The Vancouver-based miner said in a press release that an updated resource estimate released in August for the Kilgore project in Idaho showed an indicated resource of 825,000 ounces of gold at an average grade of 0.58 gram of gold per ton in 44.6 million tons. That represented a 59% increase in the indicated ounces from a previous resource estimate.
READ: Otis says latest exploration results underscore "district-scale potential" of Idaho gold-silver project
Under industry standards, the three categories of mineral resource classification in order of geological certainty are inferred, indicated and measured.
The company said other milestones include the hiring of Alan Roberts as vice president for exploration. Otis also completed the sale of 2.75 million common shares of Revival Gold Inc (CVE:RVG) (OTCMKTS:RVLGF) in private transactions generating C$1.8 million in non-dilutive financing to fund ongoing exploration and overhead expenses.
Otis retains a 1% net smelter return on some claims owned by Revival at the Arnett Creek project in Idaho.
‘We are very optimistic’
The company added that its Kilgore and Oakley projects in Idaho make the company well-positioned to capitalize on what it says is a renewed interest in gold.
“We are very optimistic about our business prospects going forward,” Otis President and CEO Craig Lindsay said in a statement.
He said the company is confident an environmental complaint related to the Kilgore project is without merit and will be resolved in favor of the US Forest Service.
Shares fetched C$0.11 in Tuesday’s Canadian trading. They climbed US$0.01 to US$0.08 on the OTC Markets.
Contact Dennis Fitzgerald at [email protected]