Otis Drills 121.9 Metres @ 1.04 g/t Au and 83.8 Metres @ 1.12 g/t Au at Kilgore North Target Area
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/17/13 -- Otis Gold Corp. (TSX VENTURE: OOO)(OTCQX: OGLDF) ("Otis" or the "Company") is pleased to announce the results of a recently completed 2012 fall drill program conducted at its Kilgore Gold Deposit, Clark County, Idaho, where several bulk-tonnage intercepts in excess of 80-metres thick have been intersected. Highlights of the drilling include 82.3 metres (m) of 0.95 grams per tonne gold (g/t Au) in hole 12 OKR-291, 121.9 m of 1.04 g/t Au, that includes 45.7 m of 1.52 g/t Au, in hole 12 OKR-292, and 83.8 m of 1.12 g/t Au, that includes 30.5 m of 2.10 g/t Au, in hole 12 OKR-294 (see Table 1 below).
The program consisted of 1,009 metres (3,310 feet) of drilling in 6 reverse circulation ("RC") holes designed to offset and extend the 100-metre-plus thick, near-surface intercepts encountered in Otis discovery core holes drilled into the North Target area in 2011 (see Otis October 6, 2011 News Release). All six holes drilled are mineralized, with four containing significant bulk-tonnage thicknesses and gold grades.
Table 1. Otis Gold 2012 Kilgore Gold Project RC Drill Highlights
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Hole From To Thickness Grade
Number (metres) (metres) (metres) (g/t Au)
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12 OKR-290 13.7 15.2 1.5 1.03
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35.1 26.6 1.5 0.98
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61.0 74.7 13.7 0.311
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102.1 112.8 10.7 0.55
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12 OKR-291 3.0 7.6 4.6 0.67
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12.2 16.8 4.6 1.32
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45.7 128.0 82.3 0.95
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includes 105.2 115.8 10.6 2.21
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12 OKR-292 6.1 128.0 121.9 1.04
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includes 38.1 83.8 45.7 1.52
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12 OKR-293 33.5 39.6 6.1 0.45
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45.8 48.8 3.0 0.63
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76.2 89.9 13.7 0.30
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111.3 114.3 3.0 1.17
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164.6 166.1 1.5 1.48
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12 OKR-294 15.2 29.0 13.8 1.09
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61.0 144.8 83.8 1.12
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includes 96.0 126.5 30.5 2.10
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12 OKR-295 3.0 13.7 10.7 0.42
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38.1 73.2 35.1 0.77
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112.8 129.5 16.7 0.53
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Note: The gold grade calculation is a weighted mean with a 0.250 g/t top and
bottom cutoff. The grade calculation includes internal waste and low-grade
sections. Holes OKR-290 and OKR-293 are vertical; the remainder were drilled
at a 230 degrees azimuth to intercept the general strike of the deposit and
structural features (i.e. Northwest Fault) at right angles so as to provide
a close approximation to true thickness.
RC hole 12 OKR-292 was drilled as a twin to Otis core hole 11 OKC-258 that
contains 114.3 m of 0.89 g/t Au from 6.1 m to 120.4 m. Assay results from
both holes compare relatively well with one another in terms of overall
average grade, thickness, depth, and continuity of mineralization.
Collectively, Otis' new drill results serve to further define and extend the recently discovered North Target portion of the Kilgore Deposit, where all of the thick, bulk-tonnage intercepts remain open-ended to the northwest along the strike of the deposit. Significant room for expansion of the deposit through additional drilling of the open-ended mineralization reported in this news release remains in this area. The new intercepts, along with Otis' original 2011 North Target area discovery intercepts, are the thickest, some of the shallowest, and some of the highest-grade bulk tonnage hits drilled by the Company at Kilgore since acquiring the property in 2008.
Otis' President and CEO Craig Lindsay states, "These results are a significant development for Otis. The thickness of these bulk-tonnage intercepts in the Kilgore Deposit's North Target area serve to further enhance the overall deposit's size and potential mineability. The intercepts, all of which are currently open-ended to the northwest and presently define the northwestern boundary of the deposit, will be offset in 2013 as Otis continues to drill out the deposit and move Kilgore towards a production decision."
The six holes reported in this news release, as well as their corresponding assay intercepts, are shown in a drill-hole location map available on the Otis Gold Corp. website at www.otisgold.com/_resources/kilgore/kilgore_drill_Results.pdf
Analysis and Otis QA/QC Program
All assay work was performed by ALS Chemex Labs, Elko and Reno Nevada, which have ISO 9001:2008 quality management system certification and ISO 17025:2005 technical capability accreditation. A 50-gram pulp of all samples was assayed for gold by Fire Assay/AA finish methods. Certified reference materials, duplicates, and blanks were inserted into the sample stream for quality control.
True bulk-tonnage widths are estimated at between 80% and 100% of the drilled interval, based on their estimated dip, association with diking, and continuity of mineralization between drill holes. The RC drilling took place from October 26th through November 14th, 2012 and was performed by O'Keefe Drilling, Inc., Butte, Montana, employing a Foremost 650 Reverse Circulation drill rig outfitted with a circulating splitter, downhole hammer, and various types of drill bits.
The Qualified Person (QP) under National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects for this News Release is John R. Carden, Ph.D., Licensed Geologist and Consulting Geologist for Otis Gold Corp., who has reviewed and approved its technical contents.
About the Kilgore Gold Deposit
The caldera-related Kilgore Gold Deposit is located within the Company's Kilgore Gold Project, Clark County, Idaho. The Kilgore Gold Project is 5,130 acres in size, is 100% owned by Otis, and is subject to no underlying royalties.
The Kilgore Gold Deposit contains a NI 43-101 Indicated Resource of 520,000 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 constitutes the continuous and contiguous Prospect Ridge, Mine Ridge and North Target areas, all referred to in prior Company news releases. The Kilgore Gold Deposit is a zoned low-sulfidation quartz-adularia epithermal hot-spring system hosted in volcanic rocks of Late Miocene 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. K-Ar age determination on hydrothermal adularia tentatively dates mineralization at 5.3 Ma (Late Miocene). Gold mineralization is mostly controlled by a major northwest-trending structural zone, the Northwest Fault, and is closely associated with a series or set of northwest-trending, high-angle, en echelon rhyolitic to intermediate dikes and dike swarms. Additional host rock enclosing the dikes and sills and serving to contain a major portion of the deposit mineralization is a porous and permeable, ashy and rhyolitic lithic tuff unit. Further, sedimentary host-rock material containing a portion of the mineralization comprises basement sandstone and siltstone of the Aspen Formation of Cretaceous age.
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.
Forward-Looking Statement
This release and related documents may include "forward-looking statements" including, but not limited to, statements related to the interpretation of drilling results and potential mineralization, future exploration work at the Kilgore Project and the expected results of this work. Forward-looking statements are statements that are not historical fact and are subject to a variety of risks and uncertainties which could cause actual events to differ materially from those reflected in the forward-looking statements including fluctuations in the price of gold, cost of mining, inability to complete drill programs on time and on budget, and future financing ability. Words such as "believes," "plans," "anticipates," "expects," "estimates" and similar expressions should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including, but not limited to: uncertainties involving interpretation of drilling results, environmental matters, lack of ability to obtain required permitting, equipment breakdown or disruptions, and the other factors described in Otis' most recent Annual Report.
ON BEHALF OF THE BOARD
Craig T. Lindsay, President and CEO
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.
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN.
Contacts:
Otis Gold Corp.
Craig Lindsay
President and CEO
604.683.2507
604.608.9002 (FAX)
craig@otisgold.com
www.otisgold.com