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Drilling to target high-grade mineralization in the Secret Canyon Shale

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) ("Pilot Gold" or the "Company") is pleased to announce that it has commenced a four-hole RC drill program targeting high-grade gold mineralization in the Secret Canyon Shale at the Kinsley Mountain Gold Project ("Kinsley") in northeastern Nevada.

In late 2013, Pilot Gold discovered the Western Flank gold deposit. The sulphide resource is currently estimated at 284,000 Indicated ounces of gold grading 6.04 g/t, and 39,000 Inferred ounces grading 2.41 g/t gold. Mineralization is open for extension to the north and east. (See December 17, 2015 press release, and the Kinsley Technical Report available on the Company’s website at www.pilotgold.com or under Pilot Gold’s SEDAR profile at www.sedar.com.)

Key Points:

• The Western Flank deposit is hosted in the Secret Canyon Shale, approximately 200 metres below the historical Kinsley open pit mine workings in the Dunderberg Shale
• There are 1,082 historic drill holes on the Kinsley property that test, or have tested for, mineralization in the Dunderberg Shale, with only a single historic hole (pre-Pilot Gold – 2011) passing through the Secret Canyon Shale horizon
• Drilling completed by Pilot Gold on the new Secret Canyon Shale target stratigraphy has tested 10 general, broadly-spaced locations over an approximate 10 km2 area. The target stratigraphic interval in all 10 areas contains anomalous gold mineralization to some degree, including:
  • Western Flank Zone: 1,461,000 tonnes grading 6.04 g/t Au Indicated, 508,000 tonnes grading 2.41 g/t Au Inferred (see December 17, 2015 press release, and the Kinsley Technical Report)
  • The Secret Spot: PK153: 25.7m grading 1.34 g/t Au, and 13.7 m grading 1.09 g/t Au, including 1.5 m grading 5 g/t Au, and 6.1 m grading 3 g/t Au (over a 70 metre interval) (September 10, 2014 press release)
  • Racetrack: PK180: 10.7 m grading 1.25 g/t Au (December 9, 2014 press release)
  • North-central historic Kinsley Mine trend: K425: 4.6 m grading 1.58 g/t Au (historical data)

Pilot Gold believes that the Secret Canyon Shale has high potential to host more than one zone of high-grade mineralization. Exploration is now focused on this specific stratigraphic interval.

New drill targets were developed using 3-D modeling software, including the integration of new and historical geological, geochemical and geophysical data as detailed below. As a result, a new high-priority target area immediately below and southwest of the historic Main Pit was identified and will be tested in four reverse circulation holes of approximately 425 metres each for a total of 1,700 metres. The drill program commenced April 21, 2016.

Secret Canyon Shale Target Area
The Western Flank deposit was discovered in late 2013 in the Secret Canyon Shale Formation, which lies below the Dunderberg Shale, host to shallow oxide resources and past-production at Kinsley, and was previously unrecognized as a potential host to mineralization (November 18, 2013 press release). In late 2015, Pilot Gold released a resource estimate for the Kinsley deposit, including a separate estimation for the Western Flank Zone (November 5, 2015 press release). Metallurgical testing of sulphide material from the Western Flank Zone returned excellent recoveries and concentrate grades, suggesting that the gold may be amenable to extraction using low capital cost, conventional flotation methods (January 19, 2015 press release). 

Given the exceptional grades and metallurgical characteristics exhibited by mineralization at the Western Flank Zone, Pilot Gold began an intensive 3-D modeling exercise in the fall of 2015 focused solely on identification of other targets similar in nature to the Western Flank Zone. The drill targeting exercise involved characterization of the major controls on mineralization in the Western Flank Zone, as well as exploration vectors. These include:

• The intersection of swarms of closely-spaced, high-angle, NNE-striking faults with the NW-striking “Kinsley Trend” fault zone, along which the historic pits are aligned. Both sets of faults are believed to be feeders to mineralization in the Dunderberg Shale and Secret Canyon Shale
• Gold associated with disseminated arsenical pyrite, localized within the Secret Canyon Shale stratigraphic horizon
• Association of gold-bearing, disseminated sulphide mineralization with deep IP chargeability highs
• Association of mineralization with a halo of pathfinder elements, including As, Sb, Tl and Hg

From this exercise, a high-conviction target was identified immediately southwest of the Main Pit in the east-central Kinsley Trend. A large (400 metre-long), coincident, untested, historical IP-chargeability anomaly, as well as surface structures and geochemical anomalies are consistent with the model.

