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.
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
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.
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
“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
“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