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The Kilgore Project consists of 614 federal lode mining claims and one Idaho State Land Permit totaling 12,150 acres (49.2 km2) located on US Forest Service land 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.
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 (technical report dated September 12, 2012) Indicated Resource of 520,000 ounces (oz.) Au in 27.4 million tonnes at a grade of 0.59 g/t Au and an Inferred Resource of 300,000 oz. Au in 20.2 million tonnes at a grade of 0.46 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 basement Late Cretaceous, Aspen Formation sedimentary rocks. The preparation of an updated NI 43-101 compliant resource calculation is ongoing and will include drilling completed from 2015 through 2017; this resource estimate will be released when available.
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Grade Au (gpt)
Contained Ounces Au
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Otis Gold Corp. maintains a 100% ownership interest in the Kilgore Project. The project is not subject to any royalties, back-in rights, payments or other agreements and encumbrances. No environmental liabilities are currently known to exist.
Major gold mining companies spent more than $8 million for property acquisition, drilling (197 holes drilled totaling 38,531.9 metres), geophysical and geochemical surveying and metallurgical testing on the project from 1983 to 1998. The last exploration conducted on the property by a major company was 1996. Late in the season of that year, a major geochemical soil anomaly was identified and an extensive airborne geophysical survey was completed in the fall of 1996. The survey identified a number of strong anomalies which are coincident with the large geochemical soil anomaly.
In the fall of 2003, Kilgore Minerals carried out a program of geologic mapping, surface sampling and structural interpretation on the property. This field work resulted in the development of a more comprehensive understanding of the structural fabric and controls of the gold mineralization on a property-wide scale than were previously understood. As a result, a number of highly attractive new targets for drill testing were developed.
In 2004, Kilgore Minerals carried out a diamond drill program of six holes totaling 1,621.2 metres (m). The drill program discovered a 10-foot high-grade gold section of 14.5 g/t Au within a 170-foot zone of low-grade gold mineralization (1.25 g/t Au). Subsequently, Kilgore Minerals (which also controlled a range of uranium assets in the USA) was acquired by Bayswater Uranium Corp. ("Bayswater"). Otis acquired the property from Bayswater in 2008.
The project is a volcanic hosted epithermal gold deposit related to a zoned epithermal hot-spring system in volcanic rocks of Miocene age. Gold mineralization appears to be localized by west-, northwest-, and northeast-trending structure. The deposit is hosted within sericitized, silicified and quartz-stockwork veined lithic tuff, dike and silicified clastic sedimentary rocks.
Otis has been active on the property continuously since 2008. As part of its 2008 work program, Otis permitted 20 drill sites under Plan of Operations with the US Forest Service and completed 4 core holes totaling 635 metres (m) at the Mine Ridge. All of the drill holes were found to be mineralized. In 2009, the Company completed 12 core holes totaling 3,100 m at Mine Ridge and conducted an 8.5 line km CSAMT geophysical survey at Dog Bone Ridge.
Otis's 2010 Work Program, consisted of approximately 6,300 m of drilling using two drill rigs to test and expand the Kilgore Deposit in the Mine Ridge area. The Company also completed an Environmental Scoping Study, which indicated there are no impediments to permitting an open-pit heap leach operation.
In 2011, Otis drilled 9,320 m at the Kilgore Deposit area. Highlights include intercepts of 114.3 m @ 0.89 grams per tonne gold (g/t Au), that includes 80.8 m @ 1.10 g/t Au in hole 11 OKC-258, 118.8 m @ 0.89 g/t Au, that includes 36.5 m @ 1.65 g/t Au in hole 11 OKC-259, 48.8 m of 1.05 g/t Au, along with an additional 15.2 m of 1.39 g/t Au in hole 11 OKC-265, located on the southern margin of the deposit, and additional intercepts of 39.6 m of 0.70 g/t Au in hole 11 OKC-281 and 30.5 m of 0.68 g/t Au in hole 11 OKC-280, both located in the deposit’s newly discovered, open-ended northwest extension where ore-grade intercepts in excess of 100-m thick were discovered.
As well, in 2011 Otis announced the results of 681 soil samples collected from two grids (the "North Soil Grid" and the "South Soil Grid") situated along the strike projection of the Northwest Fault, known to be the feeder to the Kilgore Deposit. Sampling of the North Soil Grid was performed in order to extend the strike length of the Mine Ridge Deposit northward of the +100 metre thick intercepts that were recently discovered on the northern edge of the 2011 drill pattern (see news releases dated November 1, 2011 and October 6, 2011). The results from the North Soil Grid display strong linear gold-in-soil anomalies that trace the extension of the Northwest Fault for a minimum of 400 metres to the northwest and represent the surface manifestation of feeder faults that supplied the gold-rich hydrothermal fluids into the deposit’s host rocks.
Sampling of the South Soil Grid was performed in order to better define drill targets in the Prospect Ridge target area, located immediately to the southeast of the Mine Ridge deposit. Results from the South Soil Grid identify a large and previously untested, anomalous area in the Prospect Ridge target area.
The North Soil Grid comprises 266 samples collected on a 30-metre x 30-metre spacing in an untested area northwestward beyond the northern limit of the current Mine Ridge Deposit. The data collected and contoured display a strong and significant linear gold-in-soil anomaly that very closely lines up with the trace of the Northwest Feeder Fault that controls the overall northwest trend of the deposit. The anomaly extends the target a minimum of 400 metres in the northwest direction and is shown on the following map http://www.otisgold.com/_resources/kilgore/20120131_Soil_Survey_Results.pdf. These trends, as well as several additional linear anomalies, are collectively considered to be high-priority drill targets that could extend and expand the existing deposit by more than 30%. There are also a number of corresponding trace element anomalies that have a high correlation to the gold suggesting geochemistry characteristics of a typical epithermal gold system.
