When Pilot Gold (PLG:TSX) made a significant new gold discovery in Nevada, the investment community got very excited, and rightfully so. After all, Pilot's team is the same one that made the Long Canyon discovery (also in Nevada) which was subsequently sold to Newmont for $2.3 billion, making themselves and shareholders substantial amounts of money.
Pilot not only has a remarkable new gold discovery in Nevada with their Kinsley Mountain project, but they continue to hit wide intercepts and discover new porphyry targets at least once a year, it seems, in Turkey.
This morning, Mr. Matthew Lenox-King (President and CEO of Pilot), didn't disappoint with this annual ritual. This morning, he announced their first drill results from testing another porphyry target at the company's TV Tower project in Turkey. They hit 0.99g/t gold and 0.39% copper, or 1.65 g/t AuEq over 153.1m in KRD010, including 1.57g/t gold and 0.56% copper (2.52g/t AuEq) over 66.2m.
The copper gold mineralization starts right from surface with the 153.1m intercept literally starting from 2.4m deep.
"This is the third Cu-Au porphyry that our technical team has discovered in the district. Along with the K2 porphyry and the neighbouring Halilaga deposit, this discovery lays the foundation for an exciting new porphyry district in northwest Turkey," stated Mr. Lennox-King (who was, previously, the senior geologist for Fronteer when they discovered Long Canyon).
The technical team at Pilot knows how to find these porphyries in Turkey and continue to do so. The exploration team at Pilot Gold made their first discovery in 2010 with the KCD target and then followed that up with a 14,000m and 16,500m drill campaigns in 2012 and 2013, respectively which led to more discoveries.
The latest one on the TV Tower project, called the Valley discovery, was made through a comprehensive series of soil sampling, geological mapping and sampling and finally drilling. Through their generative exploration work, the team identified a 1.4km by 0.4km northwest-trending copper/gold anomaly which is now the Valley discovery. The Valley discovery lies only 500m from the K2 gold oxide trend.
A second drill rig was added to the TV Tower program on June 10th to test the Columbaz low-sulphidation gold-silver vein target. Drilling is continuing at the Valley porphyry discovery. Assay results from drilling at the K2 Hilltop and Valley porphyry targets are pending.
TV Tower is a joint venture between Pilot Gold (40%) and Teck Resources (60%) whereby Pilot can increase its stake in the project to 60% by spending $21 million over three years. They are operator on the project as well.
Teck remains a 7.7% shareholder in the company while Newmont holds over 13%. Pilot has a significant exploration war chest with roughly $35 million in cash available.
Here's the 12-month chart which has seen the company outperform the GDXJ especially after their Kinsley Mountain discovery in February: