Mining Co. Uncovers 150m Gold Structure at Treasure Island's Moosehead Zone

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Pirate Gold Corp. (YARR.TSX.V) has reported high-grade gold findings from the Moosehead Zone and the discovery of the Rib Vein at the Treasure Island project, which spans over 90 kilometers of strike along the Valentine Lake Fault Zone in Canada's newest gold district in Newfoundland, according to an April 13 release.

"The discovery of a new high-grade vein structure at the Moosehead Zone exemplifies the potential to expand the mineralized footprint at shallow depths," said Vice President of Exploration Greg Matheson.

He noted that while much of the known mineralization occurs in the Eastern and Western trend faults oriented to the northwest, the new linkage structure connecting the two zones can occur oblique to this orientation, opening a new exploration frontier. With sixteen drill holes now defining a 150-meter-long and 90-meter-deep vein domain, the continuity of this structure is quite strong. "It's very early days in understanding the structural complexity of this type of orogenic system," Matheson added.

Pirate Gold Executive Chair and Chief Executive Officer Denis Laviolette remarked, "This is exactly what you want to see in a high-grade system. The Rib Vein confirms that gold at Moosehead isn't limited to a single structure. We're now starting to unlock multiple orientations, which is how these systems scale."

The recent drilling program has yielded a variety of results across different targets, according to the release. Drill hole PGC-25-014, which tested a regional geophysical target, intersected a deformation zone but did not produce significant gold assay results. In contrast, PGC-25-013, aimed at the northern extension of the Western Trend, intersected a structural zone and returned significant gold assays, including 1.9 grams per tonne (g/t) over 1.15 meters, with a peak of 3.06 g/t over 0.45 meters.

Drill holes PGC-26-015, PGC-26-017, and PGC-26-018 targeted the northern extension of the Eastern Trend, with all three intersecting the expected structural zone. Notably, PGC-26-017 reported 1.51 g/t of gold over 1.45 meters. Meanwhile, PGC-25-010 and PGC-26-016, 019, and 022A tested other regional geophysical targets. PGC-25-010 intersected pyrite mineralization at depth, yielding 1.15 g/t over 0.4 meters, while the other holes encountered strong fault zones but did not produce significant gold results.

Drilling efforts targeting the Moosehead western trend and the newly discovered Rib Vein, including PGC-26-020, 021, 023, and 028, showed promising results. Highlights from the Rib Vein include PGC-26-021 with 5.17 g/t over 2 meters, including 9.24 g/t over 0.65 meters, and PGC-26-023 with 13.8 g/t over 1.30 meters, including 28.7 g/t over 0.6 meters. PGC-26-028 reported an impressive 65.1 g/t over 3.25 meters, with a peak of 309.5 g/t over 0.65 meters.

Drill holes PGC-25-009, 011, 012, and PGC-26-026, 024 targeted the depth extension of the Western Trend. All intersected the Western Trend structure, with visible gold mineralization noted in PGC-25-011, 012, and PGC-26-026. Significant assays included PGC-25-011 with 3.28 g/t over 1.4 meters, PGC-25-012 with 3.54 g/t over 0.9 meters, and PGC-26-026 with 8.33 g/t over 1 meter. Lastly, PGC-26-025 and 027 targeted a southern segment of the Eastern trend, intersecting the fault structure with limited veining and anomalous gold results, while PGC-26-029 was terminated before reaching its target depth.

Three Diamond Drills Turning

The Treasure Island Project is currently advancing with three diamond drills in operation, Pirate Gold noted. Two of these drills are focused on the Crippleback target, while the third is active at the Moosehead Zone. The company advises that while visible gold mineralization has been observed, it does not necessarily indicate high gold assay grades.

Samples from the drill core have been or will be sent to a certified laboratory for gold content analysis, and assay results will be shared once they are available. It is important to note that all intervals mentioned are downhole depths, and the true widths are not yet determined, the company said.

The discovery of the Rib Vein, which connects the Eastern and Western trends, has returned impressive results, including up to 65.1 g/t of gold over 3.25 meters. Follow-up drilling has traced the vein over approximately 150 meters of strike and 90 meters vertically, confirming its continuity and indicating that it remains open at depth.

Expert: 'Wonderful Numbers'

According to Bob Moriarty of 321gold.com, "For some reason a number of high quality shares are releasing really great assay results lately. Lucky me, I happen to own some of them."

Moriarty noted the "incredible" 65.1 g/t gold assay, saying that it's over 211 gram/meters, "Which makes it a home run hole."

"Those are wonderful numbers," he told Streetwise Reports. "Two-ounce gold is pretty rare much less over a nice mining width."

