The Oakley Gold Project consists of 107 federal lode mining claims and several Utah State leases (comprising 4,000 acres) located in Cassia County, Idaho, approximately 15 miles south of the town of Oakley and just north of the Utah/Nevada border.
Oakley has a NI 43-101 compliant Inferred resource of 163,000 ounces Au at a grade of 0.51 g/t.
The project targets a classic epithermal hot spring-type gold exploration target with three primary geologic targets: Blue Hill Creek, Matrix Creek and Cold Creek.
In July 2008, Otis initially acquired the right to earn a 100% interest in the Blue Hill Creek target in exchange for the issuance of 6.0 million shares and cash payments of $400,000 spread over five years. Subsequently, the company staked the Cold Creek target in October 2008 located approximately 6 miles north of the Blue Hill Creek target. To consolidate its land position, Otis has staked a number of federal mining claims between the two targets (which are approximately 3 miles apart) and has acquired an 80 acre Utah state lease to consolidate its land position in the area. Otis increased its ownership interest in The Oakley Gold Project to 100% and plans a field program in 2017 that will include regional mapping and ground mag.
Gold mineralization at both Blue Hill Creek and Cold Creek was originally discovered by Meridian Minerals in the summer of 1985. At the Blue Hill Creek target, over 12,000 feet of drilling were conducted on the property to partially test the Tertiary-hosted target between 1986 and 1998. Drill results confirm the presence of significant thicknesses of bulk-tonnage, epithermal hot-spring-type gold mineralization in the target area, as well as the potential for additional mineralization along the open-ended, lateral, and at depth extensions of the deposit.
At the Cold Creek target, a total of 9,205 feet were drilled between 1986 and 1988 to partially test the Tertiary-hosted target. Results confirm the presence of significant thicknesses of mineralization in the known resource area, as well as the potential for additional mineralization along the open-ended, lateral extensions of the deposit.
The project has extremely large district-sized potential, but has been the subject of only limited historic drilling. Numerous drill targets have been identified at both Blue Hill Creek and Cold Creek from a CSAMT survey completed in 2008, and Matrix Creek has never been drill-tested. Otis possesses a significant Meridian Gold project database (Meridian was a previous operator).