Otis Drills Additional High-Grade Gold Intercepts at Kilgore
April 7, 2009
Vancouver, B.C. - Otis Gold Corp. (“Otis” or the “Company”) is pleased to announce the receipt of favorable drilling results from the last two holes of a four core-hole, late Fall 2008, 2,083-foot drill program at its Kilgore Gold Project, Clark County, Idaho. The results further expand upon and extend targeted high-grade intercepts found in the program’s first two holes and further confirm the presence of high-grade gold values from potentially mineable thicknesses and intervals within a higher-grade core zone in the Kilgore Mine Ridge area (see Otis News Release dated March 2, 2009). The new results also provide details regarding the attitudes and structural controls of some of the quartz stockwork vein-type gold mineralization present. Otis is in the process of exploring the Mine Ridge area for the presence of a high-grade deposit that can be exploited by underground mining methods.
The results, detailed in the Table below, are based on a 0.050 opt Au cutoff grade. Hole 08 OKC-192 was collared approximately 230 feet north of and angled south toward Otis’ core hole 08 OKC-191, which was drilled earlier in the four-hole program and contains high-grade intervals of 4.3’ @ 1.767 opt Au, 27.2’ @ 0.382 opt Au, and 5.9’ @ 1.581 opt Au (see Otis News Release dated March 2, 2009). Comparison between these two holes shows that the 12.9-foot thick interval grading 0.177 opt Au in core hole 08 OKC-192, which has a higher-grade core vein zone of 7.0’ @ 0.264 opt Au (see Table below), correlates with and exists as the north-northeasterly downdip projection of the 27.2-foot thick interval grading 0.382 opt Au in hole 08 OKC-191.
|Hole Number||Interval(ft)||Thickness Feet
|08 OKC-192||122.0 - 127.0||5.0
|0.225 opt Au||7.714|
|292.0 - 304.9||12.9
|0.177 opt Au||6.069|
|292.0 - 299.0||7.0
|0.264 opt Au||9.051|
|08 OKC-194||84.6 - 88.0||3.4
|0.100 opt Au||3.429|
|613.0 - 633.0||20.0
|1.595 opt Ag||54.686|
1 Tonne is a metric tonne which is equal to 1.1023 short tons
Further comparison and correlation of detailed geology and structure from core logging and of gold assay values between these two holes, as well as of nearby historic Echo Bay core hole MET-5 containing 45.0’ @ 0.331 opt Au, all now indicate the presence of a structurally-controlled, high-grade gold vein zone system that exists at a depth of between 240 feet and 312 feet and is west-northwest striking and north-northeast dipping. Offset and extension drilling of this zone is planned during the upcoming 2009 field season.
The second hole (fourth hole of Otis’ four core-hole program), 08 OKC-194, was collared approximately 125 feet east of Otis’ high-grade core hole 08 OKC-191 mentioned above and drilled along a northwest bearing. However, because of its steep -80° angle and northwest bearing, it ended up too far northeast and out in front of the west-northwest-trending, north-northeast-dipping gold vein zone system defined by Otis’ other three core holes. Hole 08 OKC-194 still intersected some shallow 0.100 opt Au material (see Table), as well as a string of increasing silver values near and at its bottom (see Table, 20.0’ @ 1.595 opt Ag from 613.0 feet to 633.0 feet). Furthermore, the lower 90 feet of the hole exhibits intense brecciation and alteration in the form of silica and silica quartz vein replacement of the lithic tuff host rock, with as much as 80 percent of the tuff replaced by quartz stockwork veins and veinlets at the bottom of the hole. Otis geologists believe these features are indicative of a large hydrothermal source at depth that may have fed the shallower high-grade gold mineralization at Kilgore. Deeper drilling is planned to test this source and possible related feeder structures during the 2009 season.
The Kilgore Gold Project comprises a large, 5 square mile, volcanic-hosted epithermal gold system situated on the northern margin of the eastern Snake River Plain. Pliocene-age mineralization is hosted in Miocene lithic and crystal tuff on the margin of a caldera setting. Mineralization style and setting, host rock type, thickness, and overall size of the mineralizing system are analogous to those characterizing the Round Mountain, Nevada and McDonald Meadows, Montana multi-million ounce volcanic-hosted disseminated gold deposits, where high-grade, coarse-gold feeder veins also exist.
Analysis and Otis QA/QC Program
All assay work was performed by ALS Chemex Labs, Vancouver, B.C., which has ISO 9001:2000 certification. A 50-gram pulp of all samples was assayed for gold by Fire Assay/AA finish methods. Subsequently, all samples containing greater than 10 ppm Au and all adjacent intervals were prepped into a larger 1 kg sample from the original sample reject and assayed by metallic screen analysis to check for the occurrence of gold in both the coarse +150 mesh and fine-grained -150 mesh fractions making up each sample. Analytical accuracy and precision were monitored by the use of commercially purchased reagent blanks, reference samples, and sample duplicates which were randomly inserted into the sample stream. Additionally, Otis selects duplicate samples that are submitted to a third party lab for separate confirmation analysis.
The HQ-size core drilling was conducted by Timberline Drilling Inc. of Coeur d’Alene, Idaho in November and early December 2008 employing a Boart Longyear LF 70 model core drill outfitted with a split-tube core recovery system and face-discharge bits. Total depth of holes O8 OKC-192 and 08 OKC-194 is 501.0 feet and 663.0 feet, respectively. Down-hole directional surveys were performed on the holes to check for drift and to provide accurate sub-surface locational data information regarding three-dimensional computerized modeling of drill results. Otis is currently working to earn a 75% joint venture interest in the property from its JV partner Bayswater Uranium Corp. (see Otis News Release dated June 10, 2008).
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 currently owns five precious metal projects located in Idaho and Nevada, two of which, including Kilgore, have NI 43-101 compliant resources totaling in excess of 700,000 ounces of gold.
ON BEHALF OF THE BOARD
“Craig T. Lindsay”
President and CEO
For additional information, please contact:
Tel: 604.683.2507 Fax: 604.683.2506
#350 - 409 Granville Street, Vancouver, B.C., V6C 1T2
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