August 12, 2015

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 and six months ended June 30, 2015.  All amounts are presented in United States dollars unless otherwise stated.

"Despite ongoing capital market challenges for exploration and development companies, we have continued upgrading our projects by extending high grade gold mineralization at Kinsley Mountain, commencing expansion drilling at TV Tower and carrying-out metallurgical and engineering studies," stated Matt Lennox-King, President and CEO of Pilot Gold.  “Through the second half of the year we plan to continue building value at our projects while tailoring our budgets and programs to reflect market conditions.” 

Financial and operational highlights through and subsequent to quarter end:

  • Working capital at June 30, 2015 of $12.68 million (C$15.8 million)1.
  • Completed the $21 million earn-in to a 60% interest at TV Tower, and commenced the 2015 drill campaign focused on delineating copper-gold porphyry and oxide gold systems discovered or confirmed in 2013 and 2014.
  • Reported initial results from the 2015 program at Kinsley2 , including:
    - 2.34 g/t Au over 9.1 m and 3.46 g/t Au over 18.3 m including 13.7 g/t Au over 3.0 m in drill hole PK208, indicating a new mineralized zone located 150 m east of the high-grade Western Flank zone.
    - Additional metallurgical studies that demonstrate that the upper host rock horizon can produce concentrates through flotation with strong gold recoveries, augmenting the potential for low capital cost mining and processing.

(1)As at June 30, 2015, the value of C$1.00 was $0.80; the nominal noon rate as per the Bank of Canada
(2) See press releases dated June 23, 2015 and July 13, 2015.  

Exploration highlights and significant events through and subsequent to June 30, 2015:

TV Tower                                                          

TV Tower is a joint venture between Pilot Gold (60%) and a Turkish subsidiary of Teck Resources Limited ("Teck") (40%). Pilot Gold is project operator and completed an earn-in to 60% in March 2015 through sole funding exploration over a two-and-a-half-year period. Since becoming project operator in June 2012, the Company has made or advanced six gold, silver and copper-gold discoveries. The project hosts numerous untested gold and copper targets.

A drill campaign focused on advancing and delineating the district scale copper-gold porphyry systems is the focus of the planned 2015 program.  Drilling is underway and follows an intensive surface mapping and 3D modeling effort designed to maximize drilling program efficiencies. Results from initial drill holes are pending, as are results of preliminary metallurgical studies on the high-grade copper-gold Valley Porphyry. Although the planned budget for the 2015 exploration program at TV Tower contemplates up to $7.59 million funded pro-rata by each partner (Pilot Gold share: $4.55 million), we anticipate adjusting the program as necessary while continuing to advance the project in a manner that reflects industry and market influences. To date, execution of the planned program and budget for the year has been managed reflective of market conditions.

Kinsley Mountain

Kinsley is a Carlin-style, sedimentary rock-hosted gold system and past-producer located along the Long Canyon Trend in northeastern Nevada.  Pilot Gold owns approximately 79% of Kinsley. A subsidiary of Nevada Sunrise Gold Corporation holds the remaining 21% interest in the property. Each entity is funding its pro rata share of activity on the property in 2015.   

The recently completed phase-one limited drill campaign at Kinsley drill-tested new exploration targets in the west-central part of the property.  Initial results from the 2015 program indicate a new mineralized zone located approximately 150 metres east of the high-grade Western Flank zone. Encouraging gold recovery and concentrate grades generated in preliminary metallurgical studies completed this year and in 2014 suggest the potential for low capital cost mining and processing scenarios at Kinsley.

The 2015 exploration program at Kinsley currently contemplates a budget of $2.0 million (the Company’s share of which is $1.58 million).  The Company anticipates executing this program in a controlled manner, and may adjust the planned program and budget as circumstances and market conditions dictate.

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 ("KCD"), neither contains any mineral resource estimates as defined by NI 43-101. Furthermore, the potential quantities and grades disclosed herein are conceptual in nature and, except for the mineral resource estimate at KCD, 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 potential to define an additional mineral resource at TV Tower, or a resource at Kinsley is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration will yield any mineral resources at Kinsley or additional resources at TV Tower.  


The following selected financial data is derived from and should be read in conjunction with the unaudited condensed interim consolidated financial statements and related notes thereto for the six months ended June 30, 2015 (the "Interim Financial Statements"), and related Management’s Discussion and Analysis (“MD&A"). 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.


