NBF Research Flash, Latest PLG News, Target 2.25 CAD (atm) Pilot Gold Corp. – (PLG:TSX) $1.40
STOCK RATING: Outperform (Unchanged)
TARGET: $2.25 (Unchanged)
RISK RATING: Speculative (Unchanged)
Pilot Extends Mineralization at Kinsley Mountain with Results from the “Right Spot”
Impact: Positive
This morning, PLG highlighted assay results from four holes completed at the Right Spot target area, located 1 km south of previously reported high-grade intersections along the Western Flank at Kinsley Mountain.
Notably, today’s results intersected near-surface, predominantly oxide mineralization and confirm PLG’s interpretation of the local geology.
Highlights from today’s results include:
3.35 g/t gold over 41.1 metres in PK144, starting at surface;
o Including 5.11 g/t gold over 4.6 metres
3.08 g/t gold over 19.8 meters in PK138, starting at 3.0 metres down-hole;
2.43 g/t gold over 19.8 metres in PK139, starting at 19.8 metres down-hole; and
1.75 g/t gold over 22.9 metres in PK142, starting at surface.
To date, PLG has completed 17 holes (comprising 5,018 meters) in the summer program, with assay results pending on an additional 10 holes - including initial exploration at the "Secret Spot" target which is located a further 1 km to the south.
Thencompany is also conducting detailed surface mapping and sampling to generate additional exploration targets to the south of the Right Spot.
PLG remains well-funded with ~US$37 mln in the bank and all earn-in agreements to 60% in place for TV Tower (~US$6 mln left to spend before June 30, 2015).
We anticipate additional drill results throughout 2014 at both TV Tower (focused on the K2 zone) and from the expanded program at Kinsley Mountain. We contend that Pilot remains well positioned relative to its peers given its strong financial position, strength of its management team, and exploration potential at each of its primary projects. We reiterate our Outperform rating and $2.25 target price.