VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 26, 2016) - Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO)(OTC PINK:OGLDF) is pleased to announce assay results from the first six holes of its ongoing drill program at the Kilgore Gold Project, where bulk-tonnage intercepts ranging from 55-metres to 120-metres (m) thick and grading 0.82 to 1.55 grams per tonne gold (g/t Au) have been intersected. The planned program as announced comprises a total of 5,500 meters of drilling over 20 holes (see News Release dated July 25, 2016). Due to the ongoing success of this program and availability of capital, the drill program is currently being expanded to approximately 9,000 metres over 36 holes.
Noteworthy intercepts from the first six holes include:
- 56.4 m of 0.85 g/t Au in hole 16 OKR-316 (bottomed in Aspen Formation)
- 61.0 m of 1.03 g/t Au in hole 16 OKR-317 (largely in Aspen Formation)
- 120.4 m of 1.55 g/t Au in hole 16 OKR-318 (hosted in Tertiary sill and Aspen Formation)
- 55.5 m of 0.82 g/t Au in hole 16 OKR-321 (hosted in lithic tuff and Tertiary sill)
Otis' 2015 Kilgore drill program discovered significant gold mineralization in the largely untested Aspen Formation sedimentary rocks. This mineralization is defined by intervals of significant thicknesses and grades that remain open-ended throughout much of the deposit (see January 14, 2016 News Release). Otis' 2016 drilling is targeted to further drill test these rocks that underlie and serve as the basement to the Tertiary volcanic and hypabyssal rock package that currently hosts the majority of the known gold mineralization at Kilgore. These results indicate that the Aspen Formation has the potential to host significant additional mineralization.
Highlights of the drill program, of importance to the future development of the Kilgore Gold Deposit (or the "Kilgore Deposit"), include:
- All five holes targeting the Aspen Formation (16 OKR-316 through 319 and 16 OKR-323) encountered open-ended mineralization at depth and indicate the need for additional drilling throughout the length of the deposit;
- The grade and thickness of drill intercepts at depth in the Aspen Formation indicate a strong potential to expand the size and grade of the current Kilgore resource;
- Results of the 2015 and 2016 drilling support the premise that mineralization in the Aspen basement sedimentary rocks is more extensive than indicated by previous drilling that mainly targeted the overlying volcanic package; and
- The Tertiary intrusive sill (Tct), that directly overlies the Aspen Formation and also locally intrudes the upper part of it, is also a host to mineralization and may be a potential mineralizer to the deposit.
TABLE 1. DRILL RESULTS, KILGORE GOLD PROJECT, CLARK COUNTY, IDAHO
|Hole Number||Hole |
|Au Grade |
- Includes 6.1 metres @ 2.26 g/t Au.
- Includes 7.6 meters @ 8.86 g/t Au.
Drill Program Background and Details of Drilling Results
The ongoing 36-hole program was designed from an updated set of geological cross sections and long sections containing all historic Kilgore drilling results through 2015. Based on these sections, holes were chosen to target mineralization at depth in the Aspen Formation and to infill and define the limits of the resource. Selected hole locations targeting the Aspen at depth are focused along the Main Road, Segment 1 Road, North Road and "B" Road areas. Holes chosen to infill and define the limits of the resource are located in the southwestern part of the deposit where historic drilling is sparse. 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 here.
Craig Lindsay, Otis President and CEO states: "We are very pleased with this first set of 6 holes from our ongoing 36 hole program. They support our geologic model and belief that potential exists to expand the Kilgore Deposit at depth in the Aspen sedimentary unit underlying the main deposit, which currently is primarily hosted in volcanics. Additional drilling will continue to refine this potential at depth, as well as explore potential in the Crab Claw to the north of the existing deposit."
Analysis and Otis Q/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. Certified reference materials, duplicates, and blanks are inserted into the sample stream for quality control.
True widths are estimated at between 80% and 100% of the drilled interval, based on their estimated 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 0.25 g/t Au cutoff grade and may include a few internal waste intervals less than this cutoff. The RC drilling is being conducted by O'Keefe Drilling, Inc., Butte, Montana, employing a Foremost 650 Reverse Circulation drill rig outfitted with a circulating wet splitter. The core drilling is being performed by Timberline Drilling of Hayden, Idaho employing two rigs, a DE-140 NQ core rig and a LF-90 HQ core rig.
The Qualified Person under National Instrument (NI 43‐101) Standards of Disclosure for Mineral Projects for this News Release is Paul D. Gray, P. Geo, who has reviewed and approved its technical content.
About the Kilgore Gold Project
The Kilgore Gold Project contains a NI 43-101 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 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 http://www.otisgold.com/_resources/kilgore/Column_Leach_Profiles.pdf and 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.