Otis Continues to Advance Kilgore Road Permit
15 Novembre 2013 - 1:30PM
Marketwired Canada
Otis Gold Corp. (TSX VENTURE:OOO)(OTCQX:OGLDF)("Otis" or the "Company") is in
the process of obtaining a permit from the United States Forest Service ("USFS")
to build approximately 1,200 metres (m) of new roads at the Kilgore Gold
Project, located in the Caribou Targhee National Forest, Clark County, Idaho.
These roads will be used to perform additional drilling to extend beyond the
northern limit of the established Kilgore Gold Deposit (or "Kilgore Deposit")
where Otis has drilled open-ended +100 m-thick core and RC (reverse circulation)
intercepts on the edge of the current drill pattern. Intercepts to be offset
include two 2011 core holes with 114 and 118 m @ 0.89 g/t Au (see Otis News
Release dated October 6, 2011) and three 2012 RC holes with 82.3 m of 0.95 g/t
Au, 121.9 m of 1.04 g/t Au, that includes 45.7 m of 1.52 g/t Au, and 83.8 m of
1.12 g/t Au, that includes 30.5 m of 2.10 g/t Au (see Otis News Release dated
January 17, 2013).
In the spring of 2013, Otis submitted a Plan of Operation to the USFS to build
new access roads to conduct up to a 7,000 m drill program from twelve drill
sites and extend the current Kilgore Deposit at least 400 m beyond its current
northern limit into an area characterized by a continuous gold-in-soil anomaly
along strike of the suspected feeder structure. This program is necessary to
determine the entire extent of the existing Kilgore Deposit in order to prepare
a future Preliminary Economic Assessment.
In 2014, and subject to the receipt of the aforementioned permit and adequate
financing, Otis intends to conduct the following activities: (1) construction
and maintenance of exploration roads sumps and drill sites, (2) up to 7,000m of
RC and, possibly, core drilling, (3) geologic mapping and bulk sampling of the
newly constructed roads, and (4) establishing ground water monitoring well(s).
The combined surface disturbance will be approximately 1.8 acres.
After the Plan of Operation was submitted, as required under the National
Environmental Policy Act, the USFS conducted an extended public comment and
review period regarding the proposed plan. Three parties submitted comments and
have established standing to file an objection, whereby only parties with
standing can object to the decision. In mid-June, 10 members of the USFS
interdisciplinary ("ID") team walked the planned road course and analyzed the
potential consequences of the proposed road construction. In their reports they
concluded an Environmental Assessment ("EA") is sufficient to address issues
surrounding erosion control, soils, cultural resources, paleontological
resources, wildlife, vegetation, groundwater, road engineering, recreation and
access.
The USFS has received all comments from its ID team, has solicited additional
information from Otis and is in the process of preparing the EA. The first draft
of the EA is expected to be completed by early January and, barring any
unforeseen delays, Otis believes a permit may be issued by the beginning of the
2014 drill season. In order to assist the USFS, Otis geologists have initiated a
one-year baseline study to characterize the nature and chemistry of the
groundwater in the deposit area. Three months of data have already been
collected from surface and well sites surrounding the project area to assist in
the preparation of the EA; the complete one year study will be used for future
permitting purposes.
About the Kilgore Gold Deposit
The caldera-related Kilgore Gold Deposit is located within the Company's Kilgore
Gold Project, Clark County, Idaho. The Kilgore Gold Project is 5,130 acres in
size, is 100% owned by Otis, and is subject to no underlying royalties.
The Kilgore Gold Deposit contains a NI 43-101 Indicated Resource of 520,000 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
constitutes the continuous and contiguous Prospect Ridge, Mine Ridge and North
Target areas, all referred to in prior Company news releases. The Kilgore Gold
Deposit is a zoned low-sulfidation quartz-adularia epithermal hot-spring system
hosted in volcanic rocks of Late Miocene age. Gold mineralization is of the
classic disseminated, bulk-tonnage type similar to that comprising the classic
and world-class size volcanic-hosted gold deposits at Round Mountain, Nevada and
McDonald Meadows, Montana. K-Ar age determination on hydrothermal adularia
tentatively dates mineralization at 5.3 Ma (Late Miocene). Gold mineralization
is mostly controlled by a major northwest-trending structural zone, the
Northwest Fault, and is closely associated with a series or set of
northwest-trending, high-angle, en echelon rhyolitic to intermediate dikes and
dike swarms. Additional host rock enclosing the dikes and sills and serving to
contain a major portion of the deposit mineralization is a porous and permeable,
ashy and rhyolitic lithic tuff unit. Further, sedimentary host-rock material
containing a portion of the mineralization comprises basement sandstone and
siltstone of the Aspen Formation of Cretaceous age.
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 release and related documents may include "forward-looking statements"
including, but not limited to, statements related to the interpretation of
drilling results and potential mineralization, future exploration work at the
Kilgore Project and the expected results of this work. Forward-looking
statements are statements that are not historical fact and are subject to a
variety of risks and uncertainties which could cause actual events to differ
materially from those reflected in the forward-looking statements, including:
fluctuations in the price of gold, cost of mining, inability to complete drill
programs on time and on budget and future financing. Words such as "believes,"
"plans," "anticipates," "expects," "estimates" and similar expressions should
also be considered to be forward-looking statements. There are a number of
important factors that could cause actual results or events to differ materially
from those indicated by such forward-looking statements, including, but not
limited to: uncertainties involving interpretation of drilling results,
environmental matters, obtaining required permitting, equipment breakdowns or
disruptions, and the other factors described in Otis' most recent Annual Report.
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.
NEITHER THE 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Otis Gold Corp.
Craig Lindsay
604.683.2507
craig@otisgold.com
Otis Gold (TSXV:OOO)
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