The Kilgore Project: Idaho’s next multi-million ounce gold deposit Submitted by Otis Gold Corp.
Building access road to PLNR-034_A drill pad.
O
tis Gold Corp. (TSX.V: OOO OTC: OGLDF) is focused on the discovery, exploration, and development of gold and silver deposits in Idaho. Its flagship enterprise, the Kilgore Project (past producing mine), is located in Clark County, Idaho with its earlier stage project, the Oakley Project, is located in Cassia County. Kilgore is a 12,150-acre (49.2 km2) land package that is seen to have district scale potential for both gold and silver while its deposit only sits in a one km2 portion of the property. Kilgore is an advanced-stage, low sulphidation, caldera-hosted epithermal gold deposit containing mineralized volcanic and sedimentary rock that would be amenable to open-pit mining and heap leach processing. Kilgore has an N.I. 43-101 indicated resource estimate of 825,000 oz Au @ 0.58 g/t and inferred resource estimate of 136,000 oz Au @ 0.45 g/t. In July 2019, Otis unveiled a maiden Kilgore Preliminary Economic Assessment (or “PEA”) for the current gold resource. It demonstrates robust economics at a gold price of US $1,300 including an NPV of US$110.4 million at a discount rate
of 5 percent, an IRR of 34 percent, a three-year payback of capital, a low strip ratio of 1.1:1, and a mine life of five years. Otis President and CEO, Craig Lindsay, stated: "This PEA marks an important milestone in Kilgore's development and we are encouraged by the enhancements in the project's economics. We have outlined where the deposit stands from an economic perspective and we expect to see continuous improvement as the deposit evolves. Indeed, the most exciting feature of Kilgore is what lies ahead in terms of the potential to grow the deposit, find new deposits and significantly enhance the life of the project. Otis is committed to conducting exploration activities at all our projects utilizing industry best practices, and that minimizing our environmental footprint has, and always will be, a critical foundation of our exploration programs.” To begin the process of tapping the district-scale potential of Kilgore, Otis plans a significant drill program in excess of 20,000 metres in 2020. Otis Gold’s exploration activities are led by VP of Exploration, Alan Roberts, a certified professional geologist with the American
Kilgore is an advanced-stage, low sulphidation, caldera-hosted epithermal gold deposit containing mineralized volcanic and sedimentary rock.
28 Mine Idaho
