Otis Acquires Cold Creek Gold Project
October 9, 2008
VANCOUVER, B.C. - Otis Capital Corp. (‘Otis’ or the ‘Company’) is pleased to announce the acquisition, via staking, of the Cold Creek Gold Project (‘Cold Creek’), an intermediate-stage, epithermal hot spring-type precious metals exploration target located in Cassia County, Idaho. Cold Creek comprises 53 unpatented federal lode mining claims located approximately 6 miles north of the Company’s existing Blue Hill Creek Gold Project. Work presently being conducted at Cold Creek, and concurrently at Blue Hill Creek, includes detailed geological mapping and geochemical sampling and a ground-based CSAMT survey. Additionally, the Company is in the process of acquiring additional land located in the area of the two projects that effectively creates a district-wide play encompassing approximately 1,500 to 2,000 acres.
Gold mineralization at Cold Creek was originally discovered by Meridian Minerals in the summer of 1985. This mineralization is at the northern end of a larger, north-trending, 5-mile-long by 1-mile-wide belt of precious metal occurrences along the western margin of the Albion Range metamorphic core complex. At Cold Creek, alteration and gold mineralization are hosted by Tertiary Salt Lake Formation epiclastic sedimentary and tuffaceous volcanic rocks within a northwest-trending, fault-bounded graben. Pervasive silicification and local strong chalcedonic quartz veining are the primary alteration types present at the main target in the altered zone. This zone, at least 5,000-feet long and up to 3,500-feet wide, contains surface gold values to 0.060 opt. Mineralization appears related to north- and northeast-trending, high-angle structures. The margins of the graben remain unexplored.
A total of 9,205 feet in thirty-eight (38) RC holes was drilled by Meridian in 1986 and 1987 and by WestGold in 1988 to partially test the Tertiary-hosted target. Results of this drilling define a non-NI 43-101 compliant 85,000 ounce gold resource that is still open in every direction laterally. The reader is cautioned that Otis is not treating the estimate as a current mineral resource as it has not been verified and therefore should not be relied upon. Of the thirty-eight (38) holes drilled, fifteen (15) encountered significant intercepts of near-surface gold mineralization greater than 0.020 opt, as well as extensive zones of silicification. Some of the higher grade and thicker intercepts include 30 feet @ 0.063 opt Au (hole CC 87-29), 40 feet @ 0.048 opt Au (hole CC 86-14), 150 feet @ 0.020 opt Au (hole CC 86-12), and 260 feet @ 0.014 opt Au (hole CC 86-13). These results confirm the presence of significant thicknesses of mineralization in the known resource area, as well as the potential for additional mineralization along the open-ended, lateral extensions of the deposit.
The possibility of finding additional Tertiary-hosted resources at Cold Creek is considered good and specifically exists in the following areas: 1) within the main resource area where the deposit requires further in-fill and extension drilling; 2) within and along the extensions of the north- to northeast-trending vein zones in the main mineralized area where higher-grade feeders may exist; and 3) along the northwest extension and margins of the northwest-trending graben containing the mineralization. Furthermore, additional potential exists for possible high-grade, feeder-type mineralization, which may be present at depth in Paleozoic carbonate basement rocks underlying the mineralized Tertiary section.
John R. Carden, Ph.D., P. Geo., a Qualified Person (QP) as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this news release.
ON BEHALF OF THE BOARD
“Craig T. Lindsay”
For additional information please contact:
Tel: 604.683.2507 Fax: 604.683.2506
# 350-409 Granville St., Vancouver, BC, V6C 1T2 T. 604.683.2507 F: 604.683.2506
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