.......article by Christopher Baker: http://www.fool.com/investing/general/2012/12/28/the-top-10-gold-stocks-for-2013-part-2.aspx


The Top 10 Gold Stocks for 2013: Part 2

2. Pilot Gold (NASDAQOTH: PLGTF  ) (Ticker "PLG" on the Toronto Stock Exchange, or TSX)
As I stated on my blog at Motley Fool CAPS back in September, I consider Pilot Gold a must-own stock for discerning gold investors. After selling Fronteer Gold with its strategic Long Canyon asset in Nevada to Newmont Mining (NYSE: NEM  ) for $2.3 billion, the pilots have landed on the gold yet again! Pilot Gold launched as a spin-off from that watershed Fronteer transaction, retaining a joint-venture stake with partner Teck Resources (NYSE: TCK  ) in a pair of important gold-bearing properties in Turkey. The Haligaga project already sports an encouraging preliminary economic assessment outlining an after-tax net present value (7% discount rate) of $474 million with an internal rate of return of 20%. Accordingly, Pilot's current market capitalization of $175 million stands at a discount to the estimated value of the company's 40% share of Haligaga alone. Accounting for Pilot's substantial treasury of $43 million, that discount grows deeper still.


But it's the other project in Turkey -- the one with the quirky name -- that's driving the bulk of shareholder value creation at present! The company's 2012 drilling campaign at the TV Tower property -- and in particular at the high-priority Kucukdag (or "KCD") target -- produced truly game-changing results. In one phenomenal intercept released in September, KCD returned a major 137.1-meter interval grading 5.9 grams per tonne gold, 12.6 g/t silver, and 0.53% copper. Providing glorious catalyst potential for 2013, 26 holes from the 2012 campaign are still pending assays, and Pilot is following up with an ambitious plan to drill 25,000 meters at TV Tower in the coming year. An initial resource estimate for the KCD deposit, furthermore, is expected by mid-year.


During the second half of 2013, Pilot intends to conduct a 25,000-meter exploration campaign at the company's 100%-owned, past-producing Kinsley asset in Nevada. Kinsley sits directly on-trend with the Long Canyon project that Pilot's own team first discovered, and possesses "the same stratigraphy, structure and mineralization style as Long Canyon." Initial drill results show promise there as well, placing another important golden nugget in what may be the industry's most exciting investment prospect. I'm looking for a $3 share price for Pilot Gold in 2013, but longer term I believe that legendary gains will likely be enjoyed by those who opt to fly with these proven gold-spotting pilots.