Pilot Gold Inc. (PLG-TSX) (“Pilot Gold” or the “Company”) announces that High Desert Gold Corporation (HDG-TSX:V) (“HDG”) has completed its earn-in option on the Gold Springs gold project on the Nevada-Utah border (“Gold Springs”). The Option and Earn-in Agreement dated January 10, 2010 (the “Earn-in Agreement”) called for HDG to incur $1 million in exploration expenditures and pay $160,000 to Pilot Gold. These obligations have been met, and a notice of completion confirming HDG’s earn-in has been provided to, and acknowledged by Pilot Gold. Pilot Gold has elected to participate at a 40%-interest in a newly established jointly-owned company called Gold Springs LLC. On closing of the earn-in, and signing of an operating agreement, each company’s respective interests in Gold Springs will be conveyed to Gold Springs LLC.
To date, HDG has completed 16 RC holes totalling 1,569 metres and two diamond drill holes totalling 276 metres, together with a property-wide ZTEM geophysical survey at Gold Springs. Early assay results from RC drilling are expected to be available by late July.
“We are pleased to be working with HDG to advance the Gold Springs property,” says Matt Lennox-King, Pilot Gold’s President and CEO. “Together with our Brik, Easter and Stateline properties, Gold Springs provides the Company with a dominant position in the emerging Stateline District.”
Pilot Gold’s Nevada exploration platform includes Regent, Brik and Viper, three gold-mineralized, low-sulphidation epithermal systems; and New Boston, a copper-molybdenum porphyry prospect. Drilling is currently underway at all four projects. The Company also has a pipeline of six additional properties in Nevada with compelling drill targets to sustain future growth.
ABOUT PILOT GOLD
Pilot Gold is a gold exploration company focused on advancing Halilaga, TV Tower and Regent – three strategic gold and copper-gold projects located in Turkey and 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
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.