VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/13 -- Pilot Gold Inc. (TSX: PLG) ("Pilot Gold" or the "Company") is pleased to announce its financial results and company highlights for the year ended December 31, 2012, a year marked by significant advances on each of its key projects in Turkey and Nevada.
2012 highlights and significant events subsequent to year end include:
-- Signed an earn-in and joint venture agreement with Teck Resources Limited ("Teck") to become project operator at the TV Tower property in Turkey, while earning in to 60% interest-- Identified large, growing gold and silver zones at the KCD target, TV Tower-- Announced results of a preliminary economic assessment and a maiden resource estimate for the Halilaga copper-gold project in northwest Turkey-- Earned-in to a 65% interest in, and doubled property size at, the Kinsley Mountain project in Nevada-- Sold the Regent exploration property for $3 million, retaining exposure to potential future production-- Secured capital to ensure 2013 exploration plans are fully funded
"Pilot Gold realized significant exploration and project success in 2012," stated Matt Lennox-King, Pilot Gold President & CEO. "We are in an excellent position heading into 2013, with the financial strength and the proven skills and experience we require to drive progress at our properties in Turkey and Nevada and achieve our vision of being the leading exploration company in our chosen jurisdictions."
Pilot Gold currently holds a 40% interest in the project and became project operator in 2012. Pursuant to the TV Tower Agreement, we hold an option to increase our interest in the project from 40% to 60%, subject to meeting certain requirements over the next three years. A subsidiary of Teck currently holds a 60% interest in TV Tower. We completed the $5 million first-year minimum earn-in expenditure commitment in January 2013, and issued 1,637,500 common shares to a subsidiary of Teck in connection with achieving this first milestone.
Since becoming project operator in June 2012, we completed 14,440 metres of drilling, comprising 70 diamond drill holes primarily focused on the KCD target. Drilling in 2012 at KCD has returned some of the highest-grade gold, silver and copper intercepts reported in northwestern Turkey. The program at TV Tower for 2013 includes 30,000 metres of core and RC drilling at multiple targets.
Pilot Gold earned a 65% interest in Kinsley Mountain in February 2013. The 2012 program included 11,868 metres of infill and step-out core and reverse circulation ("RC") drilling in 63 holes, and was designed to define and expand the mineralized zones identified by previous operators.
In conjunction with drilling, a comprehensive property-wide soil and rock sampling and geological mapping effort to identify new targets was completed, encompassing both the original 272 claims and 191 claims staked by the Company in largely unexplored areas. Staking by the Company expanded the Kinsley property, consolidated access to the main mineralized trends to the North, and joined two previously separate claim blocks, creating a contiguous property.