|By Marketwired .||
|March 17, 2014 05:54 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/17/14 -- Pilot Gold Inc. (TSX: PLG) ("Pilot Gold" or the "Company") is pleased to announce its financial results and company highlights for the year ended December 31, 2013 and provides an update on company activities at our key projects in the United States and Turkey.
"Pilot Gold finished 2013 in a very strong position" stated Matt Lennox-King, Pilot Gold President & CEO. "We have continued to grow with significant discoveries at Kinsley and TV Tower. We have the structure and financial strength to advance our projects in Nevada and Turkey, and maintain flexibility to pursue other value opportunities that may arise."
Financial and operational highlights through and subsequent to year end:
-- Entered into an agreement with a syndicate of underwriters for the issuance of 13,072,000 common shares of the Company, on a bought deal basis, at a price of C$1.53 per Share for gross proceeds of C$20,000,160 (the "Offering"). -- Welcomed Mr. Ken Engquist as VP Project Development and Engineering to the Pilot Gold team. Mr. Engquist will be responsible for managing the transition of the Company's project interests from advanced exploration through resource definition, economic analyses, and development. -- Sold several portfolio property interests, reducing the cost of maintaining our portfolio while retaining an interest in the properties through net smelter return royalty interests or equity in the purchasers. -- Cash and short-term investments at December 31, 2013, totalled approximately $19 million.
Exploration highlights and significant events through and subsequent to year end:
Kinsley is a Carlin-style, sedimentary-rock hosted gold system and past-producer located along the Long Canyon Trend in North Eastern Nevada. Pilot Gold increased its interest in Kinsley to approximately 79% during the year as a result of having sole-funded activity on the project, including allowable 2013 budget overruns.
Through December 31, 2013 the Company completed a 14,200 metre 2013 drill program and incurred approximately $3.85 million in expenditures at Kinsley (year ended December 31, 2012: $3.67 million). Results at Kinsley to date confirm the presence of multiple stratigraphic horizons hosting mineralization in NNE-SSW and possible NW-SE orientations along the property's Western Flank zone, including the discovery of high grade gold in the Secret Canyon Shale, a new stratigraphic host horizon beneath the previously exploited Candland Shale. The Candland Share is the main host for mineralization at the historical Kinsley Mine.
-- Drilled a new high grade gold discovery at Kinsley's Western Flank target, within a new host horizon including: -- 10.5 g/t Au over 42.7 metres in PK131C, including, 18.3 g/t Au over 22.9 m; -- 7.53 g/t Au over 53.3 m in PK132C, including, 14.9 g/t Au over 22.9 m, and, 4.67 g/t Au over 7.6 m; -- 6.85 g/t Au over 41.7 m in PK127C, including,16.3 g/t Au over 8.5 m, and, 20.5 g/t Au over 3.6 m -- 8.53 g/t Au over 36.6 metres in PK091CA, including, 29.43 g/t Au over 7.6 metres -- Received approval for a Plan of Operations allowing up to 70 acres of disturbance for exploration and development drilling on the core group of claims. The Company submitted an amendment to the Plan of Operations in November 2013, which if approved, will allow 20 acres of additional exploration drilling in the property's northern claims.
A subsidiary of Nevada Sunrise Gold Corporation holds the remaining 20.9% interest in the property. The 2014 program and budget currently approved for Kinsley is $4.5 million, and includes a 17,000 metre drill program. The Company and its partner are each obligated to fund their pro rata share. The initial phase of the 2014 drill program was completed on March 9, 2014. Drilling is expected to resume in May 2014.
TV Tower is an extensive epithermal gold-silver and porphyry copper-gold property located in the Biga district of northwestern Turkey. Pilot Gold currently holds a 40% interest in TV Tower, and became project operator in June 2012 with an option to increase the Company's interest in TV Tower to 60%. The Company has completed the second year minimum committed expenditure amount and has begun the final expenditure to complete the option to earn-in. "TMST", a subsidiary of Teck Resources Limited is the Company's 60% joint venture partner at TV Tower.
