-- Posted Tuesday, 14 July 2009 | Digg This Article
| | Source: GoldSeek.com
Mr. Craig Lindsay reports
OTIS GOLD COMMENCES KILGORE DRILL PROGRAM AND COMPLETES PRIVATE PLACEMENT
Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO - News) has commenced drilling at its Kilgore gold project, Clark county, Idaho. The current drill program is planned for 10,000 to 12,000 feet in 15 to 20 holes to test for the presence of a coherent high-grade deposit that can be exploited by underground mining techniques. Of Otis's four holes that were completed by the end of 2008 (2,083 feet), three encountered multiple high-grade gold intercepts, including 08 OKC-191 with 27.2 feet at 0.382 ounce per ton Au and 5.9 feet at 1.581 ounces per ton Au, 08 OKC-192 with 12.9 feet at 0.177 ounce per ton Au and 08 OKC-192 with 7.5 feet at 0.241 ounce per ton Au, and 8.5 feet at 0.706 ounce per ton Au.
The objective of the company's 2009 drilling program is to step out and fan down on extensions of historic intercepts that Echo Bay, Placer Dome U.S., Pegasus and Bear Creek drilled between 1983 and 1996. Results of this drilling indicate the presence of a high-grade core to the deposit that has never been fully defined or evaluated because previous exploration only concentrated on identifying a low-grade, bulk-minable, open-pit deposit. A few of the better intercepts to be offset and stepped out on include 90 feet at 1.091 ounces per ton Au (93 PK-56), 75 feet at 0.222 ounce per ton Au (94 EKR-89) and 45 feet at 0.331 ounce per ton Au (95 EKM-5). Otis's secondary objective is to test the flat and high-angle veins and intersections of these highly mineralized structures that were identified by computer modelling this past spring. The HQ core program is being conducted Cabo Drilling (America) Inc. of Surrey, B.C., and core samples will be analyzed by ALS Chemex in Vancouver, B.C.
Mineralization style and setting, host rock type, and overall size of the hydrothermal system are analogous to those characterizing the multimillion-ounce Round Mountain gold deposit in Nevada where high-grade, coarse-gold feeder veins also exist.
John R. Carden, PhD, LicGeo, a qualified person as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this news release.
Additionally, the company has closed a non-brokered private placement of 4,702,000 units at a price of 25 cents per unit, for gross proceeds of $1,175,500. Each unit consists of one common share and one share purchase warrant. Each warrant is exercisable to purchase a share of the company for two years, at a price of 35 cents per share in year 1, and 55 cents per share in year 2. The net proceeds from this private placement will be used for general working capital purposes. Finders' fees totalling $10,000 have been paid on the financing as well as 127,000 finders' warrants exercisable to purchase additional shares of the company for 18 months from issuance at a price of 25 cents. All securities issued have a four-month hold period.
About the Company
Otis currently owns five precious metal projects located in Idaho and Nevada, two of which, including Kilgore, have National Instrument Policy 43-101 compliant resources totaling in excess of 700,000 ounces of gold.
ON BEHALF OF THE BOARD
"Craig T. Lindsay"
President and CEO
For additional information, please contact:
Tel: 604.683.2507 Fax: 604.683.2506
#350 - 409 Granville Street, Vancouver, B.C., V6C 1T2
E-mail: craig@otisgold.com
www.otisgold.com
THE TSX VENTURE EXCHANGE HAS NEITHER APPROVED OR DISAPPROVED OF THE CONTENTS HEREIN.
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.
