New Drilling Intersects Additional High Grade At Western Flank, Kinsley Mountain

VANCOUVER, - Pilot Gold Inc. reported new drilling to follow up the recent high-grade discovery at Kinsley Mountain’s Western Flank target has intersected additional high grade gold mineralization, including 6.85 grams per tone gold (g/t Au) over 41.7 meters in PK127C.

Holes PK127C and PK126C are step-outs located approximately 30 meters east and 30 meters west, respectively, of PK91CA, which returned 8.53 g/t Au over 36.6 meters (see press release dated November 18, 2013).

Highlights from the 2014 drill programs first two holes include: Ñ 6.85 g/t Au over 41.7 meters in PK127C, including: 16.3 g/t Au over 8.5 meters (oxide), and

20.5 g/t Au over 3.6 meters (oxide); 1.70 g/t Au over 13.7 meters in PK126C, including: 7.10 g/t Au over 1.5 meters.

These assay results better define the size and shape of the high grade zone at the Western Flank target. Intercepts in both holes are located at the approximate elevation of PK91CA, suggesting that the high-grade zone is nearly flat lying in an east-west orientation. The bottom portion of the PK127C intercept is in highly oxidized rock that returned strong gold recoveries in cyanide soluble assays. The high grade zone is located in a previously unrecognized stratigraphic horizon below the limit of prior drilling. Assay results from four additional holes, drilled 25-50 meters to the north and south of PK91CA and PK127C, are pending.

Recent results confirm that the newly discovered zone of high-grade mineralization is open in all directions,  stated Matt Lennox-King, President and CEO. Prospective stratigraphy and structure occurs over 1.7 kilometers in the Western Flank and also includes areas under and to the south of the historic Kinsley Mine. As a result, the scale of potential has increased markedly at Kinsley Mountain.

Gold at the Western Flank is hosted in multiple units. The upper stratigraphic unit (Candland Shale) rises to the surface 500 meters to the south at the newly identified Right Spot target. Mapping and rock sampling at the Right Spot identified a 250-metre north-northeast zone of surface jasperoids returning 1-5 g/t gold in grab samples. Stratigraphic gold host units lying below the Candland Shale appear to surface an additional 500 meters to the south of the Right Spot target, where gold-bearing jasperoids are also present. Initial drill results from the Right Spot target are pending.

The Western Flank area hosts numerous features that are similar to the geology at the nearby Long Canyon deposit, including evidence of potential boudinage of a 100-metre-thick dolomite horizon and focusing of gold mineralization in and around this boudin neck area, which strikes north-northeast. There are no assurances that the geological similarities to the Long Canyon project will result in the establishment of any resource estimate at Kinsley’s Western Flank, or, if found to exist, that it will be of a similar grade or quantity that is found at Long Canyon or those other deposits, or that the Kinsley project can be advanced in a similar timeframe. Long Canyon was explored and developed by Pilot Gold’s Kinsley team, prior to the projects sale as part of Newmont Mining Corporation’s $2.3 billion acquisition of Fronteer Gold.