilaga:

The Company holds a 40% interest in Halilaga, a PEA-stage copper-gold porphyry project located 20 kilometres southeast of TV Tower.  Based on recommendations of the authors of a preliminary economic assessment completed for Halilaga in 2012 (the “Halilaga PEA”), Pilot Gold initiated a number of strategic studies in conjunction with TMST, the Company’s 60% partner and operator at Halilaga. Strategic studies underway include economic, metallurgical, environmental and engineering analyses to advance the concept and potential of this porphyry project. 

Pilot Gold’s share of budgeted expenditures for 2013 was $0.23 million (2012: $1.95 million.)  The Corporation’s share of actual expenditures through the end of 2013 was $0.28 million (2012: $1.63 million).  

There are several valid forestry permits in place at Halilaga, allowing further infill and exploration drilling on the property. Each of the exploration licenses at Halilaga were upgraded to “operations” status further to the receipt of approvals from the Turkish mining authority in November 2013.

The Corporation expects to continue discussions with Teck on strategic next steps for the project.   Pilot Gold’s share of the budget currently proposed for 2014 is approximately $0.19 million.

SELECTED FINANCIAL DATA

The following selected financial data is derived from our consolidated financial statements for the years ended December 31, 2013, 2012 and 2011, as prepared in accordance with International Financial Reporting Standards. All dollar figures are expressed in USD unless otherwise stated. 

 

    Twelve months ended                                   December 31

 

2013

2012

2011

Loss for the period

$9,142,314

$8,019,202

$11,840,930

Loss and comprehensive loss for the year

$12,516,033

$7,393,038

$13,420,480

Basic and diluted loss per share

           $0.10

           $0.12

$0.21

         
 

           As at

 

December 31,
2013

 

December 31,
2012

 

Cash and short-term investments

$19,005,690

$37,380,364

Working capital

$18,470,511

$40,394,752

Total assets

$71,374,312

$72,388,880

Current liabilities

$1,708,714

$1,288,365

Non-current liabilities

$68,126

$42,592

Shareholders’ equity

$67,174,395

$71,057,923

       

For the year ended December 31, 2013, we reported a net loss of $9.14 million compared to a net loss of $8.02 million and $11.84 million for the years ended December 31, 2012 and 2011, respectively. The most significant contributors to the loss for the year ended December 31, 2013 were non-cash stock-based compensation of $2.28 million (2012: $1.72 million; 2011: $5.9 million), the cost of wages and benefits of $1.73 million (2012: $2.13 million; 2011: $1.20 million), a write down of the deferred exploration expenses relating to the New Boston property of $1.28 million, a decline in the fair value of financial instruments of $1.58 million in 2013, and office and general expenses of $1.28 million (2012: $1.34 million; 2011: $1.24 million).  

Expenses for the years ended December 31, 2013 and 2012 were offset by finance income of $0.36 million (2012: $0.19 million; 2011: $0.23 million), and in 2012, the reversal of a previous impairment of the VAT receivable in Turkey ($0.31 million). The loss per share for the year ended December 31, 2013 was $0.10 (2012: $0.12; 2011: $0.21).

Total assets decreased slightly to $71.37 million (2012: $72.39 million; 2011: $37.49 million).  During the year ended December 31, 2013, $15.70 million was capitalised to TV Tower (including direct expenditures, consideration paid for the acquisition of Karaayi, a portion of which was paid with Pilot Gold common shares, the value of common shares issued in connection with the earn-in, and the impact of foreign exchange), and $6.27 million was capitalised to Kinsley, including a $2.4 million increase as a consequence of accounting for a non-controlling interest. The increase to total assets was offset by $1.37 million in impairments recorded on certain of the Company’s portfolio property interests.   

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

The Company’s cash balance decreased by $20.42 million over the course of the year, including $3.45 million in outflows for operating expenditures, $15.40 million for investing expenditures and the impact of changing foreign exchange rates ($1.56 million).

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 National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the scientific and technical information contained in this release is accurate.

TV Tower and Kinsley are both early stage exploration projects and, except for the mineral resources at the KCD deposit at TV Tower, neither contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone of TV Tower, and on the Western Flank zone at Kinsley are conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at either TV Tower or Kinsley will yield any mineral resources at Kinsley or additional resources at TV Tower.

Although there has been no economic analysis summarized in this press release relating to the Halilaga PEA, readers are cautioned that the Halilaga PEA is preliminary in nature and 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, and there is no certainty that the Halilaga PEA will be realized. Furthermore, there has been an insufficient amount of analysis undertaken to reach any conclusions for optimization of Halilaga, and there is no certainty that the strategic studies currently underway could be implemented. Any strategic plan for Halilaga will be subject to the results of further study by the Company and its joint venture partner.

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, 2013. These documents can be found on the Company’s website (www.pilotgold.com) or under the Company’s profile on SEDAR at www.sedar.com. 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 12, 2014, in Vancouver, British Columbia.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

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.

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: “Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey”, effective January 21, 2014 and dated February 20, 2014, prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc., James N. Gray, P. Geo. of Advantage Geoservices Ltd., and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC; “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. For further detail on TV Tower, Kinsley Mountain or the Halilaga PEA, refer to the respective technical reports filed on the Company’s website at www.pilotgold.com or under Pilot Gold’s SEDAR profile at .

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 with respect to the anticipated timing and closing of the Offering, anticipated use of proceeds of the Offering, those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources

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. 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.

 

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

April 1, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that it has completed its previously announced bought deal financing for aggregate gross proceeds of C$20,000,160 (the “Offering”).

Lead underwriters National Bank Financial Inc. and Scotiabank, along with Haywood Securities Inc., BMO Capital Markets, Canaccord Genuity Corp., CIBC World Markets Inc., Cormark Securities Inc., and Macquarie Capital Markets Canada Ltd. purchased, on a bought deal basis, 13,072,000 common shares of the Company (“Common Shares”) at a price of C$1.53 per Common Share the (“Issue Price”).

In addition, Pilot Gold has granted the Underwriters an option (the “Underwriters’ Option”) to acquire up to an additional 1,960,800 Common Shares exercisable at the Issue Price at any time until 30 days following the closing of the Offering to cover over-allotments, if any. 

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

“Kinsley Mountain and TV Tower are Pilot Gold’s cornerstone projects, and this funding will allow us to continue advancing exploration and development through major milestones and catalysts,” said Matt Lennox-King, President & CEO, Pilot Gold. “We appreciate the strong support from our existing shareholders and welcome the new investors in Pilot Gold.”

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. 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, any person in the United States absent registration or an applicable exemption from registration requirements.

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 Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 within the meaning of applicable securities laws, including statements with respect to the anticipated use of proceeds of the Offering, the likelihood of and timing for closing of the over-allotment option, continued discovery of projects and the grades, size and jurisdictions of such projects and the existing pipeline of 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, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, regulatory delays,  changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

April 15, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that its Annual and Special Meeting of shareholders (the "Meeting") will be held on Monday, May 12, 2014 at 3:30 p.m., Pacific Daylight time, in the Coal Harbour Room at the Pan Pacific Hotel, 999 Canada Place, Vancouver, British Columbia, V6C 3B5. The record date for the Meeting was set as March 21, 2014.

At the request of the Toronto Stock Exchange, the Company has filed a supplement, dated April 15, 2014 (the "Supplement"), to its Management Information Circular, dated April 2, 2014 (the "Circular"). The Supplement clarifies certain disclosure with respect to the adoption of the Company’s proposed Amended Stock Option Plan, proposed Deferred Share Unit Plan and proposed Restricted Share Unit Plan, each of which Shareholders will vote on at the Meeting.

The Company's 2013 audited financial statements and accompanying management's discussion and analysis, the Circular and the Supplement are available on the Company's website at www.piltgold.com, under the Company's profile on SEDAR at www.sedar.com and at: http://www.envisionreports.com/PilotGold_AGSM_2014.  Shareholders of the Company may also request mailed copies of the above documents free of charge by emailing This email address is being protected from spambots. You need JavaScript enabled to view it.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information at the Meeting, visit www.pilotgold.com or contact:

John Wenger, Chief Financial Officer and Corporate Secretary

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

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Except for statements of historical fact relating to Pilot Gold Inc., certain information contained herein constitutes "forward-looking statements". Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "considers", "intends", "targets", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Pilot Gold Inc.'s public filings, which may be accessed at www.sedar.com. Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

 

Infill and step-out drilling extends high grade zone, remains open in all directions

April 22, 2014

Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that infill and step-out drilling at Kinsley Mountain’s Western Flank target continues to intersect high grade gold mineralization, including 21.3 grams per tonne gold ("g/t Au") over 29.0 metres in PK137C. The upper portion of this intercept, including an interval grading 46.4 g/t Au over 4.9 metres, is oxidized, similar to other nearby drill holes with high grade zones of oxidation. 

Highlights from the five remaining drill holes from the 12-hole, 3,500 metre winter diamond drilling program in the Western Flank area include:

  • 10.6 g/t Au over 30.0 metres in PK133C (step-out), including
    • 16.1 g/t Au over 16.5 metres;
  • 1.44 g/t Au over 12.2 metres and 2.84 g/t Au over 18.9 metres in PK134C (step-out)
  • 21.3 g/t Au over 29.0 metres in PK137C* (infill), including
    • 46.4 g/t Au over 4.9 metres (oxide), and
    • 32.7 g/t over 11.4 metres
  • 15.6 g/t Au over 38.7 metres in PK137CA (infill), including
    • 26.2 g/t Au over 21.9 metres;

*PK 137C was lost in the mineralized zone due to poor ground conditions higher in the hole, and does not represent a complete intercept of the zone.  PK137CA was wedged off the same hole from above the mineralized zone using NQ tools and was completed through the mineralized zone in a location immediately adjacent to PK137C, effectively representing a twin of PK137C and a complete intercept of the mineralized zone.

“Kinsley Mountain is quickly emerging as Nevada’s leading exploration project due to its high grade drill results and district potential.” stated Matt Lennox-King, President and CEO. “The newly discovered high grade Western Flank zone continues to grow and remains open in all directions. As a result, we have significantly increased the 2014 exploration program by $1.57 million and 8,600 additional metres of drilling. We are looking forward to the resumption of drilling in early May.”

Hole PK137C/CA is an infill hole between PK132C (7.53 g/t over 53.3 m), PK131C (10.5 g/t Au over 42.7 m) and PK91CA (8.53 g/t gold over 36.6 metres) (see press releases dated March 12, 2014 and November 18, 2013), and provides additional definition along a 150 metre-long, NW-trending zone of high-grade mineralization intersected in five drill holes in the central Western Flank target area.  The strong results along this trend suggest that the mineralization may be an extension of the 2.2 kilometre long NW-SE “Kinsley Trend” structural zone, along which the historic pits are aligned. Shallow historic drilling in the pits stopped short of testing the stratigraphic horizon hosting high-grade mineralization in the Western Flank target, and thus the potential for mineralization below the limits of the pits may be extensive.

PK133C (10.6 g/t Au over 30.0 metres) and PK134C (2.84 g/t Au over 18.9 metres) are step-out holes located 43 metres northeast and 43 metres south, respectively, of PK131C.  These holes delineate the potential width of the zone of high-grade mineralization, which is open in all directions. Geological data suggest the presence of a gently northeast-dipping, tabular, partially stratabound zone of mineralization.

Current activities on the property include construction of drill roads to access areas between the Western Flank and the Right Spot and Secret Spot target areas, located up to 2 km to the southwest, as well as areas between the Western Flank and the historic Upper Pit, located 550 metres to the southeast.  Areas to the south of the Right Spot are undergoing detailed surface mapping, sampling and target generation.  Drilling is set to resume in early May with one core drill and two reverse circulation drills.  

