Otis Drills High-Grade Gold Intercepts at Kilgore
March 02 2009 - 4:30AM
Marketwired Canada
Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO) is pleased to
announce significant drilling results from the first two core holes of a
four-hole, 2,083-foot drill program at its Kilgore Gold Project, Clark County,
Idaho. The results confirm the presence of high-grade gold values from
potentially mineable thicknesses and intervals within a higher-grade core zone
in the Kilgore Mine Ridge area. This area was only partially drill-tested by
Bear Creek, Pegasus Gold, Placer Dome U.S., and Echo Bay Mines between 1983 and
1996, while exploring the property for a bulk-tonnage, volcanic-hosted
epithermal gold deposit (see Otis News Release dated June 10, 2008). Otis is in
the process of exploring the Mine Ridge area for the presence of a high-grade
deposit that can be exploited by underground mining methods.
The results, detailed in the Table below, are based on a 0.050 opt Au cutoff
grade (or 1.71 grams/tonne). Some of the more notable intercepts include 27.2' @
0.382 opt Au in hole 08 OKC-191 and 8.5' @ 0.706 opt Au in hole O8 OKC-193.
Results of detailed core logging indicate the presence of late-stage visible
gold in both holes. The holes were collared approximately 125 feet apart and lie
along an east-west section in the historic Mine Ridge area. Results from the
remaining two holes of the four-hole drill program are pending.
-----------------------------------------------------------------
Thickness
Interval Feet Grade Metric Grade
Hole Number Feet (metres) oz/ton grams/tonne
-----------------------------------------------------------------
08 OKC-191 137.2 - 141.5 4.3 1.767 opt 60.530
(1.31)
208.5 - 215.1 6.6 0.135 opt 4.635
(2.01)
239.7 - 266.9 27.2 0.382 opt 13.085
(8.29)
313.1 - 319.0 5.9 1.581 opt 54.148
(1.80)
-----------------------------------------------------------------
08 OKC-193 261.0 - 268.5 7.5 0.241 opt 8.237
(2.29)
433.0 - 441.5 8.5 0.706 opt 24.178
(2.59)
-----------------------------------------------------------------
Note: 1 Tonne is a metric tonne which is equal to 1.1024 short tons
Historically, spacing of holes drilled at Kilgore by the above mentioned
companies generally varied between 200 feet and 400 feet, and although numerous
high-grade intercepts were encountered during their drilling, the goal of trying
to define a bulk-tonnage, open-pit gold deposit took precedence over attempting
to delineate a high-grade underground deposit. As a result, the Kilgore Mine
Ridge target area was only cursorily explored and never followed-up on in any
detail, until now by Otis. Some of the better historic high-grade intercepts
drilled within the core target area include 90' @ 1.091 opt Au (93 PK-56), 75' @
0.222 opt Au (94 EKR-89), 45' @ 0.331 opt Au (95 EKM-5), and 65' @ 0.243 opt Au
(94 EKR-86). All of these holes are in or immediately adjacent to the Mine Ridge
area, where caved underground workings dating from the 1930's exist and are also
within a radius of approximately 300 feet of Otis' high-grade drill intercepts
reported in this News Release. Otis geologists are currently in the process of
compiling all the high-grade drilling results and detailed geology into a
three-dimensional computerized model to aid in placing additional core holes to
further explore and define the underground target this upcoming field season.
Kilgore comprises a large, 5 square mile, volcanic-hosted epithermal gold system
situated on the northern margin of the eastern Snake River Plain. Pliocene-age
mineralization is hosted in Miocene 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
multi-million ounce volcanic-hosted disseminated gold deposits, where
high-grade, coarse-gold feeder veins also exist.
Between 1983 and 1996, a total of 122,257 feet of drilling in 190 holes was
conducted on the Kilgore deposit by Bear Creek, Placer Dome U.S., Pegasus Gold,
and Echo Bay Mines with the goal of defining a +1 million ounce bulk-tonnage,
open-pittable gold deposit. A number of 43-101 non-compliant resource estimates
were computed on the bulk-tonnage mineralization by Placer Dome U.S. and Echo
Bay Mines. These estimates indicate a global resource of between 561,000 and
706,000 ounces of gold contained in the deposit depending on the cutoff grade
used and the Company conducting the estimate (see Otis News Release dated June
10, 2008). These estimates, which are based on the above noted drilling, are
mentioned for historic and reference purposes only, the issuer is not treating
them as current mineral resources, and they are not to be relied upon.
Subsequent to these estimates, in 2002 Rayner and Associates and Van Brunt
conducted a NI 43-101 compliant resource estimate on the Kilgore bulk-tonnage
deposit. Their estimate comprises 218,000 ounces of drill-indicated gold (7.043
MM tons @ 0.031 opt Au, 0.010 Au cutoff) and 269,000 ounces of inferred gold
(9.661 MM tons @ 0.028 opt Au, 0.010 opt Au cutoff).
Analysis and Otis QA/QC Program
All assay work was performed by ALS Chemex Labs, Vancouver, B.C., which has ISO
9001:2000 certification and operates in compliance with ISO17025. A 50-gram pulp
of all samples was assayed for gold by Fire Assay/AA finish methods.
Subsequently, all samples containing greater than 10 ppm Au and all adjacent
intervals were prepped into larger 1 kg samples from their original sample
rejects and assayed by metallic screen analysis to check for the occurrence of
gold in both the coarse +150 mesh and fine-grained -150 mesh fractions making up
each sample. The original fire assays average 6.27% higher than the metallic
screen analyses obtained on the larger samples. Otis is reporting only the lower
metallic screen values in the above drill results table based on the belief that
the larger 1 kg metallic screen samples are more representative of the nature of
the high-grade gold mineralization at Kilgore. Analytical accuracy and precision
were monitored by the use of commercially purchased reagent blanks, reference
samples, and sample duplicates that were randomly inserted into the sample
stream.
The HQ-size core drilling was conducted by Timberline Drilling Inc., Coeur
d'Alene, Idaho in November and early December 2008 employing a Boart Longyear LF
70 model core drill outfitted with a split-tube core recovery system and
face-discharge bits. Total depth of holes O8 OKC-191 and 08 OKC-193 is 459.1 and
459.7 feet, respectively. Down-hole directional surveys were performed on the
holes to check for drift and to provide accurate subsurface locational data
information regarding three-dimensional computerized modeling of drill results.
Otis is currently working to earn a 75% joint venture interest in the property
from its JV partner Bayswater Uranium Corp. (see Otis News Release dated June
10, 2008).
John R. Carden, Ph.D., Lic. Geo., and a Qualified Person as defined by National
Instrument Policy 43-101, is responsible for the technical information contained
in this News Release.
About the Company
Otis currently owns five precious metals projects located in Idaho and Nevada,
two of which, including Kilgore, have NI 43-101 compliant resources totaling in
excess of 700,000 ounces of gold.
ON BEHALF OF THE BOARD
Craig T. Lindsay, President and CEO
This news release does not constitute an offer to sell or a solicitation of an
offer to sell any securities in the United States. The securities have not been
and will not be registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act") or any state securities laws and may not be
offered or sold within the United States or to U.S. Persons unless registered
under the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
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