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Pilot Gold Announces Additional Drilling Results from Goldstrike Oxide Gold Project in Utah

Pilot Gold Inc. is pleased to announce additional drill results from 26 Reverse Circulation (RC) and 2 diamond core holes at the 100% controlled Goldstrike Oxide Gold Project in southwestern Utah.

The primary target is Carlin-style, shallow, oxide gold mineralization on the 7 km-long, 2 km-wide "Historic Mine Trend", between and down-dip to the north of historic open pits. Pilot Gold is also pleased to provide an update on the metallurgical program at Goldstrike.

GOLDSTRIKE MAIN TREND

Current RC drilling is focussed on defining the edges of the Main Zone, to prepare it for inclusion in a resource estimate, projected for completion in Q1 2017.

  • An additional 15 to 20 RC drill holes are projected to fill in this area, covering approximately 1400 metres (m) by 300 m of strike of the Historical Mine Trend.
  • On completion, approximately 5 to 10% of the High Priority area within the Historic Mine Trend will be drill defined.
  • A second drill is being added to the project in early September 2016, to begin testing other areas along the Historic Mine Trend. Additional drills will be added based on results and access to proposed drill sites.

HIGHLIGHTS OF DRILL HOLE RESULTS

  • 0.91 grams per tonne gold (g/t Au) over 12.2 m in PGS065
  • 0.49 g/t Au over 21.3 m and 0.52 g/t Au over 28.0 m in PGS067C (core hole)
  • 1.97 g/t Au over 7.6 m in PGS068
  • 0.50 g/t Au over 42.7 m in PGS073C (core hole)
  • 29.1 g/t Au over 6.1 m, including 102 g/t Au over 1.5 m in PGS076
  • 0.42 g/t Au over 33.5 m and 0.80 g/t Au over 9.1 m in PGS080
  • 0.69 g/t Au over 19.8 m in PGS089

Drilling is focussed on drilling off the edges of the Main Zone around the historical Main, Hassayampa, Hamburg and Goldtown Pits. Of note is an intercept grading 29.1 g/t Au over 6.1 m in PGS076. This intercept is hosted in jasperoid in the Chainman Shale, a Paleozoic unit lying below the Claron Formation unconformity. Drill hole PGS076 is located 135 metres south of a similar intercept grading 175 g/t Au over 4.6 m in historical hole 88-011 mined in the Hassayampa Pit. The Chainman Shale is a new target for Pilot Gold and has also been historically mined 3.5 km to the west in the Covington Pit. The results represent assaying of four sample intervals using metallic screen methods, which confirmed the presence of coarse free gold. Coarse gold was also confirmed in PGS090 through visual analysis of panned concentrates of drill chip material and metallic screen assay.

Of 28 holes reported, 12 holes intersected notable widths of at least 0.32 to 0.45 g/t oxide gold mineralization and 5 holes had no significant results.

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