Otis Gold welcomes latest Kilgore estimate, which increases indicated ounces by 59%

Otis Gold Corp (CVE:OOO) has welcomed a new resource estimate for its flagship Kilgore Project in Idaho, where the higher confidence indicated resource has been lifted by 59% compared to six years ago.

The latest resource includes drilling  that was undertaken between 2015 and 2017 and there is good potential to extend it further, the firm said.

READ THE BIG PIC: Otis Gold has big plans for flagship Kilgore project in 2018

Otis is expecting approval for a new five year plan of operations this month (August) from the United States Forest Service which will enable step-out drilling, which was not allowed under the previous permit.

Kilgore is a stand-alone gold deposit, while the broader 12,000 acre Kilgore project has extremely promising growth potential.

“This estimated resource is contained within a single near surface pit with a corresponding low strip ratio,” noted Alan Roberts, Otis’s vice president of exploration.

“I believe that there is more gold to be found; the upcoming drill program offers the possibility of adding new resources adjacent to the existing Kilgore deposit.

“Our 2018 drill program will commence after permits have been received and will first focus on step-out drilling around the deposit.

“In addition to the proposed drill program, an extensive project-wide surface mapping and geochemical sampling program is underway; this is part of ongoing exploration with the goal of identifying new Kilgore-style deposits associated with the Kilgore Caldera margin.”

READ: Otis Gold says permitting at Kilgore project now in final phase

The new indicated resource stands at 25,000 ounces of gold  in 44.6mln tonnes at an average grade of 0.58 g/t (grams per ton) of the yellow metal – an increase of 59% compared to the 2012 estimate.

The inferred resource stands at 136,000 ounces (oz) in 9.4mln tonnes at a grade of 0.45 g/t of the yellow metal.

The resource is underpinned by 323 drill holes totaling 68,814 metres, and based on a US$1,300 gold price, and using a cut-off of 0.21 g/t 31% of the indicated ounces are contained within the Aspen Formation at an average grade of 0.69 g/t.

Notably, Otis said that the majority of the property remained largely untested by drilling,  including around 5km of strike along the main controlling fault.

Otis Gold shares added 5% to C$0.21.

Story by ProactiveInvestors