Otis Adds New Gold Targets at Kilgore
VANCOUVER, British Columbia, April 11, 2018 (GLOBE NEWSWIRE) -- Otis Gold Corp. (“Otis” or the “Company”) (TSX-V:OOO) (OTC:OGLDF) is pleased to announce the addition and further definition of emerging gold targets at its Kilgore Project in Clark County, Idaho. These targets were generated as a result of surface geochemical sampling and ground geophysical surveys conducted in the 2016 and 2017 exploration seasons. The geochemical program consisted of sampling and assay of soils, silts and rocks; the geophysical program consisted of property-wide ground magnetic surveys. These activities were complemented by historical Induced Polarization and CSAMT surveys.
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Results have been received from 2,125 surface soil samples, 268 stream/silt sediment samples and 151 rock samples. The geophysical program included 548 line kilometres of ground-based magnetic surveys conducted in 2016 and 2017 (see Kilgore Property – Regional Sampling Au map). The historical geophysical work reviewed comprised 6 CSAMT (controlled source audio-magneto telluric) lines totaling 8.5 line kilometres conducted by Zonge Geosciences Inc. in 2009 (see Otis New Release dated January 24, 2009), and 14 lines of gradient array Induced Polarization (IP) totaling 25 line kilometres conducted by Placer Dome in 1991. Otis is working on integrating the current data obtained in 2016 and 2017 with the existing historic data to further define emerging exploration targets outside of the core Kilgore Deposit.
Exploration work carried out in 2017 was designed to accomplish the following primary goals:
- Follow-up of open-ended anomalies as identified in 2015 and 2016 around the existing Kilgore Deposit;
- Better define drill targets at Prospect Ridge, Gold Ridge and Dog Bone Ridge; and
- Conduct generative exploration work beyond the existing claim block and known targets to identify new exploration targets (see Otis News Release dated February 1, 2018).
Additional mineralized targets identified by the geochemical and geophysical survey programs are summarized below:
- Expansion of Targets Adjacent to the Kilgore Deposit: An area 1,000 metres x 500 metres to the northeast of Kilgore Deposit (see North Grid Anomaly Gold (Au) map) highlights the mineralizing potential of subordinate 300° structures including the Snotel and Vortex (see Otis News Release dated April 12, 2017) with the corresponding conjugate faulting and resultant structural compartments. Sampling of historic prospect pits has returned gold values up to 0.69 g/t Au along with anomalous Arsenic and Selenium.
- Prospect Ridge Target: The South Soil Grid (see South Grid Anomaly Gold (Au) map) displays a gold-in-soil anomaly that covers approximately 15,000 square metres in the Prospect Ridge target area. This anomaly overlies a section of the lithic tuff similar to rock that hosts some of the Kilgore deposit. Historical drill hole 95-EKR-98 returned 27.4 m of 1.39 g/t Au in that area.
- “Crystal Tuff” - Aspen Formation Contact: Surface rock samples returned greater than 0.5 g/t Au north of the Kilgore Deposit area. Early interpretations are that the “Crystal Tuff” and Cretaceous Aspen Formation contact near the surface as part of a local horst block, representing a near-surface target.
- Gold Knob: A small soil sample program conducted in 2017 returned several 40+ ppb gold hits. The ground magnetic survey conducted over this target indicates areas of older country rocks (Aspen Formation and Beaverhead Conglomerate) in contact with mafic rocks. Approximately 270 stream sediment samples were collected in an area to the west and outside the existing Kilgore claim block in an area close to the inferred margin of the Kilgore Caldera; gold values returned up to 0.55 g/t Au. The results from this program resulted in the staking of 150 federal lode mining claims (see Otis News Release dated February 1, 2018).
Structural and geological interpretation of the exploration data has outlined an 8 square kilometre “volcanic terrace” (see Volcanic Terrace map) that is potentially prospective for gold in association with the “Crystal Tuff” intrusive and associated Rhyolite plugs. The geophysical data also shows evidence of localized zones of alteration within the “volcanic terrace” potentially indicating further targets for exploration in the coming year.
The “toe” of the volcanic terrace, where the overlying volcanic rocks are in contact with country rocks, represents an area of interest over 4 kilometres long, within which approximately 1 kilometre hosts the Kilgore Deposit; gold-in-soil anomalies support that the remaining 3 kilometres represents a near surface target area considered prospective for hosting gold and requiring further exploration.
All geochemical samples (rocks, silts and soils) were submitted to ALS Minerals in Reno, Nevada and North Vancouver, British Columbia. Samples were treated by Aqua Regia digestion and analyzed either by Fire Assay by with ICP-MS finish, or Fire Assay with AAS finish. ALS Minerals is certified ISO/IEC 17025:2005.
Otis President & CEO, Craig Lindsay, stated: “The exploration programs completed in 2017 have further contributed to our understanding of the geology and exciting exploration potential at Kilgore. Our commitment to ongoing exploration work continues to generate target areas that we believe are prospective to hosting additional gold deposits outside of the Kilgore Deposit, with tremendous regional expansion potential.”
The qualified person under National Instrument (NI 43-101) Standards of Disclosure for this News Release is Alan Roberts (CPG), Vice President of Exploration, who has reviewed and approved its technical content.
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 (see Kilgore Technical Report dated September 12, 2012) 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 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. The preparation of an updated NI 43-101 compliant resource calculation is ongoing and will include drilling completed from 2015 through 2017; this resource estimate will be released when available.
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 Project, located in Clark County, Idaho and the Oakley Project, located in Cassia County, Idaho.
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
Idaho Investor Days: Toronto, April 24 & New York City, April 25
Discover Idaho and the world-class mining opportunities that exist in the “Gem State”. Join Idaho Governor C.L. “Butch” Otter, state officials, industry experts and mining company representatives as they discuss why Idaho is the right place to invest.
For more details or to RSVP, please email: tony@otisgold.com
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