VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2011) - Otis Gold Corp. (TSX VENTURE:OOO) ("Otis" or the "Company") is pleased to announce the receipt of additional significant drill results from its 2010, 35-core hole, 6,657-metre, Kilgore Mine Ridge Gold Project ("Kilgore") drill program located in Clark County, Idaho. Highlights of this fourth grouping of eight holes, listed in Table 1 below, include intercepts of 30.5 metres (m) of 2.81 grams per tonne gold (g/t Au) that includes 9.1 m of 8.65 g/t Au in hole 10 OKC-220, 51.8 m of 1.30 g/t Au in hole 10 OKC-238, 42.7 m of 1.37 g/t Au that includes 9.1 m of 4.85 g/t Au in hole 10 OKC-235, and 67.0 m of 0.77 g/t Au that includes 13.7 m of 2.88 g/t Au in hole 10 OKC-221. All holes encountered gold mineralization and were drilled either as infill, condemnation, or extension holes in areas where historic wide-spaced drilling resulted in gaps and/or areas of open-ended mineralization.
|Table 1. Otis Gold 2010 Kilgore Gold Project Drill Highlights – Fourth Grouping|
|Hole Number||From (metres)||To (metres)||Thickness (metres)||Grade (g/t Au)|
|10 OKC-232||Many Anomalous Gold Values between 0.30 to 0.48 g/t Au|
These new drill results, along with those previously reported on for the first 20 core holes of the 2010 drill program (Otis September 8, October 13, and December 16, 2010 News Releases), show that Otis has now encountered significant gold mineralization in 27 of 28 holes of the drill campaign, with only 7 holes left to be processed and assayed. Collectively, the holes show the deposit has increased to over 365 metres in length in a northerly direction throughout the core of the Mine Ridge target area and remains wide open to the south and around the northern perimeter of the rhyolite dome immediately east of and proximal to the deposit (Table 1, 67.0 m @ 0.77 g/t Au including 13.7 m @ 2.88 g/t Au in hole 10 OKC-221). The results further indicate that the deposit remains open along its northern boundary where good thicknesses and grades exist (Table 1, 30.5 m @ 2.81 g/t Au in hole 10 OKC-220; also, 30.4 m @ 2.53 g/t Au in hole 10 OKC-210 and 30.5 m @ 1.28 g/t Au in hole 10 OKC-218 as previously reported in Otis News Releases dated September 8 and December 16, 2010, respectively).
Although approximately 25% of the 2010 project's holes were drilled as condemnation holes (i.e., holes drilled with the intention of closing off and defining the outer limits of the orebody), only one hole, 10 OKC-216 (Otis October 13, 2010 News release) is devoid of mineralization and falls into this category, with all remaining condemnation holes encountering mineralization containing significant thicknesses and gold grades.
Locations of this fourth grouping of eight holes, which total 1,374 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/.
These new intervals, along with those for the first 20 holes reported from Otis' 2010 Kilgore drill campaign (Otis September 2, October 10, and December 16, 2010 News Releases) and from other significant bulk-tonnage intercepts determined for a number of the Company's core holes drilled during 2008 and 2009 in the nearby higher-grade Mine Ridge core area of the deposit (Otis October 7 and December 16, 2009 and March 23, 2010 News Releases), continue to support a high degree of confidence concerning continuity of mineralization throughout the deposit. Many of these intervals further indicate the presence of mineralized thicknesses that are noticeably 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 results to date, Otis expects that there is a strong possibility to increase the overall size and economic viability of the Kilgore Mine Ridge deposit. The Company will be completing an updated NI 43-101 resource estimate on the deposit in 2011 which will reflect historical drilling by past operators as well as the drilling completed by Otis from 2008 through 2010. Additionally, three dimensional computer modeling of the deposit is being initiated and is expected to be completed in 2011 after all the 2010 drill results have been obtained and incorporated into the database.
Assays from the remaining 7 core holes from Mine Ridge and 5 core holes from Dog Bone Ridge are pending. All of these holes have been logged and split and will be delivered to ALS Chemex for assay within the next week. Assays will be released as soon as they become available.
Analysis and Otis QA/QC Program
All assay work was performed by ALS Chemex Labs, Vancouver, B.C., which has ISO 9001:2008 quality management system certification and ISO 17025:2005 Vancouver Lab 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 was 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.
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, located in 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.