Otis Gold Corp.: Kilgore Project Update
August 11 2011 - 6:48PM
Marketwired
Otis Gold Corp. (TSX VENTURE: OOO)(OTCQX: OGLDF)(PINK SHEETS:
OGLDF) ("Otis" or the "Company") is pleased to provide an update on
recent developments at its Kilgore Gold Project, Clark County,
Idaho.
Ongoing 2011 Drill Program
A total of up to 10,000 metres of drilling is planned for
Kilgore in 2011. This season's drill program commenced on June 22,
2011, and Otis currently has two core rigs drilling operating on a
24-hour basis. To date, Otis has completed 17 holes totaling 4,150
metres at Mine Ridge (11 holes) and Prospect Ridge (6 holes). Based
on progress to date, the Company expects to complete the planned
Mine Ridge and Prospect Ridge drilling by the end of September. The
Company may expand the ongoing drill program at these two sites
dependent on drill results. Drilling is being conducted by
Timberline Drilling of Coeur d'Alene, Idaho.
The Company has implemented a streamlined process for logging
and splitting core in 2011. As a result, core processing is
maintaining pace with drilling. All samples are being submitted to
ALS Chemex in Elko, Nevada. Due to the high demands on ALS Chemex
arising from heavy seasonal drilling activity in the region, drill
results are taking approximately 6 to 8 weeks to turnaround. We
expect to have our first drill results available later this month,
and results will likely continue to be received into 2012. All
drill results will be released as they become available.
An archaeological survey has been completed in advance of the
submission of a Plan of Operation for the planned 1,500 meters of
drilling at the Gold Ridge target. The Plan of Operation will be
submitted within the next week, and based on historical experience
we expect approval within six weeks. Assuming appropriate drill and
helicopter equipment can be secured (no existing road access is
available into the area), drilling at Gold Ridge is planned to
commence in October.
NI 43-101 Resource Estimate
Work on the resource estimate, being prepared by Mr. Dean
Turner, P.Geo, Littleton, Colorado an Independent Qualified Person
as defined by NI 43-101, is rapidly progressing with thorough due
diligence review and development of a geologic model. The new
estimate will include over 12,500 metres of Otis diamond drill
results. We originally anticipated completion of the 3-D model and
resource estimate by the end of July, but due to the greater amount
of technical data required for the estimate, we now anticipate the
updated resource to be completed around the end of the third
quarter.
Environmental Baseline Studies
We have now received several bids for hydrologic and air
monitoring. The monitoring will be designed to meet the
requirements of the Idaho Department of Environmental Quality and
will form part of a future mine Plan of Operations at Kilgore. We
expect to award a contract within the next two weeks, and the
monitoring program will progress for a period of 12 months.
Additional Metallurgical Testing
Otis plans to follow up on the extremely successful column leach
testing completed in 2010 (see News Release dated April 11, 2011),
which was performed on 1/2" crush material. Specifically, Otis
plans to complete additional testing on larger-size crush material
(minimum crush size of 1"). Drilling to secure appropriate P-size
core material for this work will be completed later this fall.
Craig Lindsay, President & CEO of Otis, states: "We are
pleased with the progress of our work program at Kilgore, as we
continue to aggressively develop this project. We continue to
believe that significant opportunity exists to expand our resource
base at Kilgore, and we remain very optimistic about future
developments."
John R. Carden, Ph.D., P. Geo., a Qualified Person (QP) as
defined by National Instrument Policy 43-101, is responsible for
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, 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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