VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 18, 2014) - Otis Gold Corp. (TSX VENTURE:OOO)(OGLDF) ("Otis" or the "Company") is pleased to announce that it has recently staked 41 Federal lode-mining claims to cover its new Matrix Creek silver-gold target that is located within its larger Oakley Project, Cassia County, Idaho. In addition to these claims, the Company has applied for a 320-acre state lease with the Idaho Department of Lands. This increases Otis' total land holdings at Oakley to 2,350 acres. Matrix Creek is a detachment-related silver-gold target located approximately 1 mile southeast of the company's Blue Hill Creek target, which is currently optioned to Radius Gold Inc. ("Radius") and contains an historic Inferred 235,000 ounce gold resource (see News Release dated July 14, 2014). The new Matrix Creek claims are owned 100% by Otis and are not subject to terms of the recent agreement with Radius. The Oakley Project is located 13 miles south of Oakley, Idaho and 2-miles north of the Idaho-Utah state line on the west flank of the Albion Metamorphic Core Complex.
Bulk-tonnage silver-gold mineralization crops out in a Black Matrix Breccia ("BMB") within the Matrix Creek detachment fault zone cutting Paleozoic quartzite. Outcropping mineralization is contained within stacked sheets between 5- to 15-metres-thick and is exposed along the ridge of a large synclinal fold over a surface area approximately 200 metres by 350 metres. This mineralization comprises a brecciated structural zone along the northern limb of the fold. Fourteen rock-chips of BMB outcrop collected along the ridge contain significant silver-gold mineralization. The samples contain up to 306 g/t Ag and up to 1.34 g/t Au, with all 14 samples averaging 70.4 g/t Ag and 0.55 g/t Au. The equivalent gold grade of the 14 samples is 1.67 g/t Au. Preliminary 48-hour bottle-roll results performed by ALS Chemex Labs in Vancouver, B.C., suggest that the gold is up to 82% recoverable and that the silver is up to 93% recoverable.
The mineralized detachment containing the BMB is deformed into a southwest-plunging synclinal fold. Otis geologists have recently discovered mineralized BMB cropping out along the southern limb of the synclinal fold that is almost one-mile south of the mineralized ridge described above. The new BMB target has never been drilled.
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 technical capability accreditation. A 30-gram pulp of all samples was assayed for gold by Fire Assay/AA finish methods. Silver was analyzed by four-acid digestion.
Otis' President and CEO Craig Lindsay states, "Matrix Creek is an exciting new target that significantly enhances the Oakley Project. We believe that the newly discovered detachment-related mineralization may extend in both surface outcrops and in the sub-surface under the Blue Hill Creek resource and further along the western edge of the Albion Metamorphic Core Complex. We are currently evaluating the next steps to advance this target, which may include exploration by Otis or through a joint venture relationship."
The Qualified Person under National Instrument (NI 43‐101) Standards of Disclosure for Mineral Projects for this News Release is John R. Carden, Ph.D., Lic. Geo.., who has reviewed and approved its technical content.
About The Company
Otis Gold Corp. is a Canadian-based mineral exploration company focused on the acquisition and development of quality precious metal deposits in Idaho, USA. Otis is currently developing its flagship property, the Kilgore Gold Project, located in Clark County, Idaho (approx. 60 miles north of Idaho Falls).
ON BEHALF OF THE BOARD
Craig T. Lindsay, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts 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.