Otis Drills 94.5 Metres Of 4.21 G/T Au And 59.5 Metres Of 3.79 G/T Au At Kilgore

January 14, 2016

Vancouver, B.C. – Otis Gold Corp. (“Otis” or the “Company”) is pleased to announce the results of its recently completed 2015 fall drill program conducted at the Kilgore Gold Project, Clark County, Idaho, where bulk-tonnage intercepts ranging from 50- to 100-metres (m) thick and grading from 0.57 to 4.24 grams per tonne gold (g/t Au) have been intersected. Noteworthy intercepts of significant thickness and grade include:

  • 56.4 m of 2.05 g/t Au in hole 15 OKR-304 (ended in mineralization)
  • 59.5 m of 3.79 g/t Au in hole 15 OKR-305
  • 50.3 m of 4.24 g/t Au in hole 15 OKR-308 (ended in mineralization)
  • 94.5 m of 4.21 g/t Au in hole 15 OKR-309 (ended in mineralization)

Other similarly thick, but lower-grade intercepts, include:

  • 100.5 m of 0.60 g/t Au in hole 15 OKR-296
  • 100.0 m of 0.57 g/t Au in hole 15 OKR-302 (ended in mineralization)
  • 51.8 m of 0.64 g/t Au in hole 15 OKR-309 (ended in mineralization)

Drilling targeted two areas, the Crab Claw, a large and previously untested gap on the west end of the deposit, and the North Target, an area that is north-northwest of and immediately adjacent to the existing Kilgore resource. The drill program consisted of 3,267 metres (10,719 feet) in 19 Reverse Circulation (RC) holes (see Tables 1 and 2 below and the Otis Gold website for a program Drill-Hole Location Map).

Highlights of the drill program, of significant importance to the future development of the Kilgore Gold Deposit (or the “Kilgore Deposit”), include:

  • The grade and thickness of drill intercepts indicate a strong potential to expand the size and grade of the current Kilgore resource;
  • All 10 holes drilled in the Crab Claw were mineralized with 6 holes bottoming in mineralization mostly hosted by Late Cretaceous Aspen Formation sedimentary rocks, indicating the need for further drilling in and around this higher-grade part of the deposit;
  • Results of the drilling show the Crab Claw exists as the western/southwestern extension of the higher-grade core of the Kilgore Deposit and remains open-ended laterally and at depth;
  • Numerous historic holes drilled in the Kilgore Deposit also bottomed in higher-grade Aspen Formation-hosted mineralization, but were never the subject of further exploration, thus creating additional opportunities for further expansion of the deposit both laterally and at depth;
  • Drilling in the North Target demonstrates the potential for further lateral expansion of the Kilgore Deposit; and
  • Future development activities include a robust 2016 drilling program, an updated resource estimate, a Preliminary Economic Assessment (PEA) and mine permitting activities.

Reported intercepts in nearly all holes are defined by the presence of thick, continuous strings of relatively consistent gold values, rather than by a few scattered high-grade intervals.

Crab Claw Drill Program Background and Details of Drilling Results

Ten holes were drilled in the Crab Claw. One, 15 OKR-296, was drilled along the North Road, while nine, 15 OKR-302 through 15 OKR-310, were drilled along the newly constructed B Road to test the roughly 250-metre-long by 120-metre-wide previously untested gap in the western part of the deposit that extends just west/northwest of the northeast-trending Mine Ridge Fault and the previously known limits of the higher-grade core of the Kilgore Gold Deposit just to the east (see Otis Gold website Drill-Hole Location Map). This untested B Road gap area has informally been named the Crab Claw by Otis geologists because of its shape on the surface relative to adjacent previously drilled areas.

All 10 holes in the Crab Claw area intersected measurable and reportable gold mineralization, with 6 holes containing intercepts in the 50- to 100-metre-thick range and 4 holes containing very high average gold grades ranging from 2.05 g/t to 4.24 g/t in the B Road area (see Table 1, Holes 15 OKR-304, 305, 308, and 309). These high average gold grades and extensive intercept thicknesses represent some of the strongest drilled to date at Kilgore by all operators both recently and historically.


Site TD
Azimuth/Angle From-To
Intercept (metres) Au Grade
15 OKR-296 N-3 198 144/-70 16.8-117.3  161.5-173.7 100.5 
0.63 g/t
15 OKR-302* B-1 236 50/-75 135.6-231.6 100.0 0.57 g/t N/D
15 OKR-303* B-1 182.3 -90 61.0-85.3
1.30 g/t 
0.76 g/t
15 OKR-304* B-3 222.5 -90 21.3-41.1
1.22 g/t
 2.05 g/t
15 OKR-305 B-5 192 -90 128.0-187.5 59.5 3.79 g/t N/D
15 OKR-306 B-7 161.5 -90 16.8-47.2 30.6 Anomalous
(0.22 g/t)
15 OKR-307 B-1 244 230/-75 89.9-112.8
0.84 g/t
0.83 g/t
15 OKR-308* B-2 234.7 -90 53.3-57.9
1.03 g/t
4.24 g/t
2.3 g/t 
6.8 g/t
15 OKR-309* B-5 213.4 50/-65 32.0-83.8
4.21 g/t
29.6 g/t 
15 OKR-310* B-4 219.5 -90 86.9-103.6
0.60 g/t
0.94 g/t

