Otis Gold Corp (CVE:OOO, OTC:OGLDF) has an exciting year ahead as it aims to continue to demonstrate the exciting potential of its flagship Kilgore project in Idaho.
On the cards is drilling of regional targets around the existing deposit and potentially the upgrading of the current resource estimate.
With that in mind, last year the group filed a plan for 140 drill sites and about 30,00ft of road construction so that such high value targets could be explored.
These include Gold Ridge, Prospect Ridge, Dog Bone Ridge and the Aspen Gossan.
And this month (February), the firm underlined its commitment to Kilgore by increasing its footprint there by 33%.
An additional 3,000 acres has been acquired by the direct staking of 150 federal lode claims immediately adjacent and contiguous to the existing Kilgore claims.
Otis now holds a land package at Kilgore of around 12,150 acres, or 19 square miles (49.2 sq km).
This additional staking marks an exciting step in the development of Kilgore, and is a reflection of our assessment of the project’s growing geologic potential," Otis president and chief executive Craig Lindsay told investors.
"In 2018, we plan to aggressively continue regional exploration work at Kilgore to complement our planned exploration drilling, with a view to potentially further expanding the project."
Otis noted that, Including its around 4,000-acre land position at the Oakley project, Otis now controls the second largest land position prospective for gold in the state of Idaho.
So what is this deposit?
Kilgore spans over 5,130 acres and is targeting an epithermal type deposit. It has a current NI 43-101 resource of 520,000 ounces of indicated gold from 27.3 million tons at 0.59 grams per ton (gpt) gold, and 300,000 ounces of inferred golf from 20.2 million tons at 0.46 gpt gold.
Last year, Otis carried out a 25-hole, 8,000-metre drill programme to further test the existing deposit. It also did over 2,500 soil, rock chip and stream sediment samples and a 464-line kilometre ground magnetic survey.
And last month it posted further encouraging assays from its 8,000-metre Kilgore project drill programme last year, which continue to underline the potential for expansion.
In the frame before...
Kilgore has been in the frame before. In the 1980s and 1990s a number of gold companies saw its huge potential.
One in particular, Echo Bay Mines, was ready to press the trigger on a 45-50,000-ounce operation in the late 1990s that would have survived at US$350 gold.
But the development was shuttered when the price of the yellow metal tanked.
The former owner suspected it had uncovered not one deposit, but a number of gold, ‘volcanic-hosted’ targets potentially containing 2-3mln ounces of gold.
“Geologists will tell you epithermal systems are like grapes: they come in bunches and you never find just one grape on the bunch,” Lindsay said in 2016.
"When someone asks what I can see, I am comfortable talking about the potential for a 2-3mln ounces assuming one or two of the additional targets achieves the size of the existing target. Talking about anything bigger at this stage is difficult."
Other irons in fire..
The group also has the Oakley Gold project comprising 1,360 acres, also in Idaho, which is 15 miles south of the town of Oakley and just north of the Utah/Nevada border. It has two primary targets - Blue Hill Creek and Cold Creek. It also hosts the Matrix Creek property.
Oakley has an NI 43-101 inferred resource of 163,000 ounces of gold at a grade of 0.51 g/t.
In June last year, it told investors it has kicked off fieldwork at the site.
So there is lots to watch out for this year from Otis Gold..
Shares stand in Toronto at C$0.20.