Vancouver, British Columbia--(Newsfile Corp. - June 28, 2017) - Today's buy recommendation comes from PI Financial. PI Financial has initiated coverage on Otis Gold Corp (TSXV: OOO). Analyst Adam Melnyk gives the company a buy recommendation along with a speculative risk rating and a 12-month target of $0.60, a premium of 107% to the $0.29 price on June 15th, the day the report was issued.
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Canadian-based Otis Gold has 4 projects in Idaho, including its flagship Kilgore project and the exploration stage Oakley project. The 100% owned Kilgore Project is an open pit, heap leach gold project with a NI 43-101 compliant global resource estimate from 2012, showing 820,000 ounces of gold in the indicated and inferred categories, at 0.54 grams per tonne.
The current resource estimate does not include drill results from 2012 to 2016. Many of these holes encountered mineralization in the previously untested Aspen Formation. Mineralization in this formation is in places higher grade than the overlying volcanics.
Results from drilling have included:
- 94.5 metres grading 4.21 grams per tonne gold
- 30.5 metres grading 5.37 grams per tonne gold, and
- 85.4 metres grading 2.5 grams per tonne gold
Analyst Adam Melnyk stated: "Over the next year, we expect that Kilgore will transition towards being viewed by investors as a low capital heap leach project. Given the project's location in Idaho and recent M&A activity in the sector (Exeter, Integra, IAMGOLD's Cote project), we expect the advancement of Kilgore to result in positive share price performance for Otis."
Agnico Eagle recently acquired 9.95% (14.42 million shares) through a private placement at $0.35 per share.
The shares are currently trading at $0.31, well below the $0.60 price target, and with 156 million shares outstanding, the company is capitalized at $48.4 million.
For more information, please visit the company's website www.otisgold.com or contact Tony Perri, Corporate Development, at 604-424-8100, or email tony@otisgold.com.
For more information about PI Financial or to obtain a copy of their research report, contact your nearest PI Financial office. Their branches are listed on their website at www.pifinancialcorp.com.
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