The amended program and budget reflects an increase of $315,000 to the 2016 exploration budget at Kinsley for an amended total of $750,000. If the drill program successfully intercepts high-grade sulphide mineralization, additional IP surveys and drilling along the Kinsley Trend may be undertaken.

For a map showing the 2016 target area please click here: http://pilotgold.com/sites/default/files/KinsleyPRmap04252016release.pdf

ABOUT KINSLEY
Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems. The property consists of 513 unpatented lode claims on U.S. Bureau of Land Management land plus 6 leased patents totaling 4213 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.

Moira Smith, Ph.D., P.Geo., Vice-President Exploration and Geoscience, 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 36-90% of the reported lengths. Drill samples were assayed by ALS Limited 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 0.20 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. ALS Geochemistry-Reno is ISO 17025:2005 Accredited, with the Elko prep lab listed on the scope of accreditation.

Further information on Kinsley is available in the technical report entitled “Updated Technical Report and Estimated Mineral Resources for the Kinsley Project, Elko and White Pine Counties, Nevada, U.S.A.”, effective October 15, 2015, dated December 16, 2015 and prepared by Michael M. Gustin, CPG, Moira Smith, Ph.D., P.Geo. and Gary Simmons, B.Sc. MMSA (the “Kinsley Technical Report”), available on the Company’s website at www.pilotgold.com or under Pilot Gold’s SEDAR profile at www.sedar.com.  

ABOUT PILOT GOLD
Pilot Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our two core projects are Goldstrike in Utah and Kinsley Mountain in Nevada. The Company also holds important interests in two Turkish assets, Halilaga and TV Tower, and has a pipeline of Western US 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:
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, 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 and/or the reliance on technical information provided by our joint venture partner at Kinsley, 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; possible claims against the Company; 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 17, 2016 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.

 

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47.2 m grading 1.14 g/t Au; 24.4 m grading 1.05 g/t Au  

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) ("Pilot Gold" or the "Company") is pleased to announce additional drill results from 12 Reverse Circulation (RC) drill holes at the 100% controlled Goldstrike Oxide Gold Project in southwestern Utah. The primary target is Carlin-style shallow, oxide gold mineralization on the 7 km long “Historic Mine Trend”, between and down-dip to the north of historic open pits.

Highlights from infill and step-out drilling on the 7 km-long, 2 km-wide Historic Goldstrike Mine Trend include: 

• 1.14 grams per tonne gold (g/t Au) over 47.2 metres (m) in PSG027

• 0.80 g/t Au over 25.9 m in PSG032

• 1.05 g/t Au over 24.4 m, including 1.68 g/t over 10.7 m in PSG035

• 0.60 g/t Au over 39.6 m in PSG039

Key Points:

• Drilling to date confirms that, as modeled, a sheet of nearly continuous oxide gold mineralization extends at shallow depth between and immediately below all of the historic pits in the eastern Historic Mine Trend. 

• Variations in the grade of intercepts are attributed to proximity to high-angle mineralizing feeder structures.

• Holes drilled to date represent infill and step-out drilling targeting the basal Claron Formation in the easternmost portion of the Historic Mine Trend. 

• Long intervals assaying 0.30 to 0.40 g/t gold were also encountered on the margins of the mineralized zone. 

• 75% of holes encountering significant mineralization in the basal Claron Formation as well as continuing into Paleozoic strata to depth.

