Pilot Gold (PLG-T) June 16, '16 is pleased to announce the acquisition of 100% of the Mineral Gulch Property, from Western Pacific Resources Corporation ("Western Pacific"). Mineral Gulch is the past-producing Black Pine heap leach gold mine located in southeastern Idaho. The purchase price consisted of US $800,000 cash, 300,000 common shares of Pilot Gold and a grant of a 0.5% NSR to Western Pacific.
Pilot Gold’s goal is to advance a portfolio of past producing Carlin-style oxide gold mines (Goldstrike, Kinsley, Mineral Gulch) and high grade gold projects (Kinsley, Baxter Springs) in the western US. Mineral Gulch has the potential to match our current success at Goldstrike. The Company will continue to search for additional acquisitions.
Mineral Gulch contains a large, shallow, oxidized Carlin-style gold system, similar in nature and target size to Pilot Gold’s Kinsley, Nevada and Goldstrike, Utah projects.
Key Points:
Large property: 345 federal lode claims, aggregate 26.3 km2.
Past Producer: 435,000 ounces of gold mined from 7 small shallow pits within a 12 km2 area defined as the priority exploration target.
Run of mine oxide/heap leach operation from 1992 to 1997.
Head grades averaged 0.7 g/t gold with reported historical recovery of 65%.
Data-rich environment: data for 520 shallow drill holes are currently in Pilot Gold’s possession.
Oxide gold is present in historic (unmined) drill holes, pit walls and outcrop samples and extensive grid soil surveys.
485 historic drill holes averaged only 96 metres in length; 35 recent holes drilled by Western Pacific averaged 206 metres in length.
A large number of holes contain unmined gold intercepts, including:
12.2m grading 1.24 g/t Au and 6.1m grading 0.48 g/t Au
24.4m grading 1.59 g/t Au
4.6m grading 2.17 g/t Au and 10.7m grading 2.60 g/t Au
27,000 assay intervals, of which 4,100 intervals returned >0.5 g/t Au and 1,800 intervals returned >1.0 g/t Au.
Over 400 holes still unaccounted for but may be recoverable.
For more details about the Mineral Gulch Property, including location, geology and soil geochemistry maps, please click here: http://pilotgold.com/sites/default/files/PLG-Mineral-Gulch-Section-June-2016.pdf
Pilot Gold will use the same detailed data compilation approach to the Mineral Gulch Property as was completed at the Goldstrike and Kinsley projects. The historical database will be digitized and matched with surface mapping and sampling results to generate a 3D interpretive model before a first-phase RC infill and step-out drill program is initiated. Preliminary interpretation suggests that gold is hosted within a low angle thrust fault system superimposed on receptive Pennsylvanian silty limestones.
Moira Smith, Ph.D., P.Geo., Vice-President Exploration and Geoscience, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of National Instrument 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.
About Mineral Gulch
The Mineral Gulch property is located in southeastern Idaho northwest of Snowville, Utah, between Utah State highway 30 and Interstate highway 15. It hosts a large, Carlin-style sediment-hosted gold system, the surface footprint of which extends over an approximately 12 square kilometre area. The mineralized zone was extensively drilled in the immediate pit areas, with mining carried out by Pegasus Gold Corp. from 7 shallow pits over a 6-year period from 1992 to 1997 in a run of mine heap leach operation. Mineralization consists of finely disseminated gold hosted in Pennsylvanian decalcified and jasperoidized calcareous siltstone correlative with the Oquirrh Formation. These rocks are present within a system of interleaved, low-angle thrust faults that is well-exposed in many parts of the property. In other areas, the prospective host horizon is believed to be present under the shallow cover of an overlying thrust plate; these areas are significantly underexplored.
Mineral Gulch 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 any of the targets disclosed herein. Further information on Mineral Gulch is available in the technical report entitled “Technical Report on the Mineral Gulch Project, Cassia County, Idaho, USA”, dated May 29, 2013, prepared by David Shaddrick. M.Sc., P.Geo., and filed under Western Pacific’s SEDAR profile. As at the date of the Report, Mr. Shaddrick was a “Qualified Person” as defined by NI 43-101.
ABOUT PILOT GOLD
Pilot Gold is led by a proven technical and capital markets team that continues to discover and define high-quality assets. Our two core projects are Goldstrike in Utah and Kinsley Mountain in Nevada. The Company also holds important interests in two Turkish assets, Halilaga and TV Tower, and has a pipeline of Western US 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 or contact:
Evelyn Cox, Director Corporate Communications
Phone: 604-632-4677 or Toll Free 1-877-632-4677
info@pilotgold.com |
