Otis Completes Drilling at Kilgore
Vancouver, B.C. - December 13, 2019 - Otis Gold Corp. (“Otis” or the “Company”) (TSX-V: OOO) (OTC: OGLDF) is pleased to announce the completion of drilling operations at its flagship Kilgore Project, Clark County, Idaho. The program comprised 11 reverse-circulation (“RC”) holes totaling 8,415 feet (2,565 metres) and was designed to step-off the current margins of the Kilgore Deposit as defined by the 0.1 g/t gold grade shell (see Kilgore 2019 Drill Plan Map). All samples have been delivered to ALS Geochemistry in Elko, Nevada and assay results will be released when available.
The 2019 drill program was conducted by Alford Drilling of Butte, Montana and Major Drilling of Salt Lake City, Utah using Foremost 1500 and Schramm 450 reverse circulation drill rigs respectively. Drilling was carried out using downhole hammers with face sampling drill bits and continued with face sampling, deep hole tricone bits when the hammer bits “watered-out”. All holes were drilled without water injection.
All downhole surveys were conducted by International Directional Services of Elko, Nevada using a downhole, north seeking gyro survey tool. Final drill hole locations were taken using hand-held GPS and will be resurveyed by sub-meter GPS in the Spring. All holes were abandoned bottom-top and have been located using cement-rebar monuments.
Alan Roberts, MSc, CPG, Vice President of Exploration, serves as the Qualified Person for this news release and has reviewed and approved the technical content contained herein.
About the Kilgore Project
The Kilgore Project lies on the north-eastern margin of the Miocene-Pliocene Kilgore Caldera complex in the Eastern Snake River Plain, Idaho. The Kilgore Project contains the Kilgore Deposit with a current NI 43-101 Indicated Resource of 825,000 ounces Au in 44.6 million tonnes at a grade of 0.58 g/t Au and an Inferred Resource of 136,000 ounces Au in 9.4 million tonnes at a grade of 0.45 g/t Au. The maiden Preliminary Economic Assessment (or “PEA”) showed an NPV (5% discount rate) of US$110.4 million and IRR of 34.0%, with a 3.0-year payback period and LOM net cash flow of US$151.8 million at $1,300 gold price. The Kilgore Deposit is a low-sulphidation, gold bearing, quartz-adularia epithermal system hosted in Tertiary volcanic rocks, local Tertiary intrusive rocks, and basement Late Cretaceous, Aspen Formation sedimentary rocks.
ON BEHALF OF THE BOARD
“Craig T. Lindsay”
President & CEO
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