Otis Gold Corp. (TSX VENTURE: OOO)(PINK SHEETS: OGLDF) ("Otis" or
the "Company") is pleased to announce that it has identified two
additional drill targets at is 100% owned Kilgore Gold Project
located in Clark County, Idaho. As a result of these new targets,
our ongoing expansion of the Mine Ridge deposit and exploration at
Dog Bone Ridge, Otis is developing a drill program of up to 10,000
metres. The drill program is scheduled for the period from June
2011 to December 2011. This aggressive program comprises
approximately 48 core holes to be broken out in the following
manner:
-- 4,200 metres in 21 holes at the Mine Ridge volcanic-hosted disseminated
gold deposit,
-- 3,300 metres in 16 holes at the new Prospect Ridge gold target;
-- 1,500 metres in 6 helicopter-supported holes at the new Gold Ridge
target; and
-- 1,000 metres in 5 holes at the Company's previously described Dog Bone
Ridge target.
The Company's new Prospect Ridge and Gold Ridge targets lie
along the southeast and northwest strike extensions, respectively,
of the Mine Ridge deposit. The new targets, in combination with the
existing Mine Ridge deposit and targets at Dog Bone Ridge, have the
size and geologic characteristics to host a multi-million ounce
gold resource. The Prospect Ridge and Gold Ridge targets extend the
strike length of the Northwest Fault that defines the Mine Ridge
deposit to approximately 3 kilometers. A map of the company's drill
targets can be found at
http://www.otisgold.com/_resources/kilgore_2011_drill_targets.pdf.
"The Kilgore Gold Project continues to exceed our expectations,"
states Craig Lindsay, President of Otis Gold. "Our drill success
rate, the continuity of grade and thickness we have encountered and
the identification of new drill targets continues to expand the
resource potential at Kilgore. To capitalize on these
opportunities, our 2011 drill campaign will be the largest program
ever undertaken by Otis."
Mine Ridge Program
This program, which encompasses up to 4,200 metres of drilling
in 21 core holes, is designed to follow-up Otis' highly successful
2008 through 2010 drill programs that encountered significant gold
mineralization in 46 of 51 core holes drilled at the Company's
flagship Mine Ridge gold deposit. Twelve of the thirty-five core
holes drilled in 2010 lie along and help define the current known
boundaries of the Mine Ridge deposit, indicating that it is open in
four directions with excellent potential to expand the resource.
Otis' 2011 work at Mine Ridge will concentrate on drill evaluation
of these open-ended areas of mineralization. Additionally, Otis
will be completing an NI 43-101 resource estimate that should
enhance the qualified resource base for the deposit.
Prospect Ridge Drill Program
This program, which encompasses up to 3,300 metres of drilling
in 16 core holes, is sited on the Company's newly-defined Prospect
Ridge target that lies along the southeasterly strike extension of
the Mine Ridge deposit and is proximate to it. The current target
is 700 metres long by 200 metres wide, and is characterized by five
scattered historic drill holes and two Otis 2010 drill holes that
contain ore-grade intercepts. Collectively, these intercepts define
a northwest-trending zone of gold mineralization that cuts through
a rhyolite dome and its periphery just southeast of and adjacent to
the Mine Ridge deposit. Mineralization along this zone appears to
be the strike extension or continuum of the northwest-trending
mineralization that defines the Mine Ridge deposit as it is
currently known. Scattered intercepts within this new target that
help define it and require offsetting include 15.2 m @ 1.27 grams
per tonne gold (g/t Au) in Echo Bay hole 96-EKC-180, 24.4 m @ 1.58
g/t Au in Pegasus Gold hole 93 PK-49, and 76.0 m @ 0.77 g/t Au that
includes 13.7 m @ 2.88 g/t Au in Otis core hole 10 OKC-221. Part of
the Prospect Ridge target coincides with an IP low geophysical
anomaly, as does the Mine Ridge deposit.
Gold Ridge Drill Program
This program, which encompasses up to 1,500 metres in 6 core
holes, lies 1 km northwest of and along the northwest strike
extension of the Mine Ridge deposit as it is currently known. The
target's dimensions are roughly 1,000 m by 1,200 m, with the area
underlain by a rhyolite dome in contact with lithic tuff host rock
and dike material, the same setting as at Mine Ridge. The target is
defined by the intersection and overlap of numerous important
regional and local structures, soils anomalous in arsenic,
antimony, and gold, and significantly large IP and resistivity low
geophysical anomalies. This target defines a large area of
convergence based on the above characteristics, is directly on the
northwest strike extension of the Mine Ridge deposit, and has never
been drilled. This drilling will require helicopter support as no
drill access roads are currently available in the area. As a
result, this program will be subject to permitting with the U.S.
Forest Service separate from the planned drilling describe above
for the Mine Ridge and Prospect Ridge areas, with drilling
tentatively slated for late fall.
Dog Bone Ridge Drill Program
The planned Dog Bone Ridge program encompasses up to 1,000
metres in 5 core holes. An extensive dip-slope sinter cap covering
the paleosurface is characteristic of the Dog Bone Ridge target
area, located 1.5 - 2.0 km southwest of the Mine Ridge deposit. The
2011 program is a follow-up of a five-hole program that was
performed by Otis at the end of 2010 and that only initially tested
4 of 5 sizeable Controlled Source Audio-Magneto Telluric (CSAMT)
geophysical anomalies. Some are over 1 km in length and were
delineated by the Company during the fall of 2009. Recently, major
faults in the area have been identified based on interpretation of
the CSAMT work. The intersection of these faults with low
resistivity zones, identified by the geophysical survey and
significantly coupled with a low magnetic trough running through
the target area, provide at least four new drill targets that will
be tested with 1,000 m of coring later this year. Additionally, the
most northerly Dog Bone Ridge geophysical target, which contains a
historic core hole with an intercept of 51.8 m @ 1.25 g/t Au, will
be offset along strike of the CSAMT anomaly by 500 metres.
All drilling associated with the planned Kilgore drill program
is subject to receipt of appropriate drill permits, a process which
is ongoing, and funding availability (the Company currently has
approximately $5.6 million in its treasury). Final details of the
drill program will be announced as they become available.
Other
In a news release dated March 7, 2011 Otis reported an intercept
of 9.14 metres grading 1.32 g/t Au for Hole OKC-242. During a
routine Quality Control Assessment Chemex identified a discrepancy
in their process that resulted in incorrect values of Au on
certificate VA11013059 relating to Hole OKC-242. The Company was
notified that the hole was re-assayed and found to be barren. This
information has no bearing on the Company's upcoming 2011 drill
campaign.
About the Company
Otis is a resource company focused on the acquisition,
exploration, and development of precious metal deposits in Idaho,
USA. Otis is currently developing its flagship property, the
Kilgore Gold Project, located in Clark County, Idaho.
ON BEHALF OF THE BOARD
Craig T. Lindsay, President and CEO
The forward-looking information contained in this press release
is made as of the date hereof and the Company undertakes no
obligation to update publicly or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, unless so required by applicable securities laws.
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.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Otis Gold Corp. Craig Lindsay 604-683-2507
604-683-2506 (FAX) craig@otisgold.com
Otis Gold (TSXV:OOO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Otis Gold (TSXV:OOO)
Historical Stock Chart
From Jul 2023 to Jul 2024