Kinsley

Kinsley Mountain is a Carlin-style, sediment-hosted gold property located south of Newmont Mining’s Long Canyon deposit, with a stratigraphic and, structural setting and gold mineralization similar to other sediment-hosted gold systems in the underexplored area east of the Carlin Trend in northeast Nevada1.  Located in southeast Elko County, Nevada, approximately 90 km from Long Canyon, Kinsley hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets.

2013 was a pivotal year at Kinsley Mountain, with a new, high grade discovery at the Western Flank target and ‘proof of concept’ of Pilot Gold’s exploration model. The 2014 exploration program will build on exploration successes to date and will begin to address the district scale potential of Kinsley. 

Majority owner and operator
In September 2011, Pilot Gold purchased the option to earn a controlling interest in the Kinsley Mountain property. At present, Pilot Gold has a 78% interest in Kinsley Mountain and is project operator. Intor Resources Corporation, a subsidiary of Nevada Sunrise Gold Corporation, owns the remaining 22%. The property consists of 446 claims and 8,370 acres (3,387 hectares) on U.S. Bureau of Land Management (BLM) land.

Strong geology in established area
Strata at Kinsley range from middle Cambrian to upper Ordovician.  Most of the mineralization discovered and mined in the past is hosted in the middle Cambrian Candland Shale and overlying Notch Peak Formation, the latter a host at Long Canyon.  Receptive potential host strata lying above and below this zone (Lower Ordovician Pogonip Formation – host at Long Canyon, and middle Cambrian Secret Canyon shale – host at Bald Mountain and Eureka) were never tested.  The structural setting is also similar to Long Canyon, with evidence of Mesozoic contractional deformation overprinted by Tertiary normal faulting.

Past producing mine
Gold mineralization was discovered on Kinsley Mountain in 1984. Alta Gold Company purchased the property in 1994 and started open-pit mining in 1995, producing about 135,000 to 138,000 ounces of gold through 1999 (depending on source) from a series of six small pits aligned in a NW-SE direction. The mine closed when Alta Gold declared bankruptcy during a period of very low gold prices.

The mine produced oxidized disseminated gold ore for heap-leach recovery from seven shallow pits and processed the ore on a heap-leach pad.

Our focus today
Our exploration strategy employs compilation and 3D analysis of a wealth of historic data, detailed geologic mapping and analysis, aggressive drilling and deposit modeling. Our focus, in addition to verification and extension of mineralization under and around the existing pits, is on making new discoveries more distant from the pits using a new geologic model. Unlike previous work that emphasized a NW-trending structure and a single stratigraphic host, our model, similar to Long Canyon, predicts the presence of mineralization in shallowly N to NE-plunging ore shoots at multiple stratigraphic intervals. 

In 2013 we received BLM approval for a Plan of Operations to expand exploration activities in the southern third of the property beyond previously disturbed areas, and have applied for an amendment to the Plan in order to conduct drilling activities on the rest of the property.

In January, Pilot Gold announced a 17,000-metre, $4.5-million drill program at Kinsley Mountain for 2014. An initial 3,700 metres of drilling will focus on infilling and extending the Western Flank discovery.   The upper stratigraphic unit hosting the gold in the Western Flank zone rises to the surface, 500 metres to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot demonstrate a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t gold in grab samples. These features suggest that the Right Spot surface mineralization may result in a gold mineralized zone stretching more than one kilometre in length.

 1) There are no assurances that the geological similarities to Newmont Mining’s Long Canyon project or other projects along the Long Canyon Trend will result in the establishment of any resource estimates at Kinsley, or that the Kinsley Project can be advanced in a similar timeframe. Kinsley Mountain is an early stage development project without any current resource estimates and there is no certainty that any such resource estimates will ever be established.

2) Pilot Gold is not treating the historical estimate as current mineral resources or mineral reserves, as defined in sections 1.2 and 1.3 of NI43-101.  A qualified person has not done sufficient work to classify the historical resource estimate as current mineral resources or mineral reserves.   Pilot Gold is not treating the historical estimate as current mineral resources, and thus the historical estimate should not be relied on. The Kinsley property will require further evaluation which Pilot Gold’s management and technical team intend to carry out in due course.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person within the meaning of NI 43-101 and has reviewed and validated that the information contained herein is accurate.

Click on the thumbnails below to view maps of the Kinsley Project. 

Regional and property geology
The Kinsley Property is located in eastern Nevada near the Utah border, in the eastern portion of the Basin and Range physiographic province.  The region is primarily underlain by carbonate and siliciclastic strata ranging from Late Proterozoic to Late Paleozoic in age, reflecting rifting and subsequent passive margin sedimentation with episodic shallowing over time.  Strata were thrust- imbricated, folded and metamorphosed during the Jurassic Elko Orogeny, during which felsic to intermediate plutonic rocks were emplaced.  The Tertiary is dominated by extensional tectonics, manifested as low-angle normal faulting, felsic volcanism and gold mineralization during the Early to middle Tertiary and high-angle, basin-and-range style normal faulting ranging from Miocene to Recent.

Sedimentary rocks on the Kinsley Property range primarily from Middle Cambrian to Late Ordovician in age, and reflect episodic shallowing of the continental shelf from shelf margin through middle shelf/sabkha environments.  Important units include the Upper Cambrian Lamb Dolomite, Candland Shale and Notch Peak Formation, and the Lower Ordovician Pogonip Group silty limestone and Eureka Quartzite.  By analogy with the Long Canyon area 75 km to the north, competent units such as the Lamb Dolomite and Eureka Quartzite might be expected to behave as structural and hydrologic buttresses for less competent and more favourable host rocks such as the Candland Shale and lower Pogonip Group.  The Candland Shale is the principal host for gold mineralization discovered to date on the Kinsley Property. 