Three months

ended  June 30

(in 000s except per share data)

Six months

ended June 30

(in 000s except per share data)






Loss for the period attributable to shareholders





Loss (gain) and comprehensive loss (gain) for the year attributable to shareholders





Basic and diluted loss per share






The most significant contributors to the losses in the three and six months ended June 30, 2015 were the write down of the Gold Bug property by $0.74 million, the cost of wages and benefits ($0.40 million and $0.78 million, respectively), and the impact of non-cash stock based compensation of $0.20 million and $0.68 million, respectively. The most significant contributors to the three and six month comparative period losses were wages and benefits ($0.39 million and $0.88 million respectively) as well as non-cash stock based compensation of $0.22 million and $0.67 million, respectively. The loss per share remained constant at $0.04 for each of the six month periods ended June 30, 2015 and 2014. 

The net other comprehensive gain for the three months ended June, 2015 was $0.41 million compared to $2.23 million in 2014. The net other comprehensive loss for the six months ended June, 2015 was $3.99 million (June 30, 2014: $0.79 million gain).  The six months ended June, 2015 includes a $3.97 million loss (June 30, 2014: $0.26 million gain) relating to exchange differences on the translation of the Company’s foreign operations with a non-United States dollar functional currency.  The impact from exchange differences will vary from period to period depending on the rate of exchange; in the period between January 1, 2015 and June 30, 2015, the United States dollar appreciated 6.0% relative to the Canadian dollar.


             As at


June 30, 2015

(in 000s)

December 31, 2014

(in 000s)

Cash and short-term investments



Working capital



Total assets



Current liabilities



Non-current liabilities



Shareholder’s equity



Total assets comprise primarily exploration properties and deferred exploration expenditures of $75.30 million and cash, cash equivalents and short term investments of $12.48 million.  Satisfaction of the Earn-in Option and assumption of control at TV Tower on March 12, 2015 was accounted for as an exchange of assets with the total carrying value of the Earn-in Option at the time ($17.63 million), and the Company’s then 40% interest in TV Tower ($8.29 million) treated as the consideration exchanged for a controlling 60% interest in the project.  Upon assumption of control the Company began to consolidate the entity that holds TV Tower, resulting in a $43 million increase in total assets, with the majority of value allocated to the project.  The 40% share of the project owned by Teck is included as a component of the $22.06 million non-controlling interest on the Company’s statement of financial position. Total assets also include $12.47 million in cash, cash equivalents and short-term investments, $1.26 million in receivables, and prepayments, and $5.71 million in value recorded for the Company’s 40% interest in the PEA-stage Halilaga copper-gold project in Turkey.

The decrease since year end in working capital reflects costs incurred toward the 2015 exploration programs ($3.04 million), cash outflows for operating expenditures ($1.93 million), and the impact of changing foreign exchange rates ($1.14 million).

Liabilities at June 30, 2015 and at December 31, 2014 primarily reflect accounts payable and accruals recorded at period end arising from ongoing activities as well as a deferred tax liability arising from the impact of foreign exchange on the carrying value of TV Tower.


With a proven technical team and strong treasury, Pilot Gold continues to discover and upgrade high-quality projects featuring strong grades, meaningful size and mining-friendly locales. Our cornerstone assets include interests in the TV Tower and Halilaga projects in Turkey and the Kinsley project in Nevada, each a foundational asset. The Company also has a pipeline of projects defined by strong gold occurrences, large land positions and district-scale potential.

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; “Revised Preliminary Economic Assessment Technical Report Halilaga Project, Turkey,” effective December 20, 2014 and dated February 16, 2015, prepared by Gordon Doerksen, P. Eng, Dino Pilotto, P.Eng and Stacy Freudigmann, P.Eng. of JDS Energy and Mining Inc.; Greg Abrahams, P.Geo and Maritz Rykaart, P.Eng of SRK; Gary Simmons of GL Simmons Consulting LLC.; Garth Kirkham, P.Geo. of Kirkham Geosystems Ltd.; and James Gray, P.Geo. of Advantage Geoservices Ltd; and “Updated Technical Report on the Kinsley Project, Elko and White Pine Counties, Nevada, U.S.A.”, effective March 1, 2015, dated March 19, 2015 and prepared by Michael M. Gustin, CPG, Moira Smith, Ph.D., P.Geo. and Gary Simmons, B.Sc. MMSA. 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, the amenability of mineralization to produce a high-grade or high-quality concentrate (as there can be no assurances as to the results of the metallurgical testing and no inferences should be drawn therefrom), the accuracy of any metallurgical testing completed to date, the potential of low capital cost options for potential mining and processing at Kinsley or processing at a typical Nevada refractory ore processing facility, 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 TV Tower, Kinsley or Halilaga, reliance on technical information provided by our joint venture partner or other third parties as related to the Company’s mineral property interests; 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 24, 2015 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 Resource:

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.