The South Soil Grid comprises 415 samples collected on a 30-metre x 60-metre grid that displays a very strong and coherent gold-in-soil anomaly that covers approximately 15,000 sq. metres in the Prospect Ridge target area. This anomaly overlies a section of lithic tuff that is identical to rock that hosts the bulk of the Mine Ridge deposit. This portion of the property package has not been drill tested.
Highlights of the 2012 fall drill program includes intercepts of 82.3 m of 0.95 g/t Au in hole 12 OKR-291, 121.9 m of 1.04 g/t Au, that includes 45.7 m of 1.52 g/t Au, in hole 12 OKR-292, and 83.8 m of 1.12 g/t Au, that includes 30.5 m of 2.10 g/t Au, in hole 12 OKR-294. The program consisted of 1,009 metres (3,310 feet) of drilling in 6 reverse circulation (“RC”) holes designed to offset and extend the 100-metre-plus thick, near-surface intercepts encountered in Otis discovery core holes drilled into the North Target area in 2011 (see Otis October 6, 2011 News Release).
After a 2 year pause, Otis resumed drilling in 2015 with a fall drill program where bulk-tonnage intercepts ranging from 50 to 100 m thick and grading from 0.57 to 4.24 g/t Au have been intersected. Noteworthy intercepts of significant thickness and grade include: 56.4 m of 2.05 g/t Au in hole 15 OKR-304 (ended in mineralization), 59.5 m of 3.79 g/t Au in hole 15 OKR-305, 50.3 m of 4.24 g/t Au in hole 15 OKR-308 (ended in mineralization) and 94.5 m of 4.21 g/t Au in hole 15 OKR-309 (ended in mineralization).
On July 25, 2016, announced it commenced a first phase 5,500m, 20 hole drill program with a second phase program planned to follow shortly thereafter. The first six holes of this drill program returned bulk-tonnage intercepts ranging from 55m to 120m thick, grading 0.82 to 1.55 g/t Au. Due to the ongoing success of this program and availability of capital, the drill program was expanded to approximately 9,000 m over 36 holes. Noteworthy intercepts from the first six holes include: 56.4 m of 0.85 g/t Au in hole 16 OKR-316 (bottomed in Aspen Formation), 61.0 m of 1.03 g/t Au in hole 16 OKR–317 (largely in Aspen Formation), 120.4 m of 1.55 g/t Au in hole 16 OKR-318 (hosted in Tertiary sill and Aspen Formation) and 55.5 m of 0.82 g/t Au in hole 16 OKR-321 (hosted in lithic tuff and Tertiary sill).
Further intercepts from this drill program returned 30.5 m of 5.37 g/t Au in hole 16 OKR-315 and 114.3m of 1.00 g/t Au in hole 16 OKR-327. The 2016 drill program was once more expanded to now 10,300 m in over 40 holes. Further hightlights of intercepts include, 85.4 m of 2.50 g/t Au in hole 16 OKR-338, 69.1 m of 2.07 g/t Au in hole 16 OKR-348 and 50.3 m of 2.04 g/t in hole 16 OKR-330.
Highlights from the 2016 drill program and of importance to the future development of the Kilgore Deposit include:
- Twenty-five of the 40 holes drilled in 2016 encountered mineralization in the newly-emerging Aspen Formation host.
- An additional 11 holes encountered mineralization in Tertiary lithic tuff and dikes, the primary host of gold mineralization within the existing deposit.
- In total, 36 of the 40 holes drilled in 2016 intersected reportable gold mineralization, representing a drill success rate of 90%.
- A complete Table of 2016 drill results can be found on the Otis website.
- Results of Otis’ 2016 drill campaign continue to support the premise that gold mineralization in the Aspen Formation is more extensive than indicated by previous drill testing and appears to lie along a northwesterly-trending belt or corridor in the northern half of the deposit, much of which remains open for further drilling.
- Results of drill holes targeting the basement Aspen Formation sedimentary host rocks continue to reveal the presence of significant open-ended mineralization that is typically higher-grade and displays thicker mineralized intercepts than those comprising the current bulk of the deposit in the overlying volcanic host rocks.
- Reported intercepts in basement Aspen Formation sedimentary rocks demonstrate that mineralization exists to depths of up to 300-meters below the surface of the deposit, with some still open at depth.
- The Tertiary intrusive sill (Tct), which directly overlies the Aspen Formation and locally intrudes the upper portion of it, has been proven to host significant mineralization and the extensive contact between the two rock types is an important locus for additional mineralization in the basement. Significant intercepts can and do exist in both the Aspen Formation and the Tct, and in many cases straddle the contact between them to occur continuously throughout both units.
- Some intercepts drilled in Aspen Formation rocks along the mineralized northwest-trending corridor contain coarse-grained visible gold indicative of potential bonanza grades at depth.
Otis has now released results from 24 exploration holes drilled in 2017 (see link to complete table of the 2017 drill results). The 25th hole drilled in the 2017 work program was a PQ-sized core hole designed for metallurgical testing purposes. Results of column leach and other testing on this hole will be released upon completion of the studies. Otis is now focused on developing drill planning activities for 2018 at both Kilgore and the Oakley Project and the completion of an updated NI 43-101 compliant resource estimate for the Kilgore Deposit.
The Qualified Person under National Instrument (NI 43-101) Standards of Disclosure for the technical information on the Otis Gold Corp. website is Alan Roberts (CPG), Vice President of Exploration, who has reviewed and approved its technical content.