Strata in the Kinsley Mountain area were ductily deformed during Mesozoic time, the extent to which has not been thoroughly evaluated.  During the Eocene, a northwest-trending wrench fault system was developed across the property.  This fault system provided the plumbing which introduced mineralizing fluids into the Candland Shale.  Mineralization is sediment-hosted in nature, and is believed to be of similar age (approximately 38 Ma) to mineralization in the Carlin Trend.   Detailed mapping in the pits suggests that mineralization may also be controlled by north- to northeast-striking structures, which may extend known gold mineralization to the north an unknown distance.  This possibility is being tested with the 2013 drilling program.

Surface and near-surface alteration includes decalcification and iron oxide alteration (primarily limonite, goethite and rare hematite).  Some scorodite is present locally, as well as structurally and stratigraphically controlled jasperoids lenses.  At depths below approximately 70 metres, sulphide mineralization is locally present, consisting of variably siliceous, decalcified and carbonaceous rock with disseminated, very fine-grained pyrite and arsenical pyrite.  All of the above alteration types contain gold as very fined-grained particles in the lattice of arsenical pyrite grains or oxidized equivalents. Highly geochemically anomalous, structurally controlled jasperoid bodies have been mapped and sampled up to 7 km north of the existing pits.

In September 2013, Pilot Gold obtained a key permit for Kinsley Mountain allowing the Company to ramp up drilling to test high-priority targets across the core group of claims. The approved Plan of Operations allows Pilot Gold up to 70 acres for exploration and development drilling on the core group of claims, including the Western Flank, Candland Canyon and extensions trending NNE and SW of the historic pits.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person within the meaning of NI 43-101 and has reviewed and validated that the information contained herein is accurate.

Pilot Gold began drilling at Kinsley Mountain in late 2011 with a 12,000-metre infill and step-out core and RC drill program, designed to verify, define and expand the mineralized zones identified by previous operators. In conjunction with drilling, a comprehensive regional effort to identify new targets was completed, including new staking to the north in a largely unexplored area. Through this work, new mineralized zones were intersected in drilling (Candland Canyon and Western Flank).  The Western Flank Zone has been expanded to cover an area measuring approximately 600 metres by 100 metres. Drill highlights from the 2012 program include:

  • 6.03 g/t gold over 13.7 metres in hole PK061, including 15.18 g/t gold over 4.6 metres;
  • 5.48 g/t gold over 20.4 metres in hole PK014C, including 16.43 g/t gold over 5.5 metres; and
  • 2.30 g/t gold over 19.8 metres in hole PK057.

A three-dimensional model of geology and mineralization was created in order to aid in the selection of new, high-grade drill targets. Surface soil and rock samples show anomalous pathfinder geochemistry and alteration extending seven kms to the north of the historic open pits, consistent with the presence of a large mineralized system.

The 2013 work program at Kinsley consisted of 20,000 metres of core and RC drilling, and resulted in a new high grade discovery model at the Western Flank target.

Drill highlights from the 2013 include:

  • 8.53 g/t gold (Au) over 36.6 metres in PK091CA, including

                 o   29.4 g/t Au over 7.6 metres

  • 5.00 g/t Au over 7.6 metres and 4.71 g/t over 7.3 metres in PK096C  
  • 2.50 g/t Au over 24.4 metres in PK104C
  •  1.65 g/t Au over 24.4 metres in PK074  
  •  6.34 g/t Au over 5.9 metres in PK106C, including

              o   9.91 g/t Au over 3.4 metres

Pilot Gold is planning a 17,000-metre, $4.5-million drill program at Kinsley Mountain for 2014. An initial 3,700-metres of drilling will focus on infilling and extending the Western Flank.

Highlights from the first two holes of 2014 include:

  • 6.85 g/t Au over 41.7 metres in PK127C, including

                 o   16.3 g/t Au over 8.5 metres (oxide), and

                 o   20.5 g/t Au over 3.6 metres (oxide)

  • 1.70 g/t Au over 13.7 metres in PK126C, including

                 o   7.10 g/t Au over 1.5 metres

Holes PK127C and PK126C are step-outs located approximately 30 metres east and 30 metres west, respectively, of PK91CA, drilled in 2013 (8.53 g/t Au over 36.6 metres).

The upper stratigraphic unit hosting the gold in the Western Flank zone (Candland Shale) rises to the surface 500 metres to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot demonstrate a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t Au in grab samples. These features suggest that the Right Spot surface mineralization may result in a gold mineralized zone stretching more than one kilometre in length.  The underlying Secret Canyon Shale is mapped on surface another 0.5 km to the south of the Right Spot, and also hosts surface jasperoid bodies with Au up to 1.8 g/t in grab samples.  Surface geologic investigations and drill testing are planned for 2014 at this new target.

These southern targets are drill ready and permitted under the existing Kinsley Plan of Operations.

For a table of 2011-2012 drill results, including non-reportable intercepts, please click here.

For a table of 2013 drill results, including non-reportable intercepts, please click here.

For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here.

View Kinsley Mountain on Corebox

Kinsley Mountain is an early stage development project without any current resource estimates and there is no certainty that any such resource estimates will ever be established.

Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person within the meaning of NI 43-101 and has reviewed and validated that the information contained herein is accurate.

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Click on the following link to download Pilot Gold's technical report on the Kinsley Mountain Project.