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Tuesday, 2 October 2012
Otis Gold rises as Dr. Roger Norwich appointed director
Otis Gold Corp. (CVE:OOO)(OTCQX:OGLDF) says it has appointed Dr. Roger Norwich as a director of the company, sending its shares up more than 18 per cent Monday.
Dr. Norwich, a founding director of the former TSX Venture Exchange-listed Mexican Silver Mines, which merged withRio Alto Mining (TSE:RIO) in 2009, remains an independent director of Rio Alto.
Otis, which is developing its Kilgore gold project in Idaho, noted that Rio Alto has, since the merger, grown from a development-stage operation to a "significant" gold producer that has poured 114,000 ounces of gold in the first six months of this year.
At the moment, Dr. Norwich is a non-exec chairman of Mexico-based Grupo Minero Panuco, a private company that has producing copper, gold and molybdenum assets.
Most recently, he joined the board of Inkron Limited, a private company based in Hong Kong that is involved in nanometal production for the electronics industry.
Early in his career, he worked as an oil exploration geologist for Texaco and gained experience in the North Sea, the Gulf of Mexico and the Permian Basin.
"We are very pleased to have someone of Roger's caliber join our Board of Directors," said Otis Gold's president and CEO, CraigLindsay.
"His active experience with Rio Alto and Panuco as they moved from development companies to producers will be of significant benefit to Otis as we continue to progress the Kilgore Gold Project on a path to production."
The gold miner's shares were up almost 19 per cent on the news today at 19 cents and are up almost 81 per cent in the last 5 days.
In the summer, the gold explorer unveiled an updated NI 43-101 resource estimate for its Kilgore gold deposit located in Clark County, Idaho.
The Kilgore gold deposit now 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 was 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.
In a conference call soon after the release of the new resource report, CEO Craig Lindsay noted that while the overall grades in the estimate are lower than in 2002, the size of the resource has increased substantially and the strip ratio has improved comparatively.
Separately, in an operational update, the company said in July 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.
Lindsay noted that among the qualities that make Kilgore a unique and attractive project is the good relationship that Otis has developed with the forest service – with all of the project’s permits turned around in six weeks or less.
Otis also said it was 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 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.