Sprott Global Resource Investments

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Pilot Gold - Kinsley Mountain - NE Nevada, May 2014

Andrew Jackson visited Pilot Gold’s Kinsley Mountain property in NE Nevada on May 14, 2014.

Pilot Gold has a 79% holding in the property with the remaining 21% being held by Nevada Sunrise Gold Corp.  The property is centered on an old open pit operation that was operated by Alta Gold, which produced about 138 Koz from an oxide heap leach operation in the 1990s. Pilot has recently expanded their holdings to the north so that they now control 7 km of strike, and are looking to expand to the south as well.

Exploration is focused on a well-defined Phanerozoic carbonate sequence that formed on the continental shelf.   As with most Carlin type deposits, mineralization is controlled by the presence of a) deep crust-tapping structures to bring the gold-bearing fluids to the upper crust, and b) the right stratigraphy to provide favorable traps. The latter are dirty limestones or calcareous shales; these contain calcite that can be leached out by acidic gases, but still be held open by silicate minerals, so that they form a sponge to absorb the gold-bearing fluids that follow. The Kinsley area consists of a broad N/S anticline that is superimposed on what is probably a much older Archaean structure that runs WNW/ESE and probably taps the deep crust.  That WNW structure is probably the key feeder and the mineralizing fluids have bled out into cross structures, including the NNE structure that is currently being drilled.

The historic workings occur as 6 very small open pits, spread along the WNW feeder structure, on the eastern side of the anticline.  The favorable horizon that was historically exploited by these pits was the Candland Shale, a calcareous shale.  The Candland Shale also acted as a weak horizon that took up movement both during early thrusting and later, during the Eocene mineralizing event, as an extensional structure. The gold-bearing fluids found their way along this zone of weakness into the Candland Shale, where the gold was deposited with pyrite. 

The Candland shale is underlain by a non-reactive, massive unit, the Hamburg Dolomite.  Historical drill holes were stopped as soon as the Hamburg Dolomite was reached.  Pilot recognized that the Secret Canyon Shale,
which lies a couple of hundred metres below the Hamburg Dolomite, was another potential host lithology.  Drilling of a leakage soil anomaly on the west side of the anticline, discovered the West Flank mineralization in the Candland Shale, 150m below the surface, but the hole was then extended to test the Secret Canyon Shale, 300m below surface.

 

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The foregoing discussions are a result of site visits and are not to be construed as a recommendation, an endorsement or as investment advice. Sprott Global Resource Investments Ltd, entities that it controls, family, friends, employees, associates, and others may hold positions in these securities, may recommend them to clients, and may sell the same at any time.

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