Otis Gold Corporation OGLDF

The Other Shoe Drops!

[Bill4445]

After OOO's release of their long-awaited assays proclaiming they "Significantly Extended Mineralization," Otis' stock fell 16%. I'm guessing that no one else believes it either. In hindsight, it's understandable why Otis chose not to release their results for over 100 days.  

 

Thoughts about OOO's 11 hole step-out program around the existing Kilgore deposit:

 

1. 7 of 11 of Otis' step-out holes contain no reportable gold. When a company is stepping-off an existing deposit and misses in the majority of the holes drilled, that is bad news. Otis chose not to mention any of these holes or why they missed.
2. One of three holes (387) that Otis chose to report contains NO GOLD. It contains low-grade silver. 15-feet @ 41 ppm silver at 575 feet deep isn't economically viable, especially given the 17%-35% silver recovery stated in OOO's 1/8/2020 news release. Does anyone think it is economical to strip off 500 feet of cover to get to 15-feet of rock containing 12 ppm of recoverable silver worth about $6.00 per ton?
3. This leaves two holes that Otis talks about that contain gold. Hole 384 contains 150-m @ 0.2 g/t. (.008 opt).That entire intercept is 64% lower than the average grade of their deposit. It looks to me like they hit a small intercept somewhere in the hole and diluted it with a bunch of dead rock to make it look like a LONG intercept. I wonder how much internal waste was factored into that intercept? Rock that is this low-grade will not factor into their resource.
4. Hole 381, to the south on Prospect Ridge, reported at 160-feet @ 0.13 g/t (.004 opt) is abysmally low and below cutoff. The hole right next to it (380) contained no reportable gold!

IMHO, the above factors are why Otis stock fell after their news release.

I believe in Idaho Gold, which is why I invested in Otis and Liberty Gold (LGD). With Liberty, in six months, my investment went from 43 cents to $1.30, a 200% return. Check out assay results of their drill program.