Sep 6 2013
Pilot Gold Inc. has reached an agreement under which Orta Truva, the joint venture company that holds the TV Tower project, will acquire 100% of the Karaayi project ("Karaayi") from a Turkish subsidiary of Chesser Resources Limited ("Chesser") for total consideration of 1,250,000 Pilot Gold common shares, issued in stages, and US$300,000 (the "Transaction").
The 20-square-kilometre Karaayi property is located immediately southwest of the TV Tower project and is contiguous with the Kayali oxide gold target. Upon closing, Orta Truva will become operator at Karaayi and plans to launch surface exploration work and a drill program on the property in 2013. Orta Truva is owned by Pilot Gold (40%) and Teck Resources Limited's ("Teck") Turkish subsidiary, Teck Madencilik Sanayi Ticaret A.S. (60%).
"Pilot Gold and partner Teck continue to consolidate a dominant land position in the Biga," stated Matt Lennox-King, President and CEO, Pilot Gold. "The acquisition of Karaayi adds 1,956 hectares of highly prospective and strategically important land to the TV Tower project. We are very excited to begin exploration on Karaayi, with a focus on extending the footprint of known mineralized zones from TV Tower's Kayali target."
The Karaayi tenure contains some of the strongest and most extensive gold-in-soil anomalies in the TV Tower district. Drilling at Karaayi by previous operators, including Chesser, has intersected near-surface, oxidized, high-sulphidation style gold mineralization, which is on strike to the west of the known oxidized gold mineralized zone at Kayali. In addition, Chesser's exploration to date has identified the presence of supergene copper and porphyry style copper-gold mineralization on the Karaayi property. There are 96 permitted drill sites in the northern portion of the tenure, allowing for immediate access for drilling.
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. (See press release dated June 21, 2012 for full details of the TV Tower project agreement terms.) Expenditures related to the acquisition of Karaayi will count as Expenditures towards Pilot Gold's obligations under the TV Tower Agreement. With these expenditures, Pilot Gold expects to surpass the second milestone Expenditure requirement toward earning an additional 20% interest in the TV Tower project.