During the year ended December 31, 2013, Pilot Gold incurred approximately $10.2 million in exploration expenditures at TV Tower including the value of consideration paid to acquire Karaayi (year ended December 31, 2012: $4.77 million). In 2013 we drilled 16,781 metres in 73 holes at the KCD target, 3,586 metres in 17 holes at Kayali and 1,329 metres in 5 holes at Karaayi. Cash expenditures at TV Tower (not including consideration and costs to acquire Karaayi) exceeded the 2013 budget of $7.92 million by approximately $0.88 million due to higher than anticipated drill costs as we drilled a higher proportion of diamond drill holes than originally planned and extended the 2013 program to include drill targets at Karaayi.
-- Reported an independent resource estimate for the KCD gold-silver-copper deposit at TV Tower. -- Acquired beneficial interest in the Karaayi property, consolidating ownership of the K2 trend (Kayali and Karaayi), a strategic exploration target in the southern portion of TV Tower and creating the dominant position in Turkey's Biga peninsula. -- Demonstrated the potential for shallow oxide gold mineralization over a strike length of 4 kilometres. Significant drill results from the Kayali zone include: 15.9 g/t Au over 3 m, within an interval grading 1.35 g/t Au over 45 m, in KYD-46. Karaayi highlights include 2.00 g/t Au over 35.0 m in KRD-03 -- Announced that drill results from the K2 trend reveal the presence of an extensive blanket of supergene copper mineralization underlying the oxide gold zones at the Karaayi and Kayali targets. Drilling and surface work also identified two or more copper-gold porphyry targets at Karaayi. -- Supergene copper drill highlights from K2 include: -- 1.29% copper (Cu) over 34.1 m in KYD-39, including 1.90% Cu over 20.8 m -- Karaayi Cu-Au porphyry target highlights include: -- 0.30% Cu and 0.13 g/t Au over 224.8 m in KRD002 -- Five of the exploration licenses that comprise TV Tower were upgraded to "operations" status further to the receipt of approvals from the Turkish mining authority in January 2014.
The 2014 drill program, focused initially on the supergene copper zone and the two porphyry Cu-Au targets identified to date at K2 is expected to begin in April 2014. Follow-up of initial metallurgical results at KCD is also planned. Drill permits for the Sarp and Columbaz targets have recently been received and there are valid permits in place allowing for additional drilling at KCD, Karaayi and Kayali.
Including consideration paid to acquire Karaayi, and net of a VAT receivable, the Company has approximately $5.5 million remaining to complete the final earn-in expenditure requirement.
The Company holds a 40% interest in Halilaga, a PEA-stage copper-gold porphyry project located 20 kilometres southeast of TV Tower. Based on recommendations of the authors of a preliminary economic assessment completed for Halilaga in 2012 (the "Halilaga PEA"), Pilot Gold initiated a number of strategic studies in conjunction with TMST, the Company's 60% partner and operator at Halilaga. Strategic studies underway include economic, metallurgical, environmental and engineering analyses to advance the concept and potential of this porphyry project.
Pilot Gold's share of budgeted expenditures for 2013 was $0.23 million (2012: $1.95 million.) The Corporation's share of actual expenditures through the end of 2013 was $0.28 million (2012: $1.63 million).
There are several valid forestry permits in place at Halilaga, allowing further infill and exploration drilling on the property. Each of the exploration licenses at Halilaga were upgraded to "operations" status further to the receipt of approvals from the Turkish mining authority in November 2013.
The Corporation expects to continue discussions with Teck on strategic next steps for the project. Pilot Gold's share of the budget currently proposed for 2014 is approximately $0.19 million.
