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Pilot Gold’s 2013 Kinsley Mountain Drill Program Returns High-Grade Intercepts

Pilot Gold Inc. ("Pilot Gold" or the "Company") is pleased to announce that the 2013 program returned the highest-grade intercept in more than 1,300 holes drilled to date at the Kinsley Mountain project - 8.53 g/t gold (Au) over 36.6 metres, including 29.43 g/t gold over 7.6 metres in HQ core drill hole PK091CA.

Assay results from the Western Flank target, located 550 metres northwest of the past-producing pits at Kinsley, also expand the area of high-grade gold mineralization and demonstrate the potential for Kinsley to host significant high-grade gold mineralization. Drill hole highlights include:

  • 8.53 g/t Au over 36.6 metres in PK091CA, including
    • 29.43 g/t Au over 7.6 metres
  • 15.6 g/t Au over 3.0 metres in PK083C
  • 2.21 g/t Au over 10.7 metres in PK073
  • 1.65 g/t Au over 24.4 metres in PK074
  • 2.51 g/t Au over 16.8 meters in PK102

"Results released today mark a sea change for Kinsley, providing 'proof of concept' that our technical team's model from Long Canyon is valid and applicable at our flagship Nevada property," stated Dr. Moira Smith, Chief Geologist, Pilot Gold. "Prior operators believed Kinsley mineralization was restricted to past-producing, northwest trending structural corridors and hosted primarily in the Candland Shale. However, today's breakthrough drill results confirm that Kinsley's gold mineralization is also controlled by north and north-northeast trending structures and hosted within a limestone and shale sequence beneath the Candland Shale. We believe these results support district-scale potential at Kinsley."

Pilot Gold has drilled approximately 14,200 metres in 58 holes to date for its 2013 Kinsley program, with assays pending for 26 holes.

For a table of 2013 Kinsley Mountain drill results to date, including non-reportable intercepts, please click here:

For a drill map outlining the area covered by the Plan of Operations, please click here:

For a photograph of PK091CA please here:

Since August 30, 2013, when the U.S. Bureau of Land Management ("BLM") approved a Plan of Operations permitting exploration activities on the core group of claims at Kinsley Mountain, Pilot Gold has been drilling and constructing road access in three key areas, including the Western Flank, Candland Canyon and the Ken Jasperoid target.

Drilling in 2013 at the Western Flank has identified significant oxide and sulfide gold mineralization along a corridor stretching approximately 500 metres in a north-south direction. Mineralization occurs in gently west-dipping, tabular zones up to 150 metres wide and hosted within the Cambrian Candland Shale, the main gold host within the original Kinsley Mine.

Importantly, recent drilling has shown that significant gold also occurs within a lower zone of silty limestone below the Candland Shale. This host horizon was neither identified nor tested by previous operators. Recent core drilling suggests that the tabular zones of mineralized, favourable host rock are cut by one or more high-angle structures causing collapse breccia zones where the mineralization becomes thicker and higher-grade. Pilot Gold drill hole PK091CA contains high-grade collapse breccia zones similar to those seen at Newmont Mining's Long Canyon project and other world class Carlin deposits.

From the south edge of the Western Flank target, mineralization is open and becomes shallower to the south over a distance of 500 meters to the Wrong Spot target, a 350-metre long NNE-trending exposure of surface jasperoids returning 1-3 g/t Au in grab samples. It has not yet been drill tested.

The Western Flank area hosts numerous features that are similar to the geology at the Long Canyon deposit, including evidence of potential boudinage of a 100 metre-thick dolomite horizon and focusing of gold mineralization in and around this boudin neck area, which strikes north-northeast. Long Canyon was explored and developed by Pilot Gold's Kinsley team, prior to the project's sale as part of Newmont Mining Corporation's $2.3 billion acquisition of Fronteer Gold.

The existence of similar features as the Long Canyon deposit does not mean that a mineral resource will be found to exist in the Western Flank or, if found to exist, that it will be of similar grade or quantity that is found at Long Canyon.


Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometre, SE-NW strike extent. The property consists of 380 claims and 7,650 acres (3,095 hectares) on BLM land and hosts a past-producing mine with an extensive exploration database and numerous, untested gold targets. Gold mineralization is primarily oxidized, and occurs in strataform zones and fault collapse breccias within a sequence of Cambrian-Ordovician shelf carbonates. At depth, Pilot Gold has also drilled high-grade transitional and sulfide mineralization.

Kinsley Mountain is an early-stage exploration project and does not contain any mineral resource estimates as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). There are no assurances that the geological similarities to the Long Canyon project or other project 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. 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 being delineated as a mineral resource.

Intor Resources Corporation ("Intor"), a subsidiary of Nevada Sunrise Gold Corp., is the Company's joint venture partner at Kinsley. Pilot Gold holds a 78% interest in Kinsley and is sole-funding a $3.4-million program in 2013.

Vance Spalding, B.Sc., CPG, Pilot Gold Vice President, Exploration, is the Company's designated Qualified Person for this news release within the meaning of NI 43-101 and has reviewed and validated that the information contained in the release is accurate. Drill composites were calculated using a cut-off of 0.20 g/t. Drill intersections are reported as drilled thicknesses. True widths of the mineralized intervals are interpreted to be between 30-100% of the reported lengths. 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. For any samples assaying over 0.200 ppm an addition cyanide leach analysis is done where the sample is treated with a 0.25% NACN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. QA/QC for all drill samples consists of 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. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS.

Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A.", effective February 15, 2012 and dated March 26, 2012, prepared by Michael M. Gustin, CPG of Mine Development Associates and Moira Smith, Ph.D., P.Geo. and Kent Samuelson of Pilot Gold Inc., under Pilot Gold's Issuer Profile on SEDAR (

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