Tuesday, 31 July 2012

Otis Gold boosts resources at Kilgore gold deposit by 138%

Otis Gold Corp. (CVE:OOO) (OTCQX:OGLDF) unveiled Tuesday an updated NI 43-101 resource estimate for its Kilgore gold deposit located in Clark County, Idaho.

The Kilgore gold deposit contains an indicated resource of 520,000 ounces gold in 27.35 million tonnes at a grade of 0.59 grams per tonne (g/t) gold, representing an increase of 138 per cent in the number of ounces and 328 per cent in the number of tonnes compared to the deposit’s 2002 estimate.

Additionally, Kilgore has an inferred resource of 300,000 ounces gold in 20.23 million tonnes at a grade of 0.46 g/t gold, representing an increase of 12 per cent in the number of ounces and 131 per cent in the number of tonnes versus the 2002 estimate.

The company noted that this is its first resource estimate since acquiring the property in late 2008. It includes all historical drilling plus an additional 92 core holes drilled between 2008 through 2011, and uses a gold cut-off grade of 0.24 g/t.
“The markedly increased size of this resource provides Otis with a solid foundation upon which to build additional resources through planned drilling in areas where open-ended mineralization of significant thickness exists,” said president and CEO Craig Lindsay.
“Further, the newly expanded size of the deposit, its overall shallow depth and excellent potential for further growth, coupled with its extremely attractive metallurgy, are all positive attributes that support the potential economic viability of the deposit.”
Otis said that results its drilling programs have moved previously defined inferred resources into the indicated category and have added new resources to both the indicated and inferred categories.
Separately, in an operational update, the company said that the U.S. Forest Service, Caribou-Targhee National Forest, issued a permit to Otis at the end of May to conduct a 14 to 20-hole program consisting of 4,000 metres of HQ core drilling.
Furthermore, Otis said it is in the process of performing a cultural survey and preparing a plan of operation to build 1,350 metres of new roads into the North area of the deposit, which is defined by seven significant gold-in-soil anomalies and several open-ended mineralized holes with over 100-metre-thick intercepts averaging up to 0.89 g/t gold.
“The Kilgore gold deposit is the foundation of a very strong gold company,” said Lindsay.
“Our geologic team has already begun designing programs to both expand the deposit and test several additional high priority targets on the property.
“Otis plans to increase the number of targets under evaluation and aggressively search for new deposits with the ultimate goal of developing the property into a large-scale gold district.”
The company noted it has also received permits to drill on six sites at the Gold Ridge target, located one kilometre northwest of, and on strike with, Kilgore. This target has never been drilled and will require helicopter support, as no drill access roads are currently available in the area.
Otis stressed that exploration and drill programs will be initiated based on market conditions and the ability to raise additional capital at a reasonable price.
The Canadian mineral exploration company is focused on the acquisition and development of precious metal deposits in Idaho, U.S.
The Kilgore gold project is 5,130 acres in size, is 100-per-cent-owned by Otis and is subject to no underlying royalties.
An important achievement for the company this year was the addition of 1,880 acres, boosting its land position at Kilgore by 58 per cent and giving the miner flat land that is appropriate for heap leach processing.

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