For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/Kinsley_DrillResults1414.pdf

For a drill map outlining the Western Flank area, please click here:
http://www.pilotgold.com/sites/default/files/Kinsley_DrillMap1414.pdf

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 446 claims and 8,370 acres (3,387 hectares) on U.S. Bureau of Land Management land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

The Company increased its interest in the project to approximately 79.1% as a consequence of sole funding activity at Kinsley through December 31, 2013. Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NaCN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko, Nevada USA”, effective February 15, 2012 and dated March 26, 2012, prepared by Mike Gustin, CPG and Moira Smith, Ph.D., P.Geo., under Pilot Gold’s Issuer Profile on SEDAR www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality assets featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:

Patrick Reid, VP, Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

Program to target new high-grade horizon and targets property wide

May 7, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that drilling has resumed at Kinsley Mountain, Nevada. The $6.04 million, 25,600 metre program resumed on May 7, with one core rig and two reverse circulation rigs after a successful winter program.

“We are thrilled with the results from our winter program, which intersected high grades over significant widths,” stated Matt Lennox-King, President and CEO. “The high-grade mineralization at the Western Flank discovery remains wide open and we look forward to growing this zone and testing other high potential targets across the property.”

Highlights from the 12-hole, 4,230 metre 2014 winter diamond drilling program at the Western Flank include:

  • 6.85 g/t Au over 41.7 metres in PK127C
  • 10.5 g/t Au over 42.7 metres in PK131C
  • 7.53 g/t Au over 53.3 metres in PK132C
  • 10.6 g/t Au over 30.0 metres in PK133C
  • 1.44 g/t Au over 12.2 metres and 2.84 g/t Au over 18.9 metres in PK134C
  • 21.3 g/t Au over 29.0 metres in PK137C*
  • 15.6 g/t Au over 38.7 metres in PK137CA*

*PK137C was lost in the mineralized zone due to poor ground conditions higher in the hole, and does not represent a complete intercept of the zone. PK137CA was wedged off the same hole from above the mineralized zone using NQ tools and was completed through the mineralized zone in a location immediately adjacent to PK137C, effectively representing a twin of PK137C and a complete intercept of the mineralized zone.

The remaining 21,370 metres in the 2014 drill program will be focused on step out drilling around the high-grade mineralization in the Western Flank target, as well as exploration drilling at the Right Spot, Secret Spot and other high conviction targets across the property.  Pilot Gold is currently operating under an approved 65 acre Plan of Operations, and has secured 1,080 acre/feet of water rights.  An amendment to the Plan of Operations is currently pending for an additional 23 acres on the Kinsley North claims, which host a series of high priority targets that have never been drill tested.

Western Flank target:

The Western Flank target is located 550 metres northwest of the past-producing pits at Kinsley. The original target concept involved north-northeast-plunging zones of mineralization hosted primarily in the Candland Shale. The target has since been expanded to include a possible west-northwest-trending zone of high-grade gold mineralization hosted in stratigraphic units, including the Clark Springs Limestone and Secret Canyon Shale, that were neither identified nor tested by previous operators. The Western Flank’s deeper mineralization may be, in part, an extension of the 2.2 kilometre long NW-SE “Kinsley Trend” structural zone, along which the historic pits are aligned. Consequently, in addition to ongoing testing of the original NNE-SSW “Western Flank” structure, drill holes will also be planned to test deeper mineralization along the corridor between the Western Flank target and the historic Upper Pit. Shallow historic drilling in the pits stopped short of testing the stratigraphic horizon hosting high-grade mineralization in the Western Flank target, and thus the potential for mineralization below the limits of the historic pits may be extensive. 

Right Spot and Secret Spot targets:

Gold is hosted at the “Right Spot” target in multiple stratigraphic units. The upper stratigraphic units (Big Horse Limestone and Candland Shale, the main gold hosts in the historic mine) from the Western Flank rise to the surface 500 metres to the south at the Right Spot target. Mapping and rock sampling identified a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t gold in grab samples. The Candland Shale is also present on surface an additional 500 metres to the south at the “Secret Spot”, where it hosts gold-bearing jasperoid alteration.  Initial 2014 drill results from the Right Spot target include:

  • 3.57 g/t Au over 11.5 metres in PK130C, including

           o   5.87 g/t Au over 3.1 metres

For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here:
http://www.pilotgold.com/sites/default/files/Kinsley_DrillResults1414.pdf

For drill maps outlining the Western Flank/Right Spot area, please click here:
http://www.pilotgold.com/sites/default/files/Kinsley_DrillMap1415.pdf

For a long section showing conceptual target stratigraphic units in the Western Flank/Right Spot area, click here: http://www.pilotgold.com/sites/default/files/KinsleyLongSection1409.pdf

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 446 claims and 8,370 acres (3,387 hectares) on U.S. Bureau of Land Management land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

Pilot Gold holds approximately 79.1% of Kinsley. A subsidiary of Nevada Sunrise Gold Corporation is the Company's joint venture partner at Kinsley.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

May 8, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce its financial and operating results for the three months ended March 31, 2014.  

“We continued executing on our goals through the first quarter, surpassing key milestones at Kinsley and TV Tower,” stated Matt Lennox-King, President and CEO of Pilot Gold. “Our high grade discovery at Kinsley is one of the most compelling developments in Nevada in recent years, and our initial resource and porphyry discoveries at TV Tower continue to grow what is Turkey’s most prolific new gold district. With the addition of Ken Engquist, VP Project Development and Engineering to our team, we are well positioned and funded to deliver significant value in Nevada and Turkey over the months ahead.”

Q1 2014 HIGHLIGHTS AND SIGNIFICANT EVENTS SUBSEQUENT TO QUARTER-END:

  • Continued to intercept and extend high grade gold results at Kinsley Mountain.
  • Completed an initial independent resource estimate for the KCD gold-silver-copper deposit at TV Tower.
  • Demonstrated extensive oxide gold, supergene copper and copper-gold porphyry potential across the four kilometre K2 oxide gold trend at TV Tower.
  • Commenced the second phase of the 2014, 25,600 metre drill campaign at Kinsley focused initially on the Western Flank, Right Spot and Secret Spot target areas.
  • Launched the 2014 drill campaign at TV Tower, with an initial focus on the copper-gold porphyry targets at Kayalı and Karaayı ("K2").
  • Raised C$20 million from the issuance of 13,072,000 common shares of the Company pursuant to the closing of a bought deal financing led by National Bank Financial and Scotiabank.
  • Appointed Mr. Ken Engquist as VP Project Development and Engineering, a newly created executive position strengthening the Company’s operational and mine-development expertise and focus. Bringing over 20 years of experience in mine development, including engineering and design, mine construction, project start-up and operations, Mr. Engquist will help accelerate the advancement of Pilot Gold’s projects.

Exploration highlights and significant events through and subsequent to March 31, 2014:

Kinsley Mountain

Kinsley is a Carlin-style, sedimentary rock-hosted gold system and past-producer located along the Long Canyon Trend in northeastern Nevada.

Results at Kinsley to date confirm the presence of multiple stratigraphic horizons hosting mineralization in NNE-SSW and possible NW-SE orientations along the property’s Western Flank zone, including the discovery of high grade gold in the Secret Canyon Shale, a newly identified stratigraphic host horizon beneath the previously exploited Candland Shale. The Candland Shale is the main host for mineralization at the historical Kinsley Mine.  

The Western Flank zone continues to grow, with multiple high grade gold intercepts returned to date.  The zone remains open in all directions, suggesting credible district potential.  As a result, we have significantly increased the 2014 exploration program by $1.57 million and 8,600 additional metres of drilling. Accordingly, our amended 2014 exploration program includes 25,600 metres of core and reverse circulation ("RC") drilling and a budget of $6.04 million (our share of which is $4.80 million). Through March 31, 2013 the Company completed 4,230 metres of core and RC drilling and incurred approximately $1.36 million in expenditures at Kinsley (year ended December 31, 2013: $3.85 million).

Activity at Kinsley during the first quarter also included geological mapping and construction of drill roads and pads to access areas between the Western Flank and the Right Spot and Secret Spot target areas. Pilot Gold’s share of expenditures in the three months ended March 31, 2014, included: drilling and assaying ($0.88 million), salaries ($0.15 million) and road construction ($0.12 million).

Drilling resumed on May 7, 2014 with one core drill and two RC drills.

Upon receipt of an amendment to our Plan of Operations ("PoO"), we expect to begin an active program on the northern claim blocks which have never been drilled, and may seek to increase the 2014 budget further.

Pilot Gold holds approximately 79% of Kinsley. A subsidiary of Nevada Sunrise Gold Corporation holds the remaining 21% interest in the property. The Company and its partner are each obligated to fund their pro rata share of activity on the property.

TV Tower

The TV Tower project is an evolving gold-silver-copper district with multiple targets located in western Turkey.  Following a successful 2013 drill program, culminating in an initial resource at the KCD deposit and the identification of several copper-gold porphyry targets at K2, we took time during the first quarter of 2014 to complete mapping, sampling and surface work in order to better identify and refine targets for the current year exploration program.

The 2014 drill program commenced on April 10, 2014 with an initial focus on porphyry targets along the four kilometre long oxide gold and supergene copper trend at K2. Specific objectives for the year include establishing the presence of two or more porphyry systems and expanding the footprint of high-sulphidation epithermal gold oxide mineralization and supergene copper mineralization at K2. We expect to also undertake focused metallurgical testing to enhance our understanding of recovery potential at the KCD deposit, and will continue to focus on the identification and development of additional high potential drill targets across this 90 km2 district-scale property. Further drill testing of the Sarp target and initial drill testing of the high-grade Columbaz target may be undertaken to further highlight the prospectivity of the district.

Expenditures during the three months ended March 31, 2014 included: salaries of $0.15 million and consultant’s costs of $0.08 million.  As of the date of this release, and net of a VAT receivable, there is approximately $4.36 million remaining to satisfy the total $21 million expenditure requirement to complete the earn-in.  With a successful program in 2014, including the receipt of additional drill permits, we anticipate completing the earn-in before year end, which will provide us an additional 20% interest in the project.

Halilaga

The Company holds a 40% interest in Halilaga, a PEA-stage copper-gold porphyry project located 20 kilometres southeast of TV Tower.  Through the three months ended March 31, 2014 Pilot Gold and TMST, the Company’s 60% partner and operator at Halilaga, continued to undertake a number of strategic studies. 

Pilot Gold’s share of budgeted expenditures for 2014 is $0.19 million. The Corporation’s share of actual expenditures through the three months ended March 31, 2014 was $0.08 million (2013: $0.28 million). Expenditures incurred through March 31, 2014 reflect costs associated related to planning the next phase of strategic studies, including alternative engineering, metallurgical analyses and some charges for legal and administrative costs.

The Company expects to continue discussions with Teck Resources on strategic next steps for the project, and believes contributions and leadership from our newly hired VP Project Development and Engineering will be transformative for Halilaga.

SELECTED FINANCIAL DATA

The following selected financial data is derived from the unaudited condensed interim consolidated financial statements and related notes thereto for the periods indicated, as prepared in accordance with International Financial Reporting Standards. Details of these results are described in the unaudited condensed interim consolidated financial statements and Management’s Discussion and Analysis for the three months ended March 31, 2014. 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.

