Pilot Gold (PLG-T) and Nevada Sunrise Gold (NEV-V) Feb 27, '14 new drilling to follow up the recent high-grade discovery at Kinsley Mountain's Western Flank target has intersected additional high-grade gold mineralization, including 6.85 grams per tonne gold over 41.7 metres in PK127C. Holes PK127C and PK126C are step outs located approximately 30 metres east and 30 metres west, respectively, of PK91CA, which returned 8.53 g/t Au over 36.6 metres (see news release dated Nov. 18, 2013).
Highlights from the 2014 drill program's first two holes include:
- 6.85 g/t Au over 41.7 metres in PK127C, including:
- 16.3 g/t Au over 8.5 metres (oxide);
- 20.5 g/t Au over 3.6 metres (oxide);
- 1.70 g/t Au over 13.7 metres in PK126C, including:
- 7.10 g/t Au over 1.5 metres.
These assay results better define the size and shape of the high-grade zone at the Western Flank target. Intercepts in both holes are located at the approximate elevation of PK91CA, suggesting that the high-grade zone is nearly flat lying in an east-west orientation. The bottom portion of the PK127C intercept is in highly oxidized rock that returned strong gold recoveries in cyanide-soluble assays. The high-grade zone is located in a previously unrecognized stratigraphic horizon below the limit of prior drilling. Assay results from four additional holes, drilled 25 metres to 50 metres to the north and south of PK91CA and PK127C, are pending.
"Recent results confirm that the newly discovered zone of high-grade mineralization is open in all directions," stated Matt Lennox-King, president and chief executive officer, Pilot Gold. "Prospective stratigraphy and structure occurs over 1.7 kilometres in the Western Flank and also includes areas under and to the south of the historic Kinsley mine. As a result, the scale of potential has increased markedly at Kinsley Mountain."
Gold at the Western Flank target is hosted in multiple units. The upper stratigraphic unit (Candland shale) rises to the surface 500 metres to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot identified a 250-metre north-northeast zone of surface jasperoids returning one g/t gold to five g/t gold in grab samples. Stratigraphic gold host units lying below the Candland shale appear to surface an additional 500 metres to the south of the Right Spot target, where gold-bearing jasperoids are also present. Initial drill results from the Right Spot target are pending.
The Western Flank area hosts numerous features that are similar to the geology at the nearby 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. There are no assurances that the geological similarities to the Long Canyon project will result in the establishment of any resource estimate at Kinsley's Western Flank, or, if found to exist, that it will be of a similar grade or quantity that is found at Long Canyon or those other deposits, or that the Kinsley project can be advanced in a similar time frame. Long Canyon was explored and developed by Pilot Gold's Kinsley team prior to the project's sale as part of Newmont Mining Corp.'s $2.3-billion acquisition of Fronteer Gold.
For a table of 2014 Kinsley Mountain drill results to date, including non-reportable intercepts, please visit the company's website.
For a drill map and long section showing conceptual target stratigraphic units in the Western Flank/Right Spot area, please visit the company's website.
The Western Flank target is located 550 metres northwest of the past-producing pits at Kinsley. It comprises north-northeast-plunging zones of mineralization hosted in three or more receptive stratigraphic horizons intersected by one or more steep breccia zones that may have served as conduits and porous hosts for gold mineralization. In addition to mineralization in stratigraphic units exploited in the previous mining operation, Pilot Gold drilling has revealed that high-grade gold occurs within a lower limestone unit that was neither identified nor tested by previous operators.
About Kinsley Mountain
Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2-kilometre southeast-northwest strike extent. The property consists of 380 claims and 7,650 acres (3,095 hectares) on United States Bureau of Land Management 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 sulphide 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. 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 Corp., a subsidiary of Nevada Sunrise Gold Corp., is the company's joint venture partner at Kinsley. Pilot Gold holds a 78-per-cent interest in Kinsley.
Dr. Moira Smith, PhD, PGeo, chief geologist, Pilot Gold, is the company's designated qualified person for this news release within the meaning of National Instrument 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 per cent to 100 per cent of the reported lengths. Drill samples were assayed by ALS Chemex (ISO9001:2000) in Reno, Nev., for gold by fire assay of a 30-gram (one-assay-ton) charge with an AA finish, or if over 5.0 g/t were reassayed 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 part per million, an additional cyanide leach analysis is done where the sample is treated with a 0.25-per-cent-sodium-cyanide solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by AAS. Quality assurance/quality control 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 multielement geochemical suite by ICP-MS.
Further information is available in the technical report entitled "Technical Report on the Kinsley Project, Elko County, Nevada, USA," effective Feb. 15, 2012, and dated March 26, 2012, prepared by Michael Gustin, CPG, of Mine Development Associates; Dr. Moira Smith, PhD, PGeo; and Kent Samuelson of Pilot Gold, available under Pilot Gold's issuer profile on SEDAR. |
