The Western Flank target at Pilot Gold's (TSX:PLG) Kinsley Mountain project appears to be the gift that keeps on giving this Christmas season. After releasing a set of positive results in early September, the company came back with more high-grade intercepts this week. Located south of Newmont Mining's (NYSE:NEM) Long Canyon deposit in Nevada, the Kinsley project is operated and owned 79 percent by Pilot Gold, while Nevada Sunrise (TSXV:NEV) owns the other 21 percent. The team at Pilot was also responsible for the discovery of the Long Canyon, Northumberland and Sandman gold deposits in Nevada, as well as various other uranium and gold deposits in Canada and Turkey. And as CEO.ca notes, Long Canyon was sold to Newmont for $2.3 billion back in 2011. The results Highlights from the latest round of drilling at the Western Flank include:10.1 grams per tonne gold over 39.6 meters, including 17.4 grams per tonne over 21.6 meters6.05 grams per tonne gold over 30.5 meters6.88 grams per tonne gold over 6.1 meters, including 11 grams per tonne of gold over 3 meters Pilot also reported an intercept of 2.69 grams per tonne gold over 7.6 meters at the Racetrack area located 1,200 meters south of Western Flank. In a research note from Haywood Securities, Tara Hassan states that the results "continue to highlight broad intervals of high grade mineralization" at the target. Although the analyst added that results from Western Flank "do not represent significant step-outs" — meaning that the scale of high-grade mineralization there is still "limited to a relatively small footprint for the time being" — she remains optimistic that further results will demonstrate more potential at the project.
For his part, Pilot Gold CEO Matt Lennox-King reacted positively to the results, stating, "[o]ur 2014 results support our concept that gold mineralization at Kinsley Mountain is widespread in two stratigraphic units — the Secret Canyon and Candland Shales, both emerging as a viable property-wide targets. These latest results not only demonstrate continuity of the high-grade at Western Flank target, but also the broader potential as gold was detected in widely-spaced drill holes over the 2 kilometre Western Flank trend."Value through the drill bit Overall, Hassan emphasizes in her note that since Pilot has projects with multiple defined targets in underexplored areas hosting gold deposits of over 1 million ounces — and an excellent team to explore them — it is "well positioned to drive value through the drill bit." The analyst has assigned the company a rating of "buy" with a target price of $1.70, and cites ongoing drill results as catalysts to watch for in 2015. Certainly, investors will want to keep an eye on the team at Pilot to see whether it continues to repeat previous successes. At close of day Tuesday, shares of Pilot were up 3.8 percent trading at $0.82. Securities Disclosure: I, Teresa Matich, hold no investment interest in any of the companies mentioned. Pilot Gold Releases More High-grade Results From Kinsley Mountain from Gold Investing News