SELECTED FINANCIAL DATA
The following selected financial data is derived from our consolidated financial statements for the years ended December 31, 2013, 2012 and 2011, as prepared in accordance with International Financial Reporting Standards. All dollar figures are expressed in USD unless otherwise stated.
---------------------------------------------------------------------------- Twelve months ended December 31 2013 2012 2011 ---------------------------------------------------------------------------- Loss for the period $ 9,142,314 $ 8,019,202 $ 11,840,930 Loss and comprehensive loss for the year $ 12,516,033 $ 7,393,038 $ 13,420,480 Basic and diluted loss per share $ 0.10 $ 0.12 $ 0.21 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- As at December 31, December 31, 2013 2012 ---------------------------------------------------------------------------- Cash and short-term investments $ 19,005,690 $ 37,380,364 Working capital $ 18,470,511 $ 40,394,752 Total assets $ 71,374,312 $ 72,388,880 Current liabilities $ 1,708,714 $ 1,288,365 Non-current liabilities $ 68,126 $ 42,592 Shareholders' equity $ 67,174,395 $ 71,057,923 ----------------------------------------------------------------------------
For the year ended December 31, 2013, we reported a net loss of $9.14 million compared to a net loss of $8.02 million and $11.84 million for the years ended December 31, 2012 and 2011, respectively. The most significant contributors to the loss for the year ended December 31, 2013 were non-cash stock-based compensation of $2.28 million (2012: $1.72 million; 2011: $5.9 million), the cost of wages and benefits of $1.73 million (2012: $2.13 million; 2011: $1.20 million), a write down of the deferred exploration expenses relating to the New Boston property of $1.28 million, a decline in the fair value of financial instruments of $1.58 million in 2013, and office and general expenses of $1.28 million (2012: $1.34 million; 2011: $1.24 million).
Expenses for the years ended December 31, 2013 and 2012 were offset by finance income of $0.36 million (2012: $0.19 million; 2011: $0.23 million), and in 2012, the reversal of a previous impairment of the VAT receivable in Turkey ($0.31 million). The loss per share for the year ended December 31, 2013 was $0.10 (2012: $0.12; 2011: $0.21).
Total assets decreased slightly to $71.37 million (2012: $72.39 million; 2011: $37.49 million). During the year ended December 31, 2013, $15.70 million was capitalised to TV Tower (including direct expenditures, consideration paid for the acquisition of Karaayi, a portion of which was paid with Pilot Gold common shares, the value of common shares issued in connection with the earn-in, and the impact of foreign exchange), and $6.27 million was capitalised to Kinsley, including a $2.4 million increase as a consequence of accounting for a non-controlling interest. The increase to total assets was offset by $1.37 million in impairments recorded on certain of the Company's portfolio property interests.
Liabilities at December 31, 2013 and 2012 reflect primarily accounts payable and accruals recorded at year end arising from ongoing activities.
The Company's cash balance decreased by $20.42 million over the course of the year, including $3.45 million in outflows for operating expenditures, $15.40 million for investing expenditures and the impact of changing foreign exchange rates ($1.56 million).
Moira Smith, Ph.D., P.Geo., Chief Geologist, Pilot Gold, is the Company's designated Qualified Person for this news release within the meaning of National Instrument 43-101, Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and validated that the scientific and technical information contained in this release is accurate.
TV Tower and Kinsley are both early stage exploration projects and, except for the mineral resources at the KCD deposit at TV Tower, neither contain any mineral resource estimates as defined by NI 43-101. The potential to define a mineral resource at the copper-gold K2 zone of TV Tower, and on the Western Flank zone at Kinsley are conceptual in nature and there has been insufficient exploration to define a mineral resource thereat. It is uncertain if further exploration at either TV Tower or Kinsley will yield any mineral resources at Kinsley or additional resources at TV Tower.
