An environmental assessment will also be completed as part of the service's review of the plan, which will include the drilling of up to 140 new sites
Gold mineralization at Kilgore is open for extension to the northwest, southeast and at depth.
Additionally, numerous high value targets exist, including Gold Ridge, Prospect Ridge, Dog Bone Ridge and the Aspen Gossan, which are of significant interest to Otis and not authorised under the current plan of operations.
The new permit will allow a significant amount of flexibility to aggressively test these new exploration targets, Otis said.
A specific exploration program for 2018 will be finalized after assessment of the results from the 2017 Kilgore drill program and a compilation and review of all exploration data from this and prior year’s field programs.
“Otis is at a critical juncture in the development of the Kilgore Project," said Craig Lindsay, Otis president and chief executive.
"While significant growth potential exists at the current deposit, which will remain a critical focus of future drilling, exploration outside of the existing deposit area has the potential to quickly take Kilgore to the next stage.
"We are excited about working with the U.S. Forest Service and the local community on this newest round of permitting at Kilgore."
Earlier this month, Otis shares ticked higher as the group reported encouraging assays from the first three holes of this year's drilling.
The main aim of the work was to follow-up on previous open-ended drill intercepts in the prospective Aspen formation.
Shares in Otis nipped up 3.45% to C$0.30 on the day.