Otis Reports Additional Positive Metallurgy Results From Kilgore

Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO)(OTCQX:OGLDF) is
pleased to announce the receipt of additional positive column leach gold
recoveries from coarse-crush bulk samples. Tests were conducted on ore from the
Company's flagship Kilgore Gold Project ("Kilgore"), located in Clark County,
Idaho. In conjunction with prior column leach testing performed by Echo Bay
Mines and Otis Gold (see Otis News Release dated April 11, 2011), these results
provide continuing evidence that the Kilgore Mine Ridge deposit is readily
amenable to standard heap-leach process technology and suggest that the gold ore
is not particularly sensitive to crush size. 


The column leach tests were performed by McClelland Labs of Reno, Nevada on
three samples comprising oxidized and non-oxidized dike (both thought to be
responsible for the mineralizing hydrothermal fluids supplying gold to the host
rock) and oxidized lithic tuff (the dominant host rock at Kilgore). Both dike
samples and the lithic tuff samples were composited from drilled PQ-diameter
core (85 mm) that was stage crushed to a nominal 80% passing a 38 mm (1.5 inch)
screen. Each sample was divided and one split was further crushed to 80% -12.5
mm (0.5 inch) to directly compare the difference in gold recovery between the
two crush sizes. Recovery of gold from the rock types at two crush sizes are
given in Table 1 below and illustrated graphically in a chart on the Company's
website at http://otisgold.com/_resources/kilgore/Column_Leach_Profiles.pdf.


Column leach tests show that the three samples are amenable to simulated heap
leach cyanidation treatment. Further, there was not a substantial decrease of
gold recovery in the coarser crush material suggesting that the ore may not
require processing by a tertiary crusher, thereby enhancing the overall
economics of the deposit. The tests further imply that yet coarser crush
material should be tested to determine if part of the deposit might be processed
by run-of-mine material that would result in a great cost savings for Otis.




Table 1:Results from Otis Gold's 2011 Column Leach Tests on 38 mm (1.5")   
 and 12.5 mm (0.5") crushed material                                       
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                                             CN        Lime
                                  Leach        % Au Consumption Consumption
Rock Type        Crush Size        Time    Recovery    (lbs/ton)   (lbs/ton)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Oxidized       12.5 mm/0.5"     78 days      83.3 %        0.76         1.0
 Felsic Dike                                                               
              -------------------------------------------------------------
               38.0 mm/1.5"     78 days       71.2%        0.69         1.0
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Unoxidized     12.5 mm/0.5"     91 days       74.5%        0.82         1.8
 Felsic Dike                                                               
              -------------------------------------------------------------
               38.0 mm/1.5"     91 days       78.5%        1.00         1.1
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Oxidized       12.5 mm/0.5"     91 days       85.5%        0.87         1.8
 Lithic Tuff                                                               
              -------------------------------------------------------------
               38.0 mm/1.5"     91 days       84.9%        0.60         1.8
---------------------------------------------------------------------------
---------------------------------------------------------------------------



Overall, the tests revealed that the gold came out quickly in all samples from
both size fractions, with 85 to 90% of the recovered gold leaching in just 30
days. Both cyanide and lime consumption were relatively low and the ore charges
did not require agglomeration pretreatment.


The results show that the unoxidized felsic dike and the oxidized tuff leach at
about the same rate for 80% -12.5 mm and 80% -38 mm. The tuff, which makes up an
estimated 65% of the deposit by volume, leaches at the same rate for both crush
sizes as the tuff is poorly welded, lightly compacted and has very good porosity
and permeability characteristics. Likely the cyanide solutions had excellent
percolation and residence rates throughout the sample and the gold was recovered
from both sample-sizes with about an 85% recovery rate. The unoxidized dike
showed a similar recovery rate of approximately 75%, with the coarser crushed
material having an even better recovery percentage at 78%. Only the oxidized
dike showed feed size sensitivity in regard to gold recovery in column leach
tests, possibly due to the shorter residence time of 78 days. However, the
oxidized dike represents only an estimated 14% of the deposit by volume.


During the tests, the Company conducted tail screen analysis on both crush sizes
for the three samples. Residual gold values were generally evenly distributed
throughout the various size fractions and that it is doubtful, considering the
low grade nature of the samples tested, that any improvement in recovery
obtained by finer grinding would be sufficient to offset the associated higher
processing costs.


Craig Lindsay, the Company's President & CEO, commented: "The results from
column leach testing continue to be impressive, even for relatively coarsely
crushed material. The Kilgore Mine Ridge deposit continues to have excellent
recovery rates that will positively impact the economics of developing a
potential mine. In the future, we plan to acquire coarse enough material for a
run-of-mine test to help Otis make decisions as we move this deposit towards
potential commercial production."


John R. Carden, Ph.D., Lic. Geo., a Qualified Person as defined by National
Instrument Policy 43-101, is responsible for the collection and preparation of
the bulk samples tested and 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, located in 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.
Otis Gold (TSXV:OOO)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024