Overview

 

Target Map

Overview

The Kilgore Gold Project consists of 162 federal mining claims totaling 3,250 acres 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.

The project targets a volcanic hosted epithermal hot spring type deposit with a current NI 43-101 compliant resource of 218,000 ounces of drill-indicated gold (7.043 million tons @ 0.031 opt Au, 0.010 Au cutoff) and 269,000 ounces of inferred gold (9.661 million tons @ 0.028 opt Au, 0.010 opt Au cutoff). (see resource table below).

Ownership

Otis Gold Corp maintains a 100% ownership interest in the Kilgore Gold Project

The project is not subject to any royalties, back-in rights, payments or other agreements and encumbrances.  No known environmental liabilities are currently known to exist.

Property Background

Major gold mining companies spent more than $8 million for property acquisition, drilling (197 holes drilled totaling 38,531.9 meters), 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, the Kilgore Minerals carried out a diamond drill program entailed the drilling of six holes with a total footage of 1,621.2 meters. 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 a Bayswater Uranium Corp.

Geology

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 deposited is hosted within sericitized, silicified and quartz-stockwork veined lithic tuff, dike and silicified clastic sedimentary rocks.

For more information, please click here for 2002 Kilgore NI43-101 Report.

Exploration Summary

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 m at the Mine Ridge. All hoes 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, budgeted at $2.5 million, consisted of a minimum of 6,300 m of drilling using two drill rigs to test the Mine Ridge. The company also plans to complete column leach work and initiate an Environmental Scoping Study.

A total of 73 reverse circulation and 101 diamond drill core holes have been drilled into the deposit area for a total of approximately 34,000 metres. To date, nine centers of mineralization have been identified in this 65 km long belt of mineralization. Two of these targets will be drilled in 2010 while additional surface mapping and sampling will be carried out in order to develop drill targets in the other centers.

Mineral Resources

Metallurgy

Deposit metallurgy is considered excellent based on favorable results of bottle roll and column leach tests performed in 1995 and 1996 by Hazen Research, Inc. (Golden, Colorado) on Echo Bay drill core and RC cuttings. All bottle roll tests resulted in greater than 90% gold extractability and showed that the mineralization is not refractory. Column leach tests indicate 94.3% recovery on oxidized material (-1/2" crush size) and 86.9% on mixed/partially oxidized material (-1" crush size), material types which together comprise over 85% of the deposit. As noted in a 2002 Rayner and Associates and Van Brunt NI 43-101 compliant report on the property, the extraction of 86.9% gold on mixed material after 75 days of leach time is excellent and suggests that even coarser crush sizes may also lend themselves to favorable extractability, thus enhancing deposit economics.