Wednesday, 24 October 2012

Otis Gold to start 1,700 metre drill program at Kilgore project in Idaho

Vancouver-based Otis Gold (CVE:OOO) (OTCQX:OGLDF) announced Wednesday that it will soon begin a 1,700 metre, 9-hole reverse circulation drill program at its main Kilgore gold project in Clark County, Idaho. 
The drilling will be done in the North target area, located at the north/northwest end of the Kilgore deposit, where five holes drilled last year expanded the strike length of the deposit by around 150 metres, Otis said.
Specifically, the drilling will offset hole OKC-258, which intercepted 114.3 metres at a grade of 0.89 grams per tonne (g/t) gold, including 80.8 metres at 1.10 g/t gold. 
It will also offset hole 11 OKC-259, which returned 118.8 metres at a grade of 0.89 g/t gold, including 36.5 metres at 1.65 g/t gold.
The North target area is currently open-ended to the north-northwest of holes OKC-258 and 259, where it is further defined by the results of a detailed soil survey from last year, which showed gold-in-soil anomalies along an additional 400 metres of potential deposit strike length beyond these holes, the miner said. 
The rig for the drilling is now being mobilized, with drilling scheduled to be wrapped up by the end of November. The program is being conducted by O'Keefe Drilling of Butte, Montana using a single buggy rig. 
Otis has been bulking up its team as it advances the development of its flagship Kilgore project, recently appointing Dr. Roger Norwich as a director. 
Dr. Norwich, a founding director of the former TSX Venture Exchange-listed Mexican Silver Mines, which merged with Rio Alto Mining (TSE:RIO) in 2009, remains an independent director of Rio Alto. 
In the summer, Otis Gold 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.
CEO Craig Lindsay noted at the time 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.
An important achievement for the company this year was also 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.

No comments:

Post a Comment