The Kilgore Project: Idaho’s next multi-million ounce gold deposit

Submitted by Otis Gold Corp.

Otis 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 km 2 ) 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 Institute of Professional Geologists (AIPG). Mr. Roberts has over 25 years of experience at various exploration and resource development projects throughout North America, Central America and South America, China and Africa. He was most recently the exploration project manager at the Castle Mountain epithermal gold project, in California, USA. His experience includes drill program design and implementation, resource and geologic model development and technical reporting, pre-feasibility study project supervision, geologic mapping and sampling, site logistics and management, and program budgeting. Alan’s experience with quartz-adularia epithermal gold systems will be critical to Otis as it continues to expand the resource potential at Kilgore.

Drill set up to drill hole OKR19-380.

Otis will also be advancing exploration at Oakley, a 5,120-acre gold and silver project located in Cassia County, Idaho. Oakley hosts low-sulphidation gold-silver mineralization at a number of prospects that share many characteristics with Carlin-type gold deposits. Oakley lies along the western flank of the Albion Mountains and is approximately 60 kms west of Liberty Gold’s Black Pine Mine and is seven kms north, and on trend, of the past producing highgrade silver Vipont Mine. Exploration plans in 2020 include further ground-based geochemical work and an airborne LiDAR survey to assist with drill target definition, throughout an 11 km mineralized zone stretching between Cold Creek, at the northern end of the property, to Blue Hill Creek at the southern end. This will lead to an extensive exploration drill program at Cold Creek, followed by drilling at the other exploration prospects, and will continue down toward the southern border of the property.

Since its inception in 2008, Otis has been implementing industryleading best management practises with respect to the exploration and development of its projects. Otis is acutely aware of the sensitive nature of resource extraction, and is focused on both reducing its environmental footprint and working with the community to address issues at an early stage. Balancing the economic benefits of resource extraction while minimizing environmental impacts is of paramount importance to Otis. On a parallel basis, and in effort to support the local economy, Otis has implemented a “Buy Idaho” procurement program designed to expend the majority of its exploration dollars locally, and 100 percent of its exploration dollars within the United States.

For further information, please visit www.otisgold.com and sign up to be on our mailing list for all future developments.