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

Otis Gold Corp.

February 24, 2011 08:03 ET

Otis Releases Complete Mine Ridge 2010 Drill Results; 31 of 35 Holes Encounter Significant Gold Mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2011) - Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO)(PINK SHEETS:OGLDF) is pleased to announce the receipt of significant drill results from the fifth and final grouping of its 2010, 35-core hole, 6,657-metre, Mine Ridge drill program located at its Kilgore Gold Project in Clark County, Idaho (see Table 1). Highlights of the 2010 Mine Ridge drill program include:

  • 31 of 35 holes contain significant ore-grade intercepts;
  • The deposit remains wide open to the north, northwest, south, and east, resulting in significant potential for resource expansion;
  • The length of the deposit has increased by nearly 30 percent to 460 metres in a north-south direction; and
  • Mineralized thicknesses and average grades are generally greater than those achieved in historic drilling.

"Otis' 2010 Mine Ridge drill results are exceptional," says Otis President & CEO Craig Lindsay. "Twelve of the thirty-five holes drilled lie along and help define the current known boundaries of the Mine Ridge deposit, indicating that it is open in a number of directions with excellent potential to expand the resource. Otis' 2011 work concerning Mine Ridge will concentrate on drill evaluation of these open-ended areas and the production of an updated NI 43-101 resource estimate that should enhance the qualified resource base for the deposit."

The fifth and final grouping of seven holes includes intercepts of 41.1 metres (m) of 1.00 grams per tonne gold (g/t Au) that includes 12.2 m @ 1.86 g/t Au in hole 10 OKC-231, 21.3 m at 0.72 g/t Au in 10 OKC-233, 13.7 m at 1.86 g/t Au in 10 OKC-234, and 27.4 m at 0.86 g/t Au in 10 OKC-236. Complete results from the Mine Ridge 2010 drill program are presented in Table 1 below.

Table 1.  2010 Kilgore Mine Ridge Drill Results Summary and Highlights - Fifth Grouping Core Drill Holes Indicated by Asterisk and Shading

Hole No. Azimuth
(degrees)
Angle
(degrees)
T.D.
(metres)
From
(metres)
To
(metres)
Intercept
(metres)
Au
(g/tonne)
Status
10 OKC-207 - -90 280 10.1 23.8 13.7 2.17 N.R. 1
9/8/10
10 OKC-208 230 -75 213 69.8 85.0 15.2 1.15 N.R. 1
9/8/10
130.8 186.3 55.5 1.36
10 OKC-209 270 -75 228 95.4 109.0 13.6 0.65 N.R. 1
9/8/10
10 OKC-210 230 -65 118 86.3 116.7 30.4 2.53 N.R. 1
9/8/10
10 OKC-211 195 -75 308 120.1 127.7 7.6 0.85 N.R. 2
10/13/10
10 OKC-212 - -90 115 51.2 60.3 9.1 0.82 N.R. 1
9/8/10
10 OKC-213 90 -75 244 95.1 121.0 25.9 1.10 N.R. 2
10/13/10
10 OKC-214 135 -65 169 89.3 101.5 12.2 0.62 N.R. 2
10/13/10
10 OKC-215 230 -60 242 63.7 77.4 13.7 2.00 N.R. 2
10/13/10
110.9 152.0 41.1 1.30
10 OKC-216 - -90 150 No significant intercepts N.R. 2
10/13/10
10 OKC-217 - -90 262 107.9 123.1 15.2 0.71 N.R. 2
10/13/10
10 OKC-218 230 -55 259 138.1 168.6 30.5 1.28 N.R. 3
12/16/10
10 OKC-219 230 -75 204 182.3 183.8 1.5 1.47 N.R. 3
12/16/10
10 OKC-220 230 -70 199 33.2 63.7 30.5 2.81 N.R. 4
2/1/11
175.0 190.2 15.2 1.00
10 OKC-221 - -90 183 80.5 147.5 67.0 0.77 N.R. 4
2/1/11
10 OKC-222 - -90 225 157.9 203.6 45.7 1.32 N.R. 2
10/13/10
*10 OKC-223 230 -75 180 No significant intercepts This N.R.
10 OKC-224 - -90 164 87.8 103.0 15.2 1.08 N.R. 2
10/13/10
*10 OKC-225 230 -75 181 No significant intercepts This N.R.
10 OKC-226 340 -75 267 214.3 260.0 45.7 1.22 N.R. 3
12/16/10
10 OKC-227 - -90 207 87.8 118.3 30.5 1.24 N.R. 3
12/16/10
10 OKC-228 50 -75 175 11.9 99.7 87.8 1.26 N.R. 3
12/16/10
10 OKC-229 230 -75 94 60.4 93.9 33.5 0.58 N.R. 3
12/16/10
*10 OKC-230 230 -70 182 No significant intercepts This N.R.
*10 OKC-231 230 -75 152 86.6 127.4 41.1 1.00 This N.R.
10 OKC-232 230 -70 121 No significant intercepts N.R. 4
2/1/11
*10 OKC-233 230 -70 140 69.8 91.1 21.3 0.72 This N.R.
*10 OKC-234 90 -75 167 92.4 106.1 13.7 1.86 This N.R.
10 OKC-235 - -90 168 71.3 114.0 42.7 1.37 N.R. 4
2/1/11
*10 OKC-236 230 -50 182 112.2 139.6 27.4 0.86 This N.R.
10 OKC-237 90 -75 153 94.2 109.4 15.2 1.27 N.R. 4
2/1/11
10 OKC-238 200 -75 149 95.4 147.2 51.8 1.30 N.R. 4
2/1/11
10 OKC-239 - -90 213 91.1 120.1 29.0 0.95 N.R. 4
2/1/11
10 OKC-245 270 -75 178 2.4 29.9 27.5 1.72 N.R. 3
12/16/10
10 OKC-246 - -90 186 99.4 114.6 15.2 1.02 N.R. 4
2/1/11

