VANCOUVER, Oct. 03, 2017 -
Otis Gold Corp. (the “Company” or “Otis”) is pleased to announce assay results from the first three holes of its ongoing 2017 drill program at the Kilgore Project, where bulk-tonnage intercepts of 129.4 metres (m) grading 1.66 grams per tonne gold (g/t Au) (includes 24.4 m grading 3.45 g/t) in hole 17 OKC-356 and 73.1 m grading 1.13 g/t Au in hole 17 OKC-358 have been intersected. The ongoing program comprises a total of 7,300 metres of drilling over 23 holes (see News Release dated July 19, 2017). To date, 20 holes have been drilled totaling 6,100 m with core logging on-going and assays pending.
Charts accompanying this release are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/a60ee7f9-a481-4ae4-8ee1-65113953f2cd
http://www.globenewswire.com/NewsRoom/AttachmentNg/29c0339f-499f-49da-8b46-ab45a99f8ca7
http://www.globenewswire.com/NewsRoom/AttachmentNg/33dd000b-7025-4b15-91a3-20486ef9b205
The primary goal of the drill program is to follow-up on open-ended drill intercepts achieved in 2015 and 2016 in the prospective Late Cretaceous Aspen Formation (or “Aspen”) sedimentary host unit which underlies the Kilgore Deposit (see News Releases dated February 9, 2016, and January 19, 2017). This year’s planned holes were sited to test these open-ended intercepts at depth, laterally and as infills. Drilling will be completed in October 2017 and results will be announced as they become available. Timberline Drilling of Hayden, Idaho is conducting all drilling employing two Atlas Copco CS14 track-mounted core rigs.
Table 1: 2017 Kilgore Drill Intercepts
Hole ID TD (m) Azimuth/Angle From (m) To (m) Width (m) Au (g/t) Host
17 OKC-355 221.9 -/-90˚ 85.0 96.9 11.9 0.63 Aspen
121.3 124.4 3.1 1.56 Aspen
139.6 162.5 22.9 0.74 Aspen
177.7 186.8 9.1 0.78 Aspen
17 OKC-356 459.9 50˚/-86˚ 10.7 32.0 21.3 0.44 Lithic Tuff
155.4 285.0 129.4 1.66 Aspen
Including 157.0 181.4 24.4 3.45 Aspen
Including 204.2 208.8 4.6 3.39 Aspen
Including 259.1 263.7 4.6 6.55 Aspen
292.6 295.7 3.1 1.34 Aspen
17 OKC-358 319.4 50˚/-72˚ 17.7 38.1 20.4 1.56 Lithic Tuff
156.4 185.6 29.2 0.7 Sill & Aspen
209.7 212.8 3.1 1.72 Aspen
221.9 295.0 73.1 1.13 Aspen
Detailed Results of Drilling
Previous drilling conducted in 2015 and 2016 defined numerous intervals of significant thicknesses and grades in the Aspen that remain open-ended at depth and laterally throughout much of the deposit, particularly throughout the “Aspen Corridor” (see New Release February 9, 2016). The 2017 drill program is targeted to further drill test these rocks that underlie and serve as the basement to the overlying mineralized Tertiary volcanic and hypabyssal rock package.
Holes 17 OKC-356 and 17 OKC-358 are located on Section 12,400N and targeted the Aspen Formation at depth and laterally in the “B Road” area of the Aspen Corridor. Hole 17 OKC-356 was sited to infill and further extend to depth known gold mineralization within the Section. Both holes were successful in extending the gold mineralization, with hole 17 OKC-356 further extending it to depth and 17 OKC-358 extending gold mineralization to depth (244 metres from surface) and laterally.
Hole 17 OKC-355 is located on Section 11,800N and targeted the Aspen Formation for lateral extension of the mineralization from holes 16 OKR-315 and 316 in the Segment 1 road area of the Aspen Corridor. The hole was successful in extending gold mineralization laterally 45-50 m to the northeast along the Section line.
In summary, intercepts from all three holes intersected gold mineralization, potentially adding to the resource in the Aspen Corridor area underneath the Kilgore Deposit. Results are pending from the remainder of the holes drilling in the 2017 drill program.
Otis President & CEO, Craig Lindsay stated: “We are very pleased with the first three drill holes of our 2017 campaign. The drilling has successfully confirmed and expanded gold mineralization in the Aspen Formation, a primary focus of current drilling. Also, and although early in our assessment of the Aspen unit, we are very encouraged to observe enriched grades of gold.”
Analysis and QA/QC Program
All assay work is being performed by ALS Chemex Labs, which has quality management system certification and technical capability accreditation. A 50-gram pulp of all samples is assayed for gold by Fire Assay/AA finish methods. RockLabs certified reference material and blanks are inserted into the sample stream for quality control.
True widths are estimated between 80% and 100% of the drilled interval, based on their approximate dip, association with diking and the orientation of sedimentary bedding, and continuity of mineralization between drill holes. Intercepts reported in Table 1 are calculated using a 0.20 g/t Au cutoff grade and may include a few internal waste intervals less than this cutoff.
The qualified person under National Instrument (NI 43-101) Standards of Disclosure for this News Release is Bruno Barde, P. Geo, who has reviewed and approved its technical content.
About the Kilgore Project
The Kilgore Project contains a current NI 43-101 (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 Deposit is part of an extensive low-sulfidation quartz-adularia epithermal hydrothermal system hosted in Tertiary volcanic rocks and basement Aspen Formation calcareous siltstone, shale, and sandstone of Late Cretaceous age. Gold mineralization is of the traditional disseminated, bulk-tonnage type similar to that comprising the classic volcanic-hosted gold deposits at Round Mountain, Nevada and McDonald Meadows, Montana. The preparation of an updated NI 43-101 compliant resource calculation is ongoing and 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.
ON BEHALF OF THE BOARD
“Craig T. Lindsay”
President & CEO
For additional information, please contact:
Otis Gold Corp.
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.
