Otis Gold (OOO-V) otisgold.com
18M Shares | $7M Market Cap
New gold exploration company. Great share structure and risk/reward exploration. Drilling for high-grade gold targets underway at Kilgore.
Otis Gold is a new gold exploration company with a seasoned management and exploration team focused on developing acquiring, developing projects in the western USA with 2+ million ounce gold deposit potential. Their flagship project is Kilgore in Idaho with an existing historic resource of over 700,000 ounces. Kilgore has in excess of 125,000 ft of historic drilling from the likes of Echo Bay Mines, Placer Dome and Pegaus.
Earlier operators were focused on developing a bulk tonnage, open pit gold mining deposit. Under Otis Gold, the property is being developed for a possible high grade underground mining operation by defining past high-grade gold intercepts. Historic high grade holes include 90’ of 37.0 gpt, 109’ of 3.7 gpt, 90’ of 5.9 gpt, 45’ of 11.25 gpt and 25’ of 18.9 gpt!
I just returned from visiting Kilgore, where Otis is currently drilling 10,000 to 12,000’ spread amongst 15 to 20 holes. This round of drilling follows up on a successful 4 hole drill program in late 2008. The current drill program is expected to continue through December, and expectations are the first results will be out in several weeks time.
With approximately $2.0 million in the treasury, a total resource of already 1.0 million ounces of gold, and a market cap of $7 million, the stock is extremely attractive under $0.50. Attention will focus on upcoming drill results, which would likely revalue the stock price quickly with a tight float and relatively low market valuations. |
