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NI 43-101 compliant resource estimate of 218,000 ounces of gold at an average grade of 0.031 opt Indicated, and 269,000 ounces of gold at an average grade of 0.028 opt Inferred. |
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Additional non NI 43-101 compliant resource of 706,000 ounces of gold. |
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Good potential for resource expansion as there are several targets that have yet to be tested. |
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Exploration is being managed by Otis Gold Corp as part of a joint venture agreement. |
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Otis drilled 4 holes in 2008 with the best intercepts assaying 13.08 g/t gold over 27.2 metres, and 6.15 g/t gold over 55.4 metres. |
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An aggressive drill program commenced in July 2009. |
Kilgore was acquired through Bayswater's merger with Kilgore Minerals in 2007. The property covers 3,000 acres in southeast Idaho and was extensively drilled between 1983 and 1998. An NI 43-101 resource estimate based on these results was completed in 2002, which outlined Indicated and Inferred gold resources. Kilgore continued drilling in 2004 and 2006; results designated a zone of mineralization known as the "Elsa Zone" and also outlined several new targets. In 2008, Bayswater optioned the property to Otis Gold Corp (Otis). Otis planned to confirm historical resource estimates from drilling that focused on bulk-tonnage, open-pittable grades, and to explore the property's potential as a high-grade, underground operation, which is easier to permit. Otis drilled 4 holes totaling 635 metres in 2008 and the best intersections assayed 13.08 g/t gold over 27.2 metres and 6.15 g/t gold over 55.4 metres. A large drill program commenced in July 2009 that will consist of 10,000 to 20,000 feet of drilling in 15 to 20 holes.
Location & History
The Kilgore property consists of 150 unpatented claims covering 3,000 acres in southeast Idaho. From 1983 to 1998, several major mining companies including Placer Dome US, Pegasus Gold, Echo Bay Mines, and Latitude Minerals spent more than $8 million on property acquisition, drilling, geophysical and geochemical surveying, and metallurgical testing. A total of 197 diamond and reverse circulation holes have been drilled for a total footage of 126,417 feet.
Geology & Mineralization
The property is composed of a volcanic-hosted disseminated epithermal hot-spring gold system situated on the northern margin of the eastern Snake River Plain. Mineralization is of Pliocene age and is hosted within Miocene age lithic and crystal tuff on the margin of a caldera setting. Mineralization style and setting, host rock type and thickness, and overall size of the mineralizing system are analogous to those characterizing the Round Mountain, Nevada, and McDonald Meadows, Montana, volcanic-hosted disseminated gold deposits.
Exploration
As previously mentioned, approximately 126,000 feet of drilling in 197 holes was carried out between 1983 and 1998. In 1996, exploration identified a major geochemical soil anomaly. An extensive airborne geophysical survey was also completed which outlined a number of additional anomalies associated with the large geochemical anomaly.
In 2002, G.H. Rayner and Associates and Bruce H. Van Brunt completed an NI 43-101 resource estimate on the results of this drilling. The estimate comprises 218,000 ounces of gold in 7.043 million tons of material at an average grade of 0.031 opt gold (0.010 opt gold cutoff) in the Indicated category, and 269,000 ounces of gold in 9.661 million tons of material at an average grade of 0.028 opt gold (0.01 opt gold cutoff) in the Inferred category. Additionally, a global resource of 706,000 ounces was calculated by Echo Bay Mines (non NI 43-101 compliant and not to be relied upon).
In fall 2003, Kilgore (merged with Bayswater in 2007) carried out a program of geologic mapping, surface sampling and structural interpretation on the property. This field work resulted in the development of a more comprehensive understanding of the structural fabric and controls of the gold mineralization on a property-wide scale than were previously understood. A number of highly attractive new targets for drill testing were developed.
In the summer of 2004, Kilgore carried out a diamond drill program that comprised six holes with a total footage of 5,319 feet. The drill program discovered high-grade gold mineralization within a wide zone of low-grade gold mineralization at depth. The high-grade is a 10 foot section averaging 0.465 opt or 14.5 grams per tonne of gold. The lower-grade envelope is a 170 foot section which averages 0.04 opt or 1.25 grams per tonne of gold. This very encouraging discovery was designated the "Elsa Zone", and the discovery hole is 4,650 feet from the known 487,000 ounce gold resource.
In 2006, drilling failed to identify extensions or new important zones of gold mineralization with the exception of one intersection of 0.051 ounces gold per ton over 41.2 feet; however, the results demonstrated widespread anomalous gold values in extensively altered favourable rocks. Further targets remain to be tested and good potential remains for expanding resources.
In June 2008, Bayswater entered into an option agreement with Otis Gold Corp. (Otis) whereby Otis can earn up to a 75% interest in the Kilgore Gold Project, and two additional gold properties, Hai and Gold Bug, also located in Idaho. For details of the agreement, see press release dated June 10, 2008. As of July 22, 2008, Bayswater received a first payment of US$100,000 and 500,000 common shares of Otis per terms of the option/joint venture agreement.
Otis plans to follow-up on high-grade intercepts to develop an underground mining scenario, implement closer drill spacing to define and develop mineable shoots, and revisit economics for both a smaller underground operation (easier to permit) and a larger, bulk-mineable operation (more difficult to permit). Otis drilled 4 holes totaling 635 metres in 2008 with the best high-grade intersection assaying 13.08 g/t gold over 27.2 metres. In October 2009, additional drill results from the four-hole program were announced. Three of the four holes contain significant bulk-tonnage, open-pittable thicknesses and grades, in addition to the high-grade, underground-type intercepts, including 55.4 metres grading 6.15 g/t gold.
Otis commenced a 10,000 to 20,000 ft drill program in July 2009 in 15 to 20 holes that will test for the presence of a suspected high-grade deposit that can be exploited by underground mining. Results of historic drilling suggest the presence of high-grade core on the property that was never fully evaluated as previous exploration only concentrated on identifying a low-grade, bulk-mineable, open pit deposit.
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Last updated May 10, 2010
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Drilling at Kilgore.
Typical lithic tuff host rock.
Looking north toward Caldera rim and resource area.