For a complete table of drill results for the current 12 holes, please click here:
http://pilotgold.com/sites/default/files/GS_Intercepts04252016.pdf

For a complete table of results for all drilling by Pilot Gold at Goldstrike in 2015 and to date in 2016, please click here: http://pilotgold.com/sites/default/files/GS_Intercepts2015to04252016.pdf

For a map of drill collars and traces for the current release, please click here:
http://pilotgold.com/sites/default/files/GoldStrike_PR2016-6bv2.pdf

RC drilling is ongoing, with on average 5 RC drill holes completed per week.

In addition to the ongoing RC drilling program, a 10-hole metallurgical and infill core drill program is also underway, with results pending for four holes drilled to date.  Eight of the core holes are, or will be, located in the eastern portion of the Historic Mine Trend (Km 6 N and Km 5 N), with two located in the western part of the Historic Mine Trend. For a map showing the planned and executed locations of core and RC holes, please click here:  http://pilotgold.com/sites/default/files/GoldStrike_PR2016-6av1.pdf

2016 RC and Core Drilling Program
The objective of the 2016 RC and core drilling program is to target unmined and/or undrilled areas between and around the historic pits, and to drill test down-dip to the north of, and laterally beyond, the Historic Mine Trend into areas where gold has been confirmed but not systematically drilled off. The holes will average approximately 150 metres in length. The scope of the program is open-ended and dependent on results. At least 100 RC drill holes are covered in the Phase 1 2016 drill budget. The core holes and metallurgical study costs are a supplement to the RC drill program budget. The metallurgical program will test the amenability of oxide material in newly-discovered areas of mineralization to leaching, over a range of particle sizes. Historical mining at Goldstrike (1988-1994) was 100% run of mine material that returned approximately 75% recovery on the heap leach pads(1).

The goal is to advance the Goldstrike Project to a resource estimate by year end, incorporating new and historical RC drill hole data over a broad area.

Goldstrike Property
Goldstrike is located in the eastern Great Basin, immediately adjacent to the Utah/Nevada border, and is a Carlin-style gold system, similar in many ways to the prolific deposits located along Nevada’s Carlin trend.  Like Kinsley Mountain and Newmont’s Long Canyon deposit, Goldstrike represents part of a growing number of Carlin-type systems located off the main Carlin and Cortez trends in largely underexplored parts of the Great Basin.  The Goldstrike Property comprises 96 km2 of US federal lode claims, patented (private) claims and Utah State leases.  Previous mining at Goldstrike occurred from 1988 to 1994, with 209,000 ounces of gold produced from 12 shallow pits, at an average grade of 1.2 g/t Au.

(1) Previous mining data sourced from: Willden, R., 2006, Goldstrike Mining District, Washington County, Utah: in bon, R.L., Gloyn, R.W., and Park, G.M., eds., Mining Districts of Utah: Utah Geological Association Publication 32, p. 458-476.

Moira Smith, Ph.D., P.Geo., Vice-President Exploration and Geoscience, 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 Limited 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. ALS Geochemistry-Reno is ISO 17025:2005 Accredited, with the Elko prep lab listed on the scope of accreditation.

Goldstrike is an early-stage exploration project and, except for that which is noted in the Report (as defined below), 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. NI 43-101 technical report prepared for a previous operator entitled, "Technical Report on the Mineral Mountain Property, Washington County, Utah, USA", dated February 16, 2010, prepared by Kenneth P. Puchlik, of Puchski GeoConsultants (the "Report"). As at the date of the Report, Mr. Puchlik was a “Qualified Person” as defined by NI 43-101.

ABOUT PILOT GOLD

Pilot Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our two core projects are Goldstrike in Utah and Kinsley Mountain in Nevada. The Company also holds important interests in two Turkish assets, Halilaga and TV Tower, and has a pipeline of Western US 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:

Evelyn Cox, Director Corporate Communications

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, 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 and/or the reliance on technical information provided by 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; possible claims against the Company; 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 17, 2016 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

 

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VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 12, 2016) - Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") is pleased to announce its financial and operating results for the three months ended March 31, 2016. 

