🕐16.08.11 - 10:27 Uhr
WG: PILOT GOLD ANNOUNCES SECOND QUARTER FINANCIAL RESULTS AND UPDATE ON KEY PROJ
ECTS IN TURKEY AND NEVADA
Von: Pilot Gold [mailto:] Im Auftrag von Pilot
Gold
Gesendet: Dienstag, 16.
August 2011 02:46
An:
Betreff: Pilot Gold announces second quarter financial results and update on
key projects in Turkey and Nevada
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Pilot Gold announces second quarter financial results and update on key
projects in Turkey and Nevada
August 15, 2011
11-15
Pilot Gold Inc.
(PLG-TSX) ("Pilot Gold" or the "Company") reports financial
results for the three and six months ended June 30, 2011, and provides a
review of exploration activities on our gold, silver and copper projects.
"With a carefully managed treasury of almost $28 million in cash and
short-term investments, no debt, and the proven track record of our
technical team, we are well positioned to advance our portfolio of projects
in Turkey and Nevada," says Pilot Gold President and CEO Matt Lennox-King.
"Throughout the remainder of 2011, we will explore and grow our projects
with 60,000 metres of drilling and 13 drill rigs operating on eight
projects."
HIGHLIGHTS
* Received cash of $9.8M on April 4, 2011 pursuant to the closing of
an arrangement agreement ("Fronteer Arrangement") entered into by Pilot
Gold, Fronteer Gold Inc.
("Fronteer"), and Newmont Mining Corporation.
* Trading of Pilot Golds common shares began on the Toronto Stock
Exchange under the symbol "PLG" on April 11, 2011.
* Received $24.5M cash and issued 8,333,334 common shares on June 14,
2011, further to the close of bought-deal financing announced May 24, 2011.
* Accelerated drilling on our key projects and initiated drilling on
additional projects in our portfolio.
* Through a wholly-owned subsidiary, completed the substantive
disposal on June 6, 2011 of our interests in the Aktarma and Ispir
exploration properties located in northwest Turkey to Global Resources
Corporation Limited ("GRCL"), a company publicly traded and listed on the
Australian Stock Exchange.
As consideration, we received 4,500,000 common
shares of GRCL.
* Executed an earn-in agreement with GRCL on June 27, 2011, providing
an option for GRCL to earn into our Yunt Dag property, located in northwest
Turkey.
We received 500,000 common shares of GRCL as initial consideration
for the option.
* First pass drilling at our Brik Project in southeast Nevada
intersected significant widths of gold mineralization, including 0.82 g/t Au
over 35 metres.
* Continued to intersect strong gold mineralization at, and near,
surface including 4.28 g/t gold over 136.2 metres at the TV Tower Project in
Turkey.
* Subsequent to period end, elected to participate at a 40%-interest
in a newly established jointly-owned company with High Desert Gold
Corporation ("HDG"), following HDGs successful earn-in on the Gold Springs
2 gold property, located on the Nevada-Utah border.
Details of financial results for the three and six months ended June 30,
2011 are described in the unaudited condensed interim consolidated financial
statements and corresponding Managements Discussion and Analysis, available
on SEDAR at www.sedar.com
.
Further details
on the Companys projects and activities can be found on Pilot Golds
website at www.pilotgold.com
.
All amounts are
in United States dollars, unless otherwise indicated.
SELECTED FINANCIAL DATA
The following selected financial data is derived from our financial
statements for the three- and six-months ended June 30, 2011 and 2010, as
prepared in accordance with International Financial Reporting Standards
("IFRS"), with application of the continuity basis of accounting.
Three months ended June 30,
Six months ended June 30,
2011
2010
2011
2010
Loss for the period
($7,269,816)
($350,007)
($7,683,890)
($770,562)
Loss and comprehensive loss for the period
($7,210,193)
($385,296)
($7,424,185)
($767,687)
Basic and diluted loss per share
($0.30)
($0.01)
($0.30)
($0.03)
As at
June 30,2011
December 31, 2010
Cash and short-term investments
$30,789,854
$86,966
Working capital
$29,554,215
$326,385
Total assets
$43,163,270
$7,905,170
Current liabilities
$2,071,090
$74,807
Non-current liabilities
$387,289
$2,550
Shareholders equity
$40,704,891
$7,827,813
* For the three- and six-months ended June 30, 2011, the Company
recorded a loss of $7.27 million and $7.68 million, compared to a loss of
$0.35 million and $0.77 million for the three- and six-month periods ended
June 30, 2010.
Losses and comprehensive losses through June 30, 2011 reflect
primarily the $4.93 million non-cash stock-based compensation expense
related to our initial stock option grant, as well as costs associated with
the start-up and listing of the Company; including, initial listing fees,
and the associated legal, advisory and audit fees.
Losses through the
comparative period correspond to the allocation of certain costs incurred by
Fronteer, the former parent company of Pilot Gold, related to those
properties and operations transferred to Pilot Gold, prior to and in
connection with the close of the Fronteer Arrangement.
