Pilot Gold (PLGTF) has announced another batch of drill results from the Kinsley Mountain gold project in Nevada, USA. As you know, Pilot Gold has been drilling quite a substantial amount of meters based on a new exploration theory and updated geological model. The company has been proven to be right in the past, and today's drill holes confirm once again that Pilot Gold is on the right track.
Pilot Gold has reported some holes which were part of an infill drill program and the previously intersected mineralized zones have been reconfirmed. The most impressive intercept is very likely the almost 40 meters of in excess of 10g/t gold including a shorter intercept of almost 22 meters with an average grade of in excess of half an ounce of gold per tonne of rock. The other drill results are lower-grade but still high enough to make the Western Flank of Mt Kinsley a very enticing zone for further exploration activities. For instance, 30 meters at 6g/t and 29 meters of 4.4g/t can't really be described as 'bad'. Pilot Gold now also has discovered gold at the Racetrack zone which is just ¾ of a mile south of the Western Flank. The grade is a bit lower (2.69g/t) but the ore seems to be oxidized which means it could be recovered through a very simple leaching procedure. This could be a very cheap way to get this specific zone into production relatively fast at a modest capital expenditure.
I'll try not to be too excited, but Pilot Gold's theory is really paying off as I doubt its joint venture partner Nevada Sunrise would have discovered these intercepts. In my original article I said the management team is one of Pilot's main assets and this has once again been proven. The company's treasury is still cashed up and with a working capital position of $22.5M as of at the end of September, it's one of the very few junior exploration companies in a pretty decent shape to kick off more major exploration programs in 2015.
Disclosure: The author is long PLGTF.
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