Company highlights through and subsequent to March 31, 2016:

• Appointed Cal Everett as President and CEO.
• Closed a C$4.47 million non-brokered private placement.
• Commenced infill and step-out drilling along the 7 km-long, 2 km-wide "Historic Mine Trend" at Goldstrike targeting unmined and/or undrilled areas between, around and immediately below the historic pits.
• Reported initial results from the 2016 drill program at Goldstrike, with 15 of 20 RC holes intercepting oxide gold mineralization over significant widths. Highlights include1:
  
  • 35.1 m grading 2.10 g/t Au, including 13.7 m grading 4.42 g/t Au in hole PGS019;
  • 30.5 m grading 1.07 g/t Au in hole PGS020;
  • 27.4 m grading 1.56 g/t Au, including 19.8 m grading 1.98 g/t Au in hole PGS025;
  • 57.9 m grading 1.19 g/t Au, including 30.5 m grading 1.65 g/t Au in hole PGS026;
  • 47.2 m grading 1.14 g/t Au in hole PGS027; and
  • 24.4 m grading 1.05 g/t Au, including 10.7 m grading 1.68 g/t in hole PGS035.
• Commenced a ten hole, large diameter core drilling and initial metallurgical program at Goldstrike, with four holes completed to date.
• Commenced a four hole RC drill program (approximately 1,700 metres) targeting high-grade gold mineralization in the Secret Canyon Shale immediately below and southwest of Kinsley's historic Main Pit.

Goldstrike - Utah

Results from the initial 20 infill- and step-out drill holes of the 2016 program include significant oxide intercepts over the eastern portion of the 7 km-long Historic Mine Trend, further confirming that gold is widespread and predictable within a particular stratigraphic interval, the basal Claron Formation. 15 of 20 RC holes intercepted oxide gold mineralization over significant widths, with 30% of these first 2016 holes returning at least 1 g/t gold over an average of at least 37 metres.

The scope of the program is open-ended and dependent on results. The objective is to advance Goldstrike to a resource estimate by year end, incorporating new and historical RC drill hole data over a broad area. At least 100 drill holes, including 10 core drill holes and an initial metallurgical program, are covered in the amended Phase 1 2016 drill budget, with the program progressing as anticipated.

Pilot Gold owns 100% of Goldstrike. For the three months ended March 31, 2016, expenditures capitalized to Goldstrike were $0.66 million, including: drilling and assaying ($0.19 million), lease and claims fees ($0.19 million), salaries ($0.12 million) and analyses and surveys ($0.03 million). 

SELECTED FINANCIAL DATA

The following selected financial data is derived from the unaudited condensed interim consolidated financial statements and related notes thereto for the three months ended March 31, 2016 (the "Interim Financial Statements"), as prepared in accordance with International Financial Reporting Standards. Details of these results are described in 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. 

1 See press releases dated April 12, 2016 and May 10, 2016.

All amounts are presented in United States dollars unless otherwise stated.

Total assets comprise primarily exploration properties and deferred exploration expenditures of $77.63 million and cash, cash equivalents and short term investments of $9.47 million. The 40% share of TV Tower owned by Teck and 20.9% of Kinsley owned by Nevada Sunrise comprise the balance of the $23.11 million non-controlling interest on the Company's statement of financial position. Total assets also include $0.82 million in receivables and prepayments, and $5.57 million in value recorded for the Company's 40% interest in the Halilaga copper-gold project in Turkey.

The increase in working capital since year end 2015, reflects the $3.30 million net proceeds from the private placement completed on March 4, 2016 and the impact of changing foreign exchange rates of $0.46 million, offset by the costs incurred toward the 2016 exploration programs of $0.96 million and cash outflows for operating expenditures of $1.35 million.

