Pilot Gold entered into an option agreement with Nevada Sunrise Gold Corp. to explore and identify gold resources at Nevada Sunrise's Kinsley Mountain property in Elko County.
Kinsley Mountain lies about 45 miles southeast of the Long Canyon property in the Peqoup Mountains in northeastern Nevada, where Pilot Gold's exploration team identified significant gold resources when members of the team worked for Fronteer Gold. Newmont Mining Corp purchased Fronteer's interests in Long Canyon and is advancing a minesite there.
Kinsley Mountain consists of 141 claims on 2,807 acres on Bureau of Land Management land. Between 1994 and 1999, Alta Gold Co. produced approximately 138,000 ounces of gold from the site before abandoning the project.
Pilot Gold will earn a 51 percent undivided interest in the Kinsley Mountain Property through a joint venture company to be formed by incurring $1.18 million in exploration expenditures by March 30 of 2013. It can earn an additional 14 percent interest in the property and joint venture by spending an additional $3 million in exploration expenditures within five years.