* Other comprehensive losses for the three- and six-months ended June
30, 2011 of $0.06 million and $0.26 million include the foreign exchange
differences arising from the translation of foreign operations of $0.27
million and $0.29 million respectively, and net losses of $0.21 and $0.04
million on the value of the Companys investments in common shares.
* Working capital of $29.5 million at June 30, 2011 includes $30.8
million in cash and short-term investments, net of $2.1 million in accounts
payable and accrued liabilities.
Total assets at June 30, 2011 include
$5.0 million of deferred exploration expenditures, and $4.9 million related
to our investment in associates.
Bought deal financing
On June 14, 2011, the Company closed the offering of 8,333,334 common shares
of the Company (the "Offered Shares") at a price of C$3.00 per Offered Share
(the "Issue Price") for aggregate gross proceeds of C$25,000,002 (the
"Offering") announced on May 24, 2011.
UPDATE ON EXPLORATION IN TURKEY
Through the six-months ended June 30, 2011, Pilot Gold continued to advance,
in partnership with Teck Madencilik Sanayi Ticaret A.S.
("TMST"), an
indirect subsidiary of Teck Resources Limited, the Halilaga copper-gold
porphyry property and the TV Tower gold-silver-copper property, both of
which are located in northwest Turkeys Biga District.
TMST is Pilot Golds
60% joint-venture partner and operator for both projects.
Through the
six-months ended June 30, 2011 our share of expenditures on the Halilaga
Project and the TV Tower Project, amounted to $1.69 million.
Halilaga Project
Through the first six-months of 2011, Pilot Gold continued with the Phase 1,
four-rig, 10,000 metre exploration / delineation drill program focused on
the Central Zone of the Kestane target, and testing prominent magnetic
anomalies on the remainder of the property.
Approximately 11,000 metres have
been completed as part of this program, providing a sound base to proceed
with the additional 10,000 metres of drilling for the second half of the
year.
To date, drilling at Kestane has intersected porphyry style copper-gold
mineralization over a strike length of 1,200 metres, a width of 850 metres,
and thicknesses of up to 600 metres.
Halilaga is also endowed with a
supergene enrichment zone that is locally up to 40 metres in thickness at
grades of 1%-to-2% Cu.
In May 2011, we reported that ongoing drilling at Halilaga continued to
intersect significant widths of copper-gold mineralization, including 0.22%
copper and 0.34 grams per tonne gold over 466.7 metres.
Additional drill
results from July 2011 intersected 0.34% copper and 0.27 grams per tonne
gold over 306.7 metres.
Through the remainder of 2011, drilling will focus
on infill drilling at the Kestane Zone, and will be carried out in
conjunction with ongoing metallurgical and hydrological testing.
A
project-first NI 43-101 compliant resource estimate is expected by the end
of 2011.
TV Tower Project
The TV Tower gold project is located approximately 20 kilometres to the
northwest of Halilaga.
The property is accessible by road and covers more
than 67-square kilometres.
Initial drill results from the Kucukdag target
continue to expand the footprint of the gold mineralized zone.
Results from
four additional exploration holes are currently pending, while drilling
continues.
Phase 1 drilling in 2010 and early 2011 tested a total of 19 core holes
(4,184 metres) confirming the presence of at least two large, gold-bearing,
mineralized systems at the Kucukdag and Kayali targets.
Six other highly
prospective zones of surface alteration and gold mineralization have been
identified at TV Tower, and remain the focus of further exploration and
drilling.
Eight high-conviction targets have been identified with widespread
epithermal to porphyry characteristics, typical of those seen at other
deposits in the Biga District.
A 15,000-metre Phase 2 drill program (Pilot Golds share is approximately
$1.57 million) commenced in early April, 2011.
Five drills are currently
operating on the property.
The Phase 2 program is focused on expanding the
results from Kucukdag and Kayali, with exploration drilling on additional
high priority targets.
UPDATE ON EXPLORATION IN NEVADA
Pilot Gold continued to advance its principal Nevada exploration projects in
the second quarter of 2011, with active exploration and drill programs on
the Regent, Brik, New Boston and Viper projects
Regent Project
Pilot Golds 100%-owned Regent project is located in Mineral County, Nevada,
on the eastern margin of the prolific Walker Lane epithermal gold-silver
belt.
Regent hosts an extensive low-sulphidation epithermal gold and silver
mineralized system with both disseminated and high-grade vein hosted
mineralization.
On April 21, 2011, we announced the start of a 10,000 metre, Phase 1 core
and reverse circulation ("RC") drill program designed to expand the historic
disseminated gold and silver deposit and follow-up on historic high-grade
intervals.
Geologic and alteration mapping and ground geophysics are
underway in conjunction with the ongoing drill program, with initial
metallurgical work to follow.
Brik Project
The Brik project is located on the northern flank of the Cedar Range in
east-central Lincoln County, Nevada and is comprised of 103 unpatented lode
claims on land administered by the United States Bureau of Land Management.
The Brik project contains gold mineralization in a volcanic-hosted
low-sulphidation quartz vein environment.
Previous exploration programs
identified five prospective target areas on the property, which were
identified through ongoing exploration programs by Pilot Gold.
