Otis Drills 100-Metre Plus Gold Intercepts; Discovers New Extension to Mine Ridge Deposit
October 06 2011 - 8:30AM
Marketwired Canada
Otis Gold Corp. (TSX VENTURE:OOO)(OTCQX:OGLDF)(PINK SHEETS:OGLDF) ("Otis" or the
"Company") is pleased to announce that it has encountered new ore-grade
intercepts in excess of 100-metres thick from its most recent round of drilling
at the Kilgore Gold Project ("Kilgore"), Clark County, Idaho. These results are
groundbreaking as collectively they define a significant extension of
bulk-tonnage gold mineralization at the Kilgore Mine Ridge deposit. These
intercepts (see Table 1), the thickest and some of the shallowest and stronger
ones drilled by Otis since acquiring the project in 2008, are all open-ended and
collectively extend the deposit an additional 150 metres to the northwest.
Intercepts include:
1) 114.3 metres (m) @ 0.89 grams per tonne gold (g/t Au), that includes
80.8 m @ 1.10 g/t Au in hole 11 OKC-258, and
2) 118.8 m @ 0.89 g/t Au, that includes 36.5 m @ 1.65 g/t Au in hole 11
OKC-259
The new intercepts defining the new Mine Ridge northwest extension of
mineralization are shallow, beginning at depths between 6 metres and 35 metres,
and as such further enhance the potential mineability of the Kilgore Mine Ridge
bulk-tonnage deposit. Of the five holes reported in this news release, four of
them, 11 OKC-256, 258, 259, and 260, are located in this new extension area, and
the fifth hole, 11 OKC-257, which contains 50.3 m @ 0.70 g/t Au, was drilled as
an infill in the central part of the deposit.
Otis' Chief Geologist Mitch Bernardi states, "These intercepts represent the
thickest and shallowest part of the Mine Ridge deposit encountered to date in an
area previously thought to represent the boundary or edge of the deposit. The
intercepts found in holes 11 OKC-256, 258, 259, and 260, along the northwestern
edge of the deposit, are associated with a thick dike or sill and suggest a new
area of significant open-ended gold mineralization has been discovered with
economics that can only improve those of the overall deposit, which is already
good."
Table 1: Otis Gold 2011 Kilgore Gold Project Drill Highlights - Second
Round of Five holes
---------------------------------------------------------------------------
Hole From To Thickness Grade
Number (metres) (metres) (metres) (g/t Au)
---------------------------------------------------------------------------
11 OKC-256 22.9 57.9 35.0 0.88
---------------------------------------------------------------------------
includes 22.9 39.6 16.7 1.03
---------------------------------------------------------------------------
85.3 88.4 3.1 3.49
---------------------------------------------------------------------------
---------------------------------------------------------------------------
11 OKC-257 29.3 79.6 50.3 0.70
---------------------------------------------------------------------------
includes 61.3 79.6 18.3 1.13
---------------------------------------------------------------------------
---------------------------------------------------------------------------
11 OKC-258 6.1 120.4 114.3 0.89
---------------------------------------------------------------------------
includes 6.1 86.9 80.8 1.10
---------------------------------------------------------------------------
---------------------------------------------------------------------------
11 OKC-259 35.1 153.9 118.8 0.89
---------------------------------------------------------------------------
includes 35.1 132.6 97.5 1.01
---------------------------------------------------------------------------
includes 93.0 129.5 36.5 1.65
---------------------------------------------------------------------------
---------------------------------------------------------------------------
11 OKC-260 155.4 185.9 30.5 0.81
---------------------------------------------------------------------------
Note: The gold grade calculation is a weighted mean with a 0.350 g/t top
and bottom cutoff. The grade calculation includes internal waste and
low-grade sections. The orientation of these drill holes is a 230 degree
azimuth to intercept the general strike of the deposit and structural
features (i.e. Northwest Fault) at right angles so as to provide a close
approximation to true thickness.
Based on these new results, Otis expects that there is a strong probability to
increase the overall size and economic viability of the Kilgore Mine Ridge
deposit. The Company is allocating additional time for the preparation of its
ongoing independent NI 43-101 resource estimate to consider the inclusion of
these new results in the resource estimate, to allow a comprehensive review and
vetting of the historic drill results and for completion of a new geologic
interpretation of the controls on gold mineralization at Mine Ridge. This
extended timeframe will ensure that the Kilgore resource estimate adheres to CIM
Best Practice Guidelines, and complies with NI 43-101 reporting requirements.
The five holes reported in this news release, which total 1,173 metres of
drilling, and their corresponding assay intercepts, are shown in a drill-hole
location map available on the Otis Gold Corp. website at
http://www.otisgold.com/_resources/kilgore/kilgore_drill_map.pdf.
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 and
approximately 10% of the samples are sent out to a second lab for check assays.
True bulk-tonnage thicknesses are estimated to be between 80% 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 at about 25 to 30 days turnaround time. Therefore,
the results for the projected 28 remaining holes drilled in 2011 will be
reported as they are received through the fall of 2011 and into the early winter
of 2012.
The Qualified Person under National Instrument (NI 43-101) Standards of
Disclosure for Mineral Projects for this news release is John R. Carden, PhD,
Lic. Geo., and Consulting Geologist for Otis Gold Corp., who has reviewed and
approved its technical contents.
About The Company
Otis Gold Corp. is a Canadian-based mineral exploration company focused on the
acquisition and development of quality precious metal deposits in Idaho, USA.
Otis is currently developing its flagship property, the Kilgore Gold Project,
located in Clark County, Idaho (approx. 60 miles north of Idaho Falls).
ON BEHALF OF THE BOARD
Craig T. Lindsay, President & 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 "US Securities Act") or any State securities laws, and may not be
offered or sold within the United States or to US Persons unless registered
under the US Securities Act and applicable State securities laws, or an
exemption from such registration is available.
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