VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 17, 2015) – Pilot Gold Inc. (TSX:PLG) (“Pilot Gold” or the “Company”) is pleased to report metallurgical results from the Valley Porphyry at TV Tower. The metallurgical program was designed to test the amenability of mineralization to produce gold and copper concentrates. The Valley Porphyry was discovered in June 2014 (see press release dated June 11, 2014) and is one of three copper-gold porphyry systems that Pilot and its partner, Teck Resources, have discovered in the region. Along with the Hilltop porphyry, Columbaz porphyry and the neighbouring Halilaga deposit, these discoveries have laid the foundation of an emerging porphyry district in western Turkey.
“Metallurgical testing is a key factor in demonstrating a path forward at the Valley zone,” commented Matt Lennox-King, Pilot Gold’s President & CEO. “These initial results demonstrate that the Valley porphyry could potentially be a satellite to our 40% owned Halilaga copper-gold project, 15 kilometres to the east.”
The test work used the same flowsheet developed for the Halilaga deposit with minor adjustments for reagents, flotation times, regrind size and number of stages of cleaning. These results are from open cycle laboratory batch tests. Process parameter optimization and locked-cycle testing have the potential to improve copper and gold recoveries at a modest reduction in concentrate grades.
Overall, these results indicate that the Valley porphyry is amenable to flotation producing a concentrate with strong recoveries and grades in both copper and gold. The metallurgical flow sheet used suggests that mineralized material from the Valley Porphyry can be processed through a mill designed to process ore from Halilaga. Mineralogical examinations of the two composites showed that pyrite is the major sulphide mineral with lesser or subordinate amounts of chalcopyrite, bornite, chalcocite and traces of covellite.
VALLEY PORPHYRY METALLURGICAL PROGRAM
The previously developed Halilaga flowsheet consists of a primary grind P80 of ~140μm followed by rougher flotation using lime to adjust to pH=9 and potassium amyl xanthate (PAX) as the collector. The rougher concentrate is reground to a P80 of ~20μm and two stages of cleaning are used to produce a final copper concentrate product.
Five composites, including four hypogene samples and one transitional sample, were chosen for testing. Testing was carried out with a variety of primary and regrind sizes. The results suggest that the optimal regrind size is approximately 15 microns, and that only two cleaner stages are needed, in contrast to three for Halilaga. For the hypogene samples, rougher flotation recoveries range from 87.3% to 91.9% for copper, and 63.3% to 78.6% for gold. Second Cleaner flotation recoveries range from 84.0% to 84.6% for copper, and 58.5% to 66.1% for gold. Cyanide leaching of the tails did not markedly increase gold recovery. Recoveries were relatively poor for the transitional sample, thus additional testing will be needed to optimize recovery. To date, very little transitional material has been identified in association with the Valley Porphyry system.
The program was carried out at Hazen Research, Inc. in Golden, Colorado under the direction of consulting metallurgist Gary Simmons and in cooperation with John Gathje Consulting, LLC. Mr. Simmons has more than 35 years of experience with mining companies in project management, process development, mill operations, design engineering, research and development and corporate due diligence. He played key roles with Fronteer Gold on the flagship Long Canyon and Northumberland projects, and was Senior Technical Director, Metallurgy and Technology for Newmont Mining Corporation.
Gary Simmons, of GL Simmons Consulting, LLC (B.S. Extractive Metallurgy), a Qualified Professional with the Mining and Metallurgical Society of America and Pilot Gold consultant, is the Qualified Person, within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), who has overseen the collection and verification of the data for this release and has reviewed and approved this release’s content. Mr. Simmons is independent of Pilot Gold. Metallurgical testing was conducted at Hazen Research, Inc. in Denver, Colorado.
Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company’s designated Qualified Person for this news release and has reviewed and validated that the information contained in the release is accurate.