 

             As at

 

March 31, 2014

(in 000s)

December 31, 2013

(in 000s)

Cash and short-term investments

$15,322

$19,006

Working capital

$14,799

$18,471

Total assets

$68,135

$71,374

Current liabilities

$1,206

$1,709

Non-current liabilities

$81

$68

Shareholder’s equity

$63,942

$67,174

 

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

 
 

2014

                                        2013

 Loss for the period

        $2,152

        $2,510

 

Loss and comprehensive loss for the year

$3,593

$3,581

 

 Basic and diluted loss per share

       $0.02

       $0.03

 
         

Total assets decreased to $68.14 million as at March 31, 2014 (December 31, 2013: $71.37 million), and comprise primarily cash and short-term investments of $15.32 million (December 31, 2013: $19.01 million).  The decrease reflects primarily the non-cash impact of foreign currency translation adjustments to the value of assets held in subsidiaries with a Canadian dollar functional currency and an asset impairment recognized during the period, offset by cash outflows related to corporate activities through the three months ended March 31, 2013. The balance of current assets comprises receivables and prepayments of $0.68 million (December 31, 2013: $1.03 million) which have decreased primarily due to the timing of payments from Orta Truva relating to work performed by the Company on TV Tower.

For the three months ended March 31, 2014, we reported a net loss of $2.15 million compared to a net loss of $2.51 million for the three months ended March 31, 2013.  The loss per share for the three months ended March 31, 2014 was $0.02 (three months ended March 31, 2013: $0.03).  The most significant contributors to the losses for the three months ended March 31, 2014 were the cost of wages and benefits ($0.49 million) and non-cash stock based compensation ($0.45 million). The most significant contributor to the comparative period loss was stock based compensation and wages, offset by finance income and foreign exchange gains.

The net other comprehensive loss for the three months ended March 31, 2014 was $1.44 million (March 31, 2013: $1.07 million).  The three months ended March 31, 2014 includes a $1.88 million loss (March 31, 2013: $1.08 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, and net fair value gains of our financial instruments of $0.42 million during the three months ended March 31, 2014 (three months ended March 31, 2013: $0.01 million). The impact from exchange differences will vary from period to period depending on the rate of exchange; in the period between January 1, 2014 and March 31, 2014, there was a 4% change in the exchange rate between the United States and Canadian dollars.

Liabilities at March 31, 2014 and at December 31, 2013 reflect primarily accounts payable and accruals recorded at period end arising from ongoing activities.

The Company’s cash balance decreased by $0.52 million over the course of the quarter, including $1.17 million in outflows for operating expenditures, $1.08 million inflow for investing expenditures, resulting mostly from the maturity of short term investments, and the impact of changing foreign exchange rates ($0.26 million).

Subsequent to period end, the Company raised C$20 million from the issuance of 13,072,000 common shares in a bought-deal financing led by National Bank Financial and Scotiabank.

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 National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the scientific and technical information contained in this release is accurate.

TV Tower and Kinsley are both early stage exploration projects and, except for the mineral resources at the KCD deposit at TV Tower, neither contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone of TV Tower, and on the Western Flank zone at Kinsley are conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at either TV Tower or Kinsley will yield any mineral resources at Kinsley or additional resources at TV Tower.

Although there has been no economic analysis summarized in this press release relating to the Halilaga PEA, readers are cautioned that the Halilaga PEA is preliminary in nature and 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, and there is no certainty that the Halilaga PEA will be realized. Furthermore, there has been an insufficient amount of analysis undertaken to reach any conclusions for optimization of Halilaga, and there is no certainty that the strategic studies currently underway could be implemented. Any strategic plan for Halilaga will be subject to the results of further study by the Company and its joint venture partner.

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, 2013. These documents can be found on the Company’s website (www.pilotgold.com) or on SEDAR at www.sedar.com. All amounts are presented in United States dollars unless otherwise stated.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Investors:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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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: “Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey”, effective January 21, 2014 and dated February 20, 2014, prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc., James N. Gray, P. Geo. of Advantage Geoservices Ltd., and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC; “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. For further detail on TV Tower, Kinsley Mountain or the Halilaga PEA, refer to the respective technical reports filed on the Company’s website at www.pilotgold.com or under Pilot Gold’s SEDAR profile at .

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 with respect to the anticipated timing and closing of the Offering, anticipated use of proceeds of the Offering, those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources

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. 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. 

 

 

May 12, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce voting results from the Company’s Annual and Special Meeting of Shareholders held on Monday, May 12, 2014 (the “Meeting”). A total of 57,750,625 common shares were voted, representing the votes attached to 64.21% of all outstanding common shares. Shareholders voted in favour of maintaining the number of directors at six and for the election of all director nominees. The percentage of votes cast for each is as follows:

Dr. Mark O’Dea

96.42%

Mr. Matthew Lennox-King

98.58%

Mr. John Dorward

99.64%

Mr. Donald McInnes

96.44%

Mr. Robert Pease

97.52%

Mr. Sean Tetzlaff

96.43%

Shareholders also voted in favour of ratifying and approving the Company’s:

  • Advance Notice Policy;

  • Amended and restated Stock Option Plan;

  • Restricted Share Unit Plan; and

  • Deferred Share Unit Plan.

    PricewaterhouseCoopers LLP, Chartered Accountants, was also reappointed as auditor of the Company.

    Voting results are released in accordance with Toronto Stock Exchange requirements. Detailed voting results for the Meeting are available on SEDAR at www.sedar.com.

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, 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 about the Meeting, visit www.pilotgold.com or contact:

John Wenger, Chief Financial Officer and Corporate Secretary

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 statements of historical fact relating to Pilot Gold Inc., certain information contained herein constitutes "forward-looking statements". Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "considers", "intends", "targets", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". The Company provides forward-looking statements for the purpose of conveying information about current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Pilot Gold Inc.'s public filings, which may be accessed at www.sedar.com. Other than as specifically required by law, the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.

 

Near Surface gold zone at Right Spot target continues to grow

June 4, 2014

Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that step-out drilling at Kinsley Mountain’s Right Spot target has returned long runs of predominantly oxide gold mineralization.  The Right Spot target is located along the 2 kilometre-long NNE Western Flank trend, 1 kilometre south of the recently discovered high-grade zone.

Highlights from the Right Spot area include:

  • 3.35 g/t (grams per tonne) gold over 41.1 metres in PK144, including
    - 5.11 g/t gold over 4.6 metres;
  • 3.08 g/t gold over 19.8 metres in PK138;
  • 2.43 g/t gold over 19.8 metres in PK139;
  • 1.75 g/t gold over 22.9 metres in PK142;

“We are at a tipping point in the evolution of Kinsley Mountain, with compelling near surface oxidized mineralization complementing the high grade Western Flank zone,” stated Matt Lennox-King, President and CEO.

Right Spot Geology:

Mapping and rock sampling at the Right Spot identified a 250-metre northeast-trending zone of jasperoids returning 1-5 g/t gold in grab samples and 2.0 g/t gold over 15 metres in road cut samples. This zone of surface mineralization, hosted in the Candland Shale and Big Horse Limestone (the primary ore hosts at the historic Kinsley mine) extends under shallow cover to the northeast. Other stratigraphic host units, including the Clark Springs Limestone, Secret Canyon Shale and Hamburg Limestone, are modeled at depth. 

Drilling at Kinsley is ongoing with two RC and one diamond core rig.  Targets currently being tested include extensions to high-grade mineralization in the Western Flank target area and an initial test of near-surface and deeper targets in the Secret Spot target area, located 1 km to the southwest of the Right Spot.  Since inception of the summer drilling program, a total of 5,018 metres in four core and 13 RC holes has been drilled, with assays pending for 10 holes.

In late May 2014 Pilot Gold leased five patented claims (66 acres) located to the south of the historic Kinsley mine where prior operators intersected gold mineralization at and near surface within the Candland Shale. Pilot also conducted surface mapping and sampling to refine targets in the southern portion of the property. 

For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinsleyDrillResults1418.pdf

For a drill map outlining the Western Flank/Right Spot area, please click here:
http://www.pilotgold.com/sites/default/files/KinsleyMap1418.pdf

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 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 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-90% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 460 claims and 8,720 acres (3,529 hectares) on U.S. Bureau of Land Management land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

The Company holds approximately 79.1% of Kinsley. Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley.

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.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

Discovery hole returns 0.99 g/t Au and 0.39% Cu over 153.1 metres from surface

June 10, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce the results of the first drill test of a new porphyry target at the TV Tower Project.  Located in the southern portion of the property, the Valley Porphyry represents a completely new discovery at TV Tower.

Highlights include:

  • 0.99 grams/tonne (g/t) gold (Au) and 0.39% copper (Cu), or 1.65 g/t gold-equivalent (AuEq1), over 153.1 metres in KRD010, including
    1. o1.57 g/t Au and 0.56% Cu (2.52 g/t AuEq1) over 66.2 metres;

1calculated using $1200/oz Au and $3.00/lb Cu and assuming 100% recovery

“This is the third Cu-Au porphyry that our technical team has discovered in the district.  Along with the K2 porphyry and the neighbouring Halilağa deposit, this discovery lays the foundation for an exciting new porphyry district in northwest Turkey,” stated Matt Lennox-King, President and CEO of Pilot Gold.

For a drill map outlining the Valley Porphyry, Hilltop Porphyry and Karaayi high sulphidation gold oxide target areas, please click here: http://www.pilotgold.com/sites/default/files/KRD10Map.pdf

For a photo of drill core from the discovery hole KRD010 please click here:
http://www.pilotgold.com/sites/default/files/KRD10corephoto.pdf

The Valley Porphyry discovery was made through systematic exploration that came together from initial concept to discovery in six months.  Comprehensive soil sampling over the entire tenure led to delineation of a 1,400 metre by 400 metre, northwest-trending copper and gold-in-soil anomaly located to the south of the K2 high-sulphidation, oxide gold trend.  Individual samples returned up to 1,600 ppm copper and up to 830 ppb gold. Follow-up geological mapping and sampling identified scattered outcrops of phyllic and potassic altered intrusive rocks with stockwork quartz-magnetite veins with surface samples that returned up to 2 g/t Au.  

Drill core over the entire length of the intercept exhibited moderate to strong pervasive potassium feldspar (potassic) and sericite (phyllic) alteration.  A dense stockwork of quartz-potassium feldspar (A); quartz-sulphide (B), quartz-magnetite (M) and pyrite-quartz (D) veins is present over most of the length of this interval. Copper is present as malachite within a few metres of the surface, giving way to chalcocite and “black copper” at intermediate depths and chalcopyrite near the bottom of the hole.

Valley Porphyry Target Drill Results

Hole ID (Az, Dip)

From (m)

To (m)

Intercept (m)

AuEq (g/t)

Cu (%)

Au (g/t)

AuEq Cut-Off (g/t)

KRD010 (325,-45)

2.4

155.5

153.1

1.65

0.39

0.99

0.3

including

12.7

139.0

126.3

1.86

0.43

1.12

1

including

44.8

111.0

66.2

2.52

0.56

1.57

2

Calculated using 0.3, 0.5, 1.0 and 2.0 g/t AuEq cut-off grade  and 9 metres maximum internal waste.  Gold equivalency determined using $1200/oz Au and $3.00/lb Cu assuming 100% recovery.

A second drill rig was added to the TV Tower program on June 10 to test the Columbaz low sulphidation Au-Ag vein target.  Drilling is ongoing at the Valley Porphyry discovery.  Assay results from drilling at the K2 Hilltop and Valley Porphyry targets are pending

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 National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and verified that the information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.3, 0.5, 1.0 and 2.0 g/t AuEq. Drill intersections are reported as drilled thicknesses. True width of the mineralized interval is interpreted to be approximately 50% of the reported length. 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 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.

