The primary goal of the drill program was to follow-up on open-ended drilling at depth and laterally as infill on drill intercepts achieved in 2015 and 2016, primarily in the prospective Late Cretaceous Aspen Formation (or “Aspen”) sedimentary host unit within and along the “Aspen Corridor” (see News Releases dated February 9, 2016, and January 19, 2017). Timberline Drilling of Hayden, Idaho performed all the drilling employing two Atlas Copco CS14 track-mounted core rigs.
Holes OKC-375 and 17 OKC-378, located on sections 11,500N and 11,800N, respectively, were PQ-sized holes (diameter 3.35”) drilled to twin smaller HQ-sized holes (diameter 2.50”) previously drilled at the same sites (holes 17 OKC-357 and 16 OKC-326). This drilling was performed to evaluate how gold grade and the distribution of gold may be a function of the volume of material being sampled, and whether larger sample sizes will produce higher gold grades that are potentially more representative of the underlying gold grades at Kilgore.
Specifically, the unsplit 5-foot interval of PQ core has a volume that is 259% larger than the HQ core (a volume of 2,115.4 in3 with the PQ core compared to a volume of 589 in3 with the split HQ core.) In both cases, the PQ holes contain more gold (higher average grade mineralized intercepts) than the split HQ holes. A comparison of gold grades from PQ and HQ twin holes for the same mineralized intervals (same thickness and depth) shows that PQ hole 17 OKC-375 contains an average grade that is 262% greater than its HQ twin counterpart, hole 17 OKC-357 (53.3-m-thick intercept from 98.5 m to 151.8 m) (see Table 1 above). Similarly, comparison of gold grades of PQ and HQ twins 17 OKC-378 and 16 OKC-326 for the same mineralized interval studied (100.2 m from 97.5 m to 197.7 m) shows a 42.3% increase in grade for the PQ hole compared with the HQ hole (see Table 1 above and Otis New Release dated October 31, 2016). It should be noted that the majority of historical exploration drilling at Kilgore completed by Otis and prior operators was completed with HQ and NQ (diameter 1.87”) core, most of which was split for assay purposes.
It would appear from the limited testing to date using larger sample size results in higher grade intercepts that could be potentially more representative of the underlying gold grades that exist at Kilgore. From the above, Otis is now examining the merits of drilling additional PQ holes to determine if the gold grades throughout the deposit could have a negative bias in reported grade or, in other words, be under-reported.
Holes 17 OKC-367 and 17 OKC-369 are located on sections 11,700N and 11,800N, respectively. These holes targeted the Aspen Formation at depth and laterally in the “Segment 1 Road” area of the Aspen Corridor. Hole 17 OKC-367 was drilled to determine the extent of mineralization in the Aspen Formation in the southeastern part of the Aspen Corridor, and hole 17 OKC-369 was drilled to test the northeastern boundary of the Corridor in the same general area. Hole 17 OKC-367, which was a vertical hole, was successful in extending mineralization deeper into the Aspen, and hole 17 OKC-369 served to define the limit of the Corridor and the deposit (hole contained no significant values), bounding the mineralization to the southeast.
Otis President & CEO, Craig Lindsay, stated: “Drilling continues to demonstrate the continuity of the Kilgore Deposit. Just as importantly, as with prior years’ drilling, we continue to find new opportunities for expansion such as that which exists at the southeastern end of the Deposit around the high-grade intercept in Hole 17 OKC-373. PQ/HQ core studies will continue.”
Analysis and QA/QC Program
All assay work is being performed by ALS Chemex Labs, 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. RockLabs certified reference material and internally generated blanks are inserted into the sample stream every10 samples for quality control.
True widths are estimated between 80% and 100% of the drilled interval, based on their approximate dip, association with diking, the orientation of sedimentary bedding, and continuity of mineralization between drill holes. Intercepts reported in Table 1 are calculated using a 0.20 g/t Au cutoff grade and may include a few internal waste intervals less than 4.5 m using this cutoff.
The qualified person under National Instrument (NI 43-101) Standards of Disclosure for this News Release is Bruno Barde, 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. The preparation of an updated NI 43-101 compliant resource calculation is ongoing and will include drilling completed in 2015 and 2016; this resource estimate will be released when available.
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, located in Clark County, Idaho and the Oakley Project, located in Cassia County, Idaho.
ON BEHALF OF THE BOARD
“Craig T. Lindsay”
President and CEO
For additional information, please contact:
Mr. Tony Perri – Corporate Development
Tel: (604) 424-8100 Email: tony@otisgold.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
The forward-looking information contained in this press release is made as of the date hereof, and Otis undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. 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.
Figures accompanying this announcement are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/f29c8a1c-8aa0-428b-8c84-daf9383c65d2
http://www.globenewswire.com/NewsRoom/AttachmentNg/6a45386e-cdb0-461c-93ec-fda3f675264b