Of the 35 holes drilled in 2010, 31 contain significant gold mineralization (see Table 1). Collectively, results of Otis' 2010 drilling show the deposit has increased by nearly 30 percent in length to over 460 metres in a northerly/northwesterly direction throughout the core of the Mine Ridge target area and remains wide open to the north, northwest, south, and east. Examples of open intercepts to the north/northwest, where consistent thicknesses and grades exist, include 30.5 m @ 2.81 g/t Au in 10 OKC-220, 30.4 m @ 2.53 g/t Au in 10 OKC-210, 30.5 m @ 1.28 g/t Au in 10 OKC-218, and 27.4 m @ 0.86 g/t Au in 10 OKC-236. Examples of open intercepts to the south include 41.1 m @ 1.00 g/t Au in 10 OKC-231, 51.8 m @ 1.30 g/t Au in 10 OKC-238, and 42.7 m @ 1.37 g/t Au in 10 OKC-235. Open intervals also exist around the northern perimeter of the rhyolite dome immediately east of and proximal to the deposit and include 67.0 m @ 0.77 g/t Au including 13.7 m @ 2.88 g/t Au in 10 OKC-221 and 15.2 m @ 1.08 g/t Au in 10 OKC-224.

Locations of the fifth grouping of seven holes, which total 1,144 metres of drilling, and their corresponding assay intercepts, along with those for all of the Company's other 2010 Mine Ridge holes and its sixteen 2008 and 2009 holes, are shown in a drill-hole location map available on the Company's website, www.otisgold.com/projects/kilgore/.

Although approximately 25 percent of the 2010 project's 35 holes were drilled as condemnation holes (i.e., holes drilled with the intention of closing off and defining the outer limits of the deposit), only four holes, 10 OKC-216, 10 OKC-223, 10 OKC-225, and 10 OKC-230, are devoid of mineralization and fall into this category. All other holes drilled for condemnation purposes contain significant gold grades and thicknesses.

Based on results to date, Otis expects that there is a strong possibility to increase the overall size and economic viability of the Kilgore Mine Ridge deposit. The Company will be completing an updated NI 43-101 resource estimate on the deposit in 2011 that will reflect historical drilling by past operators as well as the drilling completed by Otis from 2008 through 2010. Additionally, three-dimensional computer modeling of the deposit is being initiated and is expected to be completed in 2011 after all the 2010 drill results have been incorporated into the database.

Currently, assays from 5 core holes drilled at Dog Bone Ridge are pending and will be available shortly.

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.

True bulk-tonnage widths are estimated to be between 90% and 100% of the drilled interval, based on their estimated dip, association with diking, and continuity of mineralization between drill holes. The HQ3-size core drilling 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.

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.

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.

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