Otis is pleased to announce it has filed, on SEDAR, a technical report prepared in accordance with National Instrument 43-101 on the Kilgore Project in Clark County, Idaho. The technical report supports the disclosure made by the Company in its news release dated August 14, 2018, titled, "Otis Increases Kilgore Indicated Gold Resource by 59%." There are no material differences from the mineral resources contained in the technical report from those disclosed in the August 14, 2018, news release.
The technical report, titled, "Independent Technical Report and Resource Estimate for the Kilgore Project, Clark County, Idaho, U.S.A.," is dated September 28, 2018, and has an effective date of August 14, 2018. The Technical Report was prepared by David Rowe, CPG, of Rowearth LLC, and Global Resource Engineering, Ltd.
At a gold price of US$1,300/oz and a cut-off of 0.006 ounces per short ton gold (0.21 grams per metric tonne gold) the pit-constrained Kilgore mineral resource contains:
an Indicated Resource of 825,000 oz Au in 44.6 million tonnes at an average grade of 0.58 g/t Au
an Inferred Resource of 136,000 oz Au in 9.4 million tonnes at a grade of 0.45 g/t Au
The deposit is robust in respect of sensitivity to lower gold prices down to $1,100 per ounce gold.
The mineral resource estimate is supported by 323 drill holes totaling 68,800 metres with an increased proportion of core holes contributing to the resource.
Otis has utilized modern 3D geologic modeling to constrain the resource using both lithology and structure, which will be used as both an exploration planning tool and for engineering activities.
Approximately 85% of the Indicated gold ounces (versus 64% as estimated in the Otis news release dated August 14, 2018) are contained within the Tertiary Volcanic and Intrusive host rocks. Further, an estimated 15% of the Indicated gold ounces are contained within the Tertiary Volcanic-Cretaceous Aspen Formation sedimentary host rocks.
Alan Roberts, MSc, CPG, and Vice President of Exploration, is the Qualified Person for this news release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and approved its scientific and technical content.
About the Kilgore Project
The Kilgore Project lies on the north-eastern margin of the Miocene-Pliocene Kilgore Caldera complex in the Eastern Snake River Plain, Idaho. The Kilgore Project contains the Kilgore Deposit with a current NI 43-101 compliant resource: Indicated Resource of 825,000 ounces Au in 44.6 million tonnes at a grade of 0.58 g/t Au and an Inferred Resource of 136,000 ounces Au in 9.4 million tonnes at a grade of 0.45 g/t Au (the “Deposit”). The Kilgore Deposit is a low-sulphidation, gold bearing, quartz-adularia epithermal system hosted in Tertiary volcanic rocks, local Tertiary intrusive rocks, and Late Cretaceous, Aspen Formation sedimentary rocks.
About the Company
Otis is a resource company focused on the acquisition, exploration, and development of precious metal deposits in Idaho, USA. Otis is currently developing its flagship property, the Kilgore Project, located in Clark County, Idaho and the Oakley Project, located in Cassia County, Idaho.
ON BEHALF OF THE BOARD
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President & CEO
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This News Release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or any State securities laws, and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable State securities laws, or an exemption from such registration is available.
Forward Looking Statements
Certain information in this news release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. All statements, other than statements of historical fact are forward-looking statements. Forward-looking statements are based on the beliefs and expectations of Otis as well as assumptions made by and information currently available to Otis's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, drilling results, the Company's expectations regarding mineral resource calculations, capital and other costs varying significantly from estimates, production rates varying from estimates, changes in world metal markets, changes in equity markets, uncertainties relating to the availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, success of future development initiatives, competition, operating performance, environmental and safety risks, delays in obtaining or failure to obtain necessary permits and approvals from local authorities, community agreements and relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Although Otis believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. Except as may be required by applicable securities laws, Otis disclaims any intent or obligation to update any forward-looking statement.