Otis Drills 85.4 Metres @ 2.50 g/t Au and 69.1 Metres @ 2.07 g/t Au at Kilgore
Drill Program Highlights
Highlights of the drill results to date and of importance to the future development of the Kilgore Gold Deposit (or the "Kilgore Deposit") include:
Drill Program Background and Details of Drilling Results
The 40-hole 2016 drill program was designed from an updated set of geologic cross sections and long sections containing all historic Kilgore drill results through 2015. Based on these sections, drill holes were selected to target mineralization at depth in the Aspen Formation and to infill and define the limits of the current resource. Selected hole locations targeting the Aspen Formation at depth are focused along the Main Road, Segment 1 Road, North Road and "B" Road areas (the location of the Crab Claw drilling completed in 2015 and reported in early 2016 - see Otis News Release dated January 14, 2016 News). Drill holes in this area were selected to infill and define the limits of the resource and are mostly located in the southwestern part of the deposit where historic drilling is sparse.
Craig Lindsay, Otis President and CEO states: "We continue to be encouraged by the excellent results we are encountering in both the Lithic Tuff horizon, host to a majority of the existing mineralization at Kilgore, and the Aspen Formation, a rapidly-emerging gold host that is becoming better understood by Otis with each successive drill hole. It is very clear to us that the Aspen Formation sedimentary unit is a critically important feature of gold mineralization at Kilgore and for the potential expansion of the deposit. Lastly, we are pleased to have completed the expanded 40 hole drill program on budget and on time."
The 13 drill holes reported in this news release, and assays and drill intercepts from the 15 holes announced on September 26 and October 31, 2016, are presented in a drill-hole location map available on the Otis Gold Corp. website here.
Analysis and Otis QA/QC Program
All assay work is being performed by ALS Chemex Labs located in Reno, Nevada and Vancouver, British Columbia, which has quality management system certification and technical capability accreditation. A 50-gram pulp of all samples is assayed for gold by Fire Assay/AA finish methods. Certified reference materials, duplicates, and blanks are inserted into the sample stream for quality control.
Intercepts reported in Table 1 are calculated using a 0.25 g/t Au cutoff grade and may include a few internal waste intervals less than this cutoff. The RC drilling reported in this release was conducted by O'Keefe Drilling, Inc., Butte, Montana, employing a Foremost 650 Reverse Circulation drill rig outfitted with a circulating wet splitter. The core drilling was conducted by Timberline Drilling of Hayden, Idaho employing two rigs, a DE-140 NQ core rig and an LF-90 HQ core rig. The Qualified Person under National Instrument (NI 43‐101) Standards of Disclosure for Mineral Projects for this News Release is Paul D. Gray, P. Geo, who has reviewed and approved its technical content.
About the Kilgore Gold Project
The Kilgore Gold Project contains a current (dated September 12, 2012) NI 43-101 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. The deposit features very attractive metallurgy with excellent gold recovery averaging greater than 80% at 1.5" crush size based on column leach test results (see Otis News Release dated June 5, 2012).