Total liabilities at March 31, 2016 and December 31, 2015, primarily reflect accounts payable and accruals recorded at period end arising from ongoing activities, and also includes a deferred tax liability ($0.35 million as at March 31, 2016) arising from the impact of foreign exchange on the carrying value of TV Tower, which is $0.13 million lower than as at December 31, 2015.

The most significant contributors to the losses in the three months ended March 31, 2016 were the cost of wages and benefits of $0.53 million, office and general costs of $0.39 million, as well as non-cash stock based compensation of $0.29 million. The loss per share decreased to $0.01 for each the three months ended March 31, 2016 a decrease of $0.01 over the same period in 2015.

The net other comprehensive income attributable to shareholders for the three months ended March 31, 2016, was $0.92 million compared to a loss of $4.40 million in 2015, and is driven by exchange differences on translation of foreign currency subsidiaries. The impact from exchange differences will vary from period to period depending on the rate of exchange; in the period between January 1, 2016 and March 31, 2016, the United States dollar depreciated 7.7% relative to the Canadian dollar (2015: 8.5% appreciation)

Moira Smith, Ph.D., P.Geo., Vice President Exploration and Geoscience, 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.

ABOUT PILOT GOLD

Pilot Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our two core projects are Goldstrike in Utah and Kinsley Mountain in Nevada. The Company also holds important interests in two Turkish assets, Halilaga and TV Tower, and has a pipeline of Western US projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.

Goldstrike and Kinsley are early stage exploration projects; the potential quantities and grades disclosed herein are conceptual in nature and, except for the mineral resource estimate at the Western Flank deposit at Kinsley, and a small resource determined for a previous operator at Goldstrike, there has been insufficient exploration to define a mineral resource for other 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 Goldstrike or 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 additional mineral resources at the Company's mineral property interests. 

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 and/or the 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; 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 17, 2016 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.

 

 This document is available in PDF.

RC: 38.1 m grading 3.28 g/t Au in PGS048; CORE: 30.5 m grading 1.85 g/t Au in PGS041C 

VANCOUVER, B.C. – Pilot Gold Inc. (PLG - TSX) ("Pilot Gold" or the "Company") is pleased to announce additional drill results from six Reverse Circulation (RC) and one diamond core hole at the 100% controlled Goldstrike Oxide Gold Project in southwestern Utah.  The primary target is Carlin-style shallow, oxide gold mineralization on the 7 km long, 2 km-wide “Historic Mine Trend”, between and down-dip to the north of historic open pits.

Highlights from infill and step-out drilling include: 

• 1.15 grams per tonne gold (g/t Au) over 18.3 metres (m), and a second zone with 0.86 g/t Au over 32.0 m in PGS040
• 1.85 g/t Au over 30.5 m in PGS041C – core hole
  • including 2.63 g/t Au over 18.3 m
• 3.28 g/t Au over 38.1 m in PGS048
  • including 4.92 g/t Au over 22.9 m
  • including 8.27 g/t Au over 10.7 m
• 0.87 g/t Au over 61.0 m in PGS049
  • including 2.83 g/t Au over 7.6 m

Key Points:

• Continued drilling of the main gold host horizon, the Claron Formation, is highlighting new areas with high grade feeder structures.  A more concentrated RC drill pattern will be used to define these mineralized zones.
• The feeder structures are now confirmed to be gold bearing both in the Claron Formation and in older Paleozoic rocks.  This is a new target area, and will expand the infill and step out drill program.
• Four of the seven reported drill holes intersect mineralized feeder structures.  As drilling progresses, Pilot Gold is working to define and model a network of higher-grade feeder faults in the eastern portion of the Historical Goldstrike Mine Trend.

To date, 75% of holes drilled by Pilot Gold have encountered significant gold mineralization in the basal Claron Formation, as well as a number of holes with mineralization hosted in underlying Paleozoic strata.

