VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 31, 2016) - Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO)(OTC PINK: OGLDF) is pleased to announce that it has intersected 30.5 meters (m) grading 5.37 grams per tonne gold (g/t Au) in hole 16 OKR-315 and 114.3m grading 1.00 g/t Au in hole 16 OKR-327 at its Kilgore Gold Project drill program, Clark County, Idaho. The 2016 drill program, currently in its final stages of completion, has been expanded to 10,300 metres over 40 holes.
The mineralization in drillhole 16 OKR-315 is hosted primarily in a Tertiary Sill and the Aspen Formation, the sedimentary unit underlying the existing Kilgore Gold Deposit and a primary focus of the 2016 drill program. In 2015, Otis' drilling identified significant gold mineralization in the pre-dominantly untested Aspen Formation sedimentary rocks. This mineralization is defined by intervals of significant thicknesses and grades that remain open-ended throughout much of the deposit (see Otis January 14, 2016 News Release). Otis' 2016 drilling is targeted to further drill test this Formation that underlies and serves as the basement to the Tertiary volcanic and hypabyssal rock package that currently hosts the majority of the known gold mineralization at Kilgore.
Assay results for the nine drill holes announced in this release, along with those for the first six holes previously announced (see Otis September 26, 2016 News Release), continue to indicate the Aspen Formation has the potential to host significant additional gold mineralization.
TABLE 1: DRILL RESULTS, KILGORE GOLD PROJECT, CLARK COUNTY, IDAHO
|Primary Host Rock Unit(s)|
|16 OKR-315||RC||126.5||-90||96.0 - 126.5||30.5||5.37(1)||Tertiary Sill and Aspen Formation|
|16 OKR-320||RC||283.5||-90||65.5 - 76.2||10.7||0.31||Lithic Tuff|
|266.7 - 275.8||9.1||0.57||Aspen Formation|
|16 OKC-322||Core||314.9||50/-70||79.2 - 86.9||7.6||0.54||Lithic Tuff and Tertiary Sill|
|100.6 - 111.3||10.7||0.52|
|165.5 - 180.7||15.2||0.65|
|207.3 - 219.5||12.2||0.92|
|16 OKR-324||RC||182.9||-90||93.0 - 158.5||65.5||0.69||Aspen Formation (Hole ended in 4.00 g/t Au @ 182.9m)|
|181.4 - 182.9||1.5||4.00|
|16 OKR-325||RC||219.5||-90||96.0 - 117.3||21.3||1.27||All in Aspen Formation|
|138.7 - 185.9||47.2||0.81|
|16 OKC-326||Core||331.6||-90||89.9 - 105.2||15.2||0.68||All in Aspen Formation|
|112.8 - 125.0||12.2||0.51|
|129.5 - 146.3||16.8||0.53|
|160.0 - 198.1||38.1||0.81|
|16 OKC-327||Core||307.2||50/-80||57.9 - 172.2||114.3||1.00||Lithic Tuff|
|185.0 - 211.8||26.8||0.67||Tertiary Sill|
|257.6 - 277.4||19.8||1.09||Tertiary Sill|
|16 OKR -328||RC||213.4||230/-73||96.0 - 109.7||13.7||0.80||Lithic Tuff|
|120.4 - 128.0||7.6||0.40|
|16 OKR-329||RC||213.4||230/-55||103.6 - 149.4||45.7||0.67||Lithic Tuff|
Highlights of the drill results to date and of importance to the future development of the Kilgore Gold Deposit (or the "Kilgore Deposit") include:
Drill Program Background and Details of Drilling Results
The ongoing 40-hole program was designed from an updated set of geological cross sections and long sections containing all historic Kilgore drilling results through 2015. Based on these sections, drill holes have been chosen to target mineralization at depth in the Aspen Formation and to infill and define the limits of the resource. Selected hole locations targeting the Aspen Formation at depth are focused along the Main Road, Segment 1 Road, North Road and "B" Road areas (the location of the Crab Claw drilling completed in 2015 and reported in early 2016 - see Otis January 14, 2016 News Release). Drill holes chosen to infill and define the limits of the resource are located in the southwestern part of the deposit where historic drilling is sparse.
Craig Lindsay, Otis President and CEO states: "We are extremely encouraged by the assay results in hole 16 OKR-315. The grades are greater than that achieved at the Crab Claw in 2015, and continue to support the potential to increase the grade and size of the Kilgore Deposit at depth. Just as importantly, the majority of the other drill holes reported in this release are located in the target Aspen Formation beneath the existing deposit, and the majority of the drill holes report grades higher than the current resource grade of both the Indicated and Inferred mineralization contained in our current Kilgore NI 43-101 Resource Estimate."
The drill holes reported in this news release, as well as assays and drill intercepts from the first six holes announced on September 26, 2016, are presented in a drill-hole location map available on the Otis Gold Corp. website here.
Analysis and Otis Q/QC Program
All assay work is being performed by ALS Chemex Labs, which has quality management system certification and technical capability accreditation. A 50-gram pulp of all samples is assayed for gold by Fire Assay/AA finish methods. Certified reference materials, duplicates, and blanks are inserted into the sample stream for quality control.
Intercepts reported in Table 1 are calculated using a 0.25 g/t Au cutoff grade and may include a few internal waste intervals less than this cutoff. The RC drilling reported in this release is being conducted by O'Keefe Drilling, Inc., Butte, Montana, employing a Foremost 650 Reverse Circulation drill rig outfitted with a circulating wet splitter. The core drilling is being performed by Timberline Drilling of Hayden, Idaho employing two rigs, a DE-140 NQ core rig and a LF-90 HQ core rig.
True widths are estimated at between 80% and 100% of the drilled interval, based on their estimated dip, association with diking and the orientation of sedimentary bedding, and continuity of mineralization between drill holes.
The Qualified Person under National Instrument (NI 43‐101) Standards of Disclosure for Mineral Projects for this News Release is Paul D. Gray, P. Geo, who has reviewed and approved its technical content.
About the Kilgore Gold Project
The Kilgore Gold Project contains a current (dated September 12, 2012) NI 43-101 Indicated Resource of 520,000 ounces (oz) Au in 27.4 million tonnes at a grade of 0.59 g/t Au and an Inferred Resource of 300,000 oz Au in 20.2 million tonnes at a grade of 0.46 g/t Au (the "Deposit"). The Deposit is part of an extensive low-sulfidation quartz-adularia epithermal hot-spring system hosted in volcanic rocks of late Miocene age and basement Aspen Formation calcareous siltstone, shale, and sandstone of Late Cretaceous age. Gold mineralization is of the classic disseminated, bulk-tonnage type similar to that comprising the classic volcanic-hosted gold deposits at Round Mountain, Nevada and McDonald Meadows, Montana. The deposit features very attractive metallurgy with excellent gold recovery averaging greater than 80% at 1.5" crush size based on column leach test results (see Otis News Release dated June 5, 2012).
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
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.
The forward-looking information contained in this press release is made as of the date hereof and Otis 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.