Otis Gold Corp.
TSX VENTURE : OOO

Otis Gold Corp.

March 23, 2010 08:30 ET

Otis Announces Final Kilgore Drill Results Including 64.0 Metres Grading 1.89 g/t Au

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2010) - Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO) is pleased to announce the receipt of significant drill results comprising bulk-tonnage, open-pittable intercepts from the last five holes of its 2009, 12-core hole, 3,122-metre, Kilgore Gold Project ("Kilgore") drill program, Clark County, Idaho. Highlights of these final five "200 series" drill holes are listed in Table 1 below, and include bulk-tonnage intercepts of 64.0 metres (m) of 1.89 grams per tonne gold (g/t Au) in hole 09 OKC-206 and 50.0 m of 1.02 g/t Au in hole 09 OKC-205, including high-grade intercepts of 7.7 m of 12.70 g/t Au in hole 09 OKC-206 and 3.0 m of 8.42 g/t Au in hole 09 OKC-205.

These results in combination with other significant bulk-tonnage intercepts recorded for a number of the Company's other holes drilled in the Kilgore deposit Mine Ridge core target area (Otis October 7 and December 16, 2009 News Releases) indicate mineralized thicknesses and average grades that are noticeably greater than those constituting the majority of the intervals comprising the historic Kilgore NI 43-101 compliant resource (Otis March 2, 2009 News Release). As a result, Otis expects that there is a strong possibility to increase the overall size, grade, and economic viability of the Kilgore deposit, thus the Company is in the process of selecting an engineering firm to conduct a prefeasibility study on the bulk-tonnage deposit.

Table 1. Otis Gold Corp. Kilgore 200 Series Drill Hole Highlights

Hole Number From
(m)
To
(m)
Thickness (m) Au g/t
09 OKC-202 43.3 54.0 10.7 1.02
  99.7 118.0 18.3 0.78
09 OKC-204(ii) 60.0 155.6 95.6 1.46
Includes 66.8 77.0 10.2 9.80
09 OKC-205 73.4 123.4 50.0 1.02
Includes 120.4 123.4 3.0 8.42
  209.1 247.2 38.1 1.07
09 OKC-206 58.5 122.5 64.0 1.89
Includes 98.1 105.8 7.7 12.70

(ii) Previously reported interval.

Previously reported drill hole 09 OKC-204, which contains 95.6 m of 1.46 g/t Au and 10.2 m of 9.80 g/t Au (Otis December 16, 2009 News Release), has been included in Table 1 because of its direct spatial association with the above holes.

With this News Release, Otis has now announced assay results on all 15 of the Company's completed 2008 – 2009 Kilgore drill holes, all which contain substantial intervals of gold mineralization. A detailed review of Table 2 below reveals that many of these holes contain significant bulk-tonnage intercepts, all in the Mine Ridge area, with thicknesses of between 50-metres and nearly 120-metres, and with average grades generally ranging between 1 and 6 g/t Au. Visible gold is present in high-grade veins associated with dikes interspersed in the bulk-tonnage mineralization in a number of the holes (08 0KC-191, 193, and 194, and 09 OKC-197, 199, 204, and 206).

All holes were drilled in the Mine Ridge area, the core of the existing Kilgore deposit, to infill previously untested areas and test for thick intercepts of bulk-tonnage mineralization. This area was only partially drill-tested on relatively wide-spaced intervals by Bear Creek, Pegasus Gold, Placer Dome U.S., and Echo Bay Mines between 1983 and 1996, while exploring the property for a bulk-tonnage gold deposit (Otis June 10, 2008 News Release).

Locations of the final five holes, which total 1,386 metres of drilling, and their corresponding assay intercepts, are shown in a drill-hole location map and two geologic sections available on the Otis Gold Corp. website at www.otisgold.com/projects/kilgore/.

The north-trending section through the Mine Ridge area shows a roughly 50-metre thick or greater section of mineralization that remains open in numerous directions. The west-trending section located normal to the southern end of the north-trending section reveals mineralization roughly 60 metres below the surface that is up to nearly 120-metres thick, 170-metres wide, and remains open in various directions. Further expansion drilling is planned in these areas and as final in-fill and extension work during 2010. This upcoming drilling, which constitutes 6,000 metres of core drilling in the Kilgore resource area and an additional 2,000 metres of RC drilling to test CSAMT anomalies under the sinter cap at the nearby Dog Bone Ridge gold target area (Otis February 9, 2010 News Release), is currently in the planning and permitting stages.

