In a recent article, Mining Weekly discussed the Kilgore Project with Otis Gold Corp. President and CEO, Craig Lindsay. The online publication inquired with Otis' president about his company's future within the current difficult market environment. “We have seen some very dilutive financing structures, but not us. We have been able to build a stronger shareholder base, even adding projects during this time.” He advised that ten groups of institutional investors have bought into the company and that it has avoided dilution by not issuing any warrants.
Lindsay wondered whether the location of Kilgore has discouraged investors. However, he noted that the state of Idaho has a rich mining history and that large competitors like Midas Gold, are moving forward with plans in the area.
“My life these days is a little more interesting,” said Lindsay, pointing to the renewed interest in the project from potential suitors, bolstered by a 15% higher gold price so far this year. “We have uncovered a district story,” he added.
Mr. Lindsay went on to suggest that in light of the bolder gold price in recent months, gold majors looking for their next growth projects now have an ideal window in which to secure future growth projects. They must, however, act before institutional investors once more become bullish on mining prospects and send share prices higher.
The Kilgore Gold Project consists of 232 federal mining claims and one Idaho State Land Permit totaling 5,130 acres. The are is located in southeastern Idaho within Clark County, 60 miles north of Idaho Falls. The project is accessible by road approximately 32 miles northeast of the town of Dubois and Interstate Highway 15.
Kilgore drilling programs target a volcanic hosted epithermal hot spring type deposit with a current NI 43-101 compliant resource of 520,000 ounces of drill-indicated gold (27.3 million tons @ 0.59 gpt Au, 0.24 gpt Au cutoff) and 300,000 ounces of inferred gold (20.2 million tons @ 0.46 gpt Au, 0.24 gpt Au cutoff). The grade and thickness display excellent overall continuity of mineralization and lends itself to open-pit exploitation, with a low strip ratio estimated at 1.5:1 or less.
Read the full article on Mining Weekly.