Pilot Gold Inc. (PLG - TSX) (“Pilot Gold”or the “Company”) is pleased to announce the start of 2011 drill programs on its 100%-owned Brik and New Boston projects in Nevada, with drilling on the 100%-owned Viper project to follow in early July. Brik, New Boston and Viper join Regent as the focus of Pilot Gold’s 2011 Nevada exploration program, and all boast high grades at surface and high priority drill targets.
“Our 2011 Nevada exploration campaign will account for roughly 45% of our targeted 60,000-metre, 2011 global drill campaign,”stated Matt Lennox-King, Pilot Gold President and CEO. “Supported by a treasury of $31 million, we have sufficient capital to advance our projects into 2013 and beyond.”
The Brik project anchors the emerging Stateline epithermal district in Lincoln County, south-eastern Nevada, where Pilot Gold controls over 6,600 hectares of mineral rights. The Stateline district lies within the Caliente Calderas volcanic province, an underexplored belt of Tertiary-age volcanics, and was subject to historic gold production in the early 20th century.
The Brik project totals 103 unpatented lode claims measuring 855 Ha (2,113 acres) and was transferred to Pilot Gold pursuant to a plan of arrangement between the Company, Newmont Mining Corporation, and Fronteer Gold Inc. (“Fronteer Gold”). In 2010, Fronteer Gold, collected 127 rock samples and 1,289 soil samples for geochemical analysis with a high of 15.8 grams/tonne gold. Based on the results of this work additional claims were staked, geologic mapping was completed, and the Sinter, Maui Wash, and Hidden Treasure targets were identified.
Brik represents an extensive gold-mineralized, low-sulphidation system that has had limited past exploration. Strong gold values in surface rock sampling coupled with multiple gold-in-soil anomalies provide strong targets for drilling. The main Brik Vein target hosts gold-mineralized, east-west striking, epithermal quartz veins outcropping over a strike length of 600 metres, within a 20-plus metre wide, steeply-south-dipping structural zone highlighted by a large gold-in-soil anomaly and rock samples up to 15.8 g/t Au.
A Phase 1 3,500 metre RC drill program commenced on May 25th with trenching and geologic mapping also underway.
The New Boston project, located on the northern margin of the Walker Lane structural belt, is a copper-molybdenum porphyry and skarn prospect located in Mineral County, Nevada, approximately 100 kilometres southeast of the Yerington porphyry district.
New Boston totals 136 unpatented lode claims measuring 1,082 Ha (2,674 acres), and is an extensive copper and molybdenum mineralized porphyry and skarn system with a strike length of over five kilometres. Encouraging historic drill results and high copper grades occur at surface. Since the fall of 2010, Pilot Gold’s team has completed 74 line kilometres of ground magnetic surveys and 211 gravity surveys over the project; conducted soil and rock geochemical surveys with 213 and 965 samples collected respectively, and; developed a series of priority exploration targets.
Highlights of past drill programs include:
• NB-4: 992 feet of 0.082% MoS2 including 371 feet of 0.14% MoS2.
• NB-3: 459 feet of 0.61% MoS2 and 0.14% Cu.
• NB-1: 319 feet of 0.076% MoS2 and 0.14% Cu.
• GBR-5: 203 feet of 0.114% MoS2.
The highest copper grades were returned in drill hole BR-1 from the Blue Ribbon prospect, which returned 92 feet (28.04 metres) of 1.38% Cu in shallow drilling.
A Phase 1 2500 metre core drilling program commenced on June 8th to test the Blue Ribbon, New Boston and Eastern Area high-conviction targets.
The Viper project is located in Elko County, Nevada, approximately 70 kilometres northeast of Montello, and consists of 163 unpatented lode claims measuring 1,004 ha (2,483 acres) along with 831 hectares (2,054 acres) of private mineral rights. The Viper project was generated through grass roots exploration by Fronteer Gold and is located in an emerging off-trend district in north-eastern Nevada.
Viper is hosted within Mississippian carbonate stratigraphy and displays low-sulphidation, epithermal-style gold and silver mineralization in three primary zones, the largest of which is approximately 1.5 kilometres long by 0.5 kilometres wide. In 2010 an airborne magnetic survey and geological mapping were completed to follow up on encouraging gold-in-rock and soil results received in 2009.
A Phase 1 2,500 metre RC drill program is scheduled to commence at Viper in early July to test for vein-hosted and possible stratigraphic targets.
Brik, New Boston and Viper, together with Regent form a strong foundation for growth in Nevada. The remainder of our 2011 Global Program is dedicated to advancing our Turkish properties Halilaga and TV Tower, with our joint venture partner Teck Resources Limited. Pilot Gold brings a proven management team to bear on quality projects in mining-friendly jurisdictions, with a solid treasury to advance our projects well into the future.
For a map of Brik, please click:
For a map of New Boston, please click:
For a map of Viper, please click:
All technical information contained in this release has been reviewed and approved by Ian Cunningham-Dunlop, P. Eng., COO, Pilot Gold, and a “qualified person”within the meaning of National Instrument 43-101. Drill results contained in this release are historical in nature and have not been verified by Pilot Gold.
ABOUT PILOT GOLD
Our team has a successful track record in the discovery and advancement of world-class deposits. We have a solid treasury to advance our portfolio of projects in Turkey and Nevada, two mining-friendly jurisdictions that our technical teams know very well. 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
For further details on Regent please view the NI 43-101 technical report entitled "Summary Technical Report : Regent Gold Project Mineral County, Nevada," dated January 4, 2011, Paul Klipfel Ph.D CPG #10821, Consulting Economic Geologist, Mineral Resource Services Inc. (Reno), on SEDAR (www.sedar.com) under Pilot Gold’s Issuer Profile.
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 atwww.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.