At the recent Sprott-Stansberry Vancouver Natural Resource Symposium, the Investing News Network spoke with Matt Lennox King, president and CEO of Pilot Gold (TSX:PLG) about the company's gold projects in Turkey and Nevada.
Pilot Gold is currently advancing the Halilaga and TV Tower projects in Turkey, as well as the Kinsley Mountain project in Nevada. It made a key new discovery at the Western Flank target at Kinsley last year, and completed a revised preliminary economic assessment (PEA) for Halilaga in January.
Of course, the falling gold price continues to put pressure on gold projects. However, Lennox-King stressed that Halilaga is still a robust project at the current gold price, and could even stand up to a further decline.
He noted that at base case prices of $1200 per ounce for gold and $2.90 per pound for copper, Halilaga would feature a 43 percent IRR with a 1.3 year payback period, as per the current PEA. "When you plug in spot prices today, you’re still looking at a 25 percent IRR," he explained. "You’re still paying that capital back in less than two years."
At Kinsley, while plenty of attention has been focused on the project's Western Flank, Lennox-King drew attention to metallurgical results for the project. "Typically when people think of a Carlin-type gold system, or a gold system in Nevada, they think you’re dealing with something that’s refractory," he explained. "You’re going to have a central roaster or an autoclave, so either very high processing cost or very high capital cost to build that infrastructure."
"What we’ve been able to identify at Kinsley, in our metallurgical work to date, is that we can produce a concentrate. So we in theory can build a low-tech flotation plant, make a high grade gold concentrate and sell that to a smelter, a roaster or an autoclave. It's a huge step up for the project."
Lennox-King also answered questions about how the company is being proactive about a looming demographic gap in the sector, what to expect next from Pilot, and about what it takes to attain the sort of exploration success he saw at Fronteer Gold and now at Pilot Gold. Put simply, the CEO stated that it's all about "dreaming big."
"Even as a relatively small group, you can still have a big impact," he said. "You need to dream big. If you come in with small ideas and be happy with a small success, you’re leaving a lot on the table."
Watch the video for more of what King had to say, and to find out why Pilot Gold has a surfer in Iceland on its website.