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Otis Gold Corp. ("Otis" or the
"Company") (TSX:OOO
- News)(PINK SHEETS:OGLDF - News) is pleased to
announce the receipt of significant drill results comprising potentially
bulk-mineable, open-pittable intercepts from the first five logged and
processed holes of its 2010, 32-core hole, 6,000-metre, Kilgore Gold Project
("Kilgore") drill program, Clark County, Idaho. Highlights of these
first five drill holes, listed in Table 1 below, include intercepts of 55.5
metres (m) of 1.36 grams per tonne gold (g/t Au) in hole 10 OKC-208 and 30.4
m of 2.53 g/t Au in hole 10 OKC-210. All five holes were drilled as infills
in areas where historic wide-spaced drilling resulted in gaps that require
further closer spaced drilling to confirm deposit continuity.
Table 1. Otis Gold 2010 Kilgore Gold Project
Drill Highlights - First Five Holes
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Hole From To Thickness Grade
Number (metres) (metres) (metres) (g/t Au)
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10 OKC-207 10.1 23.8 13.7 2.17
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57.3 60.3 3.0 0.66
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69.5 74.1 4.6 1.87
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87.8 93.8 6.0 0.56
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10 OKC-208 69.8 85.0 15.2 1.15
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103.3 104.9 1.6 1.49
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130.8 186.3 55.5 1.36
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includes 130.8 169.5 38.7 1.78
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10 OKC-209 52.7 54.3 1.6 1.73
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83.2 86.2 3.0 1.00
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95.4 109.0 13.6 0.65
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10 OKC-210 86.3 116.7 30.4 2.53
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10 OKC-212 51.2 60.3 9.1 0.82
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These new intervals, in combination with
other significant bulk-tonnage intercepts determined for a number of the
Company's core holes drilled during 2008 and 2009 in the nearby higher-grade
Mine Ridge core area of the deposit (Otis October 7 and December 16, 2009 and
March 23, 2010 News Releases), all support a high degree of confidence
concerning continuity of mineralization throughout the deposit and further
indicate mineralized thicknesses and average grades that 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). Based on these new results, Otis continues to expect that there is
a strong possibility to increase the overall size, grade, and economic
viability of the Kilgore deposit. Three dimensional computer modeling of the
deposit is being initiated and is expected to be completed Winter 2011 after
all the 2010 drill results have been obtained and incorporated into the
database.
As a continuation of Otis' highly
successful 2008 and 2009 drilling programs of the deposit's higher-grade,
200-metre wide, Mine Ridge core area, this year's aggressive drill program is
being conducted as first-round in-fill and extension of the much larger
800-metre-long and 400-metre-wide Kilgore deposit area surrounding Mine
Ridge. Much of this area was historically drilled on extremely wide, 60- to
120-metre-spaced centers, with in-fill and extension drilling necessary to
more fully and clearly evaluate the deposit. Historic drilling was conducted
by Bear Creek, Pegasus Gold, Placer Dome U.S., and Echo Bay Mines from
1983-1996, while exploring the property for a bulk-tonnage gold deposit (Otis
June 10, 2008 News Release). Core holes 10 OKC-208 containing 55.5 metres @
1.36 g/t Au and 10 OKC-210 containing 30.4 metres @ 2.53 g/t Au (Table 1)
indicate that additional significant bulk-tonnage gold mineralization exists
and extends at least 120 metres west and east, respectively, of the deposit's
Mine Ridge core area.
Locations of these first five holes,
which total 954 metres of drilling, and their corresponding assay intercepts,
are shown in a drill-hole location map available on the Otis Gold Corp.
website at www.otisgold.com/projects/kilgore/.
Analysis and Otis QA/QC Program
All assay work was performed by ALS Chemex
Labs, Vancouver, B.C., which has ISO 9001:2008 quality management system
certification and ISO 17025:2005 Vancouver Lab 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.
True bulk-tonnage widths are estimated
to be between 90% 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, with all results
to be reported throughout Fall 2010 as they are received.
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 is a resource company focused on
the acquisition, exploration, and development of precious metal deposits in
Idaho, USA. Otis is currently developing its flagship property, the Kilgore
Gold Project, Clark County, Idaho.
ON BEHALF OF THE BOARD
Craig T. Lindsay, President and 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 "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.
The TSX Venture Exchange has neither
approved or disapproved of the contents herein.
Contact:
Contacts:
Otis Gold Corp.
Craig Lindsay
604.683.2507
604.683.2506 (FAX)
craig@otisgold.com
www.otisgold.com
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