Drill Results At Goldstrike Oxide Gold Project in Utah

VANCOUVER, BC - Pilot Gold Inc. reported additional drill results from 5 Reverse Circulation (RC) and 2 diamond core 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, 2 km wide “Historic Mine Trend”, between and down-dip to the north of historic open pits.

Highlights from infill and step-out drilling include: 1.06 grams per tonne gold (g/t Au) over 47.2 meters (m) in PGS044C – core hole; 0.76 g/t Au over 36.6 m in PGS047; 0.68 g/t Au over 33.5 m in PGS050; 2.64 g/t Au over 41.1 m in PGS051C, including 3.22 g/t Au over 32.0 m – core hole; 0.44 g/t Au over 35.1 m in PGS052; 0.76 g/t Au over 24.4 m in PGS057; Six of the seven released holes contain measurable oxide gold grades over an average drill hole length of 36.4 m.  The mineralized intercept in drill hole PGS051C is a follow-up to PGS026, which returned 57.9 m grading 1.19 g/t Au and PGS027, which returned 47.2 m grading 1.14 g/t Au. This is a new zone of mineralization down-dip of a historic surface showing and demonstrates the potential for discovery of higher-grade mineralization in the shallow subsurface. 

Continued drilling of the main gold host horizon, the Claron Formation has resulted in the discovery of new areas with high grade feeder structures.  A more concentrated RC drill pattern will be used to define these mineralized zones. Drilling to date confirms gold mineralization with significant width and grade over virtually the entire Goldstrike Graben over an east-west distance of 1.4 km by 400 meters north-south. An additional 60 drill sites are proposed within this area before extending the infill step-out drill program 4.5 km to the west and 1 km to the east following the historical mine trend.

Approximately 75% of holes drilled by Pilot Gold have encountered significant gold mineralization in the basal Claron Formation, as well as a number of holes containing mineralization hosted in underlying Paleozoic strata.

The 10-hole large diameter core program has been completed.  Metallurgical testing, including column testing, will commence following receipt of assays pending for 7 holes.  Core drilling has provided new insights into the stratigraphic and structural controls on mineralization, as well as the nature of alteration and mineralization. 

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 underexplored 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 Goldstrike1 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.

A four hole RC drill test of a structural, stratigraphic and induced polarization target southwest of the Main Pit was recently completed at Kinsley Mountain, with assays pending. The target is high-grade gold mineralization similar to that drilled in the Western Flank zone.  Kinsley hosts near-surface mineralization similar to other Carlin-style, sediment-hosted gold systems.  It contains a past-producing mine with an extensive exploration database and numerous, untested gold targets. Kinsley is owned 79.1% by Pilot Gold and 20.9% by Nevada Sunrise Gold Corporation.