Successful 2012 drill program identifies and expands gold and silver mineralization

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) (“Pilot Gold” or the “Company”) is pleased to report encouraging results from the 15 remaining diamond core holes from its Phase 1 drilling program at TV Tower’s KCD target in northwestern Turkey. The holes are wide-spread across the property and targeted KCD’s gold and silver zones.

Infill drilling highlights include:

  • 25.7 g/t gold (Au), 47.2 g/t silver (Ag) and 2.12% copper (Cu) over 16.5 metres in KCD-102, including

                o   142 g/t Au, 141 g/t Ag and 3.39% Cu over 2.0 metres

  • 13.9 g/t Au over 6.3 metres in KCD-99

Drill holes KCD-99 and KCD-102 were designed to demonstrate continuity and establish the thickness and orientation of a zone of high-grade mineralization originally discovered in KCD-50 (227 g/t gold over 12.0 metres; see media release dated Jan. 22, 2013). Drill results to date support the interpretation that this zone of high grade is continuous over a significant area. 

Exploration drilling highlights include:

  • 4.71 g/t Au and 71.7 g/t Ag over 8.5 metres and 2.93 g/t Au over 8.0 metres in KCD-95 

Drill holes KCD-95 and KCD-107 tested the gold and silver zones north and east of the current target footprint. KCD-95 was drilled northeast and down dip of KCD-75 in the southeastern portion of the gold mineralized zone. KCD-107, drilled approximately 150 metres to the northeast of KCD-95 in an area with no previous drilling, returned 0.32 g/t gold over 19.0 metres. The presence of gold over a significant interval in this location considerably extends the potential for additional mineralization beyond the limits of previous drilling, and merits further drilling to ascertain its significance.

“We have completed Phase 1 drilling on a very positive note, by demonstrating continuity of the high grades intercepted in KCD-50,” said Matt Lennox-King, President and CEO, Pilot Gold. “Our first program as operator has confirmed a large, central gold zone overlain by a robust silver blanket. Both remain open in multiple directions and will be aggressively followed-up in our upcoming drill program.”

For a comprehensive table of results related to gold mineralization, please click:

For a map highlighting recent drilling, please click:

Approximately 14,440 metres in 70 holes at KCD were completed since the program commenced in June 2012, with all assays now received and publicly released. Drilling was suspended in early February due to winter weather, and will resume in late March.

Project summary
As the project operator since June 2012, Pilot Gold designed and conducted a comprehensive, systematic, property-wide exploration program composed of grid-based soil sampling, regional prospecting and rock sampling, airborne electromagnetic and magnetic surveys, and geological mapping. The program was implemented to refine and discover new targets on the property.

The exploration work resulted in several targets being upgraded to drill-ready at TV Tower. In addition, new target types were identified, including low-sulphidation gold-silver veins with bonanza grades obtained in surface sampling.

The drilling program on KCD successfully extended gold, silver and copper mineralization in all directions from early holes KCD-02 through KCD-05. Gold was encountered in drilling over an area now measuring approximately 400 metres x 250 metres, overlain by a zone of continuous silver mineralization now measuring approximately 600 metres x 400 metres.

Significant drill intercepts included:

  • KCD-39: 5.94 g/t Au, 12.64 g/t Ag, 0.53% Cu over 137.1 metres, including 18.88 g/t Au over 27 metres: Starting in breccia identified in discovery hole KCD-002, the hole quickly transitioned into volcaniclastic rocks and encountered new mineralization in a stratiform vuggy silica zone, signifying that mineralization could be traced well beyond the boundary of the breccia.
  • KCD-50: 227 g/t Au over 12.0 metres: Collared 70 metres northwest of KCD-39, the hole intercepted shallowly dipping veins bearing visible gold. The results, in conjunction with observations from other nearby holes, showed the presence of widespread, vein-hosted gold mineralization.
  • KCD-104: 69.0 g/t Ag over 94.0 metres, including 255 g/t Ag over 18.1 metres: The most westerly hole of the silver blanket also returned some of the strongest grades. The silver zone remains open to the west and north.

Significant structural and stratigraphic complexities, complex distribution and styles of mineralization, and localized high gold grades were encountered in the gold zone. Therefore, the average density of drill intercepts was reduced from 50-metre centres (anticipated in the original drill plan) to 20- to 30-metre centres in order to adequately test the distribution and controls on mineralization. The gold zone is still open down-dip to the north and to the northwest. The silver zone is largely separate from the gold zone, and its distribution appears to be largely focused on an interval of fluvial-lacustrine strata overlying the gold zone. The silver zone is open to the north and west, with some of the thickest and highest-grade intercepts returned from holes drilled on the western edge of the zone. 

“Our first eight months as operator at TV Tower has been very productive and led to a new and deeper understanding of the KCD target,” said Moira Smith, Chief Geologist, Pilot Gold. “We are looking forward to further testing of KCD in 2013, building towards an initial resource estimate by year-end.”

2013 program
The 2013 exploration program at TV Tower is designed to build upon strong successes in 2012 and will include the following:

  • 15,000 metres of infill and step-out drilling, metallurgical testing, check assaying, geologic mapping and target refinement at KCD
  • 7,500 metres of drilling at the Kayali gold oxide target, located eight kilometres south of the KCD target.  This target was previously drill tested, returning 0.87 g/t gold over 114.5 metres in KYD-01 
  • 7,500 metres of drilling at the Columbaz low sulphidation gold-silver vein target, located two kilometres south of KCD
  • Continued geological mapping, prospecting, rock sampling, infill soil sampling and other activities related to property-wide target definition

About TV Tower:
TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated June 21, 2012 for full details of the agreement terms.)

Located on the Biga Peninsula in northwest Turkey, TV Tower encompasses 71 square kilometres. It contains a large number of targets ranging from high- and low-sulphidation epithermal gold-silver to porphyry gold-copper. The project has an extensive road network and targets to date all lie on land administered by Turkey’s Ministry of Forestry. It is located immediately west of the Kirazli gold project (Alamos Gold) and approximately 10 kilometres northwest of the Halilaga copper-gold project (Teck/Pilot Gold).

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 0.3, 3.0 and 10.0 g/t Au. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 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. 

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.

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:

Patrick Reid, VP, Corporate Affairs
Phone: 604-632-4677 or Toll Free 1-877-632-4677
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Ian Noble, Director, Corporate Communications
Phone: 604-809-8750
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Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Çanakkale, Western Turkey”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

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

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

Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the (final) short form prospectus of the Company dated October 25, 2012, in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

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