Otis Gold Corp.
TSX VENTURE : OOO
OTC PINK : OGLDF

Otis Gold Corp.

January 19, 2017 08:30 ET

Otis Drills 128.0 Meters of 1.79 g/t Au and 80.8 Meters of 1.87 g/t Au at Kilgore

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 19, 2017) - Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO)(OTC PINK:OGLDF) is pleased to announce that it has drilled the following intercepts at its Kilgore Gold Project, Clark County, Idaho:

  • 128.0 meters (m) of 1.79 grams per tonne gold (g/t Au) in hole 16 OKC-353
  • 27.5 m of 2.63 g/t Au and 80.8 m of 1.87 g/t Au in hole 16 OKC-354
  • 120.4 m of 1.18 g/t Au in hole 16 OKC-349
  • 74.6 m of 1.01 g/t Au and 35.9 m of 1.12 g/t Au in hole 16 OKC-352

The 4 holes above, and 8 additional holes reported below, represent the final 12 holes of the 10,300-meter, 40-hole drill program completed in November 2016 at the Kilgore Gold Project. Analytical results for the 12 drill holes reported in this release, along with those for the initial 28 holes previously reported (see Otis News Releases dated September 26, 2016, October 31, 2016 and November 29, 2016), confirm the presence of significant gold mineralization in the Aspen Formation sedimentary host rocks, the primary target of the 2016 drill program. A majority of these intercepts are of both higher grade and longer intervals than most of those encountered in prior drilling at Kilgore and thus demonstrate a clear potential to increase the overall size and grade of the Kilgore Deposit.

Craig Lindsay, Otis President and CEO states: "We are extremely pleased with the drill intercepts encountered in the previously under-explored sedimentary Aspen Formation. We expect the Aspen Formation will be a significant new host for gold mineralization at Kilgore and will continue to be a focus of expansion drilling going forward. Our technical team, led by Dr. John Carden and Mr. Mitch Bernardi, have done an excellent job targeting new mineralization at Kilgore in 2016."

Hole Number Hole Type TD
(m)
Azimuth/
Angle
(degrees)
From - To
(m)
Intercept
(m)
Au
Grade
(g/t)
Primary Host Rock Unit(s)
16 OKC-333 Core 321.6 230/-75 16.2- 43.6 27.4 0.52 Lithic Tuff
51.2 - 69.5 18.3 0.74 Lithic Tuff
147.2 - 159.4 12.2 0.62 Lithic Tuff
179.2 - 191.4 12.2 0.47 Lithic Tuff
16 OKC-334 Core 260.6 50/-70 51.8 - 79.2 27.4 0.59 Lithic Tuff
102.1 - 158.0 55.9 0.86 Tertiary Sill
185.9 - 208.8 22.9 3.13 Aspen and Sill
16 OKC-335 Core 327.7 50/-80 102.1 - 153.9 51.8 0.75 Tertiary Sill
16 OKC-337 Core 173.1 50/-45 8.5 - 25.6 17.1 0.59 Lithic Tuff
46.6 - 49.7 3.1 1.21 Lithic Tuff
16 OKC-341 Core 142.6 -/-90 38.1 - 62.5 24.4 1.22 Dike
67.1 - 80.8 13.7 0.36 Lithic Tuff
94.5 - 106.7 12.2 0.73 Lithic Tuff
117.3 - 141.7 24.4 0.49 Lithic Tuff
16 OKC-345 Core 299.6 50/-70 93.0 - 157.0 64.0 1.08 Breccia and Aspen
225.6 - 231.6 6.0 2.11 Aspen
16 OKC-349 Core 322.5 50/-80 21.3 - 45.7 24.4 0.73 Lithic Tuff
147.8 - 268.2 120.4(1) 1.18 Dominantly Aspen w/Sill
16 OKC-350 Core 331.6 50/-80 108.8 - 121.9 13.1 0.38 Lithic Tuff
132.6 - 145.4 12.8 0.47 Lithic Tuff
196.6 - 207.3 10.7 0.54 Tertiary Sill and Aspen
216.4 - 221.0 4.6 0.68 Aspen
245.4 - 263.7 18.3 0.46 Aspen
16 OKC-351 Core 371.9 230/-75 No Significant Intercepts
16 OKC-352 Core 304.8 50/-80 54.9 - 62.5 7.6 0.82 Lithic Tuff
150.9 - 186.8 35.9 1.12 Tertiary Sill and Aspen
195.1 - 219.5 24.4 0.43 Aspen
225.6 - 300.2 74.6 1.01 Aspen
16 OKC-353 Core 304.8 -/-90 32.0 - 38.1 6.1 0.92 Dike
164.6 - 292.6 128.0(2) 1.79 Tertiary Sill and Aspen
16 OKC-354 Core 334.7 50/-80 45.7 - 53.3 7.6 0.42 Dike
59.4 - 64.0 4.6 0.55 Dike
85.3 - 112.8 27.5(3) 2.63 Dike and Lithic Tuff
125.0 - 126.5 1.5 4.62 Lithic Tuff
175.3 - 202.7 27.4 1.19 Tertiary Sill and Aspen
240.8 - 321.6 80.8(4) 1.87 Aspen

Notes:

(1) Includes 7.6 meters of 4.1 g/t Au.
(2) Includes 7.6 meters of 11.96 g/t Au.
(3) Includes 7.6 meters of 10.23 g/t Au.
(4) Includes 7.6 meters of 10.32 g/t Au.
(5) True widths are estimated at between 80% and 100% of the drilled interval based on their estimated dip, association with diking, the orientation of sedimentary bedding and continuity of mineralization between drill holes.

2016 Kilgore Drill Program Highlights

Highlights from the drill program and of importance to the future development of the Kilgore Deposit include:

  1. Twenty-five of the 40 holes drilled in 2016 encountered mineralization in the newly-emerging Aspen Formation host.
  2. An additional 11 holes encountered mineralization in Tertiary lithic tuff and dikes, the primary host of gold mineralization within the existing deposit.
  3. In total, 36 of the 40 holes drilled in 2016 intersected reportable gold mineralization, representing a drill success rate of 90%.
  4. A complete Table of 2016 drill results can be found on the Otis website.
  5. Results of Otis' 2016 drill campaign continue to support the premise that gold mineralization in the Aspen Formation is more extensive than indicated by previous drill testing and appears to lie along a northwesterly-trending belt or corridor in the northern half of the deposit, much of which remains open for further drilling.
  6. Results of drill holes targeting the basement Aspen Formation sedimentary host rocks continue to reveal the presence of significant open-ended mineralization that is typically higher-grade and displays thicker mineralized intercepts than those comprising the current bulk of the deposit in the overlying volcanic host rocks.
  7. Reported intercepts in basement Aspen Formation sedimentary rocks demonstrate that mineralization exists to depths of up to 300-meters below the surface of the deposit, with some still open at depth.
  8. The Tertiary intrusive sill (Tct), which directly overlies the Aspen Formation and locally intrudes the upper portion of it, has been proven to host significant mineralization and the extensive contact between the two rock types is an important locus for additional mineralization in the basement. Significant intercepts can and do exist in both the Aspen Formation and the Tct, and in many cases straddle the contact between them to occur continuously throughout both units.
  9. Some intercepts drilled in Aspen Formation rocks along the mineralized northwest-trending corridor contain coarse-grained visible gold indicative of potential bonanza grades at depth.

Immediate next steps at the Kilgore Gold Project include:

  1. Production of an updated set of geologic cross-sections reflecting the 2016 drill results;
  2. Preparation of an updated NI 43-101 resource estimate; and
  3. Development of a 2017 drill program and completion of associated program permitting.

2016 Kilgore Drill Program Background

The 40-hole 2016 drill program was designed from an updated set of geologic cross sections and long sections containing all historic Kilgore drill results through 2015. Based on these sections, drill holes were selected to target mineralization at depth in the Aspen Formation and to infill and define the limits of the current resource. Selected hole locations targeting the Aspen Formation at depth were focused along the Main Road, Segment 1 Road, North Road and "B" Road areas (the location of the Crab Claw drilling completed in 2015 and reported in early 2016 - see Otis News Release dated January 14, 2016 News). Drill holes in these areas were selected to infill and define the limits of the resource and are mostly located in the southwestern part of the deposit where historic drilling is sparse.

The 12 drill holes reported in this news release, along with the assays and drill intercepts from the 28 holes announced on September 26, October 31, and November 29, 2016, are presented in a drill-hole location map available here. A table listing the complete 2016 drill results is available here.

Analysis and Otis QA/QC Program

All analytical work was performed by ALS Chemex Labs located in Reno, Nevada and Vancouver, British Columbia that have quality management system certification and 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.

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 reported in this release was 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 was conducted by Timberline Drilling of Hayden, Idaho employing two rigs, a DE-140 NQ core rig and an 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 Deposit

The Kilgore Deposit contains a current (dated September 12, 2012) 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"). 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 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 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.

Contact Information