Otis Completes Drilling at Kilgore


VANCOUVER, British Columbia, Dec. 13, 2019 (GLOBE NEWSWIRE) -- Otis Gold Corp. (“Otis” or the “Company”) (TSX-V: OOO) (OTC: OGLDF) is pleased to announce the completion of drilling operations at its flagship Kilgore Project, Clark County, Idaho. The program comprised 11 reverse-circulation (“RC”) holes totaling 8,415 feet (2,565 metres) and was designed to step-off the current margins of the Kilgore Deposit as defined by the 0.1 g/t gold grade shell (see Kilgore 2019 Drill Plan Map).  All samples have been delivered to ALS Geochemistry in Elko, Nevada and assay results will be released when available.

The 2019 drill program was conducted by Alford Drilling of Butte, Montana and Major Drilling of Salt Lake City, Utah using Foremost 1500 and Schramm 450 reverse circulation drill rigs respectively. Drilling was carried out using downhole hammers with face sampling drill bits and continued with face sampling, deep hole tricone bits when the hammer bits “watered-out”. All holes were drilled without water injection.

All downhole surveys were conducted by Intermountain Drilling Supply of Elko, Nevada using a downhole, north seeking gyro survey tool. Final drill hole locations were taken using hand-held GPS and will be resurveyed by sub-meter GPS in the Spring. All holes were abandoned bottom-top and have been located using cement-rebar monuments.

Alan Roberts, MSc, CPG, Vice President of Exploration, serves as the Qualified Person for this news release and has reviewed and approved the technical content contained herein.

About the Kilgore Project
The Kilgore Project lies on the north-eastern margin of the Miocene-Pliocene Kilgore Caldera complex in the Eastern Snake River Plain, Idaho. The Kilgore Project contains the Kilgore Deposit with a current NI 43-101 Indicated Resource of 825,000 ounces Au in 44.6 million tonnes at a grade of 0.58 g/t Au and an Inferred Resource of 136,000 ounces Au in 9.4 million tonnes at a grade of 0.45 g/t Au. The maiden Preliminary Economic Assessment (or “PEA”) showed an NPV (5% discount rate) of US$110.4 million and IRR of 34.0%, with a 3.0-year payback period and LOM net cash flow of US$151.8 million at $1,300 gold price. The Kilgore Deposit is a low-sulphidation, gold bearing, quartz-adularia epithermal system hosted in Tertiary volcanic rocks, local Tertiary intrusive rocks, and basement Late Cretaceous, Aspen Formation sedimentary rocks.

ON BEHALF OF THE BOARD

“Craig T. Lindsay”

President & CEO

For additional information, please contact:

Mr. Tony Perri – Corporate Development 
Tel:  (604) 424-8100  Email:  tony@otisgold.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0ff8eac8-aa11-4131-befd-11d81c49f078.

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