Issue link: http://resourceworld.uberflip.com/i/638235
52 www.resourceworld.com f e b r u a r y / m a r c h 2 0 1 6 mINING In a bull market there would have been a full-out bidding war on otis Gold's [OOO-TSXV] stock after the company released drill results from its Kilgore Gold Project that included inter- cepts of 94.5 metres of 4.21 g/t gold and 59.5 metres of 3.79 g/t gold; instead, investors collectively yawned and went back into hibernation. "Admittedly the market's reaction is a disappointment but we are receiving a lot of attention from gold companies," says Craig Lindsay, President of Otis Gold and former investment banker. "What differentiates Otis from other companies is that we are executing on our business plan, our ability to raise capital and conduct drill programs despite the current state of the capi- tal markets, and now with the recent drill results, we have the potential to move into the exclusive "million-ounce above one- gram-per-tonne club." The Kilgore Gold Project is Otis Gold's flagship project located in Clark County, Idaho. Kilgore is a former Echo Bay Mines open- pit, heap-leach gold project that was slated for production in the 1990s, but shelved when the gold price dropped below US $300/ oz. Otis Gold acquired the property in 2008 and has been explor- ing it ever since. In 2015, Otis raised $2.6 million through three private place- ment financings. All three financings were completed above market price, and 79% of the capital raised was without war- rants, leaving Otis with a share structure of 107 million shares outstanding and a market cap of $9.9 million. The company has $1 million in the treasury and, according to Lindsay, if funding dries up completely 2016, the million is enough money for opera- tions and to continue to de-risk Kilgore. The majority of the capital raised in 2015 was reinvested into the Kilgore gold project through a combination of permitting, drilling and baseline environmental work. Otis received the envi- ronmental permits to construct a road network that will expand access to the property for exploration, and road construction started mid-2015 at about the same time the company initiated a 3,200-metre, 19-hole step-out drill program. Prior to the most recent drill program, the Kilgore Project had a resource estimate of 520,000 ounces of gold in 27.35 mil- lion tonnes grading 0.59 g/t gold in the indicated category and 300,000 ounces contained 20.23 million tonnes grading 0.46 g/t gold inferred. And now with step-out drill results from the Crab Claw, a previously untested anomaly on the west end of the current Kilgore gold deposit, and the North Target, an area north- northeast of the existing resource, the size of the gold resources should grow substantially. "The 2015 drill results are a significant milestone in the ongoing development of the Kilgore deposit. The results indicate a strong potential to materially increase the overall deposit size and grade. We are very excited about the Crab Claw drill results, which are some of the highest grade and thickest intercepts ever drilled at Kilgore, and we remain extremely optimistic about additional expansion potential in the North Target," said Lindsay. Market fails to reward otis Gold's exploration success When The bears Wake From hibernaTion They'll be hungry For oTis gold corP. By Robert Simpson Diamond drilling at Otis Gold's Kilgore Project 60 miles north of Idaho Falls, Idaho. Photo courtesy Otis Gold Corp.