12-05
Pilot Gold Inc. (“Pilot Gold” or the “Company”) (PLG – TSX) is pleased to announce it has completed its earn-in to 51% of the Kinsley Mountain gold property and has elected to increase its interest to 65% within 5 years.
Over the past seven months, we have tested some key exploration concepts at Kinsley Mountain with encouraging results, and have quickly earned a controlling interest in this project. Results from our Phase 1 program included 5.91 g/t gold over 18.4 metres starting at a depth of 42.7 metres in drill hole PK-04 (see February 10th, 2012 press release).
The Kinsley Project in northeastern Nevada is the site of a past-producing, open pit, oxide heap leach mine. Building on an extensive historical exploration archive, Pilot Gold is focusing its efforts on testing numerous targets at different stratigraphic levels both proximal to, and to the north of, the historic pits. Our 2012 exploration program commenced on March 20th with 4,000 metres of a planned 12,000 metres completed to date. Assays for all 2012 drill holes are pending. In addition, an extensive geochemistry and geological mapping program will take place outside of the historic mine area to identify additional drill targets.
Phase 1 earn-in details:
Under the terms of the earn-in agreement, Pilot Gold was required to spend $US 1.18 million in exploration by March 30, 2013 to earn the initial 51% interest. After meeting these requirements, the project will be held in a joint-venture company owned 51% by Pilot Gold and 49% by Intor Resources Corporation a subsidiary of Nevada Sunrise Gold Corporation. Pilot Gold has elected to increase its interest to 65% by incurring an additional $US 3-million in exploration expenditures within 5 years.
Technical report:
For more detailed information on the Kinsley Mountain project, please refer to the recently published NI 43-101 technical report dated March 26, 2012, entitled Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A. available on SEDAR at www.sedar.com.
ABOUT PILOT GOLD
Pilot Gold is a gold exploration company with interests in three key assets: the Kinsley Mountain project in Nevada and the Halilaga and TV Tower projects in Turkey. In addition, Pilot Gold has a pipeline of 15 exploration-stage Nevada projects characterized by large land positions and district-wide potential both on and off major gold trends. For more information, visit www.pilotgold.com or contact:
Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Affairs
Phone 604-632-4677 or Toll Free 1-877-632-4677
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Ian Cunningham-Dunlop, P. Eng., VP Exploration and Chief Operating Officer for Pilot Gold, and a “Qualified Person” within the meaning of NI 43-101, is responsible for compiling the technical information contained in this release.
All statements in this release, other than statements of historical fact, are “forward-looking information" with respect to Pilot Gold Inc. (“Pilot Gold”) within the meaning of applicable Canadian securities laws, including statements that address future mineral production, reserve potential, exploration drilling, the future price of gold, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, or other study, proposed exploration and development of our exploration properties and the estimation of mineral resources. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, "project", "predict", "potential", "targeting", “intends”, "believe", “potential”, and similar expressions, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. These statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to differ materially from those anticipated in such forward-looking information. Such forward-looking information, including, but not limited to, completion of expenditure obligations under the Kinsley Mountain Option Agreement, proposed exploration and development of the Kinsley Mountain property, future issuances of Common Shares as consideration to complete the acquisition of the Kinsley Mountain Option Agreement from Animas Resources Ltd.; estimated future working capital, funds available, uses of funds, future capital expenditures, exploration expenditures and other expenses for specific operations; information with respect to exploration results, the timing and success of exploration activities generally, and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward looking information.
Such factors include, among others, risks related to the interpretation and actual results of historical production at Kinsley Mountain, reliance on technical information provided by third parties on any of our exploration properties, including access to historical information on the Kinsley Mountain property as well as specific historic data associated with and drill results from the property, information from Nevada Sunrise LLC and Nevada Sunrise Gold Corporation, the license and lease owners respectively on the Kinsley Mountain property, current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company’s Annual Information Form for the year ended December 31, 2011 dated March 28, 2012, which is available under Pilot Gold’s SEDAR profile at www.sedar.com.
Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking information.
Forward-looking statements are made as of the date hereof and accordingly are subject to change after such date. Except as otherwise indicated by Pilot Gold, these statements do not reflect the potential impact of any non-recurring or other special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Pilot Gold does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.