The purchase of a past-producing heap leach mine in southeastern Idaho marks Pilot Gold’s (TSX: PLG) first acquisition this year and underscores the junior’s heightened focus on gold projects in the western United States under new CEO Cal Everett.
Pilot Gold is purchasing the mine and its surrounding property – now referred to as the Mineral Gulch project – from Western Pacific Resources Corp. (TSXV: WRP) for US$800,000 in cash, 300,000 of its common shares and a 0.5% net smelter return royalty.
The large, oxidized Carlin style sediment hosted gold system, whose surface footprint extends over an area of 12 km2, produced 435,000 oz of gold between 1992 and 1997 from seven small, shallow pits under previous owners, Pegasus Gold Corp.
The operation averaged head grades of 0.7 g/t Au and historical recoveries of 65%.
“This was something I’ve had my eye on for the last four years and I’m just thrilled we were able to pull it off,” says Moira Smith, the company’s vice president exploration and geoscience.
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