Exploration & Processing - Fall 2010 - (Page 77)
BY KELLY MCCABE
AT ‘VERY FAVORABLE’ LOCATIONS IN IDAHO AND NEVADA, OTIS GOLD IS DEVELOPING AN EXISTING RESOURCE OF 1 MILLION OUNCES OF GOLD.
GOING FOR GOLD
ancouver-headquartered Otis Gold has been exploring precious metal deposits since 2008 on land in Idaho and Nevada formerly occupied by Echo Bay Mines, Placer Dome and Pegasus Gold. Otis Gold’s two major projects right now are Kilgore Gold in eastern Idaho and Oakley, which is on the Idaho and Utah border. “On the Kilgore project, my entire technical team is made up of former Echo Bay geologists,” President and CEO Craig Lindsay says. “Our guys are extremely familiar with the Kilgore story, so we were the natural company to take this project over.” The 3,000-acre Kilgore deposit has been the subject of about 125,000 feet of drilling in 128 historic holes. Before Otis Gold occupied the site, the most recent work on the site was done by Echo Bay, which worked there until the mid-1990s. “At that time, Echo Bay completed an internal engineering review of Kilgore, and it showed very favorable economics, with production of 45,000 ounces of ore per year and a mine life of six-and-a-half years,” according to Lindsay. “The gold price then was $350, but when gold prices fell beneath $300, Echo Bay was facing significant financial challenges and elected to focus solely on its producing assets. After that time, there was very little work done there.” Compared with previous companies that occupied the land, Otis Gold is taking a unique approach to the Kilgore project. “Previous companies concentrated on identifying a large low-grade bulk mineable deposit,” the company says. “However, Otis intends to follow up on high-grade intercepts to possibly develop an underground mining scenario, implement closer drill spacing to define and develop minable shoots, and revisit economics for both smaller underground operation and a larger bulk-minable operation.” In the past year-and-a-half, Otis Gold has completed 16 core drill holes with more than 4,200 meters of drilling. Lindsay notes that those 16 holes have hit significant bulk tonnage gold mineralization mixed in with some very high-grade intercepts. Because of that success, Otis Gold plans to complete 8,000 meters of drilling with three drill rigs, two core and one reverse circulation rig.
Otis Gold has been exploring since 2008 and currently has two projects in the works: Kilgore Gold in eastern Idaho and Oakley on the Idaho/Utah border. The company says both projects show a lot of potential for future precious metal production.
Otis Gold www.otisgold.com HQ: Vancouver Employees: 8 Specialty: Gold and Craig Lindsay, president and CEO:
“We’re in a great position to achieve some pretty strong capital appreciation in our share price.”
EXPLORATION-PROCESSING.COM | 77
Table of Contents for the Digital Edition of Exploration & Processing - Fall 2010
Exploration & Processing - Fall 2010
Profitable Path to Renewable Energy
Dynamic Air Shelters Ltd.
Elevating Boats LLC
Gazelle’s Oilfield Services Ltd.
International Alliance Group
Lydford Mining Co.
Offshore Inland Marine, Industrial & Oilfield Services
Q.B. Johnson Manufacturing Inc.
Thermo Design Engineering
Western Camp Services Ltd.
Western Copper Corp.
Alberta Welltest Incinerators
Blakely Construction Co. Inc.
Bluewater Constructors Inc.
Energy Fabrication Inc.
OFM Pump Inc.
Lithium Americas Corp.
New Dominion Construction Inc.
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Reagan Equipment Co. Inc.
Swick Mining Services (Canada) Inc.
American Oil & Gas – The Goliath Project
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Atlas Copco Geotechnical Drilling & Exploration
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Energy Fuels Resources Corp.
ESA Renewables LLC
GPR Industries (1994) Ltd.
Helio Resource Corp.
Landdrill International Inc.
Laurel Aggregates Inc.
LoneStar Energy Fabrication
NioGold Mining Corp.
Pacific Booker Minerals Inc.
Phoenix Exploration Co.
Premium Rock Bit Corp.
Queenston Mining Inc.
RAE Engineering & Inspection Ltd.
Goldcorp – Red Lake Gold Mines
C-FER Technologies Inc.
Eden Stone and Valders Stone & Marble Inc.
Exploration & Processing - Fall 2010