VANCOUVER, British Columbia, Feb. 14, 2018 (GLOBE NEWSWIRE) --
Otis Gold Corp. (the “Company” or “Otis”) (TSX-V:OOO) (OTC:OGLDF) is pleased to announce assay results for the final nine core holes from its 25-hole, 8,000-metre drill program at the Kilgore Project in Idaho. Seven holes encountered significant bulk-tonnage intercepts highlighted by 86.8 metres (m) grading 1.05 grams per tonne gold (g/t Au) in hole 17 OKC-366, 137.2 m grading 0.91 g/t Au in hole 17 OKC-374, 71.6 m grading 1.05 g/t Au in hole 17-OKC 376, and 118.9 m grading 1.41 g/t Au in hole 17 OKC-377.
The primary goal of the drill program was to follow-up on open-ended drilling at depth and laterally as infill on drill intercepts from 2015 and 2016, primarily in the prospective Late Cretaceous Aspen Formation (or “Aspen”) sedimentary host unit within and along the “Aspen Corridor” (see News Releases dated February 9, 2016, and January 19, 2017). Timberline Drilling of Hayden, Idaho performed all the drilling employing two Atlas Copco CS14 core rigs.
Table 1. 2017 Kilgore Drill Intercepts - 4th Release of Holes (Drill Hole location map)
|17 OKC-363||341.4||50˚/-75˚||11,600 N||No Significant Values|
|17 OKC-365||334.7||230˚/-65˚||11,700 N||70.1||73.2||3.1||1.22||Sill|
|93.0||123.4||30.4||0.68||Sill & Aspen|
|17 OKC-366||334.7||-/-90˚||12,100 N||16.8||36.6||19.8||0.47||Rhyolite|
|17 OKC-368||337.7||230˚/-65˚||12,000 N||46.6||67.4||20.8||0.56||Tuff, Aspen|
|123.1||146.0||22.9||0.48||Sill & Aspen|
|17 OKC-370||333.1||230˚/-80˚||12,000 N||57.3||64.9||7.6||0.59||Tuff|
|17 OKC-372||304.8||-/-90˚||11,900 N||57.9||62.5||4.6||0.50||Sill & Aspen|
|105.2||135.6||30.5||0.78||Sill & Aspen|
|17 OKC-374||301.1||230˚/-75˚||11,900 N||109.1||246.3||137.2||0.91||Sill & Aspen|
|17 OKC-376||276.8||230˚/-75||12,100 N||109.7||189.0||79.3||0.79||Sill & Aspen|
|17 OKC-377||282.9||-/-90˚||12,100 N||103.6||113.6||10.0||0.30||Sill|
Detailed Results of the Drilling
The previous drilling conducted in 2015 and 2016 defined numerous intervals of significant thicknesses and grades in the Aspen that subsequently remain open-ended throughout much of the deposit, particularly throughout the “Aspen Corridor” (see News Release February 9, 2016). Seven of the nine holes encountered significant bulk-tonnage intercepts and were drilled as in-fills and extensions at depth in the Aspen Corridor along the main road in the central part of the deposit southeast of the Mine Ridge Fault (area between 11,850N and 12,150N).
A number of the holes extended Aspen-hosted mineralization 60 metres to 90 metres deeper into the Corridor (17 OKC-366, 370, 374 and 377). All of the drill results in this area display excellent continuity of gold mineralization between holes within sections and from section to adjacent section, characteristic of a bulk-tonnage, disseminated gold deposit. Average grades from these holes are all greater than the overall average grade of the deposit as reported in Otis’ 2012 Kilgore NI 43-101 Technical Report (see News Release dated September 14, 2012).
Holes 17 OKC-363 and 17 OKC-365 are located on sections 11,600N and 11,700N, respectively. Hole 17 OKC-363 targeted the Aspen Formation laterally and hole 17 OKC-365 targeted it at depth in the “Segment 1 Road” area of the Aspen Corridor. Hole 17 OKC-363 was drilled northeasterly to test the northeastern boundary of the Corridor, while 17 OKC-365 was drilled southwesterly as an infill in the Corridor to determine the extent of mineralization at depth in the Aspen Formation. Hole 17 OKC-363 served to define the limit of the Corridor and the deposit along their mutual northeastern edge (hole contained no significant values), bounding the mineralization to the southwest, and hole 17 OKC-365 was successful in extending mineralization deeper into the Aspen.
Otis has now released results from 24 exploration holes drilled in 2017 (see link to complete table of the 2017 drill results). The 25th hole drilled in the 2017 work program was a PQ-sized core hole designed for metallurgical testing purposes. Results of column leach and other testing on this hole will be released upon completion of the studies. Otis is now focused on developing drill planning activities for 2018 at both Kilgore and the Oakley Project and the completion of an updated NI 43-101 compliant resource estimate for the Kilgore Deposit.
Otis President & CEO, Craig Lindsay, stated: “With the support of a strong investor base, Otis made significant strides to delineate and expand the Kilgore Deposit in 2017. We continue to be very excited about the prospects for continued growth at the project in 2018, and are equally enthusiastic about exploration potential at new exploration targets beyond the resource area. We are confident that 2018 will be another banner year for the Kilgore Project.”
Analysis and QA/QC Program
All assay work is being performed by ALS Chemex Labs, which has quality management system certification and technical capability accreditation. A 50-gram pulp of all samples is assayed for gold by Fire Assay/AA finish methods. RockLabs certified reference material and internally generated blanks are inserted into the sample stream every10 samples for quality control.
True widths are estimated between 80% and 100% of the drilled interval, based on their approximate dip, association with diking, the orientation of sedimentary bedding, and continuity of mineralization between drill holes. Intercepts reported in Table 1 are calculated using a 0.20 g/t Au cutoff grade and may include a few internal waste intervals less than 4.5 m using this cutoff.
The qualified person under National Instrument (NI 43-101) Standards of Disclosure for this News Release is Bruno Barde, P. Geo, who has reviewed and approved its technical content.
About the Kilgore Project
The Kilgore Project contains a current NI 43-101 (dated September 12, 2012) 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 deposit at Round Mountain, Nevada. The preparation of an updated NI 43-101 compliant resource calculation is ongoing and will include drilling completed in 2015, 2016 and 2017; this resource estimate will be released when available.
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 and the Oakley Project, located in Cassia County, Idaho. Otis owns the largest land position of any pure play gold exploration company in Idaho.
ON BEHALF OF THE BOARD
“Craig T. Lindsay”
President and CEO
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept 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.
Maps accompanying this announcement are available at:
2017 Drill Results are available at: