The Oakley Project (“Oakley”) is a gold-silver exploration prospect located 21 km south of Oakley, Idaho (Cassia County), and 3 km north of the Idaho-Utah state line, and along trend from the Vipont Mine in Utah 11kms to the south. The property consists of 198 federal lode mining claims and several Utah State leases (comprising approx. 5,120 acres) and lies along the western flank of the Albion Mountains, part of the Albion-Raft River-Grouse Creek Metamorphic Core Complex. Oakley contains multiple targets located along a trend greater than 10 km in length and comprises the Cold Creek target to the north, and the Emery Creek, Blue Hill Creek and Matrix Creek targets located to the south of the project.
Oakley hosts gold-silver, epithermal hot spring-type mineralization at multiple targets that are all associated with regional detachment-related gold-silver mineralization. Blue Hill Creek (Technical Report dated August 8, 2016) contains an Inferred Resource of 163,000 ounces gold in 9.97 million tonnes at a grade of 0.51 g/t Au. The Blue Hill Creek resource is hosted within a northwest-trending Tertiary graben that is part of a north trending, 8 km long by 1.5 km wide zone of low-sulphidation, hot spring-type gold occurrences along the western margin of the Albion Mountains.
Regional Geology map
Land Tenure map
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 Project to 100% and completed a field program in 2017 which included regional mapping and ground magnetics.
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).
Otis completed a 2018 exploration program at Cold Creek including surface geochemical studies consisting of rock outcrop mapping and sampling, and a 200 metre (“m”) by 50m soil sample grid, which revealed a 3.5 km long by 0.5 km wide trend of anomalous gold and silver values (Figures 1 & 2 – Au & Ag rock and soil sample result maps). Assay results from rock chip samples include gold values up to 1.9 g/t gold (or “Au”) and silver values up to 8.4 g/t silver (or “Ag”). After analyzing these results, Otis expanded its Cold Creek claim package by locating 32 new federal lode mining claims (totaling 640 acres). Geochemical and structural data collected from the 2018 field season, along with historic reverse-circulation drilling data, is being modelled in 3D in order to develop drill targets for future testing.
The Cold Creek target contains gold-silver epithermal hot spring-type alteration and mineralization. This is predominantly hosted in the Tertiary Salt Lake formation (or “Tcg”), a series of epiclastic sedimentary rocks, ash layers and tuffaceous volcanic rocks. The Tcg underlies the majority of the Cold Creek property and composes the primary target for exploration in the Cold Creek area.
Highlights of the 2018 Cold Creek Fieldwork:
- A total of 651 soil samples were analyzed for gold and silver. Results show an anomalous zone or ‘core’ to the Cold Creek target within the Tertiary Salt Lake formation tuffs and conglomerates that indicates the potential for sub-surface Au-Ag mineralization. The anomalous zone is defined by gold values up to 0.14 g/t Au and silver at 1.13 g/t Ag.
- Soil results also show a strong anomaly along the fault-controlled Cold Creek drainage to the East. This fault may host mineralization and indicates potential expansion of the anomaly to the East.
- 231 rock-chip samples were collected across the project area and contained up to 1.9 g/t Au and up to 8.4 g/t Ag within the altered and oxidized ash and tuffaceous matrix of the Tertiary Salt Lake Formation conglomerate (Tcg). Results have confirmed that the Tcg is the principal host for mineralization within the Cold Creek claims.
- As a result of insights gained during the 2018 field season, Otis has expanded its land package at Cold Creek by 32 claims (640 acres).
In 2019, Otis plans to continue exploration at Cold Creek which will include permitting of a reverse-circulation and core drilling program as well as continued geologic mapping and geochemical sampling programs. Additionally, a LiDAR survey planned for 2018 and designed to assist in identifying fault structures will now be completed in 2019.