VANCOUVER — Explorer Otis Gold (TSXV: OOO; US-OTC: OGLDF) recently closed a $5-million strategic investment from Agnico Eagle Mines (TSX: AEM; NYSE: AEM) thanks to exploration success at its wholly owned, royalty-free Kilgore gold property, roughly 50 km due northeast of the town of Dubois, Idaho. The company plans to leverage its now-robust treasury to advance the project toward a preliminary economic assessment (PEA) later this year.
Kilgore saw around $8 million in investment through the late 1990s, which includes nearly 40,000 metres of historic drilling. The property hosts 27.3 million indicated tonnes grading 0.59 g/t gold per for 520,000 contained oz., and 20.2 million inferred tonnes of 0.46 g/t gold for 300,000 contained oz.
The volcanic-hosted epithermal gold deposit is reportedly related to a “zoned epithermal hot spring system in volcanic rocks of Miocene age.” Mineralization is hosted within sericitized, silicified and quartz-stockwork veined lithic tuff, dike and silicified clastic sedimentary rocks.
Otis acquired its interest in the property back in 2008, but the story has picked up steam over the past twelve months following the discovery of a “new class of mineralization” within the Tertiary sill and Cretaceous Aspen Formation that underlies the existing resources.
Read the complete story at The Northern Miner.