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

Otis Gold Corp.

April 06, 2011 08:00 ET

Otis Identifies Two Additional Drill Targets at Kilgore; Announces 10,000 Metre Drill Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 6, 2011) - Otis Gold Corp. (TSX VENTURE:OOO)(PINK SHEETS:OGLDF) ("Otis" or the "Company") is pleased to announce that it has identified two additional drill targets at is 100% owned Kilgore Gold Project located in Clark County, Idaho. As a result of these new targets, our ongoing expansion of the Mine Ridge deposit and exploration at Dog Bone Ridge, Otis is developing a drill program of up to 10,000 metres. The drill program is scheduled for the period from June 2011 to December 2011. This aggressive program comprises approximately 48 core holes to be broken out in the following manner:

  • 4,200 metres in 21 holes at the Mine Ridge volcanic-hosted disseminated gold deposit,
  • 3,300 metres in 16 holes at the new Prospect Ridge gold target;
  • 1,500 metres in 6 helicopter-supported holes at the new Gold Ridge target; and
  • 1,000 metres in 5 holes at the Company's previously described Dog Bone Ridge target.

The Company's new Prospect Ridge and Gold Ridge targets lie along the southeast and northwest strike extensions, respectively, of the Mine Ridge deposit. The new targets, in combination with the existing Mine Ridge deposit and targets at Dog Bone Ridge, have the size and geologic characteristics to host a multi-million ounce gold resource. The Prospect Ridge and Gold Ridge targets extend the strike length of the Northwest Fault that defines the Mine Ridge deposit to approximately 3 kilometers. A map of the company's drill targets can be found at http://www.otisgold.com/_resources/kilgore_2011_drill_targets.pdf.

"The Kilgore Gold Project continues to exceed our expectations," states Craig Lindsay, President of Otis Gold. "Our drill success rate, the continuity of grade and thickness we have encountered and the identification of new drill targets continues to expand the resource potential at Kilgore. To capitalize on these opportunities, our 2011 drill campaign will be the largest program ever undertaken by Otis."

Mine Ridge Program

This program, which encompasses up to 4,200 metres of drilling in 21 core holes, is designed to follow-up Otis' highly successful 2008 through 2010 drill programs that encountered significant gold mineralization in 46 of 51 core holes drilled at the Company's flagship Mine Ridge gold deposit. Twelve of the thirty-five core holes drilled in 2010 lie along and help define the current known boundaries of the Mine Ridge deposit, indicating that it is open in four directions with excellent potential to expand the resource. Otis' 2011 work at Mine Ridge will concentrate on drill evaluation of these open-ended areas of mineralization. Additionally, Otis will be completing an NI 43-101 resource estimate that should enhance the qualified resource base for the deposit.

Prospect Ridge Drill Program

This program, which encompasses up to 3,300 metres of drilling in 16 core holes, is sited on the Company's newly-defined Prospect Ridge target that lies along the southeasterly strike extension of the Mine Ridge deposit and is proximate to it. The current target is 700 metres long by 200 metres wide, and is characterized by five scattered historic drill holes and two Otis 2010 drill holes that contain ore-grade intercepts. Collectively, these intercepts define a northwest-trending zone of gold mineralization that cuts through a rhyolite dome and its periphery just southeast of and adjacent to the Mine Ridge deposit. Mineralization along this zone appears to be the strike extension or continuum of the northwest-trending mineralization that defines the Mine Ridge deposit as it is currently known. Scattered intercepts within this new target that help define it and require offsetting include 15.2 m @ 1.27 grams per tonne gold (g/t Au) in Echo Bay hole 96-EKC-180, 24.4 m @ 1.58 g/t Au in Pegasus Gold hole 93 PK-49, and 76.0 m @ 0.77 g/t Au that includes 13.7 m @ 2.88 g/t Au in Otis core hole 10 OKC-221. Part of the Prospect Ridge target coincides with an IP low geophysical anomaly, as does the Mine Ridge deposit.

Gold Ridge Drill Program

This program, which encompasses up to 1,500 metres in 6 core holes, lies 1 km northwest of and along the northwest strike extension of the Mine Ridge deposit as it is currently known. The target's dimensions are roughly 1,000 m by 1,200 m, with the area underlain by a rhyolite dome in contact with lithic tuff host rock and dike material, the same setting as at Mine Ridge. The target is defined by the intersection and overlap of numerous important regional and local structures, soils anomalous in arsenic, antimony, and gold, and significantly large IP and resistivity low geophysical anomalies. This target defines a large area of convergence based on the above characteristics, is directly on the northwest strike extension of the Mine Ridge deposit, and has never been drilled. This drilling will require helicopter support as no drill access roads are currently available in the area. As a result, this program will be subject to permitting with the U.S. Forest Service separate from the planned drilling describe above for the Mine Ridge and Prospect Ridge areas, with drilling tentatively slated for late fall.

Dog Bone Ridge Drill Program

The planned Dog Bone Ridge program encompasses up to 1,000 metres in 5 core holes. An extensive dip-slope sinter cap covering the paleosurface is characteristic of the Dog Bone Ridge target area, located 1.5 – 2.0 km southwest of the Mine Ridge deposit. The 2011 program is a follow-up of a five-hole program that was performed by Otis at the end of 2010 and that only initially tested 4 of 5 sizeable Controlled Source Audio-Magneto Telluric (CSAMT) geophysical anomalies. Some are over 1 km in length and were delineated by the Company during the fall of 2009. Recently, major faults in the area have been identified based on interpretation of the CSAMT work. The intersection of these faults with low resistivity zones, identified by the geophysical survey and significantly coupled with a low magnetic trough running through the target area, provide at least four new drill targets that will be tested with 1,000 m of coring later this year. Additionally, the most northerly Dog Bone Ridge geophysical target, which contains a historic core hole with an intercept of 51.8 m @ 1.25 g/t Au, will be offset along strike of the CSAMT anomaly by 500 metres.

All drilling associated with the planned Kilgore drill program is subject to receipt of appropriate drill permits, a process which is ongoing, and funding availability (the Company currently has approximately $5.6 million in its treasury). Final details of the drill program will be announced as they become available.

Other

In a news release dated March 7, 2011 Otis reported an intercept of 9.14 metres grading 1.32 g/t Au for Hole OKC-242. During a routine Quality Control Assessment Chemex identified a discrepancy in their process that resulted in incorrect values of Au on certificate VA11013059 relating to Hole OKC-242. The Company was notified that the hole was re-assayed and found to be barren. This information has no bearing on the Company's upcoming 2011 drill campaign.

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

The forward-looking information contained in this press release is made as of the date hereof and the Company 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.

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.

Contact Information