Table 2 lists the assay results of all of Otis' 2008 – 2009 Kilgore Gold Project drill holes:

Table 2. Otis Kilgore Gold Project 2008 - 2009 Significant Drill-Hole Intercepts

Hole Number From
 (m)
To
(m)
Thickness
 (m)
Au g/t
08 OKC-191 41.8 97.2 55.4 6.15
Includes 41.8 43.1 1.3 60.53
  63.6 65.6 2.0 4.64
  73.1 81.4 8.3 13.09
  95.4 97.2 1.8 54.15
08 OKC-192 28.0 38.7 10.7 1.32
Includes 37.2 38.7 1.5 7.71
  89.0 103.6 14.6 2.27
Includes 89.0 92.9 3.9 6.07
Includes 89.0 91.1 2.1 9.05
08 OKC-193 79.6 134.6 55.0 1.46
Includes 79.6 81.9 2.3 8.24
  128.9 134.6 5.7 3.33
Includes 132.0 134.6 2.6 24.18
08 OKC-194 25.8 26.8 1.0 3.43
  186.8 192.9 6.1 54.69
09 OKC-195 29.8 50.2 20.4 0.77
Includes 39.5 48.7 9.2 1.12
  140.8 142.3 1.5 1.29
  154.5 165.5 11.0 1.15
  178.9 180.4 1.5 1.17
  191.1 194.2 3.1 1.06
09 OKC-196 44.1 57.0 12.9 0.66
  158.9 160.6 1.7 1.31
  168.2 170.5 2.3 1.15
  228.0 229.0 1.0 1.34
09 OKC-197 101.2 186.0 84.8 1.37
Includes 161.8 186.0 24.2 2.84
Includes 161.8 180.0 18.2 3.37
Includes 169.4 172.2 2.8 9.15
09 OKC-198 55.8 57.2 1.4 1.34
  68.6 166.1 97.5 0.83
Includes 68.6 123.4 54.8 1.14
Includes 71.6 99.1 27.5 1.61
Includes 71.6 74.4 2.8 8.80
  137.2 144.9 7.7 1.04
  164.3 166.1 1.8 1.19
09 OKC-199 29.6 30.9 1.3 2.11
  55.5 174.3 118.8 0.75
Includes 65.5 105.8 40.3 1.32
Includes 89.3 105.8 16.5 2.43
Includes 89.3 98.8 9.5 11.60
  164.7 174.3 9.6 1.74
09 OKC-200 74.4 75.9 1.5 1.22
  98.1 151.2 53.1 0.76
Includes 114.9 131.2 16.3 1.41
09 OKC-201  Lost hole – abandoned at 96.6 m – didn't reach intended target depth      
09 OKC-202 43.3 54.0 10.7 1.02
  89.0 90.5 1.5 1.19
  99.7 118.0 18.3 0.78
  217.0 218.5 1.5 1.03
09 OKC-203 14.3 18.9 4.6 0.80
  29.6 31.1 1.5 1.63
  40.2 46.3 6.1 1.39
  61.6 69.2 7.6 0.65
09 OKC-204 60.0 155.6 95.6 1.46
Includes 61.9 77.0 15.1 6.84
Includes 66.8 77.0 10.2 9.80
Includes 73.7 77.0 3.3 29.74
09 OKC-205 73.4 123.4 50.0 1.02
Includes 120.4 123.4 3.0 8.42
  166.4 169.5 3.1 1.30
  193.9 200.0 6.1 1.07
  209.1 247.2 38.1 1.07
  259.4 265.5 6.1 2.19
  364.5 366.0 1.5 1.18
09 OKC-206 58.5 122.5 64.0 1.89
Includes 98.1 105.8 7.7 12.70

Note: 4 core holes drilled 2008 and 12 core holes drilled 2009.

Analysis and Otis QA/QC Program

All assay work was performed by ALS Chemex Labs, Vancouver, B.C., which has ISO 9001:2008 quality management system certification and ISO 17025:2005 Vancouver Lab 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. Check assays on pulps were carried out on approximately 7% of the samples by Inspectorate Labs, Reno, Nevada, with all check assay values found to be within acceptable limits.

True bulk-tonnage widths are estimated to be between 95% and 100% of the drilled interval, based on their estimated dip and continuity of mineralization between drill holes. The HQ3-size core drilling was performed by Cabo Drilling (America), Blaine, Washington, employing a Boyles Hydra 56 – Pac Track core rig outfitted with a triple-tube core recovery system and face-discharge bits.

John R. Carden, Ph.D., Lic. Geo., a Qualified Person as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this News Release.

Stock Option Grants

The Company also advises that up to 850,000 common share stock options having an exercise price of $.45 per common share will be granted to various directors, officers and consultants of the Company. These options will be granted in accordance with the terms of the Company's 10% rolling Stock Option Plan approved on November 19, 2009 and the Policies of the TSX Venture Exchange.

About the Company

Otis is a resource company focused on the acquisition, exploration, and development of precious metal deposits in Idaho and Nevada, USA. Otis is currently developing its flagship property, the Kilgore Gold Project, Clark County, Idaho.

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.

Contact Information