A 'Treasure Hunting' Spirit

CEO Laviolette recently spoke with Angela Harmantas of Proactive at the Prospectors & Developers Association of Canada (PDAC) conference in Toronto, where he shared updates on the company's Treasure Island project in Newfoundland. He also announced the launch of a significant drilling program aimed at discovering gold in one of Canada's most promising emerging districts. Laviolette described Pirate Gold Corp's approach as embodying a "treasure hunting" spirit, viewing exploration as a blend of science and calculated risk. "We follow the clues... and then test our theories to see if we could find buried treasure," he explained, highlighting the disciplined geological strategy that guides the company's efforts.

Treasure Island is situated in Newfoundland, which Laviolette believes has the potential to become a world-class orogenic gold district, Harmantas wrote. He pointed out the similarities between the company's Moosehead project and other major discoveries in the region, noting that "the rocks are the same... the style of veining is identical, the grades are identical."

Although Moosehead is currently at an early stage, the company is focused on expanding known zones through systematic drilling. With active drilling underway, Pirate Gold Corp aims to test multiple targets and increase the project's scale, Harmantas said.

Laviolette emphasized that the company is well-funded and ready to aggressively pursue discovery opportunities. He also highlighted Pirate Gold Corp's commitment to transparency, which includes providing regular video updates for investors. "We want people to understand the clues that we're putting together," he said, noting that consistent communication can help build a stronger and more stable shareholder base.

According to Trevor Abes, reporting for Stockhouse on April 13, the company also keeps the market up to date through a YouTube series called "Pirate Gold Treasure Hunters." You can click here to watch episode 9, which covers Monday's news release.

The Catalyst: Market Hopes for More War Negotiations

On Monday, gold prices declined as investors shifted their focus towards riskier equities, despite the U.S. implementing a blockade of the crucial Strait of Hormuz, according to Anuron Mitra writing for Investing.com on April 13. The market's risk appetite was bolstered by hopes for continued negotiations, even though peace talks over the weekend did not yield any agreements. By 3:55 pm ET, spot gold had decreased by 0.1% to US$4,745.13 per ounce, while gold futures fell by 0.4% to US$4,768.07 per ounce.

President Donald Trump confirmed that the blockade of the Strait of Hormuz began at 10 a.m. ET, also on Monday, as previously indicated by the U.S. military. This blockade affects vessels entering or leaving Iranian ports and coastal areas. However, the Pentagon clarified that ships not destined for or departing from Iranian ports would still be allowed to pass through the strait. Trump mentioned that 34 ships had navigated the strait on Sunday, marking "by far the highest number since this foolish closure began." The blockade was announced by Trump on Sunday, following 21 hours of negotiations between the U.S. and Iran in Pakistan, which ended without an agreement to extend a two-week pause in hostilities.

Initially, oil prices surged above US$100 a barrel on Monday, but later reduced their gains. The ongoing conflict in the Middle East has sparked concerns about a potential energy shock, which could lead to increased inflationary pressures globally. On Friday, data revealed a sharp acceleration in U.S. consumer price growth in March, primarily driven by a war-related rise in gasoline prices. Additional inflation data is expected to be released later this week.

Gold, traditionally seen as a reliable hedge against market downturns, is no longer fulfilling that role and is now acting as a high-beta asset, according to Robin Brooks, a Senior Fellow at the Brookings Institution, as reported by Ernest Hoffman for Kitco News on April 13.

In his recent analysis, Brooks, who is also a former chief economist at the Institute of International Finance and chief FX strategist at Goldman Sachs, argues that gold is currently amplifying market selloffs rather than mitigating them. He noted that during the past six weeks of conflict, gold has dropped by 10%, a much steeper decline than the S&P 500, which has fallen by less than 1%. Brooks points out, "You're not much of a risk hedge if you sell off harder than the S&P 500 in a bad shock. You're the opposite."

Brooks explores several theories to explain gold's recent behavior. One theory suggests that emerging market central banks have sold off gold holdings during the recent turmoil, but Brooks clarifies that this is primarily true for Turkey, which sold 128 tons to bolster foreign exchange reserves and defend the Lira, according to Hoffman. He describes Turkey as an outlier, noting that most other emerging markets have abandoned such practices.

Another theory Brooks discusses is the "debasement trade," which refers to the significant rally in gold over the past year that attracted many new buyers, the article said. These buyers, he suggests, may be more prone to panic during market shocks, contributing to gold's current high-beta behavior. Brooks believes that once these skittish investors exit the market, gold will likely return to its status as a safe-haven asset. He concludes, "So safe-haven status isn't gone forever, it's just contaminated at the moment."

Ownership and Share Structure¹

Eric Sprott-owned 2176423 Ontario Ltd. holds about 25%, about 8% is held by insiders and management, and about 1% is held by institutions. The rest is retail.

Other top shareholders include Sprott, who owns 3.69% in his own name; the CEO, Laviolette, with 2.82%; Middlefield Capital Corp. with 0.98%, Catherine Hume with 0.46%, and Timothy Foude with 0.32%.

Its market cap is CA$94.19 million with 392.45 million shares outstanding. It trades in a 52-week range of CA$0.03 and CA$0.39.