Pilot Gold Reports Preliminary Economic Assessment Results from Copper-Gold Porphyry Project

Pilot Gold (TSX:PLG) reported the  results from its Preliminary Economic Assessment for the Halilaga copper-gold porphyry project in northwestern Turkey. The PEA is based on a mineral resource estimate first presented on March 23, 2012.

PEA highlights include:

• Pre-tax NPV^7% of $675 million, 26% IRR and 2.1 year payback ($1,200/oz gold, $2.90/lb copper);

• After-tax NPV^7% of $474 million, 20% IRR and 2.7 year payback ($1,200/oz gold, $2.90/lb copper);

• Average life of mine (“LOM”) strip ratio of 1:1;

• LOM payable production of 1.290 million ounces gold and 1.247 billion pounds copper;

• Total project capital costs of $1.17 billion (including contingency of $200 million), with potential to reduce initial capital costs through contract mining or equipment leasing and project optimization through more advanced studies.

The combination of higher grades that are mineable in the first three years, combined with Halilaga’s favourable infrastructure and location in a jurisdiction that is open to mine development, makes this a compelling development project. The PEA confirms our view that Halilaga has the potential to be a straightforward open pit mine, utilizing conventional milling and flotation concentration with robust economics.  While TV Tower and Kinsley continue to be our focus projects, the robust economics of Halilaga will provide Pilot Gold and our partner with a number of strategic options in the future.

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