Otis Gold Corp. (TSX VENTURE: OOO)(OTCQX: OGLDF)(PINK SHEETS:
OGLDF) ("Otis" or the "Company") is pleased to announce results
from the first seven core holes of its Kilgore Gold Project
("Kilgore") drill program, Clark County, Idaho, all of which
contain significant intercepts. Highlights of the drill program
include:
-- The first four holes drilled at Prospect Ridge, located to the southeast
and on strike with the known Mine Ridge deposit, intercepted gold
mineralization, and are roughly on strike with historic Echo Bay hole 95
EKR-98 that contains 27.4 m @ 1.30 g/t Au and is located approximately
300 metres to the southeast of the first four Prospect Ridge holes. This
is significant as Otis has long believed that Kilgore has the potential
to host additional deposits to the existing Mine Ridge deposit; and
-- The first three holes drilled at Mine Ridge, which were placed as
infills to test gaps that exist in the Mine Ridge deposit, also
intercepted significant gold mineralization. This is important as the
holes continue to confirm excellent continuity of the thickness and
grade found throughout the known Mine Ridge deposit.
Prospect Ridge Drill Program: The first four holes drilled into
the rhyolite dome at Prospect Ridge, specifically 11 OKC-248, 249,
251, and 252, collectively comprise intercepts that extend the Mine
Ridge deposit at least 130 metres beyond its previously known
southeastern boundary, which remains open to the southeast. These
intercepts include 64.0 metres (m) of 0.40 grams per tonne gold
(g/t Au), inclusive of 22.9 m @ 0.78 g/t Au, all in hole 11
OKC-252, and 10.6 m @ 1.20 g/t Au in hole 11 OKC- 249 (see Table 1
below). Furthermore, these intercepts are roughly on strike with
historic Echo Bay hole 95 EKR-98 that contains 27.4 m @ 1.30 g/t Au
and is located approximately 300 metres further to the southeast.
No drilling currently exists between the new Otis hits and this
historic Echo Bay hole, leaving potential to expand the deposit
even further southeast, possibly to the lithic tuff host on the
southeast side of the dome.
Mine Ridge Drill Program: The remaining three holes of this
first seven were drilled as infill holes to test gaps that exist in
the central portion of the Mine Ridge deposit. Results continue to
confirm good continuity of thickness and grade found throughout the
deposit. All three holes contain significant intercepts that
include 32 m @ 1.15 g/t Au in hole 11 OKC-247, 32.0 m @ 0.60 g/t Au
and 18.2 m @ 1.29 g/t Au in hole 11 OKC-250, and 61.9 m @ 0.59 g/t
Au and 33.1 m @ 1.27 g/t Au in hole 11 OKC-253 (see Table 1
below).
These new intervals, in combination with other significant
bulk-tonnage intercepts determined for the majority of the
Company's core holes drilled during 2008 through 2010 in the main
Mine Ridge deposit area, all support a high degree of confidence
concerning continuity of mineralization throughout the deposit.
These results further indicate mineralized thicknesses and average
grades that are greater than those constituting the majority of the
intervals comprising the historic Kilgore NI 43-101 compliant
resource (Otis March 2, 2009 News Release). Based on these overall
results, Otis continues to expect that there is a strong
probability to increase the overall size, grade, and economic
viability of the Kilgore Mine Ridge deposit.
With the recent addition of three more planned holes to offset
and infill critical areas, Otis' 2011 Kilgore drill program now
comprises approximately 10,000 metres of core drilling spread among
a minimum of 40 holes.
Table 1. Otis Gold 2011 Kilgore Gold Project Drill Highlights - First Seven
Holes
----------------------------------------------------------------------------
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Hole Number From (metres) To (metres) Thickness (metres) Grade (g/t Au)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
11 OKC-247 72.2 104.2 32.0 1.15
----------------------------------------------------------------------------
11 OKC-248 50.3 51.8 1.5 2.76
----------------------------------------------------------------------------
70.1 73.1 3.0 0.52
----------------------------------------------------------------------------
108.0 114.3 6.3 0.43
----------------------------------------------------------------------------
11 OKC-249 106.1 109.1 3.0 0.93
----------------------------------------------------------------------------
182.3 192.9 10.6 1.20
----------------------------------------------------------------------------
11 OKC-250 48.2 80.2 32.0 0.60
----------------------------------------------------------------------------
124.4 142.6 18.2 1.29
----------------------------------------------------------------------------
192.9 194.4 1.5 2.05
----------------------------------------------------------------------------
11 OKC-251 39.0 40.5 1.5 0.78
----------------------------------------------------------------------------
104.6 107.6 3.0 0.72
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11 OKC-252 128.9 192.9 64.0 0.40
----------------------------------------------------------------------------
includes 133.5 156.4 22.9 0.78
----------------------------------------------------------------------------
11 OKC-253 69.5 131.4 61.9 0.59
----------------------------------------------------------------------------
includes 101.5 117.7 16.2 0.90
----------------------------------------------------------------------------
includes 125.3 131.4 6.1 1.14
----------------------------------------------------------------------------
206.0 239.1 33.1 1.27
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Work on an updated NI 43-101 resource estimate and
three-dimensional computer modeling of the deposit is currently
being conducted by Mr. Dean Turner, P. Geo., Littleton, Colorado,
an Independent Qualified Person as defined by NI 43-101. This new
estimate, considered an interim resource estimate because it will
not include any of this year's drill results, is anticipated to be
completed before the end of the third quarter of this year. Otis is
still extending the limits of the deposit and, as a result, this
interim resource will be updated with the 2011 drilling results in
the first quarter of 2012.
Locations of these first seven holes, which total 1,763 metres
of drilling, and their corresponding assay intercepts, are shown in
a drill-hole location map available on the Otis Gold Corp. website
at www.otisgold.com/projects/kilgore/technical/.
Analysis and Otis QA/QC Program
All assay work was performed by ALS Chemex Labs, Elko, Nevada,
which has ISO 9001:2008 quality management system certification and
ISO 17025:2005 technical capability accreditation. A 50-gram pulp
of all samples was assayed for gold by Fire Assay/AA finish
methods. Certified reference materials, duplicates, and blanks were
inserted into the sample stream for quality control.
True bulk-tonnage widths are estimated to be between 90% and
100% of the drilled interval, based on their estimated dip,
association with diking, and continuity of mineralization between
drill holes. The HQ3-size core drilling is being performed by
Timberline Drilling, Inc., Coeur d'Alene, Idaho, employing two
Sandvik DE-140 core drills outfitted with a triple-tube core
recovery system and face-discharge bits. Drilling continues on a
full-time, around-the-clock basis. Currently, due to the high
volume and backlog of samples submitted to geochemical labs as a
result of intense drilling activity for gold in the United States,
ALS Chemex is running about 30 days behind schedule. As a result of
this situation and with the 2011 Kilgore Project drilling and
logging projected to be completed by early December, results for
the remaining 33 holes will be reported as they are received
through the fall of 2011 and into the early winter of 2012.
John R. Carden, Ph.D., Lic. Geo., 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 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
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.
The TSX Venture Exchange has neither approved or disapproved of
the contents herein.
Contacts: Otis Gold Corp. Craig Lindsay President and CEO
604.683.2507 604.683.2506 (FAX) craig@otisgold.com
www.otisgold.com
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