11-17

Pilot Gold Inc. (PLG – TSX) (“Pilot Gold” or the “Company”) is pleased to report a new bulk tonnage style gold discovery in northeastern Elko County, Nevada. The first five holes ever drilled on the Company’s 100% owned Viper Project have intersected widespread, sediment hosted, oxide gold and silver mineralization starting at surface.

Highlights from the first five holes at Viper include:

  • 1.09 g/t Au and 20.98 g/t Ag over 33.5 meters from surface, in hole PV-003; and,
    • 0.81 g/t Au and 11.18 g/t Ag over 3.0 meters from 45.7 meters; and, 
    • 0.65 g/t Au and 4.20 g/t Ag over 4.6 meters from 103.6 meters
  • 0.47  g/t Au  and 4.08 g/t Ag over 7.6 meters from 16.8 meters in hole PV-002
  • 0.51 g/t Au and 5.86 g/t Ag over 13.7 meters from surface, in hole PV-004; and,
    • 0.60 g/t Au and 7.48 g/t Ag over 6.1 meters from 21.3 meters

Intervals were calculated using a 0.20 g/t gold cutoff and maximum 3 meters of internal waste.  True thickness of intercepts is unknown at this time due to the presence of both high and low angle controls on mineralization.  Pilot Gold employs a rigorous quality control system by inserting a blank, standard or duplicate into the sample stream for every 10 drill samples.  All gold values reported are 30 gram Fire Assay with Atomic Absorption finish.  All assays were performed by ALS Chemex at their Reno and Vancouver labs following preparation in the Elko lab.  For a PDF of comprehensive drill results, please click:
http://www.pilotgold.com/sites/default/files/ViperDrillResults1117.pdf

For a map highlighting drilling, please click:
http://www.pilotgold.com/sites/default/files/ViperDrillMap1117.pdf

“The results at Viper are significant, as they share similarities with classic sediment-hosted replacement deposits in Nevada and, along with our Brik Project, mark the second new drill discovery made in Nevada by the Pilot Gold team in 2011. Our strategy of focusing regional exploration efforts off-trend is producing excellent results,” said Matt Lennox-King, President and CEO of Pilot Gold.

These first five holes were drilled at the Baja Target where the gold and silver mineralization zone is controlled in part by high angle epithermal veins, as well as a near horizontal stratigraphic contact between calcareous sandstone and underlying limestone.  Similar to mineralized zones at Long Canyon, receptive horizons at the top of the limestone, as well as within it, are strongly affected by decarbonatization, hematite, scorodite and jarosite flooding and jasperoidal replacement, particularly proximal to the epithermal quartz-calcite veins. 

Pilot Gold’s 2011 drilling campaign at Viper totaled 3,364 meters in 18 reverse circulation (RC) drill holes: 7 holes on the northern Baja Target, and 11 holes on selected targets to the south, within a large area of quartz veining, alteration and elevated gold in rock samples that measures in excess of 1.5 kilometers in a north-south direction by 700 meters in an east-west direction.  Additional target areas will be subject to future drilling. Assays are pending for 11 holes in the southern area as well as two follow up holes at the Baja Target.

Viper lies along the northern edge of the Long Canyon Trend in northeast Nevada in an area that has seen very little exploration, and was generated through grass roots exploration by the Pilot Gold team, while exploring for Long Canyon style targets in 2009.  The Viper Project totals 1,836 hectares, which is comprised of 831 hectares of private mineral rights owned and leased by Pilot Gold and 1,004 hectares of unpatented lode claims on land administered by the BLM and controlled by Pilot Gold.

On the heels of the Brik discovery in July of this year, the Viper discovery marks the second new drill discovery made in Nevada by the Pilot Gold team in 2011.

Table of recent gold discoveries in Nevada:

Project

Discovery date

Discovery intercepts

Viper (Pilot Gold)

2011

1.09 g/t gold over 33.5 metres

Brik (Pilot Gold)

2011

2.41 g/t gold over 16.7 metres

Red Hill (Barrick Gold Corp.)

2011

12.00 g/t gold over 35.36 metres

Gold Rush (Barrick Gold Corp.)

2011

12.75 g/t gold over 50.29 metres

Jake Creek (Evolving Gold Corp.)

2010

0.97 g/t gold over 45.7 metres

Carlin Project (Evolving Gold Corp.)

2009

1.21 g/t gold over 35.1 metres

 

All technical information contained in this release has been reviewed and approved by Vance Spalding, CPG, Exploration Manager U.S.A. for Pilot Gold and a “qualified person” within the meaning of National Instrument 43-101. Intervals were calculated using a 0.20 g/t gold cutoff and maximum 3 meters of internal waste.  True thickness of intercepts is unknown at this time due to the presence of both high and low angle controls on mineralization. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nevada for gold by Fire Assay of a 30 gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. QA/QC included the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. All holes are also analyzed for gold by cyanide assay as well as a 51 element geochemical suite by ICP-MS.

ABOUT PILOT GOLD                                                   

Pilot Gold is a gold exploration company focused on advancing Halilaga, TV Tower and our pipeline of projects in Nevada. For more information, visit www.pilotgold.com or contact:

Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Development
Phone 604-632-4677 or Toll Free 1-877-632-4677
info@pilotgold.com

Except for the statements of historical fact contained herein, certain information presented constitutes "forward-looking information" within the meaning of applicable Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “planning”, “planned”, “expects” or “looking forward”, “does not expect”, “continues”, “scheduled”, “estimates”, “forecasts”, “intends”, “potential”,  “anticipates”, “does not anticipate”, or “belief”, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Such forward-looking information, including, but not limited to, information with respect to exploration results, the timing and success of exploration activities generally, permitting timelines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, potential quantity and/or grade of minerals, potential size of mineralized zone, potential expansion of mineralization, potential type of mining operation, timing and possible outcome of any pending litigation, timing and results of future resource estimates or future economic studies and the timing and results of any future development programs 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 and actual results of current exploration and development activities; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors discussed in the section entitled "Risk Factors" in the Company’s Amended Annual Information Form for the year ended December 31, 2010 dated May 12, 2011 (amended June 7, 2011), which is available 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.