VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/14/13 -- Pilot Gold Inc. (TSX: PLG) ("Pilot Gold" or the "Company") is pleased to announce its financial results and company highlights for the quarter ended March 31, 2013, which includes strong gold and silver drill results at TV Tower and the sale of the Company's Regent exploration property.
Q1 2013 HIGHLIGHTS AND SIGNIFICANT EVENTS SUBSEQUENT TO QUARTER-END:
-- Sold the Regent exploration property for $3 million, retaining exposure to potential future production(1)-- Reported drill results up to 25.7 g/t gold over 16.5 metres (KCD-102) and 85.9 g/t silver over 135.5 metres (KCD-094) from TV Tower's KCD target(2)-- Approved exploration programs totalling +50,000 metres of drilling at Kinsley and TV Tower for 2013-- Launched 2013 drill campaign at TV Tower focused on the KCD, Kayali and Columbaz targets(3)-- Earned a 65% interest in Kinsley Mountain(4)
"Pilot Gold maintained its momentum in the first quarter, with continued strong drill results from TV Tower, an innovative asset sale with potential ongoing royalties, and the identification of new, highly prospective targets on key properties in Turkey and Nevada," said Matt Lennox-King, Pilot Gold President & CEO.
WORK PROGRAM UPDATES
Pilot Gold currently holds a 40% interest in the project and became project operator in 2012 with an option to increase our interest in the project from 40% to 60%. We completed the $5-million, first-year minimum earn-in expenditure commitment in January 2013, and in March 2013, issued 1,637,500 common shares to "TMST", a subsidiary of Teck Resources Limited in connection with achieving this first milestone. As of March 31, 2013 we had incurred approximately $2.2 million in expenditures eligible toward the second year $7-million earn-in expenditure requirement. TMST is our 60% joint venture partner.
The program at TV Tower for 2013 includes 30,000 metres of drilling at the KCD, Kayali and Columbaz targets. At KCD, the 2013 drill program includes 15,000 metres of infill and step-out drilling on the gold and silver zones and a staged metallurgical testing program. Drilling will also begin imminently at the Kayali oxide target, with 7,500 metres planned. Discovered in 2011 with drill hole KYD-01 (0.87 g/t gold over 114.5m including 2.83 g/t gold over 15.4 metres; see press release dated May 10, 2011), Kayali is oxidized to 250 metres. An additional 7,500 metres is planned at the Columbaz low-sulphidation, high-grade epithermal vein system, where grab samples have reported 39 g/t gold and 294 ppm silver.
Pilot Gold earned a 65% interest in Kinsley Mountain in February 2013. Kinsley is a Carlin-style, sediment hosted project and past producer. The 2013 work program includes 22,000 metres of drilling, stepping out from the historic pits to test priority exploration targets on flanking and outlying targets. The program will start upon receipt of a Plan of Operations permit, currently anticipated to be July 2013. A subsidiary of Nevada Sunrise Gold Corporation holds the remaining 35% interest.