Although there has been no economic analysis summarized in this press release relating to the Halilaga PEA, readers are cautioned that the Halilaga PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the Halilaga PEA will be realized. Furthermore, there has been an insufficient amount of analysis undertaken to reach any conclusions for optimization of Halilaga, and there is no certainty that the strategic studies currently underway could be implemented. Any strategic plan for Halilaga will be subject to the results of further study by the Company and its joint venture partner.
This press release should be read in conjunction with Pilot Gold's audited consolidated financial statements and Management's Discussion and Analysis for the year ended December 31, 2013. These documents can be found on the Company's website (www.pilotgold.com) or under the Company's profile on SEDAR at www.sedar.com. Shareholders may receive a printed copy of the audited consolidated financial statements, free of charge, upon request. All amounts are presented in United States dollars unless otherwise stated. Pilot Gold will be hosting its annual general meeting on May 12, 2014, in Vancouver, British Columbia.
ABOUT PILOT GOLD
Pilot Gold is a well-funded gold exploration company led by a proven technical team that continues to discover and define high-quality projects featuring strong grades, meaningful size and mining-friendly addresses. Our three key assets include interests in the TV Tower and Halilaga projects in Turkey, and the Kinsley project in Nevada, each of which has the ability to become a foundational asset. We also have a pipeline of projects characterized by large land positions and district-wide potential that can meet our growth needs for years to come.
Unless stated otherwise, information of a scientific or technical nature in this press release regarding the TV Tower, Halilaga or Kinsley Mountain properties are summarized, derived or extracted from, the following technical reports: "Independent Technical Report for the TV Tower Exploration Property, Canakkale, Western Turkey", effective January 21, 2014 and dated February 20, 2014, 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; "Preliminary Economic Assessment Technical Report for the Halilaga Project, Turkey", effective August 27, 2012 and dated October 10, 2012 prepared by Gordon Doerksen, P.Eng., James Gray, P.Geo., Garth Kirkham, P.Geo., Dino Pilotto, P.Eng., Maritz Rykaart, P.Eng, and Kevin Scott, P.Eng.; and "Technical Report on the Kinsley Project, Elko County, Nevada, U.S.A." effective February 15, 2012 and dated March 26, 2012 prepared by Michael Gustin, CPG and Moira Smith, Ph.D., P.Geo. For further detail on TV Tower, Kinsley Mountain or the Halilaga PEA, refer to the respective technical reports filed on the Company's website at www.pilotgold.com or under Pilot Gold's SEDAR profile at www.sedar.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 with respect to the anticipated timing and closing of the Offering, anticipated use of proceeds of the Offering, those 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 required licences and permits, labour stability, stability in market conditions, availability of equipment, accuracy of any mineral resources, 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 the Kinsley property, reliance on technical information provided by our joint venture partner or other third parties as related to Kinsley; successfully completing the earn-in on the TV Tower project, including the ability to incur the minimum annual Expenditure Requirements; 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 14, 2014 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.
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 26, 2017 11:00 AM EDT Reads: 2,155
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
Mar. 26, 2017 11:00 AM EDT Reads: 2,489
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Mar. 26, 2017 10:45 AM EDT Reads: 595
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Mar. 26, 2017 10:30 AM EDT Reads: 1,281
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Mar. 26, 2017 10:15 AM EDT Reads: 2,990
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
Mar. 26, 2017 09:30 AM EDT Reads: 4,276
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 26, 2017 09:15 AM EDT Reads: 1,940
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 26, 2017 09:00 AM EDT Reads: 1,235
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
Mar. 26, 2017 09:00 AM EDT Reads: 3,867
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Mar. 26, 2017 08:15 AM EDT Reads: 2,876
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
Mar. 26, 2017 08:15 AM EDT Reads: 2,976
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
Mar. 26, 2017 08:15 AM EDT Reads: 2,681
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 26, 2017 08:00 AM EDT Reads: 4,143
Mar. 26, 2017 07:15 AM EDT Reads: 1,660
Mar. 26, 2017 05:15 AM EDT Reads: 6,159