On August 3, 2011, we announced results of the Phase 1, 3,481 metre RC drill
program, completed in late July 2011.
Five areas were tested with 27 reverse
circulation drill holes, with a new discovery at the Hidden Treasure target
area generating significant near-surface gold intercepts.
A second phase
program is planned to commence fall 2011, as these mineralized zones remain
open in all directions, indicating that there is substantial potential to
increase the size of the discovery.
Viper Project
The Viper project located in Elko County, Nevada, hosts a gold mineralized
low sulphidation epithermal vein system discovered on the property in 2009
by Pilot Golds exploration team.
A Phase 1 3,500 metre RC drill program is
underway and is expected to wrap up in the fourth quarter of 2011.
New Boston Project
New Boston is an extensive copper-molybdenum porphyry and skarn system
located in southwest Nevada.
A 2,500 metre drill program is currently
underway to test outcropping copper mineralization and molybdenum targets at
the Blue Ribbon, New Boston and Eastern areas.
Drilling is expected to be
completed by late August.
ABOUT PILOT GOLD
Pilot Gold is a gold exploration company focused on advancing Halilaga, TV
Tower and our pipeline of projects in Nevada.
For more information, visit
www.pilotgold.com or contact:
Matt Lennox-King, President & CEO
Patrick Reid, VP Corporate Development
Phone: 604-632-4677 or Toll Free 1-877-632-4677
Our results are now being prepared in accordance with IFRS.
Our accounting
policies have changed and the presentation, financial statement captions and
terminology used in this news release and the accompanying unaudited
financial statements may differ from that used in our financial statements
for the year ended December 31, 2010.
The new policies have been
consistently applied to all of the periods presented in this news release
and all prior period information has been restated or reclassified for
comparative purposes unless otherwise noted.
Further details on the adoption
and application of IFRS are provided in the Companys Managements
Discussion and Analysis and in the notes to our unaudited condensed interim
consolidated financial statements for each of the quarter ended March 31,
2011 and the quarter ended June 30, 2011.
This press release should be read in conjunction with our unaudited
condensed interim consolidated financial statements for the three and six
months ended June 30, 2011, and related Managements Discussion and
Analysis, as at August 11, 2011.
These documents can be found on the
Companys website (www.pilotgold.com
) and on SEDAR at
www.sedar.com
.
Shareholders may
receive a copy of the complete unaudited financial statements free of charge
upon request.
The National Instrument 43-101 technical reports prepared by Ian R.
Cunningham-Dunlop, P.
Eng.
and VP Exploration and Chief Operating Officer,
Pilot Gold (formerly VP Exploration, Fronteer Gold Inc.) entitled "NI 43-101
Technical Report on the TV Tower Exploration Property, Canakkale, Western
Turkey," dated February 15, 2011 (amended June 7, 2011), and the National
Instrument 43-101 technical report entitled "NI 43-101 Technical Report on
the Halilaga Exploration Property, Canakkale, Western Turkey," dated
February 15, 2011 (amended June 7, 2011), respectively, are both available
under Pilot Golds SEDAR profile at http://www.sedar.com
.
For further details on the Fronteer Arrangement refer to the Companys
Amended Annual Information Form ("AIF") for the year ended December 31, 2010
dated May 12, 2011 (Amended June 7, 2011), available under Pilot Golds
SEDAR profile at http://www.sedar.com
.
Except for the statements of historical fact contained herein, certain
information presented constitutes "forward-looking information" within the
meaning of applicable Canadian securities laws.
Often, but not always,
forward-looking information can be identified by the use of words such as
"plans", "planning", "planned", "expects" or "looking forward", "does not
expect", "continues", "scheduled", "estimates", "forecasts", "intends",
"potential", "anticipates", "does not anticipate", or "belief", or
describes a "goal", or variation of such words and phrases or state that
certain actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved.
Such forward-looking information,
including, but not limited to, information with respect to exploration
results, the timing and success of exploration activities generally,
permitting timelines, government regulation of exploration and mining
operations, environmental risks, title disputes or claims, limitations on
insurance coverage, potential quantity and/or grade of minerals, potential
size of mineralized zone, potential expansion of mineralization, potential
type of mining operation, timing and possible outcome of any pending
litigation, timing and results of future resource estimates or future
economic studies and the timing and results of any future development
programs involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievement of Pilot Gold
to be materially different from any future results, performance or
achievements expressed or implied by such forward looking information.
Such
factors include, among others, risks related to the interpretation and
actual results of current exploration and development activities; changes in
project parameters as plans continue to be refined; current economic
conditions; future prices of commodities; possible variations in grade or
recovery rates; failure of equipment or processes to operate as anticipated;
the failure of contracted parties to perform; labour disputes and other
risks of the mining industry; delays in obtaining governmental approvals or
financing or in the completion of exploration, as well as those factors
discussed in the section entitled "Risk Factors" in the Companys AIF, which
is available under Pilot Golds 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.
Accordingly, readers should not
place undue reliance on forward-looking information.
PLG - TSX
C2011 Pilot Gold |
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