Pilot Gold (PLG.T) is out with an update on the Kinsley mountain project including more drill assays. 2014 exploration has built on the success of the 2013 high grade discovery at the Western Flank Target. The project is owned 79% by Pilot Gold and 21% by joint venture partner Nevada Sunrise (NEV.V).
Pilot geologists have a proven track record in Nevada, having previously discovered the Long Canyon project under previous company Fronteer Gold. Fronteer was sold to Newmont for $2.3 billion in 2011.
The Kinsley project is located in nearby proximity to the past producing Kinsley Mine. The mine is estimated to have produced ~135,000 ounces at 1.4 grams per tonne before closing due to low gold prices.
In 2014 the partners completed 81 holes (27,191 metres) at a cost of $6.04 million.
Highlights from recent infill drilling at the Western Flank include:
- 10.1 grams per tonne gold over 39.6 metres in PK186C, including 17.4 g/t gold over 21.6 metres (Secret Canyon shale host);
- 6.05 g/t gold over 30.5 metres in PK187C (Secret Canyon shale host);
- 4.39 g/t gold over 29.2 metres in PK188C (Secret Canyon shale host);
- 6.88 g/t gold over 6.1 metres in PK177C, including 11.0 g/t gold over 3.0 metres (Candland shale zone).
The Racetrack area and Secret Spot zone are showing promise as well with intercepts such as 2.69 g/t gold over 7.6 metres and 2.03 g/t gold over 7.6 metres.
Investors will want to see the continuity of the high grade drill holes and expansion of mineralization in 2015 drilling.
"Our 2014 results support our concept that gold mineralization at Kinsley Mountain is widespread in two stratigraphic units -- the Secret Canyon and Candland shales, both emerging as a viable propertywide targets," stated Matt Lennox-King, president and chief executive officer of Pilot Gold. "These latest results not only demonstrate continuity of the high grade at Western Flank target, but also the broader potential as gold was detected in widely spaced drill holes over the two-kilometre Western flank trend."
Pilot shares have been on a wild ride in 2014 trading as high as $1.77 and as low as $0.64. At these levels the stock could be seen as a tax loss play with the potential to rebound in the first quarter of 2015.
Investors should note that Kinsley Mountain is not the only project Pilot holds as they have a couple excellent development projects in Turkey.
Pilot is led by the team at Oxygen Capital which is one of the most successful mining groups in Vancouver. True Gold Mining (TGM.V) and Pure Gold (PGM.V) are the other members of the group.
Mark O'Dea is the leader of Oxygen Capital and is a dynamic mining entrepreneur all investors should be tracking. In a business where management is critical in finding winners it is hard to beat the team at Oxygen.
Share price: $0.85
Shares outstanding: 107.24 M
Market cap: $91.1 M
Working capital: $27 million (September 1st)
I have no position in any of the stocks mentioned. This is not investment advice. As always please do your own due diligence.