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