Jul 20 2017
Otis Gold Corp. is pleased to announce that it has commenced an approximately 25 hole, 8,000 metre drill program at the Kilgore Project, Clark County, Idaho.
The primary goal of the drill program is to follow up at depth on drill intercepts achieved in 2016 at the existing Kilgore Deposit, primarily in the prospective Aspen Formation host unit (see News Release dated January 19, 2017). Further, 2 of the planned holes will be drilled for metallurgical test purposes. Drilling will continue through November and results will be announced as they become available. All drilling will be conducted by Timberline Drilling of Hayden Lake, Idaho employing two Atlas Copco CS-14 track-mounted core rigs.
On a parallel basis, the Company is implementing an approximately 250 line-kilometre ground magnetometer survey to complement the magnetic survey work completed in 2016 (see April 12, 2017 News Release). Upon completion of this program, Otis will have ground magnetic coverage over its entire Kilgore land package.
Also, Otis has commenced a sampling program comprising approximately 2,500 soil and rock-chip samples to expand coverage of the existing soils database. These new data, when factored with structural information, geology and the magnetic data, will be used to plan exploration drilling for 2018 and beyond as the Company continues to explore for additional deposits along the Kilgore Caldera margin.
Finally, Otis announces that it has acquired several airborne surveys flown initially by Aerodat Inc, for Echo Bay Mines Ltd, in the early-1990s. The data, secured from a subsidiary of Fugro Geophysics of Toronto, Canada, includes a GPS registered airborne magnetic survey, several channels of radiometrics and an airborne resistivity survey. The information will be integrated with other geologic data accumulated on the property for drill targeting purposes. Of particular interest is the resistivity data which shows good correlation with the Kilgore deposit and its northern extension. The potassium channel on the radiometric survey will be useful in targeting other areas on the property containing the quartz-adularia signature characteristics of the Kilgore deposit. Adularia is a low-temperature potassium feldspar that typically forms in lower temperature hydrothermal deposits and has a significant radiometric response due to the presence of the potassium-40 (40K) isotope in its mineral lattice.
The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects for this News Release is Paul Gray, P. Geo, who has reviewed and approved its technical content.
About the Kilgore Project
The Kilgore Project contains a current NI 43-101 (dated September 12, 2012) Indicated Resource of 520,000 ounces (oz.) Au in 27.4 million tonnes at a grade of 0.59 g/t Au and an Inferred Resource of 300,000 oz. Au in 20.2 million tonnes at a grade of 0.46 g/t Au (the “Deposit”). The Deposit is part of an extensive low-sulfidation quartz-adularia epithermal hydrothermal system hosted in Tertiary volcanic rocks and basement Aspen Formation calcareous siltstone, shale, and sandstone of Late Cretaceous age. Gold mineralization is of the traditional disseminated, bulk-tonnage type similar to that comprising the classic volcanic-hosted gold deposits at Round Mountain, Nevada and McDonald Meadows, Montana. A new NI 43-101 compliant resource calculation is planned for Q3/Q4 2017 to include mineralization in the underlying Aspen Formation.