TV Tower is an early stage exploration project and, except for the mineral resources at the KCD deposit as summarized in the Report, does not contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone, including the porphyry targets, and the Columbaz low sulphidation Au-Ag vein target, is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at these or other targets at TV Tower will yield a mineral resource.

Further information is available in the technical report “Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey”, effective January 21, 2014 and dated February 20, 2014 prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc.; James N. Gray, P. Geo. of Advantage Geoservices Ltd.; and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC, under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).  Mr. Hetman, Mr. Gray and Mr. Simmons are independent of Pilot Gold and are “Qualified Persons” as defined by NI 43-101.  

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 Kinsley Mountain project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects in Nevada and Utah characterized by large land positions and district-wide potential that can meet our growth needs for years to come. 

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 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 involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including risks related to TV Tower, reliance on technical information provided by our joint venture partner or other third parties as related to TV Tower; changes in project parameters as plans continue to be refined; successfully completing the earn-in on TV Tower, including the ability to incur the minimum annual Expenditure Requirements 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 exploration and 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; delays in obtaining governmental approvals or financing as well as those factors discussed in the Annual Information Form for the year ended December 31, 2013, dated March 14, 2014 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.

 

June 12, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce that it has entered into an arrangement agreement (the “Agreement”) with Cadillac Mining Corporation (CQX-TSXV) (“Cadillac”) pursuant to which the Company has agreed to acquire all of the issued and outstanding shares of Cadillac by way of a court-approved plan of arrangement (the “Transaction”).

Cadillac’s Goldstrike project, located in Western Utah, is a sediment-hosted gold project that produced roughly 209,000 oz of gold from 1988 to 1996 in an open pit heap leach operation.

“Upon closing of the acquisition, Goldstrike will enhance our high quality portfolio of Eastern Great Basin projects,” stated Matt Lennox-King, President and CEO. “This transaction provides us with another data rich, past producing, oxide heap leach project that our team will incubate as we continue to advance our Kinsley and TV Tower projects. With two significant porphyry discoveries at TV Tower and ongoing growth at Kinsley, Cadillac shareholders will gain access to our world class advanced exploration portfolio, strong treasury and Pilot Gold’s proven technical and management team”.

Pursuant to the terms of the Agreement, Cadillac shareholders will receive (i) 0.12195 of a Pilot Gold share and (ii) 0.12195 of a Pilot Gold share purchase warrant (“Pilot Warrants”) for each common share of Cadillac held. Each whole Pilot Warrant shall entitle the holder to acquire one Pilot Gold share at an exercise price of C$2.00. The Pilot Warrants will expire two years from the closing of the Transaction. Existing Cadillac warrants and stock options will be exercisable for Pilot Gold shares, adjusted in respect of exercise price and number, based on the 0.12195 exchange ratio.

The Transaction represents a 121% premium over the previous closing price of Cadillac as of June 12, 2014, the last full trading day prior to the announcement of the Agreement and a 95% premium to the 20-day volume-weighted average price (“VWAP”).

The Board of Directors of Cadillac (the “Cadillac Board”) have unanimously approved the Transaction and will recommend that Cadillac shareholders vote in favour of the Transaction. Each senior officer of Cadillac, each member of the Cadillac Board and an advisor to Cadillac have entered into voting and support agreements with Pilot Gold pursuant to which each has agreed to vote in favour of the Transaction, which together represent approximately 30.1% of the issued and outstanding common shares of Cadillac.

Transaction Details

The Transaction will be carried out by way of a plan of arrangement, the implementation of which will be subject to shareholder approval representing at least 66 2/3% of the votes cast at a special meeting of Cadillac shareholders that is expected to be held in mid-August 2014, followed by the approval of the Superior Court of British Columbia. Pursuant to the terms of the Agreement, the proposed transaction is also subject to applicable regulatory and stock exchange approvals and the satisfaction of certain closing conditions customary in transactions of this nature. The Agreement also provides for, among other things, customary board support and non-solicitation covenants (subject to the fiduciary obligations of the Cadillac Board and a Pilot Gold “right to match”).

It is anticipated that the Transaction, if approved by Cadillac’s shareholders, will be completed in late August.  

Under the Agreement, Pilot Gold will make available to Cadillac an interest-bearing senior secured line of credit of up to $200,000 to meet certain of Cadillac’s costs prior to completion of the Transaction.  The loan and accrued interest become due and payable upon the occurrence of certain events, including upon termination of the Agreement.

Blake, Cassels & Graydon LLP is acting as legal counsel to Pilot Gold.  Legal counsel to Cadillac is McCullough O'Connor Irwin LLP.  

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration and development 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 Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

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

Goldstrike is an early-stage exploration project and does not contain any mineral resource estimates as defined by NI 43-101. The legacy data presented herein is provided by Pilot Gold for informational purposes only, and gives no assurance as to its reliability and relevance to any potential or proposed exploration program at Goldstrike. Neither Pilot Gold nor Cadillac have completed any quality assurance program or applied quality control measures to the legacy data, nor has a Qualified Person done sufficient work to verify the source of the legacy data. Accordingly, the legacy data should not be relied upon.  Assuming successful completion of the proposed transaction Pilot Gold anticipates verification of some or all of the legacy data, however, the anticipated timing and results of that data verification cannot be ascertained at this time. Confirmation work may produce results that differ substantially.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about successful completion of the Plan of Arrangement, future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, without limitation risks related to the approval of applicable governmental authorities, required Cadillac shareholder approval and necessary court and stock exchange approvals, the satisfaction or waiver of certain other conditions contemplated by the arrangement agreement, interpretation of historic results at the Goldstrike property, reliance on technical information provided by Cadillac as related to Goldstrike; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against Cadillac, the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com and those risks described in Cadillac’s public filings.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

Drilling expands mineralized footprint to 500 metres by 200 metres

June 18, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce the results of four diamond core holes at the Hilltop (Karaayi) porphyry target at TV Tower.  Hilltop is centred along the 4 kilometre-long K2 oxide gold trend, and approximately 1.5 kilometres northeast of the newly discovered Valley porphyry target (see press release dated June 11, 2014).

“These results provide further confirmation that the southern portion of TV Tower hosts a rapidly emerging copper-gold porphyry district,” stated Matt Lennox-King, President and CEO. “The mineralized footprint continues to grow as does the confidence in the continuity of both grades and widths.”

Drill highlights include:

Hole (Az / Dip)

Interval (m)

Au (g/t)

Cu (%)

AuEq1 (g/t)

KRD006 (45/-70)

261.3

0.22

0.26

0.67

including

57.8

0.54

0.36

1.16

KRD007 (225/-60)

185.9

0.16

0.24

0.57

including

47.7

0.27

0.47

1.08

KRD008 (45/-65)

63.2

0.58

0.01

0.60

including

35.5

0.68

0.01

0.70

KRD009 (45/-65)

199.2

0.13

0.16

0.40

including

35.3

0.14

0.25

0.57

Hilltop Cu-Au porphyry target
The oxide gold-bearing silica cap at K2 extends approximately 4km from east to west. Porphyry Cu-Au mineralization at K2 was first noted by previous operators in surface outcrops adjacent to and under the silica cap. Pilot Gold drilled confirmation hole KRD002 in late 2013, intercepting 0.30% Cu and 0.13 g/t Au over 224.8 metres including 0.59% Cu and 0.18 g/t Au over 37.0 metres from shallow depth (see press release dated January 21, 2014).

New step-out holes KRD006 and KRD007 at Hilltop were fanned from the same pad as KRD002 and returned similar grades and widths. Hole KRD008, drilled from a site located 120 metres to the west, returned a significant shallow gold intercept. KRD009, a 250 metre step out to the northeast of KRD002, encountered encouraging alteration and mineralization, indicating that there is room to expand the footprint of mineralization. All holes exhibit strong phyllic alteration and variable quartz stockwork development, giving way to weakly potassic altered rocks at depth.  Visible copper mineralization includes chalcocite and “black copper”.

A second porphyry target, named the Valley Porphyry, is located 1.5 km to the southwest of the Hilltop Porphyry with the discovery hole, KRD-10, intercepting 153.1 metres of  0.99 g/t Au and 0.39% Cu, 1.65 g/t AuEq1.

1gold equivalency calculated using $1,200/oz Au and $3.00/lb Cu and assuming 100% recovery

For a table of all porphyry target drill results to date, including historical data please click here: http://www.pilotgold.com/sites/default/files/HilltopDrillResults.pdf

For a drill map of the Hilltop porphyry target, please click here:
http://www.pilotgold.com/sites/default/files/HilltopDrillMap.pdf

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 National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and verified that the information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.3, 0.5, 1.0 and 2.0 g/t AuEq. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge with ICP-ES or AAS finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. 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 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.

Further information is available in the technical report “Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey”, effective January 21, 2014 and dated February 20, 2014 prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc.; James N. Gray, P. Geo. of Advantage Geoservices Ltd.; and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC, under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).  

TV Tower is an early stage exploration project and, except for the mineral resources at the KCD deposit as summarized in the Report, does not contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone of TV Tower, including the porphyry targets, is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at K2 or other targets at TV Tower will yield a mineral resource.

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 Kinsley Mountain project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 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 involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including risks related to TV Tower, reliance on technical information provided by our joint venture partner or other third parties as related to TV Tower; changes in project parameters as plans continue to be refined; successfully completing the earn-in on TV Tower, including the ability to incur the minimum annual Expenditure Requirements 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 exploration and 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; delays in obtaining governmental approvals or financing as well as those factors discussed in the Annual Information Form for the year ended December 31, 2013, dated March 14, 2014 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.

 

Drilling continues to expand mineralized footprint at the Western Flank target

July 10, 2014

Pilot Gold Inc. (PLG – TSX) (“Pilot Gold” or the “Company”) is pleased to announce that drilling to the north and west of the recently-discovered zone of high-grade gold mineralization in the Western Flank area has returned long intercepts of gold mineralization in multiple horizons. 

Highlights of step-out drilling include:

Drill Hole

From (m)

To  (m)

Intercept (m)

Grade (g/t)

Unit

PK158C  (22m step-out)

274.9

313.0

38.1

5.59

Secret Canyon

including

282.5

299.3

16.8

9.99

           

PK141C  (50m step-out)

136.2

143.3

7.0

1.12

Candland Shale

and

276.5

293.2

16.8

2.46

Secret Canyon

and

360.3

390.8

30.5

3.81

           

PK151C  (30m step-out)

133.0

143.3

10.2

2.04

Candland Shale

and

292.9

305.4

12.5

8.35

Secret Canyon

including

297.6

303.9

6.2

14.5

“The Western Flank continues to grow and remains open in multiple directions,” stated Matt Lennox-King, President & CEO of Pilot Gold. “Since its discovery in late 2013, drilling has demonstrated strong grades and continuity, highlighting Kinsley’s status as the premier exploration project in the western United States.”

For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here: http://www.pilotgold.com/sites/default/files/KinselyDrillTable1422.pdf

For a drill map outlining the Western Flank/Secret Spot area, please click here:
http://www.pilotgold.com/sites/default/files/KinselyDrillMap1422.pdf

Western Flank drill program

The 2014 drill program is designed to extend and delineate the high-grade Western Flank zone and test for mineralization in several stratigraphic horizons along a 2 kilometre-long, north-northeast-trending corridor from the Western Flank discovery to the Right Spot and Secret Spot targets. High grade gold mineralization at the Western Flank is hosted mostly in the Secret Canyon Formation – a newly discovered host horizon not recognized by prior operators - as well as within the previously exploited, variably oxidized, Candland shale host horizon.

