Drilling Resumes On Kinsley Mountain

 

VANCOUVER, BC - Pilot Gold reported final results of the 2014 program at Kinsley Mountain in Elko County, Nevada including 6.15 g/t Au over 7.6 m, including 8.73 g/t Au over 4.6 m in drill hole PK200, confirming the presence of high-grade mineralization between the Western Flank zone and the historic pits.

Metallurgical results suggesting that sulphide mineralization is amenable to flotation processing and the potential production of a gold concentrate with grades up to 312 g/t gold with recoveries of up to 95% when paired with tails leaching.

The company launched a $2.0 million drill campaign, with a focus on exploration drilling at new targets on the main claim block and recently-permitted Kinsley North claims.

Kinsley Mountain is a Carlin-style, sedimentary rock-hosted gold system and past-producer located along the Long Canyon Trend in northeastern Nevada. 2014 was a pivotal year for the project, with results demonstrating that gold is concentrated at the intersections of NW and NNE-trending structures, and the Secret Canyon Shale horizon (host to the high-grade mineralization in the Western Flank.

Management believes that it is unlikely that the Western Flank is the only high-grade zone hosted in the previously untested Secret Canyon Shale and expects the cross-cutting NW and NNE structures to provide a targeting framework for the planned 11,000 meter drill program.

Drilling at Kinsley resumed on March 8, 2015 with one reverse circulation drill rig. The initial budget for the 2015 exploration program at Kinsley is $2.0 million (the Company's share of which is $1.58 million). Pilot Gold's share of expenditures in the three months ended March 31, 2015, included: drilling and assaying ($0.27 million), salaries ($0.14 million) and analysis and surveys ($0.11 million).

Pilot Gold holds approximately 79% of Kinsley. A subsidiary of Nevada Sunrise Gold Corporation holds the remaining 21% interest in the property. The Company and its partner are each obligated to fund their pro rata share of activity on the property.