Kinsley Mountain delivers again for Pilot Gold and Nevada Sunrise

Frik Els | December 9, 2014 | 11:08 pm Precious Metals Gold 
Kinsley Mountain delivers again for Pilot Gold and Nevada Sunrise
Kinsley Mountain oxide mineralization visible as the yellow-orange rocks in past-producing pit. Source: Pilot Gold

Shares in Pilot Gold (TSE:PLG) and venture partner Nevada Sunrise Gold Corp. (CVE:NEV) jumped on Wednesday in heavy volumes after releasing results from drilling at its Kinsley Mountain project in Nevada.

In afternoon trade Vancouver-based Pilot Gold was changing hands at $0.82, up 3.8% on the Toronto Exchange, off its highs for the day. Around 207,000 shares in the $88.2 million company had traded. A

Amid a dismal performance among junior mining stocks this year the damage to Pilot Gold has been relatively limited. Year to date the company is down 4.6% although way below 2014 highs reached in February.

Pilot Gold owns 79% of Kinsley Mountain and joint venture partner Nevada Sunrise the rest. The venture market micro-cap enjoyed a nearly 10% rise in valuation with nearly triple the usual number of shares traded on Wednesday. The $10 million company, also based out of Vancouver, holds interests in three exploration projects in Nevada.

Pilot Gold reported at its Western Flank target highlights from recent infill drilling:

  • 10.1 g/t (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 is located 1,200 metres south of the Western Flank along a potential parallel NNE trending structure. Highlights from the Racetrack area include:

  • 2.69 g/t gold over 7.6 metres (shallow oxide in the Candland Shale host) and
    • 1.25 g/t Au over 10.7 metres (Secret Canyon Shale host) in PK180

The 2014 drilling program consisted of 27,191 metres in 81 holes, including a water test hole, as part of a US$6.04 million exploration program, with assays still pending for 5 holes.

Pilot Gold said the Western Flank target, located 550 metres northwest of the past-producing pits at Kinsley, “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 2 kilometre Western Flank trend.”

Pilot Gold was created as part of Newmont Mining’s acquisition of Fronteer Gold in 2011.

pilot gold kinsley mountain

Kinsley Mountain hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems along a 2.2 kilometre, SE-NW strike extent.

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