|By Marketwired .||
|October 22, 2013 06:30 AM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 10/22/13 --
Editors note: There are two photos associated with this release.
Pilot Gold Inc. (TSX:PLG) ("Pilot Gold" or the "Company") reports that initial infill mapping, soil sampling, rock sampling and compiled drill data indicate the presence of a potential shallow, bulk-tonnage oxide gold-mineralized system at least four kilometres long between the Kayali and Karaayi targets at TV Tower.
"We are very excited about the results of the surface and compilation work to date at Kayali and Karaayi, collectively known as K2," said Matt Lennox-King, President and CEO, Pilot Gold. "The K2 trend contains some of the strongest and most extensive gold-in-soil anomalies in the Biga region, builds upon the exploration success at our KCD target to the north, and further supports the district potential of TV Tower."
The link between Karaayi and Kayali is also based on systematic mapping of primary lithology, alteration, structure and the distribution of silica ribs. The preferred volcaniclastic host to mineralization at both targets has been mapped on surface and is strongly altered with a large number of silica ribs.
The Kayali zone, in the southern part of TV Tower, was first drill tested in 2011, returning 0.87 g/t oxide gold over 114.5 metres in discovery hole KYD-1 (see press release dated May 10, 2011). Drilling at the recently secured Karaayi zone by previous operators intersected two clusters of near-surface, oxidized gold mineralization two and three kilometres to the west of Kayali.
Historic drill results from Karaayi(1) include:
-- 0.52 g/t gold (Au) over 115.5 metres in KC-06 -- 0.62 g/t Au over 87.1 metres in GD-05 -- 0.45 g/t Au over 78.0 metres in GRC-12 -- 0.60 g/t Au over 49.0 metres in KAD-06, including -- 1.49 g/t Au over 10.5 metres, bottoming in mineralization -- 0.62 g/t Au over 58.5 metres in KC-07
Since securing the full K2 target area, Pilot Gold has accelerated surface sampling and mapping to better define the corridor of oxide gold-mineralized rocks in the southern portion of TV Tower. Pilot Gold has drilled 3,585 metres in 17 holes at the Kayali zone in 2013, with assays for all holes pending. A further 1,300 metres is planned for the Karaayi zone this fall.
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The model for gold mineralization at K2 is an oxidized, high-sulphidation epithermal gold system. Premier examples of this kind of system include Yanacocha, Pierina and Alto Chicama in Peru along with the Agi Dagi and Kirazli deposits neighboring TV Tower and currently under development by Alamos Gold(2). These systems are distinguished by low operating costs, low capital intensity and straightforward processing.
K2's gold oxide zone is primarily hosted in one or more thick, gently north-dipping sheets of massive and vuggy quartz-altered volcaniclastic rock, cut by west-northwest striking, steeply south-dipping, hematite-cemented breccia zones and fractures hosting elevated gold grades. Current and future drilling at K2 primarily targets these ribs and, therefore, geological mapping and sampling prior to drilling are a critical first step toward defining additional drill targets.
About TV Tower:
TV Tower is a joint venture between Pilot Gold (40%) and Teck Madencilik Sanayi Ticaret A.S. (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.
Located on the Biga Peninsula of northwest Turkey, the TV Tower project encompasses 91 square kilometres containing seven proven 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).
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 Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the information contained in the release is accurate.(1) The legacy data presented herein was developed by previous operators of the Karaayi tenure. Pilot Gold is providing this legacy data for informational purposes only, and gives no assurance as to its reliability and relevance to the Company's current results and proposed exploration program at Karaayi. Pilot Gold has not completed any quality assurance program or applied quality control measures to the legacy data, nor has a Qualified Person done sufficient work to verify the source of the legacy data. Accordingly, the legacy data should not be relied upon. While Pilot Gold plans to verify some or all of the legacy data, the anticipated timing and results of that data verification cannot be ascertained at this time. Confirmation work may produce results that differ substantially. Drill composites relating to drilling undertaken by Pilot Gold were calculated using cut-offs of 10, 50 and 100 g/t Ag. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 50-100% of the reported lengths. Drill samples were assayed by AcmeLabs in Ankara, Turkey and Vancouver, B.C.
TV Tower is an early stage exploration project and does not contain any mineral resource estimates as defined by 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.
(2) There are no assurances that the geological similarities to Alamos Gold's Agi Dagi or Kirazli projects will result in the establishment of any resource estimates at TV Tower, or that the TV Tower project can be advanced in a similar timeframe or with similar results.
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 projects 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; 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.