Otis Gold Corp Snapshot
Corporate BackgroundOtis Capital Corp. was incorporated under the Business Corporations Act (British Columbia) on April 24, 2007. On January 14, 2009, the Company changed its name to Otis Gold Corp. The Company’s common shares are listed on the TSX Venture Exchange (the “Exchange”) under the trading symbol OOO. On July 16, 2008, the Company acquired an option to acquire a 100% interest in the Blue Hill Creek Project located in Cassia County, Idaho (which is now known as the Oakley Project). At the same time, the Company also acquired an option to earn up to a 75% interest in the Kilgore Gold Project, located in Clark County, Idaho, and the Hai property, located in Lemhi County, Idaho. In November 2010, the Company increased its interest in the Kilgore Gold Project and related assets to 100%. The Company is currently exploring for minerals on these properties and other properties that it may acquire.
Otis is a gold exploration company focused on developing projects which have multi-million ounce potential located in mining-friendly jurisdictions. Otis is leveraging the talents of technical team, which made up the core of the Echo Bay Mines US exploration team in the mid 1990s, to build out its property portfolio. The technical team is complimented by a management team with a strong level of experience in corporate finance and public company management. While each project is approached with the goal of ultimately putting mines into production, the exit strategy will likely be through an M&A transaction.
The Kilgore Gold Project consists of 232 federal mining claims and one Idaho State Land Permit totaling 5,130 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.Overview
The project targets a volcanic hosted epithermal hot spring type deposit with a current NI 43-101 compliant resource of 520,000 ounces of drill-indicated gold (27.3 million tons @ 0.59 gpt Au, 0.24 gpt Au cutoff) and 300,000 ounces of inferred gold (20.2 million tons @ 0.46 gpt Au, 0.24 gpt Au cutoff).
Otis Gold Corp. (“Otis” or the “Company”) 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.
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. (“Bayswater”). Otis acquired the property from Bayswater in 2008.
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Oakley Project Overview
The Oakley Gold Project consists of 107 federal lode mining claims and several Utah State leases (comprising 1,360 acres) located in Cassia County, Idaho, approximately 15 miles south of the town of Oakley and just north of the Utah/Nevada border.
The project targets a classic epithermal hot spring-type gold exploration target with two primary geologic targets: Blue Hill 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. To date, Otis has earned into an 80% position on the Blue Hill Creek claims and has a 100% interest in all other Oakley Project claim blocks and the State Lease.
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.
Geology and Mineralization
At Blue Hill Creek, alteration and gold mineralization are mainly hosted by capping sinters and Tertiary Salt Lake Formation epiclastic sedimentary and tuffaceous volcanic rocks. Gold-bearing chalcedonic sinters and strongly silicified tuffaceous sedimentary rocks with disseminated pyrite and quartz veining compose the main target in the altered zone. This zone, currently 3,350-feet long and up to 1,000-feet wide, with mineralization open in all directions as well as at depth, contains surface gold values to 0.060 opt. Mineralization appears related to north- and northeast-trending, high-angle structures. Local, post-mineral northeast-trending faulting has displaced and buried mineralized sections to the northwest, some of which have yet to be drill tested.
At Cold Creek, alteration and gold mineralization are hosted by Tertiary Salt Lake Formation epiclastic sedimentary and tuffaceous volcanic rocks within a northwest-trending, fault-bounded graben. Pervasive silicification and local strong chalcedonic quartz veining are the primary alteration types present at the main target in the altered zone. This zone, at least 5,000-feet long and up to 3,500-feet wide, contains surface gold values to 0.060 opt. Mineralization appears related to north- and northeast-trending, high-angle structures. The margins of the graben remain unexplored.
In the Summer and Fall of 2008, Otis completed a comprehensive program of geologic mapping and sampling at the Blue Hill Creek and Cold Creek projects and completed a CSAMT survey on both main project blocks. Results from the survey indicate the presence of a sizeable and geologically significant 1.5 kilometer-long, low-resistivity anomaly underlying and extending downdip from the Blue Hill Creek gold deposit. Based on the results of the survey, the Company staked additional Federal lode mining claims and applied for additional Idaho State leases to expand the Company's land position beyond the original core claims.
Concurrently, smaller CSAMT anomalies were also identified underlying and extending beyond the Cold Creek target area. Results show a shallow gold-bearing Tertiary volcaniclastic package overlying a distinct graben structure with unexplored low-resistivity anomalous zones and interspersed higher resistivity areas interpreted to be argillic alteration and silicification associated with possible feeder structures.
Otis geologists interpret this anomaly as a large, sheet-like-shaped, gold target that will be tested by a series of five-to-six angle holes, up to 1,000-feet deep in 2009. The company is planning to conduct further work on the project in 2010 and beyond.
The Hai Property is comprised of 7 located lode claims covering historical gold workings known as the Little Chief Extension in the Lemhi Counties of Idaho. The claim group comprising the Hai property is part of a larger area that was the subject of modern exploration in the mid 1990s.
The Hai Property was included in a portfolio of projects in Idaho that Otis joint ventured from from Bayswater Uranium as part of its agreement to earn an interest in the Kilgore Gold Project in June 2008.
The Hai Property is part of the original Kilgore land position which comprises a large, 5 square mile, volcanic-hosted disseminated epithermal hot-spring gold system situated on the northern margin of the eastern Snake River Plain. Potentially ore-grade mineralization was encountered in drill holes and surface samples completed by Meridian Gold and others on the Hai claims but sufficient work was not completed to determine the economic significance of this mineralization.
Geology and Mineralization
Mineralization is of Pliocene age and is hosted within Miocene age lithic and crystal tuff on the margin of a caldera setting. Mineralization style and setting, host rock type and thickness, and overall size of the mineralizing system are analogous to those characterizing the Round Mountain, Nevada and McDonald Meadows, Montana multi-million ounce volcanic-hosted disseminated gold deposits.
No exploration has been conducted by Otis on this project to date.
No mineral resources have been defined to date.
The Gold Bug property is situated approximately three miles from the Hai property and comprises nine lode claims. The claims cover an area of extensive eluvial gold placer workings in an area which is believed to be favourable for the occurrence of large tonnage, low-grade gold mineralization similar to the style of gold mineralization at Beartrack and other gold deposits in the region. The eluvial placer gold deposits occur on the slopes of gentle terrain and it is believed that the source of the gold is in close proximity to the placer workings.
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