Pilot Gold Increases Interest In Kinsley Mountain

 

VANCOUVER, BC - "Pilot Gold finished 2013 in a very strong position" stated Matt Lennox-King, President & CEO. "We have continued to grow with significant discoveries at Kinsley, in Nevada and TV Tower in Turkey. We have the structure and financial strength to advance our projects in Nevada and Turkey, and maintain flexibility to pursue other value opportunities that may arise."

Kinsley Mountain is a Carlin-style, sedimentary-rock hosted gold system and past-producer located along the Long Canyon Trend in North Eastern Nevada. Pilot Gold increased its interest in Kinsley to approximately 79% during the year as a result of having sole-funded activity on the project, including allowable 2013 budget overruns.

Through December 31, 2013 the Company completed a 14,200 meter 2013 drill program and incurred approximately $3.85 million in expenditures at Kinsley (year ended December 31, 2012: $3.67 million). Results at Kinsley to date confirm the presence of multiple stratigraphic horizons hosting mineralization in NNE-SSW and possible NW-SE orientations along the property's Western Flank zone, including the discovery of high grade gold in the Secret Canyon Shale, a new stratigraphic host horizon beneath the previously exploited Candland Shale. The Candland Share is the main host for mineralization at the historical Kinsley Mine.

Pilot Gold drilled a new high grade gold discovery at Kinsley's Western Flank target, within a new host horizon, and eceived approval for a Plan of Operations allowing up to 70 acres of disturbance for exploration and development drilling on the core group of claims. The Company submitted an amendment to the Plan of Operations in November 2013, which if approved, will allow 20 acres of additional exploration drilling in the property's northern claims.

A subsidiary of Nevada Sunrise Gold Corporation holds the remaining 20.9% interest in the property. The 2014 program and budget currently approved for Kinsley is $4.5 million, and includes a 17,000-meter drill program. The Company and its partner are each obligated to fund their pro rata share. The initial phase of the 2014 drill program was completed on March 9, 2014. Drilling is expected to resume in May 2014.

TV Tower is an extensive epithermal gold-silver and porphyry copper-gold property located in the Biga district of northwestern Turkey. Pilot Gold currently holds a 40% interest in TV Tower, and became project operator in June 2012 with an option to increase the Company's interest in TV Tower to 60%. The Company has completed the second year minimum committed expenditure amount and has begun the final expenditure to complete the option to earn-in.