Otis gives more shape to Kilgore

The Kilgore gold project in Idaho continues to round into shape for Otis Gold (OOO-V) just as gold prices continue to climb to new heights.

The beneficial combination has lifted the company’s share price by nearly 50% since mid-summer, and on Oct. 13 the company’s shares were up 6% to 58¢ in Toronto.

The latest bit of news from Kilgore came in the form of drill results highlighted by 45.7 metres grading1.32 grams per tonne gold and 41.1 metres grading 1.3 grams gold.

The results fit nicely with assays released in early September which were highlighted by 55.5 metres grading 1.36 grams gold and 30.4 metres grading 2.53 grams gold.

Those kinds of assays have Otis feeling a “high degree of confidence” that mineralization is continuous throughout the deposit.

Further bolstering that position is the fact that all but one hole drilled along the northern periphery of the deposit has struck mineralization.

The current drill program consists of 40 holes and is expected to be wrapped up later this year.

Results thus far, Otis says, indicate thicknesses and grades well above those found in the resource estimate done in 2002 by Rayner and Associates. That estimate came in at 7.043 million tonnes grading 1.1 grams gold for 218,000 oz. of gold in the indicated category and 9.6 million tonnes grading 1 gram gold for 269,000 oz. of gold in the inferred category.

Otis says the latest results will go into three-dimensional modeling to be finished in 2011.

The company announced on Oct. 8 that it had begun its environmental scoping study on the project and that a pre-feasibility study is set to get underway once drilling is completed later this year.