Drills High-Grade and Bulk-Tonnage Intercepts at Kilgore

Welcome To The Otis Gold Corp HUB On AGORACOM

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Clavis

Rank: President [?]

Points: 26378 [?]

Votes: 242 Score: 3.6 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Drills High-Grade and Bulk-Tonnage Intercepts at Kilgore

posted on Dec 15, 2009 09:21AM

December 15, 2009

Otis Drills High-Grade and Bulk-Tonnage Intercepts at Kilgore

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2009) - Otis Gold Corp. ("Otis" or the "Company") (TSX:OOO) is pleased to announce significant drill results comprising both high-grade, underground and bulk-tonnage, open-pittable intercepts from the first seven assayed core holes of its ongoing 2009, 12-core hole, 3,100-metre, Kilgore Gold Project ("Kilgore") drill program, Clark County, Idaho. Highlights of the seven drill holes, listed in Table 1 below, include high-grade intercepts of 9.5 metres (m) of 11.6 grams per tonne gold (g/t Au) in hole 09 OKC-199 and 10.2 m of 9.8 g/t Au in 09 OKC-204, and bulk-tonnage intercepts of 84.8 m of 1.37 g/t Au in 09 OKC-197 and 95.6 m of 1.46 g/t Au in 09 OKC-204. All seven holes contain numerous intervals of anomalous gold mineralization, with many of the bulk-tonnage intercepts between 50-metres and 120-metres thick (see Table 2 below for further details).

Table 1. Otis Kilgore Gold Project 2009 Drill Program Highlights

          
Hole Number      From (m)    To (m)  Thickness (m)    Au g/t

09 OKC-197         101.2     186.0           84.8       1.37
 Includes          161.8     180.0           18.2       3.37
------------------------------------------------------------
09 OKC-198          68.6     166.1           97.5       0.83
 Includes           71.6      99.1           27.5       1.61
 Includes           71.6      74.4            2.8       8.80
------------------------------------------------------------
09 OKC-199          55.5     174.3          118.8       0.75
 Includes           89.3      98.8            9.5       11.6
------------------------------------------------------------
09 OKC-204          60.0     155.6           95.6       1.46
 Includes           66.8      77.0           10.2       9.80
------------------------------------------------------------

The results from these new holes confirm the presence of: (1) high-grade intercepts in high-angle, north- to northeast-trending quartz vein/stockwork breccia zones cutting an extensive and relatively flat-lying 45-metre-thick argillized structural zone where diking occurs, generally from 45-metres to 100-metres deep throughout the Mine Ridge area (9.5 m of 11.6 g/t Au in 09 OKC-199 and 10.2 m of 9.8 g/t Au in 09 OKC-204); (2) deeper, high-grade material at and along the Tertiary volcanic host rock/underlying Cretaceous Aspen sedimentary host rock contact near and at the base of the deposit, where diking occurs (2.8 metres of 9.15 g/t Au and 18.2 m of 3.37 g/t Au in 09 OKC-197); and (3) widespread, bulk-tonnage intercepts throughout the Mine Ridge area, that contain most of the high-grade intercepts (84.8 m of 1.37 g/t Au in 09 OKC-197 and 95.6 m of 1.46 g/t Au in 09 OKC-204). Visible gold was found in high-grade veins associated with dikes in three of the holes, 09 0KC-197, 199, and 204. Most of the new intervals contain mineralized thicknesses and average grades which 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). As a result, Otis believes that a strong possibility exists to increase the overall size, grade, and economic viability of the Kilgore bulk-tonnage deposit.

All holes were drilled in the Mine Ridge area, the core of the existing Kilgore deposit, to test for zones of high-grade mineralization contained within the Kilgore NI 43-101 compliant bulk-tonnage resource (Otis March 2, 2009 News Release). This area was only partially drill-tested by Bear Creek, Pegasus Gold, Placer Dome U.S., and Echo Bay Mines between 1983 and 1996, while exploring the property for a bulk-tonnage gold deposit (see Otis News Release dated June 10, 2008).

Locations of the seven holes, which total 1,737 metres of drilling, and their corresponding assay intercepts, are shown in a drill-hole location map and two geologic sections available on the Otis Gold Corp. website at http://www.otisgold.com/projects/kilgore/. The north-trending section through the Mine Ridge area shows a roughly 70-metre thick or greater section of mineralization that remains open in numerous directions. The west-trending section located normal to the southern end of the north-trending section reveals mineralization roughly 60 metres below the surface that is up to nearly 120-metres thick, 170-metres wide, and remains open in various directions. Further expansion drilling is planned in these areas during 2010.

Table 2 below provides further detailed results of the seven holes:

Table 2. Otis Kilgore Gold Project 2009 Drill Program Intercepts

Hole Number      From (m)    To (m)  Thickness (m)    Au g/t

09 OKC-195          29.8      50.2           20.4       0.77
 Includes           39.5      48.7            9.2       1.12
                   140.8     142.3            1.5       1.29
                   154.5     165.5           11.0       1.15
                   178.9     180.4            1.5       1.17
                   191.1     194.2            3.1       1.06
------------------------------------------------------------
09 OKC-196          44.1      57.0           12.9       0.66
                   158.9     160.6            1.7       1.31
                   168.2     170.5            2.3       1.15
                   228.0     229.0            1.0       1.34
------------------------------------------------------------
09 OKC-197         101.2     186.0           84.8       1.37
 Includes          161.8     186.0           24.2       2.84
 Includes          161.8     180.0           18.2       3.37
 Includes          169.4     172.2            2.8       9.15
------------------------------------------------------------
09 OKC-198          55.8      57.2            1.4       1.34
                    68.6     166.1           97.5       0.83
 Includes           68.6     123.4           54.8       1.14
 Includes           71.6      99.1           27.5       1.61
 Includes           71.6      74.4            2.8       8.80
                   137.2     144.9            7.7       1.04
                   164.3     166.1            1.8       1.19
------------------------------------------------------------
09 OKC-199          29.6      30.9            1.3       2.11
                    55.5     174.3          118.8       0.75
 Includes           65.5     105.8           40.3       1.32
 Includes           89.3     105.8           16.5       2.43
 Includes           89.3      98.8            9.5      11.60
                   164.7     174.3            9.6       1.74
------------------------------------------------------------
09 OKC-200          74.4      75.9            1.5       1.22
                    98.1     151.2           53.1       0.76
 Includes          114.9     131.2           16.3       1.41
------------------------------------------------------------
09 OKC-204          60.0     155.6           95.6       1.46
 Includes           61.9      77.0           15.1       6.84
 Includes           66.8      77.0           10.2       9.80
 Includes           73.7      77.0            3.3       31.8

Analysis and Otis QA/QC Program

All assay work was performed by ALS Chemex Labs, Vancouver, B.C., which has ISO 9001:2000 certification and operates in compliance with ISO 17025. 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. Check assays on pulps were carried out on approximately 7% of the samples by Inspectorate Labs, Reno, Nevada, with all check assay values found to be within acceptable limits.

True widths are estimated to be between 80% and 100% of the drilled interval, based on their estimated dip and continuity of mineralization between drill holes. The HQ3-size core drilling is being performed by Cabo Drilling (America), Blaine, Washington, employing a Boyles Hydra 56 - Pac Track core rig outfitted with a triple-tube core recovery system and face-discharge bits.

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 six precious metals properties in Idaho and Nevada, two of which, the Kilgore and Oakley Gold Projects, contain National Instrument Policy 43-101 compliant resources totaling in excess of 700,000 ounces of gold.

ON BEHALF OF THE BOARD

Craig T. Lindsay, President and CEO

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Please to post a reply