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October 21, 2009 OOO (TSX)
Vancouver, B.C. - Otis Gold Corp. ("Otis" or the "Company") is pleased to announce that it has received final approval from the U.S. Forest Service regarding the Company's Notice of Intent to conduct an 8.5-line-km Controlled-Source Audio-Frequency Magnetotellurics ("CSAMT") geophysical survey over its "Dog Bone Ridge" target, Kilgore Gold Project ("Kilgore"), Clark County, Idaho. This area, which comprises Otis' second main gold target at Kilgore, is located 1.2 kilometers southwest of the Company's 3,000- to 3,700-meter drilling campaign that is currently in progress to expand its "Mine Ridge" deposit. The new survey is slated to be conducted over an incompletely explored, volcanic-hosted setting, obscured by a sinter blanket and explosion breccia, which comprises the core of the Kilgore epithermal system and caps the paleosurface. This high-resolution geophysical survey is designed to explore a suspected northwest-striking fault system below the silica-rich cap rock where lithic lapilli tuff, identical to that hosting the Mine Ridge deposit, is known to exist.
The CSAMT survey will be conducted over a 2.6 square kilometer area covering what has been referred to as "Dog Bone Ridge," where widely scattered historic drilling was successful in encountering significant thicknesses of rock containing gold mineralization below the sinter cap. As an example, a 2004 core hole, KG 04-2, encountered 51.8 meters @ 1.25 gpt Au, including 3 meters grading 14.5 gpt Au.
Otis Chief Geologist Mitch Bernardi states: "In the past, drilling by predecessor companies was hindered by the presence of a 40-m thick capping sinter blanketing the area and obscuring the mineralization known to exist in the underlying lithic tuff host rock. This survey will give us the tools to intelligently interpret the structure responsible for mineralization concealed underneath the sinter cap and target the areas most likely to contain ore-grade gold mineralization."
The Company expects that this new geophysical survey will reveal zoning, intrinsic to many high-level hydrothermal systems, where high-resistivity silicified feeders and structures, often accompanied by gold, are zoned outward to low-resistivity envelopes characteristic of argillic and propyllitic alteration assemblages. This survey will increase Otis' potential of discovering additional gold mineralization in this portion of the fully intact hydrothermal system, which has historically not been systematically or consistently explored.
Zonge Geosciences Inc., Sparks, Nevada, will conduct the CSAMT survey slated to commence October 22, 2009, with results to be released in November after Otis geologists interpret the data. The Company plans to permit and commit several drill holes on identified anomalies at "Dog Bone Ridge," to determine whether a second deposit containing ore-grade gold may exist under the silica apron. The proposed drilling will take place as part of the continuation of the Company's planned 2010 definition-drilling program. Otis Gold is approximately halfway through its planned 2009 drilling program at Mine Ridge.
Between 1983 and 1996, a total of 122,257 feet of drilling in 190 holes was conducted on the Kilgore deposit by Bear Creek, Placer Dome U.S., Pegasus Gold, and Echo Bay Mines with the goal of defining a +1 million ounce bulk-tonnage, open-pittable gold deposit. A number of 43-101 non-compliant resource estimates were computed on the bulk-tonnage mineralization by Placer Dome U.S. and Echo Bay Mines. These estimates indicate a global resource of between 561,000 and 706,000 ounces of gold contained in the deposit depending on the cutoff grade used and the Company conducting the estimate (see Otis News Release dated June 10, 2008). These estimates, which are based on the above noted drilling, are mentioned for historic and reference purposes only, the issuer is not treating them as current mineral resources, and they are not to be relied upon. Subsequent to these estimates, in 2002 Rayner and Associates and Van Brunt conducted a NI 43-101 compliant resource estimate on the Kilgore bulk-tonnage deposit. Their estimate comprises 218,000 ounces of indicated gold (7.043 MM tons @ 0.031 opt Au, 0.010 Au cutoff) and 269,000 ounces of inferred gold (9.661 MM tons @ 0.028 opt Au, 0.010 opt Au cutoff).
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 metals projects located in Idaho and Nevada, two of which, including Kilgore, contain NI 43-101 compliant resources totaling in excess of 700,000 ounces of gold. Otis can earn up to a 75% interest in the Kilgore property by fulfilling the terms of an agreement dated June 4, 2008 between Otis and its joint venture partner.
ON BEHALF OF THE BOARD
"Craig T. Lindsay"
President and CEO
For additional information, please contact:
Craig Lindsay Mike Belantis
Tel: 604.683.2507 Tel: 403.701.7299
E-mail: craig@otisgold.com Email: mike@otisgold.com
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN.
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 "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Copyright (c) 2009 Thenewswire.ca - All rights reserved.
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