Results from the current phase of drilling in the Western Flank zone suggest a more complex, structurally-controlled body of mineralization than originally contemplated, with both an east-west and north-south elongation.  In addition, a lower zone of mineralization, lying approximately 100 metres below the main, high grade zone, was encountered in PK141C and PK158C. New data and results are continually integrated into the geologic model, resulting in a refined and evolving understanding of the mineralized system at the Western Flank.

Drilling at Kinsley is ongoing at the Western Flank and the Secret Spot target areas.  A total of 10,325 metres in 9 core and 22 RC holes have been drilled since the start of the program, with assays pending for 8 holes.

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 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 0.20 and 5.0 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-90% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.2 ppm an additional cyanide leach analysis is done where the sample is treated with a 0.25% NaCN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 460 claims and 8,720 acres (3,529 hectares) on U.S. Bureau of Land Management land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

The Company holds approximately 79.1% of Kinsley. Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley.

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.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates, Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

Drilling strengthens porphyry district potential at TV Tower

July 22, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce the results from the first five follow-up holes on the new Valley Porphyry discovery in northwest Turkey. All holes have returned long runs of copper and gold mineralization starting at surface.

Initial drilling of the 1,400 metre by 400 metre copper–gold soil anomaly returned 0.99 g/t gold (Au) and 0.39% copper (Cu) over 153.1 metres (see press release dated June 11, 2014). Follow-up drilling extended porphyry mineralization up to 85 metres from the discovery hole with the system remaining open in all directions.

Highlights include:

- 1.59 g/t Au and 0.48% Cu over 130.9 metres (2.41 g/t gold-equivalent (AuEq1)) in KRD-14C, including ​

        - 3.12 g/t Au and 0.85% Cu over 49.9 metres (4.57 g/t AuEq1)

1at $1200/oz Au and $3.00/lb Cu and 100% recovery

“While still early days in our exploration of the Valley Porphyry, we are incredibly excited with the progress at the target and the potential synergies with our PEA stage Halilaga joint venture project just 15 kilometres away,” stated Matt Lennox-King, President and CEO of Pilot Gold. “TV Tower continues to be incredibly prospective with an emerging porphyry district positioning it as the leading exploration project in Turkey.”

For a drill map of the Valley Porphyry, please click here: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1423.pdf

For a table of drill results, please click here: http://www.pilotgold.com/sites/default/files/TVTDrillResults1423.pdf

About the Valley Porphyry Discovery

The Valley Porphyry is the most recent discovery at TV Tower and the third porphyry system identified by our team. The discovery was made through systematic and rapid exploration from initial concept to discovery in six months.  Comprehensive soil sampling defined a 1,400 metre by 400 metre, northwest-trending copper and gold-in-soil anomaly located to the south of the K2 high-sulphidation, oxide gold trend.  Individual soil samples returned up to 1,600 ppm copper and up to 830 ppb gold. Drill results to date show that the Valley Porphyry system can produce intervals of higher grades relative to most other Cu-Au porphyry systems. Drilling is continuing with assay results from four additional holes pending.

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 National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and verified that the information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.3, 0.5, 1.0 and 2.0 g/t AuEq. Drill intersections are reported as drilled thicknesses. True width of the mineralized interval is interpreted to be approximately 50% of the reported length. 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 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. 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 an early stage exploration project and, except for the mineral resources at the KCD deposit as summarized in the Report (as defined below), does not contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone, including the porphyry targets is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at these or other targets at TV Tower will yield a mineral resource.

Further information is available in the technical report “Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey”, effective January 21, 2014 and dated February 20, 2014 (the “Report”) prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc.; James N. Gray, P. Geo. of Advantage Geoservices Ltd.; and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC, under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).  Mr. Hetman, Mr. Gray and Mr. Simmons are “Qualified Persons” as defined by NI 43-101.  

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 Kinsley Mountain project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects in Nevada and Utah characterized by large land positions and district-wide potential that can meet our growth needs for years to come. 

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 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 involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including risks related to TV Tower, reliance on technical information provided by our joint venture partner or other third parties as related to TV Tower; changes in project parameters as plans continue to be refined; successfully completing the earn-in on TV Tower, including the ability to incur the minimum annual Expenditure Requirements 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 exploration and 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; the impact of archaeological, cultural or environmental studies within the property area, labour disputes; delays in obtaining governmental approvals or financing as well as those factors discussed in the Annual Information Form for the year ended December 31, 2013, dated March 14, 2014 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.

 

August 13, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce its financial and operating results for the six-months ended June 30, 2014, and to provide an update on exploration activities at TV Tower and Kinsley Mountain.  

“Building on our recent discovery of a new gold-copper porphyry system at TV Tower and continued exploration success at Kinsley Mountain, we remain focused on delivering results through the second half of 2014 and beyond,” stated Matt Lennox-King, President and CEO of Pilot Gold. “We believe the quality of our projects, our proven team, and healthy treasury sets us apart in today’s market, and position Pilot Gold as a standout in the sector.”

Q2 2014 HIGHLIGHTS AND SIGNIFICANT EVENTS SUBSEQUENT TO QUARTER-END:

- Reported the discovery of another gold-copper porphyry system at TV Tower. Drill highlights at the “Valley Porphyry” to date (see press releases dated June 11, 2014 and July 22, 2014), include:

  • 0.99 grams / tonne (g/t) gold (Au) and 0.39% copper (Cu), or 1.65 g/t gold-equivalent (AuEq), over 153.1 metres in KRD010, including:

- 1.57 g/t Au and 0.56% Cu (2.52 g/t AuEq) over 66.2 metres;

  • 1.59 g/t Au and 0.48% Cu over 130.9 metres (2.41 g/t AuEq) in KRD-14C, including:

- 3.12 g/t Au and 0.85% Cu over 49.9 metres (4.57 g/t AuEq).

AuEq calculated using $1,200/oz Au and $3.00/lb Cu and assuming 100% recovery

- Reported high-grade gold-bearing drill intercepts from the ongoing 2014 drill program at Kinsley (see press releases dated June 5, 2014 and July 10, 2014), including:

  • 3.35 g/t Au over 41.1 metres in hole PK144, including:

-  5.11 g/t gold over 4.6 metres;

  • 5.59 g/t gold over 38.1 metres in step-out drilling in hole PK158C; and
  • 8.35 g/t gold over 12.5 metres in step-out drilling in hole PK151C. 

- Entered into an arrangement agreement (the "Cadillac Agreement") with Cadillac Mining Corporation ("Cadillac") pursuant to which, the Company has agreed to acquire all of the issued and outstanding shares of Cadillac by way of a court-approved plan of arrangement (see press release dated June 13, 2014).  

- Raised C$20 million from the issuance of 13,072,000 common shares of the Company by way of a bought deal financing led by National Bank Financial Inc. and Scotiabank (the "Bought Deal").

Exploration highlights and significant events through and subsequent to June 30, 2014:

Kinsley Mountain

Kinsley is a Carlin-style, sedimentary rock-hosted gold system and past-producer located along the Long Canyon Trend in northeastern Nevada.  The property’s Western Flank zone continues to grow and remains open in several directions, returning high grade gold intercepts from multiple stratigraphic horizons.

Through June 30, 2014 the Company completed 8,100 metres of core and 6,460 metres of reverse circulation drilling as part of the $6.04 million, 2014 drill program.  Pilot Gold continues to discover new mineralized zones within several stratigraphic units, including high grade oxide gold starting at surface. The Company also secured 1,080 acre feet of water rights for use at Kinsley and leased five patented claims to the south of the historic Kinsley mine, adding 66 acres of private mineral and surface rights.

Approval of an amendment to the existing Plan of Operations that covers the property’s northern claim block is expected soon. Upon receipt of an approved amendment, we anticipate expanding the current program to cover newly-permitted ground.      

In the six months ended June 30, 2014, approximately $3.56 million in direct expenditures were capitalized at Kinsley (year ended December 31, 2013, $3.85 million). Expenditures and activity through the period include: drilling and assaying ($2.35 million), salaries ($0.25 million) and road construction ($0.30 million). 

Pilot Gold holds approximately 79% of Kinsley. A subsidiary of Nevada Sunrise Gold Corporation holds the remaining 21% interest in the property. The Company and its partner are each obligated to fund their pro rata share of activity on the property to avoid dilution of the percentage interest held.

TV Tower

TV Tower is part of an evolving gold-silver-copper district located in northwestern Turkey.  The current year drill program began on April 10, 2014 following the completion of extensive mapping, sampling, surface work and limited drilling in 2013 on the recently acquired Karaayi license in the south of TV Tower.

In June and July 2014 we reported drill results from a new discovery at the Valley Porphyry target complementing the earlier discovery at the adjacent Hilltop Porphyry. These gold-copper porphyry targets are approximately 15 kilometers from the Company’s 40%-owned PEA-stage Halilaga copper-gold porphyry project.  Results from the Valley Porphyry include long runs of gold and copper mineralization starting at surface with grades superior to those typical of many copper-gold porphyry deposits around the world. 

Expenditures during the six-months ended June 30, 2014 include: drilling and assaying of $0.40 million, salaries of $0.62 million and consultant’s costs of $0.25 million. As a result of exploration success at the Hilltop and Valley porphyry targets, the 2014 budget was increased to $4.68 million. Through the remainder of the year we anticipate completing an additional 4,400 metres of core drilling.

The Company currently holds 40% of TV Tower and is the project operator. “Orta Truva”, a subsidiary of Teck Resources Limited holds the majority 60% interest in the project. Pilot Gold is incurring expenditures under a right to acquire an additional 20% interest (to an aggregate of 60%) of the project. There is currently approximately $3.54 million remaining to satisfy the total $21 million earn-in expenditure requirement. 

SELECTED FINANCIAL DATA

The following selected financial data is derived from the unaudited condensed interim consolidated financial statements and related notes thereto for the six months ended June 30, 2014 (the "Interim Financials"), as prepared in accordance with International Financial Reporting Standards. Details of these results are described in the Interim Financials and related Management’s Discussion and Analysis. 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.

 

             As at

 

June 30, 2014

(in 000s)

December 31, 2013

(in 000s)

Cash and short-term investments

$30,071

$19,006

Working capital

$28,674

$18,471

Total assets

$88,579

$71,374

Current liabilities

$2,614

$1,709

Non-current liabilities

$89

$68

Shareholders’ equity

$82,272

$67,174

(Expressed in 000s, except per share data)

Three months ended            June 30,

Six months ended June 30,

 

2014

2013

2014

2013

Loss for the period

($1,263)

($3,845)

($3,416)

($6,355)

Loss and comprehensive income (loss) for the period

 $969

($5,469)

($2,623)

($9,063)

Basic and diluted loss per share

($0.01)

($0.04)

($0.04)

($0.07)

Total assets increased to $88.58 million as at June 30, 2014 (December 31, 2013: $71.37 million), and comprise primarily of cash and short-term investments of $30.07 million (December 31, 2013: $19.01 million).  The increase primarily reflects the receipt of cash raised in the Bought Deal that closed during the quarter, offset by cash outflows related to corporate activities through the six months ended June 30, 2014. The balance of current assets comprises receivables and prepayments of $1.22 million (December 31, 2013: $1.03 million) which have increased primarily due to the timing of payments from Orta Truva relating to work performed by the Company on TV Tower.