The mineralized intercepts in drill holes PGS041C, PGS048 and PGS049 are all separated by approximately 100 m, and are proximal to other drill holes, including PGS019, which returned 2.10 g/t Au over 35.1 m (see news release dated April 12, 2016).  Additional drill holes will target extensions to this zone.

For a complete table of drill results for the current 7 holes, please click here:
http://pilotgold.com/sites/default/files/GS_Intercepts05242016.pdf

For a complete table of results for all drilling by Pilot Gold at Goldstrike in 2015 and to date in 2016, please click here:
http://pilotgold.com/sites/default/files/GS_Intercepts2015to05242016.pdf

For a map of drill collars and traces for the current release, please click here:
http://pilotgold.com/sites/default/files/GoldStrike-PR-20160524.pdf   

RC drilling is ongoing, with on average 5 RC drill holes completed per week.

2016 RC and Core Drilling Program
In addition to the ongoing RC drilling program, a 10-hole metallurgical and infill core drill program is also underway, with results pending for five additional core holes drilled to date.  Eight of the core holes are, or will be, located in the eastern portion of the Historic Mine Trend (Km 6 N and Km 5 N), with two located in the western part of the Historic Mine Trend.

The objective of the 2016 RC and core drilling program is to target unmined and/or undrilled areas between and immediately below the historic pits, and to drill test down-dip to the north of, and laterally beyond, the Historic Mine Trend into areas where gold has been confirmed but not systematically drilled off. The scope of the program is open-ended and dependent on results.  The core holes and metallurgical study costs are a supplement to the RC drill program budget. The metallurgical program will test the amenability of oxide material in newly-discovered areas of mineralization to leaching, over a range of particle sizes.

Goldstrike Property
Goldstrike is located in the eastern Great Basin, immediately adjacent to the Utah/Nevada border, and is a Carlin-style gold system, similar in many ways to the prolific deposits located along Nevada’s Carlin trend.  Like Kinsley Mountain and Newmont’s Long Canyon deposit, Goldstrike represents part of a growing number of Carlin-type systems located off the main Carlin and Cortez trends in largely underexplored parts of the Great Basin.  The Goldstrike Property comprises 96 km2 of US federal lode claims, patented (private) claims and Utah State leases.  Previous mining at Goldstrike occurred from 1988 to 1994, with 209,000 ounces of gold produced from 12 shallow pits, at an average grade of 1.2 g/t Au.

(1) Previous mining data sourced from: Willden, R., 2006, Goldstrike Mining District, Washington County, Utah: in bon, R.L., Gloyn, R.W., and Park, G.M., eds., Mining Districts of Utah: Utah Geological Association Publication 32, p. 458-476.

Moira Smith, Ph.D., P.Geo., Vice-President Exploration and Geoscience, 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 Limited 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. ALS Geochemistry-Reno is ISO 17025:2005 Accredited, with the Elko prep lab listed on the scope of accreditation.

Goldstrike is an early-stage exploration project and, except for that which is noted in the Report (as defined below), 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. NI 43-101 technical report prepared for a previous operator entitled, "Technical Report on the Mineral Mountain Property, Washington County, Utah, USA", dated February 16, 2010, prepared by Kenneth P. Puchlik, of Puchski GeoConsultants (the "Report"). As at the date of the Report, Mr. Puchlik was a “Qualified Person” as defined by NI 43-101.

ABOUT PILOT GOLD
Pilot Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our two core projects are Goldstrike in Utah and Kinsley Mountain in Nevada. The Company also holds important interests in two Turkish assets, Halilaga and TV Tower, and has a pipeline of Western US 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:
Evelyn Cox, Director Corporate Communications
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, 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 and/or the reliance on technical information provided by 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; possible claims against the Company; 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 17, 2016 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.

 

 This document is available in PDF.

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 May 25, 2016 (the “Meeting”). A total of 53,057,991 common shares were voted, representing the votes attached to 42.34% of all outstanding common shares. Shareholders voted in favour of the election of all director nominees. The percentage of votes cast for each is as follows: