Get the Latest Investment Ideas Delivered Straight to Your Inbox.

News Update

TICKERS: OOO; OGLDF

Explorer Reaches Milestone in PEA Completion, Positive Outcome
News Update

Source:

Based on the results, this Canadian company will continue advancing this project in Idaho.

Otis Gold Corp. (OOO:TSX; OGLDF:OTCMKTS) announced in a news release the preliminary economic assessment (PEA) on its Kilgore gold project in Idaho is done and shows "highly attractive economics."

The report outlines an open-pit, heap-leach operation producing 112,500 ounces of gold per year over a 4.9-year mine life.

Using a gold price of $1,300 per ounce, the projected after-tax net present value (5% discount rate) is $97.6 million and the internal rate of return, 32.4%. The payback period is 3.1 years, and the life-of-mine net cash flow is $135.1 million.

As for costs, pre-production initial capex is estimated at $81 million, using contract mining. The life-of-mine sustaining capital cost is forecasted to be $97 million.

The PEA notes that potential exists to expand Kilgore's scope and scale by adding to the resource base via ongoing drilling, specifically stepout drilling adjacent to the deposit and exploration drilling at well-defined targets throughout and beyond the project area.

The assessment is based on Otis' August 2018 resource estimate that was developed from 381 drill holes and 93,000 meters of drilling. In that estimate, 85% of the resource was the Indicated category.

Otis Gold intends to keep advancing Kilgore and continuing to show economic viability through additional drilling along with metallurgical, geochemical and engineering work.

[NLINSERT]

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.




Want to read more about Gold investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe