Otis Gold Corp.

Otis Gold Corp.

December 08, 2011 08:30 ET

Otis Drills 48.8 Metres of 1.05 g/t Au at Kilgore; New Intercepts Further Extend Open-Ended Mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 8, 2011) - Otis Gold Corp. (TSX VENTURE:OOO)(OTCQX:OGLDF)(PINKSHEETS:OGLDF) ("Otis") is pleased to announce the receipt of additional significant drill results comprising potentially bulk-mineable, open-pittable intercepts from the third set of seven holes of its 2011, 9,320-metre, Kilgore Mine Ridge Gold Project ("Kilgore") drill program located in Clark County, Idaho. Highlights include intercepts of 48.8 metres (m) of 1.05 grams per tonne gold (g/t Au), along with an additional 15.2 m of 1.39 g/t Au, in hole 11 OKC-265, located on the southern margin of the deposit, and additional intercepts of 39.6 m of 0.70 g/t Au in hole 11 OKC-281 and 30.5 m of 0.68 g/t Au in hole 11 OKC-280, both located in the deposit's newly discovered, open-ended northwest extension where ore-grade intercepts in excess of 100-metres thick were just recently discovered (see Otis October 6, 2011 News Release). Of the seven holes, five are located on the northern and southern edges of the deposit, indicating mineralization is still open along major portions of the deposit's perimeter. The details of this third grouping of seven holes are presented in Table 1 below.

Table 1: Otis Gold 2011 Kilgore Gold Project Drill Highlights - Third Round of Seven holes

Hole From To Thickness Grade
Number (metres) (metres) (metres) (g/t Au)
11 OKC-261 177.8 187.9 9.1 0.80
35.1 36.6 1.5 1.39
11 OKC-263 80.5 85.3 4.8 0.55
110.9 139.9 29.0 0.63
includes: 119.2 132.3 13.1 0.87
11 OKC-265 121.9 170.7 48.8 1.05
196.6 211.8 15.2 1.39
7.6 18.3 10.7 1.17
11 OKC-269 39.6 48.8 9.2 0.81
202.7 224.0 21.3 0.77
11 OKC-280 45.7 48.7 3.0 0.71
62.5 93.0 30.5 0.68
includes: 71.6 88.4 16.8 0.88
11 OKC-281 24.1 63.7 39.6 0.70
includes: 24.1 39.3 15.2 0.98
11 OKC-283 Greater than 70 m of anomalous values

Note: The gold grade calculation is a weighted mean with a 0.350 g/t top and bottom cutoff. The grade calculation includes internal waste and low-grade sections.

Otis' President and CEO, Craig Lindsay, states: "Along with our recent October, 2011 Kilgore drill results, these new assays continue to reveal the existence and continuation of open-ended, bulk-tonnage intercepts along sizeable portions of the northern and southern edges of the existing Mine Ridge deposit. This is extremely positive as Otis continues to grow the Mine Ridge deposit, identify new deposits and enhance shareholder value."

The seven holes reported in this news release, which total 1,510 metres of drilling, 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_map.pdf. Additional 2011 holes will be released as they are received.

Analysis and Otis QA/QC Program

All assay work was performed by ALS Chemex Labs, Elko, Nevada, which has 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 and approximately 10% of the samples are sent out to a second lab for check assays.

True bulk-tonnage thicknesses are estimated to be between 80% and 100% of the drilled interval, based on their estimated dip, association with diking, and continuity of mineralization between drill holes. The project's 2011 HQ3-size core drilling, completed October 15, was performed by Timberline Drilling, Inc., Coeur d'Alene, Idaho, employing two Sandvik DE-140 core drills outfitted with a triple-tube core recovery system and face-discharge bits. Currently, due to the high volume and backlog of samples submitted to geochemical labs as a result of intense drilling activity for gold in the United States, ALS Chemex is running at about 45 to 60 days turnaround time. As a result, assays for the remaining holes drilled in 2011 will be reported as they are received through the end of 2011 and into the early winter of 2012.

The Qualified Person under National Instrument 43-101 ("NI 43-101") Standards of Disclosure for Mineral Projects for this News Release is John R. Carden, PhD, Lic. Geo. and Consulting Geologist for Otis Gold Corp., who has reviewed and approved its technical contents.

Other Developments

Otis continues to move forward with the preparation of its ongoing independent NI 43-101 Kilgore Mine Ridge resource estimate. The new estimate is based on a comprehensive review and vetting of the historic drill results, re-logging and reinterpretation of all the historic drill holes, and the completion of a new geologic interpretation of the controls of gold mineralization at Mine Ridge. This new interpretation and modeling of geology, mineralizing controls, and corresponding grade shells is now nearly complete. As well, recent 2011 drill results are being incorporated into the model. Otis President, Craig Lindsay, states: "While this process is taking longer than expected to complete, we feel it is critical to ensure that the new estimate adheres to CIM Best Practice Guidelines and complies fully with NI 43-101 reporting requirements. I want to thank our shareholders for their patience in connection with the completion of this updated resource estimate."

Assay results from Otis' recently completed detailed soil survey (see Otis November 1, 2011 News Release) comprising 681 samples and strategically placed along the strike extensions of the Northwest Fault, the focus of the deposit's diking and related gold mineralization, are being received. Results will be released once all assays are received and the data are plotted, contoured, and analyzed, and anomalies are interpreted and incorporated into the deposit's new exploration model. The results of this soil survey will be used to better define drill sites for Otis' 2012 field program.

About Otis

Otis Gold Corp. is a Canadian-based mineral exploration company focused on the acquisition and development of quality precious metal deposits in Idaho, USA. Otis is currently developing its flagship property, the Kilgore Gold Project, located in Clark County, Idaho (approx. 60 miles north of Idaho Falls).


Craig T. Lindsay, President & 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 "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.

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.

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