RC Drill Results At Goldstrike Oxide Gold Project 

VANCOUVER, BC - Pilot Gold Inc. reported additional drill results from 12 Reverse Circulation (RC) drill holes at the 100% controlled Goldstrike Oxide Gold Project in southwestern Utah. The primary target is Carlin-style shallow, oxide gold mineralization on the 7 km long “Historic Mine Trend”, between and down-dip to the north of historic open pits.

In addition to the ongoing RC drilling program, a 10-hole metallurgical and infill core drill program is also underway, with results pending for four holes drilled to date.  Eight of the core holes are, or will be, located in the eastern portion of the Historic Mine Trend (Km 6 N and Km 5 N), with two located in the western part of the Historic Mine Trend. 

The objective of the 2016 RC and core drilling program is to target unmined and/or undrilled areas between and around the historic pits, and to drill test down-dip to the north of, and laterally beyond, the Historic Mine Trend into areas where gold has been confirmed but not systematically drilled off. The holes will average approximately 150 meters in length. The scope of the program is open-ended and dependent on results. At least 100 RC drill holes are covered in the Phase 1 2016 drill budget. The core holes and metallurgical study costs are a supplement to the RC drill program budget. The metallurgical program will test the amenability of oxide material in newly-discovered areas of mineralization to leaching, over a range of particle sizes. Historical mining at Goldstrike (1988-1994) was 100% run of mine material that returned approximately 75% recovery on the heap leach pads.

The goal is to advance the Goldstrike Project to a resource estimate by year end, incorporating new and historical RC drill hole data over a broad area. Goldstrike is located in the eastern Great Basin, immediately adjacent to the Utah/Nevada border, and is a Carlin-style gold system, similar in many ways to the prolific deposits located along Nevada’s Carlin trend.  Like Kinsley Mountain and Newmont’s Long Canyon deposit, Goldstrike represents part of a growing number of Carlin-type systems located off the main Carlin and Cortez trends in largely under explored parts of the Great Basin.  The Goldstrike Property comprises 96 km2 of US federal lode claims, patented (private) claims and Utah State leases.  Previous mining at Goldstrike occurred from 1988 to 1994, with 209,000 ounces of gold produced from 12 shallow pits, at an average grade of 1.2 g/t Au.