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Pilot Gold Provides Update on Drilling and Other Activities at Kinsley Mountain Project

Pilot Gold Inc. is pleased to report highlights from drilling and an update on other activities at the Kinsley Mountain Project in eastern Nevada.

2014 has been a landmark year at Kinsley Mountain, with the discovery of the high grade zone at the Western Flank, and subsequent recognition of the property-wide potential for gold mineralization in the Candland Shale and Secret Canyon Shale host formations.

Highlights from recent infill drilling at the Western Flank include:

  • 10.1 g/t (grams per tonne) gold over 39.6 metres in PK186C, including ◦17.4 g/t gold over 21.6 metres (Secret Canyon Shale host)
  • 6.05 g/t gold over 30.5 metres in PK187C (Secret Canyon Shale host)
  • 4.39 g/t gold over 29.2 metres in PK188C (Secret Canyon Shale host)
  • 6.88 g/t gold over 6.1 metres in PK177C, including ◦11.0 g/t gold over 3.0 metres (Candland Shale host)

RACETRACK

The Racetrack area is located 1,200 metres south of the Western Flank along a potential parallel NNE trending structure where surface mineralization in the Candland Shale was intersected over a 250 metre by 300 metre area by prior operators. Pilot Gold drilled six holes, with PK180 returning mineralization in both the shallow oxide Candland Shale unit and the deeper Secret Canyon Shale.

Highlights from the Racetrack area include:

  • 2.69 g/t gold over 7.6 metres (shallow oxide in the Candland Shale host) and
  • 1.25 g/t Au over 10.7 metres (Secret Canyon Shale host) in PK180

"Our 2014 results support our concept that gold mineralization at Kinsley Mountain is widespread in two stratigraphic units - the Secret Canyon and Candland Shales, both emerging as a viable property-wide targets," stated Matt Lennox-King, President & CEO of Pilot Gold. "These latest results not only demonstrate continuity of the high-grade at Western Flank target, but also the broader potential as gold was detected in widely-spaced drill holes over the 2 kilometre Western Flank trend."

Other targets tested along the Western Flank in 2014 include the Right Spot, where shallow oxide gold mineralization was intersected in multiple drill holes; and the Secret Spot, where shallow oxide mineralization and deep mineralization in the Secret Canyon Shale were encountered. Gold was also encountered in the area between the Western Flank and the historical mine in three stratigraphic units.

Recent highlights from the Secret Spot include:

  • 2.03 g/t gold over 7.6 metres (Shallow oxide in the Candland Shale) in PK182

PERMITTING: KINSLEY NORTH

Pilot Gold is pleased to announce that the amendment to its Plan of Operations for conducting surface drilling and other activities was approved by the U.S. Bureau of Land Management. The amendment permits up to 20.5 acres of drill roads and pads in the northern two-thirds of the Kinsley property, with access to a number of high-priority targets defined by geochemically anomalous pathfinder elements in surface samples and intersections of NNE and NW-trending faults. The Kinsley North claims are underlain by the same highly prospective geology and structural framework as the historic Kinsley Mine and the Western Flank, and have never been drilled.

METALLURGY

Composite samples from the Western Flank zone are currently undergoing metallurgical testing at Hazen Laboratory in Golden, Colorado. This work is addressing the amenability of high grade mineralization from the Secret Canyon host to produce a high-grade concentrate.

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