The project lies at the north end of the group's Oakley project.
Assay results from rock chip samples include gold values up to 1.9 grams/tonne of gold and silver values of up to 8.4 grams/tonne.
After analyzing these results, Otis expanded its Cold Creek claim package by locating 32 new federal lode mining claims totaling 640 acres.
The geochemical and structural data collected from the 2018 field season, along with reverse-circulation drilling data, is being modeled in 3D in order to develop drill targets for future testing, Otis said.
“We are very excited by the results of this year’s exploration program at Cold Creek and it confirms our belief in the prospect’s potential," said Alan Roberts, vice-president of exploration. "The surface extent of the gold and silver anomalies has exceeded our expectations.”
BIG PICTURE: Otis Gold makes leap at Kilgore with improved indicated resource as CEO upbeat about size of project's potential
The Cold Creek target contains gold-silver epithermal hot spring-type alteration and mineralization. This is predominantly found in the Tertiary Salt Lake formation, a series of epiclastic sedimentary rocks, ash layers and volcanic rocks.
A total of 651 soil samples were analyzed for gold and silver. In 2019, Otis plans to continue exploration at Cold Creek which will include permitting of a reverse-circulation and core drilling program as well as continued geologic mapping and geochemical sampling programs.
Additionally, a LiDAR survey planned for 2018 and designed to assist in identifying fault structures will now be completed in 2019.
The Oakley Project is a gold-silver exploration prospect located south of Oakley, Idaho.
Otis is a resource company focused on the acquisition, exploration, and development of precious metal deposits in Idaho.
The company is based in Vancouver.
Otis Gold shares added 7.69% on the day to $0.14.
Reporting by Rene Pastor, contactable on [email protected]