Signifies hole ended in mineralization           N/D = Not Determined

Also of importance, of the 10 holes drilled on the B Road, 6 bottomed in mineralization (all 6 holes were taken deeper than their planned depths due to the presence of strong alteration and possible mineralization, however all still ended in mineralization). These 6 holes include 4 vertical holes, hole 303 (Site B1), hole 308 (Site B2), hole 304 (Site B3), and hole 310 (Site B4), and 2 angle holes oriented N50°E, hole 302 (Site B1) and hole 309 (Site B5). Detailed review of the Drill-Hole Location Map (see Otis Gold website) reveals that the 6 holes span a distance of approximately 250 meters from east to west along the B Road from Drill Site B1 to Drill Site B5 and, as such, increase the known width of the higher-grade core area of the deposit by this distance. The higher average intercept grades that range from just over 2.0 g/t to over 4.0 g/t in holes 15 OKR-304, 305, 308, and 309 are between roughly 3.5 and 7 times that of the average grade of the Kilgore deposit and are spread throughout the B Road.

Rocks hosting the Crab Claw intercepts are mainly reactive basement calcareous and carbonaceous siltstone/shale and “salt and pepper” calcareous sandstone of the Aspen Formation of Late Cretaceous age (Ka), as well as overlying Tertiary Crystal Tuff (Tct) sill and rhyolitic material (Tpr).  Based on the above reported drill results, Company geologists are currently in the process of formulating a 2016 drill program to further test and define the currently under-evaluated potential of the Aspen Formation to host additional gold mineralization throughout the Kilgore Deposit, particularly in and around the core area where B Road intercepts clearly indicate strong potential to discover additional higher-grade mineralization, both laterally and certainly at depth. Work critical to designing this program includes building/updating and interpreting geologic cross-sections with the new drill results for the Crab Claw area, as well as conducting a thorough detailed review and reinterpretation of all recent and historic drill holes throughout the deposit to focus on those that encountered and/or bottomed in significant mineralization in the Aspen Formation, but were never followed up on.

North Target Drilling

Nine holes were drilled in the North Target area. One was drilled along the North Road, seven were drilled on the C Road, and one was drilled on the D Road. All holes were drilled to test gold-in-soil anomalies generated during a 2013 soil survey of the area that lies just north-northwest of and adjacent to the resource (see Otis Gold news release dated January 31, 2012).  The C and D Roads comprise approximately 550 metres of length and were permitted and constructed to access the anomalies for drilling.

Two of the 9 holes, 15 OKR-297 and 15 OKR-313, intersected 50-metre-thick intercepts of low-grade gold mineralization (see Table 2 below).  These intercepts along with the presence of typical Kilgore deposit characteristics and host rock types indicate that follow-up drilling is warranted for 2016.  Additional planned drilling was curtailed due to heavy snow conditions and will be completed in 2016.


Site TD
Azimuth/Angle From-To
Intercept (metres) Au Grade
15 OKR-297 N-1 183 50/-60 19.8-70.1 50.3 Anomalous
(0.2 g/t)
15 OKR-298 C-3 107 246/-55 No Significant Intercepts
15 OKR-299 C-3 128 -90 No Significant Intercepts
15 OKR-300 C-2 165 355/-60 No Significant Intercepts
15 OKR-301 C-1 91 -90 No Significant Intercepts
15 OKR-311 C-5 107 311.-60 No Significant Intercepts
15 OKR-312 C-5 153 217/-65 No Significant Intercepts
15 OKR-313 C-4 122 180/-50 70.1-120.4 50.3 Anomalous
(0.16 g/t)
15 OKR-314 D-1 107 320/-60 No Significant Intercepts

Stated Craig Lindsay, Otis President and CEO: “The 2015 drill results are a significant milestone in the ongoing development of the Kilgore Deposit. The results indicate a strong potential to materially increase the overall deposit size and grade.  We are very excited about the Crab Claw drill results, which are some of the highest grade and thickest intercepts ever drilled at Kilgore, and we remain extremely optimistic about additional expansion potential in the North Target.  While 2015 was a very good year for Kilgore, we expect 2016 to be even better as we work towards meeting the full potential of the Kilgore Deposit.”

Analysis and Otis QA/QC Program

All assay work was performed by ALS Chemex Labs, Vancouver, B.C., Canada, which has 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.

True bulk-tonnage widths are estimated at between 80% and 100% of the drilled interval, based on their estimated dip, association with diking and the orientation of sedimentary bedding, and continuity of mineralization between drill holes. Intercepts reported in Table 1 were 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 took place from September 14th through November 21st, 2015 and was performed by O’Keefe Drilling, Inc., Butte, Montana, employing a Foremost 650 Reverse Circulation drill rig outfitted with a circulating splitter, downhole hammer, and various types of drill bits.

The Qualified Person under National Instrument (NI 43‐101) Standards of Disclosure for Mineral Projects for this News Release is John R. Carden, Ph.D., Lic. Geo., who has reviewed and approved its technical content.

About the Kilgore Gold Project

The Kilgore Gold Project contains a 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 is part of an extensive zoned low-sulfidation quartz-adularia epithermal hot-spring system hosted in volcanic rocks of late Miocene age and basement Aspen Formation calcareous siltstone, shale, and sandstone of Late Cretaceous age. Gold mineralization is of the classic disseminated, bulk-tonnage type similar to that comprising the classic and world-class size 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 http://www.otisgold.com/_resources/kilgore/Column_Leach_Profiles.pdf)  and 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.


“Craig T. Lindsay”
President and CEO
For additional information, please contact:

Craig Lindsay
Tel: 604.683.2507
E-mail: craig@otisgold.com

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.