For the three and six months ended June 30, 2014, we reported a net loss of $1.26 million and $3.42 million respectively, compared to a net loss of $3.85 million and $6.35 million, for the same periods in the prior year.  The losses per share for the three and six-month periods ended June 30, 2014 were $0.01 and $0.04 respectively (three and six-months ended June 30, 2013: $0.04 and $0.07 per share).  The most significant contributors to the losses for the six-months ended June 30, 2014 were the cost of wages and benefits ($0.88 million) and non-cash stock-based compensation ($0.67 million). The most significant contributors to the comparative period loss were; the write-down of the New Boston property ($1.28 million), non-cash stock-based compensation ($1.56 million), and the change in fair value of financial instruments ($1.51 million).

Other comprehensive gains of $2.23 million and $0.79 million were recognised in the three and six months ended June 30, 2014 (comprehensive losses of $1.62 million and $2.71 million for the same respective periods in the prior year). The six months ended June 30, 2014 includes a $0.23 million gain (June 30, 2013: $2.84 million loss) 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, as well as net fair value gains of our financial instruments of $0.54 million (six months ended June 30, 2013: $nil). The impact from exchange differences will vary from period to period depending on the rate of exchange; in the period between January 1, 2014 and June 30, 2014, there was a 0.4% change in the exchange rate between the United States and Canadian dollars.

Liabilities at June 30, 2014 and at December 31, 2013 reflect primarily accounts payable and accruals recorded at period end arising from ongoing activities.

Cash flows through the six-month period include $2.42 million in outflows for operating expenditures, $16.90 million inflow from financing activities, $1.09 million outflow from investing expenditures derived mostly from the investment in our exploration properties, and the impact of changing foreign exchange rates ($0.57 million).

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 National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the scientific and technical information contained in this release is accurate.

TV Tower and Kinsley are both early stage exploration projects and, except for the mineral resources at the KCD deposit at TV Tower, neither contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone of TV Tower or on the Western Flank zone at Kinsley are conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at either TV Tower or Kinsley will yield any mineral resources at Kinsley or additional resources at TV Tower. The existence of similar features at TV Tower’s K2 exploration target as those at Halilaga do not mean that a mineral resource will be found to exist at K2 or, if found to exist, that it will be of similar grade or quantity that is found at Halilaga.

Closing of the proposed acquisition of Cadillac is subject to court, regulatory and shareholder approvals.

This press release should be read in conjunction with Interim Financials and related Management’s Discussion and Analysis. 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 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 Kinsley project in Nevada, and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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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: “Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey”, effective January 21, 2014 and dated February 20, 2014, prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc., James N. Gray, P. Geo. of Advantage Geoservices Ltd., and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC; “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. For further detail on TV Tower, Kinsley Mountain or the Halilaga PEA, refer to the respective technical reports filed on the Company’s website at www.pilotgold.com or under Pilot Gold’s SEDAR profile at 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 with respect to the anticipated timing and closing of the Cadillac Agreement, or those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, the impact of archaeological, cultural or environmental studies within the property area, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partners or other third parties; successfully completing the earn-in at TV Tower, including the ability to complete the Expenditure Requirement; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

August 29, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce the completion of the previously announced acquisition of Cadillac Mining Corporation (“Cadillac”) pursuant to a Court-approved plan of arrangement (the “Arrangement”).

Under the Arrangement, shareholders of Cadillac received (i) 0.12195 of a Pilot Gold share, and (ii) 0.12195 of a Pilot Gold share purchase warrant (the “Pilot Warrants”) for each common share of Cadillac held. Each whole Pilot Warrant entitles the holder to acquire one Pilot Gold share at an exercise price of C$2.00 with a two-year term. Existing Cadillac warrants and stock options are exercisable for Pilot Gold shares, adjusted in respect of exercise price and number, based on the 0.12195 exchange ratio.

“The acquisition of Cadillac Mining and its 100%-owned Goldstrike project is an attractive and strategic addition for Pilot Gold. At Goldstrike, the address, large land position, prospective geology, and extensive historic databases represent key building blocks for future growth and value creation,” stated Matt Lennox-King, President & CEO of Pilot Gold. “The transaction provides Cadillac shareholders exposure to Pilot Gold’s Kinsley, TV Tower and Halilağa projects, as well as our leading exploration and development team.”

GOLDSTRIKE PROJECT

The Goldstrike project is a past producing sediment-hosted gold project located in Western Utah, and represents part of a growing class of Carlin-type gold targets located off the main Carlin and Cortez Trends.

Pilot Gold has begun the organization and compilation of the extensive database of historic information, and plans to initiate permitting activities on the property later in the year. The Company is focused on project incubation, synthesizing, and interpreting over 50 years of mining and exploration data on Goldstrike, leading into a comprehensive targeting campaign.

Goldstrike complements our existing project portfolio and enhances Pilot Gold’s long-term strategy of focusing on high quality projects with high grades in supportive mining jurisdictions. 

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration and development 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 Kinsley project in Nevada and the TV Tower and Halilağa projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects, including Goldstrike, that are characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

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 National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the scientific and technical information contained in this release is accurate.

For more information, visit www.pilotgold.com or contact:

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

Goldstrike is an early-stage exploration project and does not contain any mineral resource estimates as defined by NI 43-101. The legacy data presented herein is provided by Pilot Gold for informational purposes only, and gives no assurance as to its reliability and relevance to any potential or proposed exploration program at Goldstrike. Neither Pilot Gold nor Cadillac have completed any quality assurance program or applied quality control measures to the legacy data, nor has a Qualified Person done sufficient work to verify the source of the legacy data. Accordingly, the legacy data should not be relied upon.  Assuming successful completion of the proposed transaction Pilot Gold anticipates verification of some or all of the legacy data, however, the anticipated timing and results of that data verification cannot be ascertained at this time. Confirmation work may produce results that differ substantially.

All statements in this press release, other than statements of historical fact, are "forward-looking information" with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, without limitation risks related to the approval of applicable governmental authorities, interpretation of historic results at the Goldstrike property; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against Cadillac, the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com and those risks described in Cadillac’s previous public filings.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

Drill results continue to expand Valley Porphyry

September 4, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce the results of recent step out drilling at the Valley porphyry discovery at TV Tower.  Pilot Gold has completed 13 drill holes to date at the Valley Porphyry, and has now secured permits to drill test most of the 1,400 metre length of the zone.

Recent drill highlights include:

- 0.63 g/t gold (Au) and 0.27% copper (Cu) over 134.7 metres (1.10 g/t gold-equivalent (AuEq1)) in KRD016C

- 0.41 g/t Au and 0.25% Cu over 70.2 metres (0.83 g/t AuEq1) in KRD018C.

1 at $1200/oz Au and $3.00/lb Cu and 100% recovery

These latest results from step-out drilling extend copper and gold mineralization over an area of approximately 300 metres by 200 metres.  Porphyry copper-gold mineralization at the Valley porphyry starts at surface and can be traced continuously in outcrop over a distance of 200 metres.  The Valley is the second copper-gold porphyry discovered at TV Tower, and is located 750 metres south of the Hilltop Porphyry.

“The Valley Porphyry continues to grow, with significant drill results supported by strong surface assays over a wide area.  With our recently-acquired drill permits, we are now in a position to test the full strike extent of the Valley Porphyry target,” stated Matt Lennox-King, President and CEO of Pilot Gold. “TV Tower is a highly prospective property within an emerging porphyry district that makes this one of the leading exploration projects in Turkey.”

For a drill map of the Valley Porphyry, please click here: http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1426.pdf

For a table of drill results, please click here: http://www.pilotgold.com/sites/default/files/TVTDrillResults1426.pdf

Surface Program:

Surface work to date has included extensive surface rock and soil sampling over the entire Valley Porphyry target, as well as detailed geologic mapping.  Continuous saw-cut channel sampling was carried out utilizing outcrop exposed in an incised creek bed and extending approximately 200 metres to the northwest of discovery drill hole KRD010, with individual samples grading up to 3.6 g/t Au and 0.9% Cu.

Copper is oxidized and leached in rock samples, suggesting the presence of higher copper grades at shallow depth.  Grab, chip, and channel sampling over the entire 1,400 metre by 400 metre footprint of the copper and gold-in-soil anomaly also returned evidence of copper and gold mineralization. 

Permitting Update:

On August 15, 2014 Pilot Gold received notification that its request for permission to drill from additional sites bordering the southwest side of the Valley Porphyry target was approved.  Pilot Gold now has access to test the overall size of the porphyry target, and has commenced drilling on a site to the northwest of KRD010. 

About the Valley Porphyry Discovery:

The Valley Porphyry is the most recent discovery at TV Tower and the third porphyry system identified by our team. The discovery was made through systematic and rapid exploration from initial concept to discovery in six months.  Comprehensive soil sampling defined a 1,400 metre by 400 metre, northwest-trending copper and gold-in-soil anomaly located to the south of the property’s K2 high-sulphidation oxide gold trend.  Individual soil samples returned up to 1,600 ppm copper and up to 830 ppb gold. Drill results to date show that the Valley Porphyry system can produce intervals of higher grades.

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 National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and verified that the information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.3, 0.5, 1.0 and 2.0 g/t AuEq. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be approximately 50 to 80% 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 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. 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.

Further information is available in the technical report “Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey,” effective January 21, 2014 and dated February 20, 2014 (the “Report”) prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc.; James N. Gray, P. Geo. of Advantage Geoservices Ltd.; and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC, under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).  Mr. Hetman, Mr. Gray and Mr. Simmons are “Qualified Persons” as defined by NI 43-101.  

TV Tower is an early stage exploration project and, except for the mineral resources at the KCD deposit as summarized in the Report, does not contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone, including the porphyry targets, is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at these or other targets at TV Tower will yield a mineral resource.

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 Kinsley Mountain project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects in Nevada and Utah characterized by large land positions and district-wide potential that can meet our growth needs for years to come. 

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 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 involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including risks related to TV Tower, reliance on technical information provided by our joint venture partner or other third parties as related to TV Tower; changes in project parameters as plans continue to be refined; successfully completing the earn-in on TV Tower, including the ability to incur the minimum annual Expenditure Requirements 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 exploration and 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; the impact of archaeological, cultural or environmental studies within the property area, labour disputes; delays in obtaining governmental approvals or financing as well as those factors discussed in the Annual Information Form for the year ended December 31, 2013, dated March 14, 2014 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.

 

September 10, 2014

Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report highlights from drilling and an update on other activities at the Kinsley Mountain Project in eastern Nevada.

Since the kick-off of the summer drilling program, a total of 16,772 metres in 16 core and 29 RC holes has been drilled to date, with assays pending for 5 holes. The Kinsley land package has increased, with the Company adding five patented claims (66 acres / 26 Ha) and an additional 40 federal lode claims (800 acres / 324 Ha). Pilot Gold has also secured 1,080 acre feet of water rights, and initiated metallurgical studies at the Western Flank.

Highlights from recent drilling in the Western Flank area include:

  • 6.19 g/t (grams per tonne) gold over 45.7 metres in PK175CA, including

                    - 13.8 g/t gold over 19.2 metres

  • 3.91 g/t gold over 18.3 metres in PK159C, including

​                   - 8.15 g/t gold over 7.6 metres

  • 2.89 g/t gold over 19.1 metres in PK162C, including

                   - 10.5 g/t over 2.8 metres 

“A successful project is more than just our high-grade drill intercepts,” stated Matt Lennox-King, President & CEO of Pilot Gold. “At Kinsley Mountain we continue building value beyond the drill bit by adding to our land package, securing water rights, advancing permits, and getting a head-start on metallurgy.”

