Otis Drills 55.5 Metres of 1.36 g/t Au and 30.4 Metres of 2.53 g/t Au at Kilgore
September 8, 2010
Vancouver, B.C. - Otis Gold Corp. (“Otis” or the “Company”) is pleased to announce the receipt of significant drill results comprising potentially bulk-mineable, open-pittable intercepts from the first five logged and processed holes of its 2010, 32-core hole, 6,000-metre, Kilgore Gold Project (“Kilgore”) drill program, Clark County, Idaho. Highlights of these first five drill holes, listed in Table 1 below, include intercepts of 55.5 metres (m) of 1.36 grams per tonne gold (g/t Au) in hole 10 OKC-208 and 30.4 m of 2.53 g/t Au in hole 10 OKC-210. All five holes were drilled as infills in areas where historic wide-spaced drilling resulted in gaps that require further closer spaced drilling to confirm deposit continuity.
Table 1. Otis Gold 2010 Kilgore Gold Project Drill Highlights - First Five Holes
These new intervals, in combination with other significant bulk-tonnage intercepts determined for a number of the Company’s core holes drilled during 2008 and 2009 in the nearby higher-grade Mine Ridge core area of the deposit (Otis October 7 and December 16, 2009 and March 23, 2010 News Releases), all support a high degree of confidence concerning continuity of mineralization throughout the deposit and further indicate mineralized thicknesses and average grades that are noticeably greater than those constituting the majority of the intervals comprising the historic Kilgore NI 43-101 compliant resource (Otis March 2, 2009 News Release). Based on these new results, Otis continues to expect that there is a strong possibility to increase the overall size, grade, and economic viability of the Kilgore deposit. Three dimensional computer modeling of the deposit is being initiated and is expected to be completed Winter 2011 after all the 2010 drill results have been obtained and incorporated into the database.
As a continuation of Otis’ highly successful 2008 and 2009 drilling programs of the deposit’s higher-grade, 200-metre wide, Mine Ridge core area, this year’s aggressive drill program is being conducted as first-round in-fill and extension of the much larger 800-metre-long and 400-metre-wide Kilgore deposit area surrounding Mine Ridge. Much of this area was historically drilled on extremely wide, 60- to 120-metre-spaced centers, with in-fill and extension drilling necessary to more fully and clearly evaluate the deposit. Historic drilling was conducted by Bear Creek, Pegasus Gold, Placer Dome U.S., and Echo Bay Mines from 1983-1996, while exploring the property for a bulk-tonnage gold deposit (Otis June 10, 2008 News Release). Core holes 10 OKC-208 containing 55.5 metres @ 1.36 g/t Au and 10 OKC-210 containing 30.4 metres @ 2.53 g/t Au (Table 1) indicate that additional significant bulk-tonnage gold mineralization exists and extends at least 120 metres west and east, respectively, of the deposit’s Mine Ridge core area.
Locations of these first five holes, which total 954 metres of drilling, and their corresponding assay intercepts, are shown in a drill-hole location map available on the Otis Gold Corp. website at www.otisgold.com/projects/kilgore/.
Analysis and Otis QA/QC Program
All assay work was performed by ALS Chemex Labs, Vancouver, B.C., which has ISO 9001:2008 quality management system certification and ISO 17025:2005 Vancouver Lab 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 to be between 90% and 100% of the drilled interval, based on their estimated dip, association with diking, and continuity of mineralization between drill holes. The HQ3-size core drilling is being performed by Timberline Drilling, Inc., Coeur d’Alene, Idaho, employing two Sandvik DE-140 core drills outfitted with a triple-tube core recovery system and face-discharge bits. Drilling continues on a full-time, around-the-clock basis, with all results to be reported throughout Fall 2010 as they are received.
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 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, Clark County, Idaho.
ON BEHALF OF THE BOARD
“Craig T. Lindsay”
President and CEO
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