Otis Expands Land Position at Kilgore by 116%
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct 18, 2016) - Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO)(OTC PINK:OGLDF) is pleased to announce that it has increased its land position at the Kilgore Gold Project ("Kilgore") by approximately 116% via the staking of an additional 230 federal lode mining claims. The new claims staked at Kilgore increase the land package at Kilgore to 8,720 acres, or 35.3 square kilometers. A map identifying the increased footprint can be viewed on the Otis website here. Otis enjoys a 100% ownership interest in the entire land package, which is subject to no underlying royalties or other encumbrances.
President & CEO Craig Lindsay states: "We have been generating very strong drill results at Kilgore since the release of our NI 43-101 Technical Report and Resource Estimate in 2012, and as a result of both drill success and the continued delineation of additional exploration targets beyond the existing known gold deposit, we felt it was very important to expand our land position. While further defining the existing Kilgore deposit is our immediate focus, we want to ensure our ability to expand exploration targets as we continue to build out the Kilgore project into the future. It is interesting to note that in the mid-1990s, when the project was operated by Echo Bay Mines, Kilgore consisted of a land package totaling 11,460 acres, so a strong rationale exists to increase our the land position even further in the future."
On another note, Otis is pleased to report that approximately 5.7 million warrants with a strike price of $.15 per warrant and an expiry date of October 10, 2016 have been exercised, contributing approximately $0.86 million in cash to the Otis treasury. The Company is very appreciative of the continued support of its shareholders in this regard. Further, the Company reports that its ongoing 9,000 metre, 36 hole drill program at the Kilgore Gold Project is nearing completion. The Company will communicate drill results in batches as they become available.
About the Kilgore Gold Project
A NI 43-101 Technical Report and Resource Estimate dated September 7, 2012 on the Kilgore Gold Project identified an Indicated Resource of 520,000 ounces (oz) gold (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 is part of an extensive zoned 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 and world-class size 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.