VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/10/13 -- Pilot Gold Inc. (TSX: PLG) ("Pilot Gold" or the "Company") has commenced a 7,500-metre drilling program on the Kayali target at the TV Tower project in northwestern Turkey. More than 925 metres have been drilled so far with assays pending. Kayali is the second high-priority target to be drill-tested at TV Tower in 2013, and expands the project's exploration program to include a bulk-tonnage, oxide gold system.
Initial drilling in 2010 revealed near-surface gold mineralization with oxidation to between 150 to 200 metres depth at Kayali. Drill highlights from the 2010-2011 program included:
-- 0.87 g/t gold (Au) over 114.5 metres starting from 4.5 metres depth at KYD-01; including -- 2.85 g/t Au over 15.4 metres-- 0.78 g/t Au over 88.6 metres starting from 0.4 metres depth at KYD-02; including -- 1.98 g/t Au over 22.5 metres
"Our team has had great success defining deposits similar to Kayali in the Biga peninsula, namely Agi Dagi and Kirazli(1). We are looking forward to demonstrating the potential of this target as we ramp up the 2013 drilling program," said Moira Smith, Chief Geologist, Pilot Gold.
Kayali Exploration Model Refined
The exploration model has been significantly refined by Pilot relogging core from the first round of drilling at Kayali. Gold mineralization is hosted within a tabular vuggy silica body, with elevated grades associated with more permeable stratigraphic horizons (ledges) and steep fault zones (ribs). At Kayali, the silica ledge is contained within a sequence of volcaniclastic rocks that is also highly oxidized. The drilling program will infill areas along a well-defined (by surface mapping and sampling) but sparsely drilled rib along the southern margin of the silica cap, and will test for parallel ribs within the main silica ledge to the north. Drill-hole orientations are now designed to intersect the interpreted structural fabric that controls higher grade mineralization at high angles to core.
Past drilling encountered a blanket of supergene copper mineralization immediately beneath the silica cap in a number of holes, including 0.66% copper over 56 metres in KYD-03. This zone of copper mineralization will also be targeted in the 2013 program. The total area to be tested in this phase of drilling is 400 metres long in an east-west direction and 300 metres north-south.
Reinterpretation from relogged drill core and new geological mapping has led to identification of the same zone of silicified volcaniclastic rocks extending to the north of the Kayali target. This may significantly increase the potential size of the area prospective for oxide gold mineralization. Additional surface mapping and sampling are currently underway in order to better define the limits of the Kayali hydrothermal system.
The Kayali target is located in the southern portion of the TV Tower property approximately eight kilometres south of the high-grade KCD target. Epithermal style systems like Kayali can be characterized by wide intervals of near surface, oxidized gold mineralization that are amenable to open pit mining and treatment by low cost heap leaching. Nearby similar projects include Alamos Gold's Kirazli and Agi Dagi deposits(1). Global projects of this type include Lydian's Amuslar project (Armenia), Alamos' Mulatos Mine (Mexico) and Newmont's Yanacocha mine (Peru).
A total of 35 diamond drill holes totalling 8,174 metres were drilled in the Kayali area in 2010 and 2011. (Significant intersections are highlighted in the link below. Drill results were announced in the May 10, 2011 Pilot Gold release, Pilot Gold Adds Copper and Silver to TV Tower Gold Property).
For a comprehensive table of Kayali drilling from 2010 to 2011, please click:
For a property map showing areas proposed for 2013 drilling, please click:
(1) The proximity to Alamos Gold's Kirazli and Agi Dagi projects does not mean Pilot Gold will obtain similar results at Kayali. TV Tower is an early stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("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 yielding a mineral resource.
About TV Tower:
TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (TMST) (60%), a Turkish subsidiary of Teck Resources Limited ("Teck"). Pilot Gold is project operator at TV Tower and can increase its interest in the project to 60%, through sole funding of exploration over a three-year period. (See press release dated June 21, 2012 for full details of the agreement terms.)
Located on the Biga peninsula in northwest Turkey, TV Tower encompasses 71 square kilometres. It contains a large number of targets ranging from high- and low-sulphidation epithermal gold-silver to porphyry gold-copper. The project has an extensive road network and targets to date all lie on land administered by Turkey's Ministry of Forestry. It is located immediately west of the Kirazli gold project (Alamos Gold) and approximately 10 kilometres northwest of the Halilaga copper-gold project (Teck/Pilot Gold).
Subject to permitting, Pilot Gold has budgeted for 30,000 metres of drilling at TV Tower in 2013, including a second-year 15,000-metre drill program launched at the KCD target on March 23, 2013. Pilot Gold also plans to drill additional targets throughout the year upon receipt of permits.
Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the technical information contained in the release is accurate. Drill samples and analytical data at TV Tower relating to the prior years' exploration campaigns were collected under the supervision of TMST, using industry standard QA-QC protocols. Dr. Smith has not verified all the data, however, TMST has given her no reason to doubt their authenticity. Dr. Smith has consented to the inclusion of the technical information in the form and context in which it appears in this news release.
ABOUT PILOT GOLD
Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality assets featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley Mountain project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of 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.
Further information is available in the technical report entitled "Updated Technical Report on the TV Tower Exploration Property, Canakkale, Western Turkey", effective July 15, 2012 and dated August 3, 2012, prepared by Paul Gribble, B.Sc., C.Eng., FIMMM, UK Manager, Geology of Tetra Tech WEI Inc., under Pilot Gold's Issuer Profile on SEDAR (www.sedar.com).
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 timing of exploration and development plans at the Company's mineral projects. 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 and mineral reserves, 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, including, but not limited to, statements that address reserve or resource potential, potential quantity and/or grade of minerals, potential size of a mineralized zone, potential expansion of mineralization, the timing and results of future resource estimates, proposed timing of exploration and development plans at the Company's mineral projects, and the estimation of mineral reserves and resources involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Pilot Gold to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information.
Such factors include, among others, risks related to the interpretation of results at certain of our exploration properties, reliance on technical information provided by our joint venture partners or other third parties as related to any of our exploration properties; changes in project parameters as plans continue to be refined; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements and future issuances of common shares as consideration to complete the earn-in agreement; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; current and proposed exploration and development; 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; uses of funds in general including future capital expenditures, exploration expenditures and other expenses for specific operations; the timing and success of exploration activities generally; achievement of identified tangible project milestones at TV Tower; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; 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 for the year ended December 31, 2012, dated March 27, 2013 (the "AIF") 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. Accordingly, readers should not place undue reliance on forward-looking information. Further details relating to Pilot Gold are also available in our AIF, available under Pilot Gold's SEDAR profile at www.sedar.com.
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