Otis Reports Strong Metallurgy Results from its Kilgore Mine Ridge Deposit
April 11 2011 - 8:30AM
Marketwired
Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE: OOO)(PINK
SHEETS: OGLDF) is pleased to announce the receipt of additional
positive gold recoveries from column leach tests performed on bulk
samples from the Company's Kilgore Mine Ridge gold deposit, Clark
County, Idaho. These results, in conjunction with historic column
leach testing from the deposit, provide continuing support that the
deposit is readily amenable to standard heap-leach process
technology.
The column leach tests were run by McClelland Laboratories, Inc.
of Sparks, Nevada, on composites of the three main host rock types
collected throughout the deposit area. Column percolation tests
demonstrate that three composites are amenable to simulated
heap-leach cyanidation treatment at the 80% -1/2 inch feed size.
The bulk of the Mine Ridge mineralization occurs in two rock types,
felsic dikes and lithic tuff, which together comprise an estimated
93% of the deposit and exhibit column leach recoveries of 85.3% and
81.0% respectively. The tests performed indicate that up to 77% of
the gold was recovered within 30 days.
Table 1. Results from Otis Gold's 2010 Column Leach Tests on 1/2 inch
crushed material.
---------------------------------------------------------------------------
Rock Type as
Percentage of CN Lime
% Gold Mine Ridge Consumption(1) Consumption
ROCK TYPE Recovery Deposit (lbs/ton ore) (lbs/ton ore)
---------------------------------------------------------------------------
Felsic Dike 85.3% 28% 3.15 3.00
---------------------------------------------------------------------------
Lithic Tuff 81.0% 65% 3.36 3.36
---------------------------------------------------------------------------
Aspen Fm. 69.8% 7% 3.91 3.91
---------------------------------------------------------------------------
Note 1: Commercial CN consumption in heaps is generally 25%-33% of NaCN
consumption achieved from laboratory tests.
Craig Lindsay, the Company's president, commented, "We have
achieved excellent metallurgical recovery rates at Kilgore which
are a critical component in the overall economics of developing a
profitable gold deposit. Further, the results confirm and expand on
the favorable metallurgical tests that were historically performed
by Echo Bay Mines."
The results Otis obtained confirm and expand upon the favorable
metallurgical tests that were historically obtained by Echo Bay,
which ranged from 64% to 94%, based on oxidation type. Otis
geologists believe that it was advantageous to run tests based on
host rock type in addition to oxidation type because oxidation
state is related to dike emplacement, which are responsible for the
introduction of the gold-bearing ore fluids. Recoveries based on
rock type will feed directly into Otis' deposit modeling that is
being performed this year.
Tests were conducted on between 93 and 123 kg composite samples
from a variety of drill holes scattered throughout the deposit from
split HQ-3 drill core. Each composite was stage crushed in its
entirety to 80% -1/2" in size. Crushed composites were each
thoroughly blended and split to obtain approximately 68 kg for a
column leach test and each sample was blended and split to obtain 1
kg for triplicate head assays. Column tests were not optimized for
sodium cyanide ("NaCN") consumption and used 3.1 to 3.9 lbs NaCN;
however, projected NaCN consumption in production heaps is
typically 25 to 33% of the NaCN consumption achieved in laboratory
testing. McClelland reports, "Column test cyanide consumptions
encountered during commercial production would probably not exceed
1.3 lbs NaCN/ton of ore." Lime additions of 2.0 to 4.5 lbs/ton were
sufficient for maintaining protective alkalinity during
leaching.
Otis plans on performing large diameter column leach tests,
during its 2011 Kilgore program, on a coarser crush size conducting
additional analytical and characterization work to better
understand the leach parameters and to optimize leach results for
use in designing full scale operations. Upon completion of these
large diameter column tests, McClelland will be providing the
Company with an independent certified report of the results.
John R. Carden, Ph.D., Lic. Geo., a Qualified Person as defined
by National Instrument Policy 43-101, is responsible for the
collection and preparation of the bulk samples tested and the
technical information contained in this News Release.
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 www.otisgold.com
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