As you may already know if you are following our regular press releases, we are actively pursuing a 10.000 meter, 40 hole drilling program with an average thickness of the deposit at about 50 meters and an average grade of 0.6 grams per tonne.
The Kilgore project drilling program continues to drive stellar results.
Positive outcomes we published at the start of the year brought in a cash injection of above market financing at 17 cents, without warrants. These funds allowed us to launch a new drill program back in August that will run for the remainder of 2016. The first assay results published in September announced bulk-tonnage intercepts ranging from 55-metres to 120-metres thick and grading 0.82 to 1.55 grams per tonne gold (g/t Au).
There are a number of other targets on the project with very similar geologic features to the existing deposit, which means great opportunities to add more deposits as we continue to develop Kilgore. The latest step out drilling at the North end of the project area, for instance, has intercepted 50-100 meter intercepts of gold grading 2-4 grams. In fact, the best result revealed 94.5 meters of a grade 4.24 grams per tonne.
These intercepts are thicker than the average thickness of the existing deposit at Kilgore and their grades are higher than the existing resource. In other words, this is a clear opportunity to increase both size and grade in the near term.
In a recent interview with Andrew Scott from Proactive Investors, Craig Lindsay, Otis Gold Corp.’s President and CEO, explained that we are now stepping out into intercepts that are 120-meters thick and at 1.55 grams per tonne. This, he emphasized, indicates we are on to something and that we can feel comfortable with our expansion plans.
The step out drills will continue as we are looking to define the resource in that area. Additionally, we are incurring into new grounds: a mineralization drilled last year in the Kilgore project was mostly hosted in the underlying sedimentary unit and many of those holes resulted in an open ended mineralization. Today, with a crew of 12-15 people on the ground, we are working on drilling this out.
We’ve also recently increased our land position by 116%.
The new footprint can be viewed on this map. It is worth noting here that Otis enjoys a 100% ownership interest in the entire land package, which is subject to no underlying royalties or other encumbrances. In the press release we published last October 18th, Lindsay states: “We have been generating very strong drill results at Kilgore since the release of our NI 43-101 Technical Report and Resource Estimate in 2012."
"As a result of both drill success and the continued delineation of additional exploration targets beyond the existing known gold deposit, we felt it was very important to expand our land position. While further defining the existing Kilgore deposit is our immediate focus, we want to ensure our ability to expand exploration targets as we continue to build out the Kilgore project into the future.”
This is thrilling. Our hard work is delivering and we have high hopes for what lies ahead. Already, we count with the backing of a solid and well-connected group of shareholders, including 10 major parties who collectively own over 60% of the company. We are very appreciative of their long-term commitment and support, which will certainly continue propelling the Kilgore project into a successful future.
Currently, we are developing an existing resource of 800.000 ounces. Our goal is to increase this resource to over 1 million ounces. So, what’s next? We want to get drill results, update our resource estimate and depending on those numbers, complete a preliminary economic assessment on the project. We will continue to expand the resource on a parallel basis and to go after those satellite targets in the area that promise to really take this project to the next stage.
This article was written with information from the following sources:
The Ker Report’s interview with Craig Lindsay.
Proactive Investors’ interview with Craig Lindsay.
The Otis Gold Corp. website - 2016 News section