VANCOUVER, British Columbia, Jan. 16, 2019 (GLOBE NEWSWIRE) — Otis Gold Corp. (“Otis” or the “Company”) (TSX-V: OOO) is pleased to provide the following corporate update. This past year was eventful, and included a number of significant achievements at both our Kilgore and Oakley projects as well as at the corporate level. These milestones have laid the foundation for what we expect to be an active and successful year for the Company in 2019.
Corporate Milestones
- In April 2018, we hired Mr. Alan Roberts, CPG, as our Vice President, Exploration. Alan has brought a significant amount of global exploration experience in epithermal gold deposits, most recently as exploration manager at the Castle Mountain Mine in California.
- In November and December, Otis successfully completed the sale of 2.75 million common shares of Revival Gold Inc. (or “RVG”) in a series of private transactions. The sale generated approximately $1.8 million in non-dilutive financing to fund ongoing exploration and overhead expenses. Otis retains a 1% NSR on certain claims owned by RVG at what is known as the Arnett Creek Project.
Kilgore Project Milestones
- An updated NI 43-101 Resource Estimate was released for Kilgore comprising an Indicated resource of 825,000 ounces of gold at an average grade of 0.58 g/t Au in 44.6 million tonnes and an Inferred resource of 136,000 ounces of gold at an average grade of 0.45 g/t Au in 9.4 million tonnes (see News Release dated August 14, 2018). This represented a 59% increase in the indicated ounces to the previous resource estimate and without having the ability to step-out drill due to the previous exploration permit.
- In August, a new five-year Plan of Operations was approved by the US Forest Service to conduct project-wide exploration, which allows flexibility for step-out/expansion drilling at the Kilgore Deposit and exploration drilling at emerging targets such as Prospect Ridge, Gold Ridge and Dog Bone Ridge.
- Otis completed a systematic soil sampling program on the Gold Knob Claims, part of an emerging exploration target on the Kilgore Caldera arc approximately 18 kilometres from the existing Kilgore Deposit. Results from this sampling program will be released shortly.
- Metallurgical testing of near-surface, mineralized Tertiary volcanic rock and mineralized Cretaceous sedimentary rock is ongoing to assess the potential for “run of mine” processing at the Kilgore Deposit. The studies are being conducted by RDI Minerals and supervised by Global Resource Engineering, both in Denver, Colorado.
- Our exploration and field operations facilities were consolidated from three separate sites in Spokane, Washington and St. Anthony, Idaho to a single facility in Dubois, Idaho that includes core storage, office space, a bunkhouse and ample space for field support activities. This further establishes Otis’ presence in and commitment to working with the local community of Dubois, and Clark County, Idaho. The move has increased data accessibility and resulted in significant costs savings.
- A drill program and aerial LiDAR survey planned for Fall 2018 was postponed to 2019.
Oakley Project Milestones
- A total of 475 soil and 140 rock samples were collected at the Blue Hill Creek target in 2018. This work demonstrated a continuation of mineralization from Matrix Creek northwest along trend to Blue Hill Creek. Additionally, certain rock samples were identified which contained gold and silver mineralization that appear similar to the detachment style of surface mineralization seen at the adjacent Matrix Creek target (see Otis News Release dated November 4, 2018).
- A total of 651 soil and 231 rock chip samples were collected at the Cold Creek target, which successfully identified a 3.5 km by 0.5 km trend of anomalous gold and silver mineralization (see Otis News Release dated November 13, 2018).
- A total of 235 soil samples were collected at Emery Creek which contained anomalous gold and silver values up to 0.14 ppm Au and 1.02 ppm Ag. This work confirmed a mineralized zone stretching 11 kms between Cold Creek at the northern end of the property to Blue Hill Creek at the south.
- As a result of the exploration results achieved, the land position at Oakley was increased by 1,600 acres via a combination of State lease applications and the staking of federal lode mining claims.
Going Forward
With a growing land package at Kilgore and Oakley that contains a blend of open-ended gold resources and exciting new exploration targets, Otis is well-positioned to capitalize on renewed interest in the gold sector. In 2019, Otis has planned an aggressive integrated exploration program that includes:
- A drill program targeting resource expansion at the existing Kilgore Deposit, a further resource update and the initiation of a maiden PEA.
- A drill program at Oakley that includes exploration holes at Cold Creek, Blue Hill Creek and Matrix Creek.
- On a parallel course, additional field work, including an aerial LiDAR survey, is planned to better define drill targets at Prospect Ridge, Gold Ridge, Gold Knob and Dog Bone Ridge at the Kilgore Project, as well as at the Cold Creek, Emery, Blue Hill Creek and Matrix Creek claims at Oakley.
Otis is actively reviewing various strategic options to enhance the Company that may include, among other things, potential joint venture and acquisition transactions. Management recognizes that market conditions may remain challenging in the gold sector in the near term, and corporate plans are contingent on, but not limited to, access to financing at terms reasonable to the Company. That said, the Company has a strong and supportive investor base and remains confident in its business.
Otis President & CEO, Craig Lindsay, stated: “We are very optimistic about our business prospects going forward. We do recognize that the recent complaint filed in connection with our Kilgore Project, which was documented in a news release dated November 19, 2018, has raised some concerns amongst our shareholder base. As an update, based on discussions with our legal counsel and permitting consultant, we are confident the complaint is without merit and will be resolved in favour of the US Forest Service. In the interim, our permit remains in good standing and we are authorized to commence exploration work in July as per our approved Plan of Operation. As a final note, I want to be clear that Otis is committed to conducting exploration activities at all our projects utilizing industry best practices, and that minimizing our environmental footprint has, and always will be, a critical foundation of our exploration programs.”
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 Project, located in Clark County, Idaho and the Oakley Project, located in Cassia County, Idaho.
ON BEHALF OF THE BOARD
“Craig T. Lindsay”
President & CEO
For additional information, please contact:
Mr. Tony Perri – Corporate Development
Tel: (604) 424-8100 Email: tony@otisgold.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as 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 “US Securities Act”) or any State securities laws, and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable State securities laws, or an exemption from such registration is available.