Otis Files Updated Blue Hill Creek and Matrix Creek NI 43-101 Technical Report
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 23, 2016) - Otis Gold Corp. (TSX VENTURE:OOO) (OTC PINK:OGLDF)("Otis" or "the Company") is pleased to announce that it has received and filed a NI 43-101 Technical Report and Resource Estimate for the Blue Hill Creek and Matrix Creek Gold-Silver Properties located in Cassia County, Idaho. The report is available on Sedar (www.sedar.com) and the Company's website, and updates and replaces a NI 43-101 Technical Report dated February 28, 2008 and entitled "Blue Hill Creek Gold Project - Geology, Mineralization, Resource Potential, Cassia County, Idaho (see News Release dated June 24, 2016). Blue Hill Creek and Matrix Creek comprise a significant portion of what is referred to by Otis as the Oakley Project. The Mineral Resource Estimate was prepared by Mr. Zachary Black of Hard Rock Consulting Inc. and the lead author of the report was Dr. John F. Childs of Childs Geoscience Inc.
Summary
| Blue Hill Creek Inferred Mineral Resources | |||
| Cut-off (g/t Au) | Tonnes | Grade (gpt Au) | Ounces (Au) |
| 0.31 | 9,972,000 | 0.51 | 163,000 |
Notes:
- Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted to into Mineral Reserves.
- Inferred Mineral Resources captured within the pit shell meet the test of reasonable prospect for economic extraction and can be declared a Mineral Resource.
- All resources are stated above a 0.31 gpt gold cut-off.
- Pit optimization is based on an assumed gold price of US$1,200/oz and mining, processing and G&A costs of US$7.99 per tonne and metallurgical recoveries for gold of 70%.
- Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.
- Gold ounces calculated from metric units using the following conversion rate: 1 troy ounce - 31.1035 grams and tons were calculated from metric units using the following conversion rate: 1 short ton = 0.907 tonnes.
The pit-constrained mineral resource estimate was drawn from a drill-hole database comprising 5 (five) core holes totaling 1,308 meters and 28 (twenty-eight) reverse circulation drill holes totaling 3,403 meters. The drill-hole database contains gold assay analytical information for 2,224 sample intervals. Assay grades were capped at 1.8 gpt. A three dimensional block model using the inverse distance squared (ID2.5) methodology was created using MicroModel mining software. Mineral Resources were classified as Inferred based on, among other things, drill hole spacing, confidence in the assaying for drilling and geologic confidence in grade continuity.
About Blue Hill Creek and Matrix Creek
The Blue Hill Creek and Matrix Creek properties are located in Cassia County, Idaho approximately 24 kilometers south of Oakley, Idaho. Blue Hill Creek, which is the subject to the mineral resource estimate contained herein, consists of 36 federal lode mining claims covering 720 hectares plus an 80 acre Idaho State Mineral Lease. Matrix Creek, immediately adjacent and contiguous to Blue Hill Creek, consists of 41 federal lode mining claims covering 820 acres plus a 320 acre Idaho State Mineral Lease. Otis owns an 80% interest in this land package, subject to a 2.5% net smelter royalty.
Blue Hill Creek ("BHC") occurs within a north-trending, five-mile-long by one-mile-wide zone of low-sulfidation, hot spring-type gold occurrences along the western margin of the Albion Range metamorphic core complex. The BHC sinters and related gold-silver mineralization were discovered in 1985 during regional exploration by Meridian Minerals. The related epithermal mineralization is hosted in Tertiary volcanic and sedimentary rocks of the Tertiary Salt Lake formation. Mineralization at BHC is open in multiple directions.
Matrix Creek ("MC") is distinctive from BHC in terms of mineralization, host lithology and structure. MC is located southeast and south of BHC and is named because it is characterized by a distinctive carapace of breccia up to 12 meters thick which consists of quartzite fragments separated by black to dark grey aphanitic matrix material consisting of extremely fine-grained quartz and pyrite. The breccias are strongly anomalous for both gold and silver (surface grab samples collected by Otis show values up to 1.61 ppm Au and 306 ppm Ag). While little work has been completed by Otis on MC, it seems likely that the breccias formed along a detachment fault associated with the exhumation of the metamorphic core complex that forms the core of the Albion Range immediately to the east.
The relationship between the mineralization at MC and BHC is ambiguous. The breccias cut through both properties and may be much thicker in the subsurface at BHC than is suggested by surface outcrop. The high-angle faults associated with the BHC graben cut and displace the low angle MC detachment structure. The high-angle faults therefore post-date the MC detachment system. Because these faults appear to cut through the mineralized detachment at MC, the detachment may have served as a source for the gold for the BHC hydrothermal system.
Qualified Person
Dr. John F. Childs, PhD, lead author of the NI 43-101 Technical Report and a "Qualified Person" as defined in NI 43-101, has reviewed and approved the contents of this news release. Dr. Childs is a Registered Members of the Society for Mining, Metallurgy and Exploration (Registered Member #549400).
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 & CEO
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.
Contact
Craig Lindsay
(604) 683-2507
craig@otisgold.com