Option Agreement Purchased On Kinsley Mountain Gold Property

 

VANCOUVER, BC - Pilot Gold Inc. has purchased the Mining Option Agreement for the Kinsley Mountain property from Animas Resources Ltd. ("Animas"). The Kinsley Mountain property hosts a large sediment-hosted gold system and includes a past-producing gold mine and significant exploration potential on a large land position.

The Kinsley Mountain property consists of 141 claims and 2,807 acres (1,136 hectares) on BLM land in the Kinsley Mountains in southeast Elko County, Nevada. The property lies roughly 75 kilometers (45 miles) southeast of the Long Canyon property where Pilot Gold's geologic team, as part of Fronteer Gold Inc., defined a significant gold resource in what is now recognized as an emerging gold district.

"Success at Long Canyon hinged on detailed geologic analysis, aggressive drilling and deposit modeling," says Moira Smith, Chief Geologist. "We intend to deploy the same exploration team and strategy to Kinsley Mountain. The presence of an open pit and drilled mineralization in adjacent areas gives Pilot Gold a great starting point."

Gold mineralization was discovered on Kinsley Mountain in 1984. Subsequent exploration defined sediment-hosted gold mineralization concentrated in the Kinsley Trend at Kinsley during a period of low gold prices. At that time, gold discoveries were still being made and existing historic resources had not been exhausted.

Under the Option Agreement, Pilot Gold will obtain access to a substantial technical archive on the property, consisting of over 1,100 drill holes averaging 218 feet in length, and extensive geophysical and geochemical surveys. No drilling has been completed on Kinsley in over 13 years.

, and includes at least five distinct deposits hosted in strata ranging from Middle to Late Cambrian in age. The stratigraphic intervals hosting mineralization at Kinsley are the same horizons that host mineralization at Long Canyon.

Between 1994 and 1999, Alta Gold Co. ("Alta Gold") produced approximately 138,000 ounces of gold at 1.4 g/t gold from oxide ore in a heap leach operation at Kinsley(ii). Alta Gold abandoned the mine and left an undetermined amount of ore in the ground