ABOUT TV TOWER
TV Tower is a joint venture between Pilot Gold (60%) and Teck Madencilik Sanayi Ticaret A.S. (40%), a subsidiary of Teck Resources Limited. Pilot Gold is project operator at TV Tower.
Further information is available in the technical report “Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey”, effective January 21, 2014 and dated February 20, 2014 (the “Report”) prepared by Casey M. Hetman, P.Geo. with SRK Consulting (Canada) Inc.; James N. Gray, P. Geo. of Advantage Geoservices Ltd.; and Gary Simmons, BSc, Metallurgical Engineering, of G L Simmons Consulting, LLC, under Pilot Gold’s Issuer Profile on SEDAR (www.sedar.com). Mr. Hetman, Mr. Gray and Mr. Simmons are “Qualified Persons” as defined by NI 43-101.
The proximity to Halilaga does not mean Pilot Gold will obtain similar results at Hilltop, Columbaz, Valley or other targets on the TV Tower tenure. TV Tower is an early stage exploration project and, except for the mineral resources at the KCD deposit as summarized in the Report, does not contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the Hilltop, Columbaz, Valley, or other targets is conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at these or other targets at TV Tower will yield a mineral resource.
ABOUT PILOT GOLD
With a proven technical team and strong treasury, Pilot Gold continues to discover and advance high-quality projects featuring strong grades, meaningful size and mining-friendly locales. Our cornerstone assets include interests in the TV Tower and Halilaga projects in Turkey and the Kinsley project in Nevada, each a foundational asset. The Company also has a pipeline of projects defined by strong gold occurrences, large land positions and district-scale potential.
For more information, visit www.pilotgold.com.
All statements in this press release, other than statements of historical fact, are “forward-looking information” with respect to Pilot Gold within the meaning of applicable securities laws, including statements that address potential quantity and/or grade of minerals, potential size and expansion of a mineralized zone, proposed timing of exploration and development plans. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “planned”, “expect”, “project”, “predict”, “potential”, “targeting”, “intends”, “believe”, “potential”, and similar expressions, or describes a “goal”, or variation of such words and phrases or state that certain actions, events or results “may”, “should”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management at the date the statements are made including, among others, assumptions about future prices of gold, copper, silver and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining governmental approvals and financing on time, obtaining renewals for existing licences and permits and obtaining renewals for existing licences and permits, and obtaining any new required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, the amenability of mineralization to produce a high-grade or high-quality concentrate (as there can be no assurances as to the results of the metallurgical testing and no inferences should be drawn therefrom), the accuracy of any metallurgical testing completed to date, the potential for mineralized material from the Valley Porphyry to be processed through a mill designed to process ore from Halilaga, successful resolution of disputes and anticipated costs and expenditures. Many assumptions are based on factors and events that are not within the control of Pilot Gold and there is no assurance they will prove to be correct.
Such forward-looking information, involves known and unknown risks, which may cause the actual results to be materially different from any future results expressed or implied by such forward-looking information, including, risks related to the interpretation of results at TV Tower or Halilaga, reliance on technical information provided by our joint venture partner or other third parties as related to the Company’s mineral property interests; changes in project parameters as plans continue to be refined; current economic conditions; future prices of commodities; possible variations in grade or recovery rates; the costs and timing of the development of new deposits; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; the timing and success of exploration activities generally; delays in permitting; satisfaction of Turkish requirements relating to the periodic submissions of Environmental Impact Assessments; possible claims against the Company or its joint venture partners; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals, financing or in the completion of exploration as well as those factors discussed in the Annual Information Form of the Company dated March 24, 2015 in the section entitled “Risk Factors”, under Pilot Gold’s SEDAR profile at www.sedar.com.
Although Pilot Gold has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Pilot Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise unless required by law.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The mineral resource estimates referenced in this press release use the terms “Indicated Mineral Resources” and “Inferred Mineral Resources”. While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission (“SEC”). “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade without reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Pilot Gold is not an SEC registered company.
VP Corporate Affairs
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