Step-out drilling at the Western Flank has continued to target high-grade mineralization in the Secret Canyon / Clark Springs formations, and the near-surface Candland Shale unit. The high-grade Western Flank footprint now covers 250 by 200 metres and remains open to the south, north-northeast and southeast. Mineralization in the Candland Shale trends north-northeast and is open to the south. Drilling at the Western Flank has not encountered any groundwater, which may simplify permitting in a development scenario.

Drilling at the Secret Spot target, located two kilometres to the south of the Western Flank target, resulted in the discovery of a thick zone of gold mineralization in the Secret Canyon shale, which is the same host for high-grade mineralization in the Western Flank.  The existence of gold mineralization in the same unit two kilometres from the Western Flank suggests that mineralization could be wide-spread in this unit; follow up drilling is planned to test the extent of gold mineralization in this area.

Highlights from recent drilling at the Secret Spot target include:

  • 1.34 g/t gold over 25.9 metres and

- 1.09 g/t over 13.7 metres and

- 3.02 g/t over 6.1 metres in PK153

The discovery of significant surface oxide mineralization brought early success to the Right Spot area, where new targets are being developed based on this drilling and additional surface work. Initial drill tests for deep mineralization under the existing pits returned anomalous gold and elevated pathfinders in the Secret Canyon shale. A follow-up program to vector towards higher grades is being developed for this area.

For a table of 2014 Kinsley Mountain drill results to date, please click here:
http://www.pilotgold.com/sites/default/files/Kinsley_DrillResults1427.pdf

For drill maps outlining the Western Flank/Right Spot area, please click here:
http://www.pilotgold.com/sites/default/files/KinsleyDrillMap1427.pdf

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 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 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-90% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an additional cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 469 claims on U.S. Bureau of Land Management land plus 6 leased patents totalling 9,520 acres (3,853 hectares) and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

The Company holds approximately 79.1% of Kinsley. Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley.

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.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

September 16, 2014

Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report that as at the close of trading on Friday, September 19, 2014, Pilot Gold will be added to the S&P/TSX SmallCap Index.

The S&P/TSX SmallCap Index serves the dual purpose as a benchmark and as an investable index, and is designed to capture the investment opportunity set for small cap investment managers. Currently there are approximately 210 TSX listed companies which compose the index.

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 Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 within the meaning of applicable securities laws, including statements regarding the anticipated addition of the Company to the S&P/TSX Small Cap Index. 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. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct. Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, market and economic conditions; the timing and certainty of the addition of the Company to the S&P/TSX Small Cap Index; as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

 

0.80 g/t AuEq over 357.7 metres at Columbaz target

October 22, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce the third gold rich porphyry discovery at TV Tower, located 3 kilometres south of the KCD gold-silver deposit. 

The new Columbaz discovery is comprised of high grade gold-bearing epithermal veins overprinting a gold-copper porphyry system. With this discovery and success at the Valley and Hilltop porphyry targets, TV Tower is quickly demonstrating the district scale potential envisioned from day one.

Recent drill highlights include:

  • 0.60 g/t Au and 0.11% Cu over 357.7 metres (0.80 g/t gold-equivalent (AuEq1)) in CD008C, including,
    - 8.41 g/t Au and 0.06% Cu over 7.8 metres, including 24.0 g/t Au over 1.5 metres, and
    - 3.32 g/t Au and 0.15% Cu over 13.2 metres, including 27.9 g/t Au over 1.1 metres

1at $1200/oz Au and $3.00/lb Cu and 100% recovery

“This latest discovery reinforces our belief that TV Tower is capable of producing repeatable, robust discoveries with the scale and significance to support a major mining district,” stated Matt Lennox-King, President and CEO of Pilot Gold. “While the rate of discovery has been rapid to date, TV Tower remains relatively under-explored with numerous established targets yet to be tested over the 90km2 property.”

The Columbaz discovery is the fifth gold system discovered at TV Tower in the past five years. By consistently applying first principles the Company has had an impressive success rate in quickly identifying potential discoveries and confirming with drilling. Pilot Gold is currently drilling follow-up holes at Columbaz, targeting both high-grade epithermal vein and gold rich porphyry mineralization. Drilling is also continuing at the Valley and Hilltop porphyry targets within the K2 complex 6 kilometers to the south. Assays are pending.

For a map of TV Tower and the Columbaz area, please click here:
http://www.pilotgold.com/sites/default/files/TVTowerDrillMap1429.pdf

For a table of drill results, please click here: 
http://www.pilotgold.com/sites/default/files/TVTDrillResults1429.pdf

About the Columbaz Discovery:

The Columbaz Gold Zone is the most recent discovery at TV Tower and the third porphyry system identified by our team on the property. Prospecting and mapping by Pilot Gold from 2012 through 2014 led to the identification of low sulphidation epithermal gold-silver veins at lower elevations under the silica cap. Rock samples yielded “bonanza” (high grade) gold and silver. Pilot Gold’s drill program was designed to target the down-dip extension of these veins. Encouraging gold grades were encountered in drill holes CD001C, CD002C and CD008C on the west end of the outcropping vein system.

Drilling at Columbaz originally targeted high-grade gold-bearing, low sulphidation epithermal quartz veins that can be traced intermittently over a distance of approximately one kilometre at surface. In the course of drilling, the epithermal veins were observed to overprint alteration indicative of the higher levels of a gold-copper porphyry system. The result is a series of higher-grade gold intercepts related to the epithermal veins, hosted in a matrix of lower-grade gold and copper mineralization related to the porphyry system. 

The porphyry mineralization is characterized by increasing clay and sericite alteration and quartz-magnetite stockwork veining with increasing depth. Porphyry mineralization is overprinted by the low sulphidation veins, which are extensively faulted and clay altered. 

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 National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and verified that the information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.3, 0.5, 1.0 and 2.0 g/t AuEq. Drill intersections are reported as drilled thicknesses. True width of the mineralized interval is interpreted to be approximately 50% of the reported length. 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 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. 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.

Further information is available in the technical report “Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey”, effective January 21, 2014 and dated February 20, 2014 (the “Report”) prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc.; James N. Gray, P. Geo. of Advantage Geoservices Ltd.; and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC, under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).  Mr. Hetman, Mr. Gray and Mr. Simmons are “Qualified Persons” as defined by NI 43-101.  

TV Tower is an early stage exploration project and, except for the mineral resources at the KCD deposit as summarized in the Report, does not contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the Columbaz target or at the copper-gold K2 zone, including the porphyry targets is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at these or other targets at TV Tower will yield a mineral resource.

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 Kinsley Mountain project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects in Nevada and Utah characterized by large land positions and district-wide potential that can meet our growth needs for years to come. 

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 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 involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including risks related to TV Tower, reliance on technical information provided by our joint venture partner or other third parties as related to TV Tower; changes in project parameters as plans continue to be refined; successfully completing the earn-in on TV Tower, including the ability to incur the minimum annual Expenditure Requirements 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 exploration and 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; the impact of archaeological, cultural or environmental studies within the property area, labour disputes; delays in obtaining governmental approvals or financing as well as those factors discussed in the Annual Information Form for the year ended December 31, 2013, dated March 14, 2014 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.

 

November 13, 2014

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to announce its financial and operating results for the nine-months ended September 30, 2014, and to provide an update on exploration activities at TV Tower and Kinsley Mountain.  

“The third quarter for Pilot Gold was highlighted by new porphyry discoveries at TV Tower, drill and permitting successes at Kinsley Mountain and the strategic, acquisition of Cadillac Mining,” stated Matt Lennox-King, President and CEO of Pilot Gold. “Q4 is shaping up to be as important as we complete our 60% earn-in at TV Tower, press ahead at Kinsley Mountain and finalize a new economic study at Halilaga.”

HIGHLIGHTS THROUGH AND SUBSEQUENT TO THE NINE MONTHS ENDED SEPTEMBER 30, 2014:

·         Cash and short-term investments at September 30, 2014, totalled $23.4 million.

·         At TV Tower, discovered another gold-copper porphyry, the third such discovery since June 2014. The property boasts a contiguous area greater than 50km2 of epithermal and porphyry-related alteration. Drill highlights to date from this burgeoning mining camp include:

Valley Porphyry (see press releases dated June 11, July 22, and September 4, 2014):

- 0.99 g/t Au and 0.39% Cu, or 1.65 g/t AuEq, over 153.1 metres in KRD010, including

-       1.57 g/t Au and 0.56% Cu (2.52 g/t AuEq) over 66.2 m; and

- 1.59 g/t Au and 0.48% Cu over 130.9 m (2.41 g/t AuEq) in KRD-14C, including,

-       3.12 g/t Au and 0.85% Cu over 49.9 m (4.57 g/t AuEq)

- 0.63 g/t Au and 0.27% Cu over 134.7 m (1.10 g/t AuEq) in KRD016C.

Hilltop Porphyry (see press release dated June 19, 2014):

- 0.22 g/t Au and 0.26% Cu, or 0.67 g/t AuEq, over 261.3 m in KRD006, including,

-       0.54 g/t Au and 0.36% Cu over 57.8 m.

Columbaz Porphyry (see press release dated October 22, 2014):

- 0.60 g/t Au and 0.11% Cu, or 0.80 g/t AuEq, over 357.7 m in CD008C, including,

-       8.41 g/t Au over 7.8 m.

AuEq calculated using $1,200/oz gold and $3.00/lb copper and assuming 100% recovery

·         Received approval to extend the Plan of Operations at Kinsley, allowing an additional 20 acres of exploration disturbance on the unexplored northern claims.

·         Reported high grade gold results including near surface oxide mineralization from the ongoing 2014 drill program at Kinsley. Recent drilling, including 6.19 g/t Au over 45.7 m in PK175CA (see press release dated September 10, 2014), with surface geochemistry and mapping continue to reinforce the extensive mineralized system at Kinsley. 

·         Completed the acquisition of Cadillac Mining Corporation ("Cadillac") pursuant to which the Company acquired all of the issued and outstanding shares of Cadillac by way of a court-approved plan of arrangement (see press release dated August 29, 2014). Through the acquisition of Cadillac we added another past-producing sediment-hosted gold project, Goldstrike-Utah, to our portfolio of exploration assets. Goldstrike-Utah features a large land position and extensive historic databases.

Exploration highlights and significant events through and subsequent to September 30, 2014:

Kinsley Mountain

Kinsley is a Carlin-style, sedimentary rock-hosted gold system and past-producer located along the Long Canyon Trend in northeastern Nevada.  Discoveries at Kinsley continue to reinforce the district-scale potential of the property.  

Paving the way for an expanded program on the property, the Company received approval of a 20 acre amendment to the existing Plan of Operations on October 28, 2014.  With the amendment there are 80 acres of exploration permitted on the property, covering the 12 km-long Kinsley range. Drilling is currently underway with one core and one RC drill rig focused on infill and exploration drilling.

Through September 30, 2014 the Company had completed 11,270 metres of core and 11,120 metres of reverse circulation drilling as part of the $6.46 million, 2014 drill program. Through the final three months of the year, we anticipate completing an additional 4,000 m of drilling. We also expect to continue with preliminary metallurgical analyses in order to refine the 2015 exploration plan.  

In the nine months ended September 30, 2014, approximately $5.26 million in direct expenditures were capitalized at Kinsley (year ended December 31, 2013, $3.85 million) of which $4.15 million is the Company’s share. Expenditures and activity through the period include: drilling and assaying ($3.50 million), salaries and stock based compensation ($0.49 million), equipment rental, road and site construction ($0.47 million), and contract labour and consultants ($0.27 million).

