The high-grade intercepts continue at the Kinsley Mountain project part of Mark O'Dea's Pilot Gold (PLG:TSX). The final five holes of a twelve hole, 3,500m winter program were released today and they included 10.6g/t Au over 30.0m in PK133C (step-out), including 16.1 g/t Au over 16.5m and 21.3g/t Au over 29.0m in PK137C (infill), including 46.4g/t Au over 4.9m (oxide).
The winter program has focused on the high-grade Western Flank target of the Kinsley Mountain project which is 79% owned by Pilot Gold and 21% by Nevada Sunrise.
"Kinsley Mountain is quickly emerging as Nevada's leading exploration project due to its high grade drill results and district potential," stated Matt Lennox-King, President and CEO. "The newly discovered high grade Western Flank zone continues to grow and remains open in all directions. As a result, we have significantly increased the 2014 exploration program by $1.57 million and 8,600 additional metres of drilling. We are looking forward to the resumption of drilling in early May."
Pilot Gold continues to develop the early-stage project which is now seeing a lot more activity than was originally planned. They are building drill roads to access areas between the Western Flank, the Right Spot and the Secret Spot areas which spans an area of 2km.
Drilling to the south of the Right Spot will begin in early May after the company completes its mapping and sampling program. They are also accessing the areas between the Western Flank and the Upper Pit which is located 550m to the southeast.
As this Nevada exploration program continues to have success, the investing community cannot help but be reminded of Mark O'Dea's last venture into Nevada gold exploration (Pilot Gold's President and CEO, Matt Lenox-King, was Fronteer's Senior Geologist). In 2011, he sold his company, Fronteer Gold, to Newmont for $2.3 billion after his company discovered the Long Canyon deposit in Nevada.
Kinsley Mountain is getting comparisons to Long Canyon which may prove to be correct, but it is still very much in the early days. Pilot Gold is clearly onto something unique at Kinsley Mountain given its high-grades and oxide nature.
The question is not if the gold is there, but it is a matter of how much is there. With an increase to the exploration budget, hopefully investors will get the answers soon.
The company is also diversified with a gold exploration portfolio in Turkey that is a company builder in its own right.
Pilot Gold shares are up 67% year-to-date, outperforming the benchmark GDXJ index by over 50%: