Strong assay results expand high-grade KCD target

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

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

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

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

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

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

*See September 19, 2012 press release.

All true widths are 30-90% of reported widths unless otherwise stated. All intervals of no sampling have been assigned zero grade for the purposes of compositing. For a comprehensive table of drill results from 2012, including new and non-reportable intercepts, please click: http://www.pilotgold.com/sites/default/files/TVTowerDrillResults1225.pdf

For a map highlighting recent drilling, please click:

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

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

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

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

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

TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (“TMST”) (60%), a Turkish subsidiary of Teck Resources Limited (“Teck”).  Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period (see press release dated September 12, 2012 for full details of the deal terms).

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

Vance Spalding, B.Sc., CPG, Pilot Gold Vice President, Exploration, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the information contained in the release is accurate. Drill composites were calculated using cut-offs of 0.30, 3.0 and 10.0 g/t Au. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Vancouver, B.C. for gold by Fire Assay of a 30 gram (1 assay ton) charge by ICP-ES, or if over 10.0 g/t were re-assayed and completed with a gravimetric finish. Ag and Cu were determined by ICP-MS, with overlimits (>100 ppm Ag or >10,000 ppm Cu) completed by fire assay with gravimetric finish (Ag) or 4-acid digestion with ICP-ES finish (Cu). QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch.

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

Patrick Reid, VP Corporate Development
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 Türkiye”, effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com).

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

Such forward-looking information, including, but not limited to, statements that address reserve potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company’s mineral projects, potential quantity and/or grade of minerals, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.  Such factors include, among others, risks related to the interpretation of results  at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our  exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuance of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the (final) short form prospectus of the Company dated October 25, 2012, in the section entitled "Risk Factors", under Pilot Gold’s SEDAR profile at www.sedar.com.

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