(Dallas, TX. – October 7, 2011) StockGuru Shines its Spotlight on Otis Gold Corp. (TSX-V: OOO)(OTCQX: OGLDF)(PINK SHEETS: OGLDF). The Company announced yesterday that it has encountered new ore-grade intercepts in excess of 100-metres thick from its most recent round of drilling at the Kilgore Gold Project (“Kilgore”), Clark County, Idaho. The Company closed on October 6, 2011, at $0.293, up eighteen percent and trading in a fifty-two week range of $0.84 – 0.24.
These results are groundbreaking as collectively they define a significant extension of bulk-tonnage gold mineralization at the Kilgore Mine Ridge deposit. These intercepts (see Table 1), the thickest and some of the shallowest and stronger ones drilled by Otis since acquiring the project in 2008, are all open-ended and collectively extend the deposit an additional 150 metres to the northwest.
Intercepts include:
| 1) | 114.3 metres (m) @ 0.89 grams per tonne gold (g/t Au), that includes 80.8 m @ 1.10 g/t Au in hole 11 OKC-258, and |
| 2) | 118.8 m @ 0.89 g/t Au, that includes 36.5 m @ 1.65 g/t Au in hole 11 OKC-259 |
The new intercepts defining the new Mine Ridge northwest extension of mineralization are shallow, beginning at depths between 6 metres and 35 metres, and as such further enhance the potential mineability of the Kilgore Mine Ridge bulk-tonnage deposit. Of the five holes reported in this news release, four of them, 11 OKC-256, 258, 259, and 260, are located in this new extension area, and the fifth hole, 11 OKC-257, which contains 50.3 m @ 0.70 g/t Au, was drilled as an infill in the central part of the deposit.
Otis’ Chief Geologist Mitch Bernardi states, “These intercepts represent the thickest and shallowest part of the Mine Ridge deposit encountered to date in an area previously thought to represent the boundary or edge of the deposit. The intercepts found in holes 11 OKC-256, 258, 259, and 260, along the northwestern edge of the deposit, are associated with a thick dike or sill and suggest a new area of significant open-ended gold mineralization has been discovered with economics that can only improve those of the overall deposit, which is already good.”
Table 1: Otis Gold 2011 Kilgore Gold Project Drill Highlights – Second Round of Five holes
| Hole Number |
From (metres) |
To (metres) |
Thickness (metres) |
Grade (g/t Au) |
| 11 OKC-256 | 22.9 | 57.9 | 35.0 | 0.88 |
| includes | 22.9 | 39.6 | 16.7 | 1.03 |
| 85.3 | 88.4 | 3.1 | 3.49 | |
| 11 OKC-257 | 29.3 | 79.6 | 50.3 | 0.70 |
| includes | 61.3 | 79.6 | 18.3 | 1.13 |
| 11 OKC-258 | 6.1 | 120.4 | 114.3 | 0.89 |
| includes | 6.1 | 86.9 | 80.8 | 1.10 |
| 11 OKC-259 | 35.1 | 153.9 | 118.8 | 0.89 |
| includes | 35.1 | 132.6 | 97.5 | 1.01 |
| includes | 93.0 | 129.5 | 36.5 | 1.65 |
| 11 OKC-260 | 155.4 | 185.9 | 30.5 | 0.81 |
Note: The gold grade calculation is a weighted mean with a 0.350 g/t top and bottom cutoff. The grade calculation includes internal waste and low-grade sections. The orientation of these drill holes is a 230° azimuth to intercept the general strike of the deposit and structural features (i.e. Northwest Fault) at right angles so as to provide a close approximation to true thickness.
Based on these new results, Otis expects that there is a strong probability to increase the overall size and economic viability of the Kilgore Mine Ridge deposit. The Company is allocating additional time for the preparation of its ongoing independent NI 43-101 resource estimate to consider the inclusion of these new results in the resource estimate, to allow a comprehensive review and vetting of the historic drill results and for completion of a new geologic interpretation of the controls on gold mineralization at Mine Ridge. This extended timeframe will ensure that the Kilgore resource estimate adheres to CIM Best Practice Guidelines, and complies with NI 43-101 reporting requirements.
The five holes reported in this news release, which total 1,173 metres of drilling, and their corresponding assay intercepts, are shown in a drill-hole location map available on the Otis Gold Corp. website at http://www.otisgold.com/_resources/kilgore/kilgore_drill_map.pdf.
Analysis and Otis QA/QC Program
All assay work was performed by ALS Chemex Labs, Elko, Nevada, which has ISO 9001:2008 quality management system certification and ISO 17025:2005 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 and approximately 10% of the samples are sent out to a second lab for check assays.
True bulk-tonnage thicknesses are estimated to be between 80% 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. Currently, due to the high volume and backlog of samples submitted to geochemical labs as a result of intense drilling activity for gold in the United States, ALS Chemex is running at about 25 to 30 days turnaround time. Therefore, the results for the projected 28 remaining holes drilled in 2011 will be reported as they are received through the fall of 2011 and into the early winter of 2012.
The Qualified Person under National Instrument (NI 43‐101) Standards of Disclosure for Mineral Projects for this news release is John R. Carden, PhD, Lic. Geo., and Consulting Geologist for Otis Gold Corp., who has reviewed and approved its technical contents.
About The Company
Otis Gold Corp. is a Canadian-based mineral exploration company focused on the acquisition and development of quality precious metal deposits in Idaho, USA. Otis is currently developing its flagship property, the Kilgore Gold Project, located in Clark County, Idaho (approx. 60 miles north of Idaho Falls).
ON BEHALF OF THE BOARD
Craig T. Lindsay, President & CEO
This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “US Securities Act”) or any State securities laws, and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable State securities laws, or an exemption from such registration is available.
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