Pilot Gold holds approximately 79% of Kinsley. A subsidiary of Nevada Sunrise Gold Corporation holds the remaining 21% interest in the property. The Company and its partner are each obligated to fund their pro rata share of activity on the property to avoid dilution of the percentage interest held.

TV Tower

The 90km2 TV Tower gold-silver-copper property comprises nine contiguous licences and is located close to established infrastructure in northwestern Turkey. To date, there have been three copper-gold porphyry systems discovered at TV Tower (Hilltop, Valley, and Columbaz). Results from the Valley Porphyry include long runs of gold and copper mineralization starting at surface with grades superior to those typical of many copper-gold porphyry deposits around the world. The Company has defined a large silver-gold resource (KCD), and identified robust gold targets including a 4-km long oxide gold-mineralized system (K2). The proximity of the porphyry targets to the Company’s 40%-owned PEA-stage Halilaga copper-gold porphyry deposit (15 km to the east) illustrates the scale of the project’s growing footprint.

Expenditures during the nine-months ended September 30, 2014 include: drilling and assaying of $0.99 million, salaries of $0.64 million and consultant’s costs of $0.38 million. Through September 30, 2014 the Company had completed 7,800 metres of core drilling.  As a result of exploration success at the Hilltop and Valley porphyry targets, the 2014 budget was increased to $4.68 million. Through the final three months of the year we anticipate completing an additional 4,200 metres of drilling.

The Company currently holds 40% of TV Tower and is the project operator. “TMST”, a subsidiary of Teck Resources Limited, holds the majority 60% interest in the project. Pilot Gold is incurring expenditures under a right to acquire an additional 20% interest (to an aggregate of 60%) of the project. There is approximately $1.2 million remaining to satisfy the total $21 million earn-in expenditure requirement. 

SELECTED FINANCIAL DATA

The following selected financial data is derived from the unaudited condensed interim consolidated financial statements and related notes thereto for the nine months ended September 30, 2014 (the "Interim Financials"), as prepared in accordance with International Financial Reporting Standards. Details of these results are described in the Interim Financials and related Management’s Discussion and Analysis. 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.

 

             As at

 

September 30, 2014

(in 000s)

December 31, 2013

(in 000s)

Cash and short-term investments

$23,371

$19,006

Working capital

$22,504

$18,471

Total assets

$90,706

$71,374

Current liabilities

$2,041

$1,709

Non-current liabilities

$93

$68

Shareholders’ equity

$84,834

$67,174

(Expressed in 000s, except per share data)

Three months ended            September 30,

Nine months ended September 30,

 

2014

2013

2014

2013

Loss for the period

($1,322)

($1,215)

($4,737)

($7,570)

Loss and comprehensive income (loss) for the period

 ($4,100)

($716)

($6,723)

($9,420)

Basic and diluted loss per share

($0.01)

($0.01)

($0.05)

($0.09)

Total assets increased to $90.71 million as at September 30, 2014 (December 31, 2013: $71.37 million), and comprise primarily cash and short-term investments of $23.37 million (December 31, 2013: $19.01 million) and deferred exploration of $28.76 (December 31, 2013: $14.88 million). The increase in assets primarily reflects the acquisition of Cadillac and the receipt of cash raised in a bought-deal financing that closed in April 2014, offset by cash outflows related to operating expenditures through the nine months ended September 30, 2014. The balance of working capital comprises receivables and prepayments of $1.17 million (December 31, 2013: $1.03 million) which have increased primarily due to the timing of payments from Orta Truva relating to work performed by the Company on TV Tower.

For the three and nine months ended September 30, 2014, we reported net losses of $1.32 million and $4.74 million respectively, compared to net losses of $1.22 million and $7.57 million, for the same periods in the prior year. The losses per share for the three and nine-month periods ended September 30, 2014 were $0.01 and $0.01 respectively (three and nine-months ended September 30, 2013: $0.05 and $0.09 per share). The most significant contributors to the losses for the nine-months ended September 30, 2014 were the cost of wages and benefits ($1.19 million) and non-cash stock-based compensation ($0.93 million). The most significant contributors to the comparative period loss were; the write-down of the New Boston property ($1.28 million), non-cash stock-based compensation ($1.91 million), and the change in fair value of financial instruments ($1.55 million).  More than 77% of our total expenditures through the nine-month period ended September 30, 2014 were dedicated to exploration and development

Other comprehensive losses of $2.78 million and $1.99 million were recognised in the three and nine months ended September 30, 2014 (comprehensive gains of $0.50 million and losses of $1.85 million for the same respective periods in the prior year). The nine months ended September 30, 2014 includes a $2.6 million loss (September 30, 2013: $1.83 million loss) 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, as well as net fair value gains of our financial instruments of $0.59 million (nine months ended September 30, 2013: $0.15 offset by reclassifications to the income statement of $0.13). The impact from exchange differences will vary from period to period depending on the rate of exchange; in the period between January 1, 2014 and September 30, 2014, there was a 5.1% weakening in the Canadian dollar versus the United States dollar.

Liabilities at September 30, 2014 and at December 31, 2013 reflect primarily accounts payable and accruals recorded at period end arising from ongoing activities.

Cash flows through the nine-month period include $2.55 million in outflows for operating expenditures, $18.22 million inflow from financing activities, $10.71 million outflow from investing expenditures derived mostly from the investment in our exploration properties, and the impact of changing foreign exchange rates ($0.55 million).

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 National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the scientific and technical information contained in this release is accurate.

TV Tower and Kinsley are both early stage exploration projects and, except for the mineral resources at the KCD deposit at TV Tower, neither contains 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. The proximity and existence of similar features at TV Tower’s porphyry targets to those at Halilaga do not mean that another mineral resource will be found to exist at TV Tower or, if found to exist, that it will be of similar grade or quantity to that found at Halilaga.                 For further detail on TV Tower, Kinsley Mountain or the Halilaga PEA, refer to the respective technical reports filed on the Company’s website at www.pilotgold.com or under Pilot Gold’s SEDAR profile at www.sedar.com.

This press release should be read in conjunction with Interim Financials and related Management’s Discussion and Analysis. 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 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 Kinsley project in Nevada, and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:
Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 within the meaning of applicable securities laws, including statements with respect to the anticipated timing and closing of the Cadillac Agreement, or those that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, the impact of archaeological, cultural or environmental studies within the property area, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partners or other third parties; successfully completing the earn-in at TV Tower, including the ability to complete the Expenditure Requirement; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.

 

December 9, 2014

Pilot Gold Inc. (PLG - TSX) ("Pilot Gold" or the "Company") is pleased to report highlights from ongoing drilling and an update on other activities at the Kinsley Mountain Project in eastern Nevada.

2014 has been a landmark year at Kinsley Mountain, with the discovery of the high grade zone at the Western Flank, and subsequent recognition of the property-wide potential for gold mineralization in the Candland Shale and Secret Canyon Shale host formations.

Highlights from recent infill drilling at the Western Flank include:

  • 10.1 g/t (grams per tonne) gold over 39.6 metres in PK186C, including
    • 17.4 g/t gold over 21.6 metres (Secret Canyon Shale host)
  • 6.05 g/t gold over 30.5 metres in PK187C (Secret Canyon Shale host)
  • 4.39 g/t gold over 29.2 metres in PK188C (Secret Canyon Shale host)
  • 6.88 g/t gold over 6.1 metres in PK177C, including
    • 11.0 g/t gold over 3.0 metres (Candland Shale host)

RACETRACK

The Racetrack area is located 1,200 metres south of the Western Flank along a potential parallel NNE trending structure where surface mineralization in the Candland Shale was intersected over a 250 metre by 300 metre area by prior operators. Pilot Gold drilled six holes, with PK180 returning mineralization in both the shallow oxide Candland Shale unit and the deeper Secret Canyon Shale.

Highlights from the Racetrack area include:

  • 2.69 g/t gold over 7.6 metres (shallow oxide in the Candland Shale host) and
    • 1.25 g/t Au over 10.7 metres (Secret Canyon Shale host) in PK180

"Our 2014 results support our concept that gold mineralization at Kinsley Mountain is widespread in two stratigraphic units - the Secret Canyon and Candland Shales, both emerging as a viable property-wide targets," stated Matt Lennox-King, President & CEO of Pilot Gold. "These latest results not only demonstrate continuity of the high-grade at Western Flank target, but also the broader potential as gold was detected in widely-spaced drill holes over the 2 kilometre Western Flank trend."

Other targets tested along the Western Flank in 2014 include the Right Spot, where shallow oxide gold mineralization was intersected in multiple drill holes; and the Secret Spot, where shallow oxide mineralization and deep mineralization in the Secret Canyon Shale were encountered. Gold was also encountered in the area between the Western Flank and the historical mine in three stratigraphic units.

Recent highlights from the Secret Spot include:

  • 2.03 g/t gold over 7.6 metres (Shallow oxide in the Candland Shale) in PK182

PERMITTING: KINSLEY NORTH

Pilot Gold is pleased to announce that the amendment to its Plan of Operations for conducting surface drilling and other activities was approved by the U.S. Bureau of Land Management. The amendment permits up to 20.5 acres of drill roads and pads in the northern two-thirds of the Kinsley property, with access to a number of high-priority targets defined by geochemically anomalous pathfinder elements in surface samples and intersections of NNE and NW-trending faults. The Kinsley North claims are underlain by the same highly prospective geology and structural framework as the historic Kinsley Mine and the Western Flank, and have never been drilled.

METALLURGY

Composite samples from the Western Flank zone are currently undergoing metallurgical testing at Hazen Laboratory in Golden, Colorado. This work is addressing the amenability of high grade mineralization from the Secret Canyon host to produce a high-grade concentrate.

TARGETING

Surface mapping and sampling, continued modeling of historical blast hole and drill data and drilling in 2014 have refined our targeting efforts to find additional gold on the property. It is clear that the Secret Canyon Shale, host to the high-grade mineralization in the Western Flank, is a viable target, with gold >1 g/t over significant widths also drilled at the Racetrack area and in the Secret Spot target up to two kilometres to the south. Over the length of the property, this horizon is virtually untested, and it is unlikely that the Western Flank is the only high-grade zone. Data support the concept that gold is concentrated at the intersections of NW to WNW and NNE to N-trending high-angle structures.

For a table of 2014 Kinsley Mountain drill results to date, please click here: http://www.pilotgold.com/sites/default/files/Kinsley_DrillResults1431.pdf

For drill maps outlining the Western Flank/Right Spot area, please click here: http://www.pilotgold.com/sites/default/files/Kinsley_DrillMap1431.pdf

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 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 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-90% of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. For any samples assaying over 0.200 ppm an additional cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

ABOUT KINSLEY MOUNTAIN

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 469 claims on U.S. Bureau of Land Management land plus 6 leased patents totalling 9,520 acres (3,853 hectares) and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

The Company holds approximately 79.1% of Kinsley. Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley.

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.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).

ABOUT PILOT GOLD

Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the Kinsley project in Nevada and the TV Tower and Halilaga projects in Turkey, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

For more information, visit www.pilotgold.com or contact:

Patrick Reid, VP Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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 within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining required licences and permits, labour stability, stability in market conditions, the absence of any ground water at Kinsley and the related impact on permitting, the availability of equipment, accuracy of any mineral resources, the amenability of mineralization to produce a high-grade concentrate (as there can be no assurances as to the results of the metallurgical testing and no inferences should be drawn therefrom), successful resolution of disputes (if any) and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.

Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 14, 2014 in the section entitled "Risk Factors", under Pilot Gold's SEDAR profile at www.sedar.com.

Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.