Otis Gold Corp (OGLDF: OTC Link) | Kilgore Project Update


Otis Gold Corp. (“Otis” or the “Company”) is pleased to provide an update on recent developments at its Kilgore Gold Project, Clark County, Idaho.


Ongoing 2011 Drill Program


A total of up to 10,000 metres of drilling is planned for Kilgore in 2011.  This season’s drill program commenced on June 22, 2011, and Otis currently has two core rigs drilling operating on a 24-hour basis.  To date, Otis has completed 17 holes totaling 4,150 metres at Mine Ridge (11 holes) and Prospect Ridge (6 holes).  Based on progress to date, the Company expects to complete the planned Mine Ridge and Prospect Ridge drilling by the end of September.  The Company may expand the ongoing drill program at these two sites dependent on drill results.  Drilling is being conducted by Timberline Drilling of Coeur d’Alene, Idaho.


The Company has implemented a streamlined process for logging and splitting core in 2011.  As a result, core processing is maintaining pace with drilling.  All samples are being submitted to ALS Chemex in Elko, Nevada.  Due to the high demands on ALS Chemex arising from heavy seasonal drilling activity in the region, drill results are taking approximately 6 to 8 weeks to turnaround.  We expect to have our first drill results available later this month, and results will likely continue to be received into 2012.  All drill results will be released as they become available.


An archaeological survey has been completed in advance of the submission of a Plan of Operation for the planned 1,500 meters of drilling at the Gold Ridge target.  The Plan of Operation will be submitted within the next week, and based on historical experience we expect approval within six weeks.  Assuming appropriate drill and helicopter equipment can be secured (no existing road access is available into the area), drilling at Gold Ridge is planned to commence in October.


NI 43-101 Resource Estimate


Work on the resource estimate, being prepared by Mr. Dean Turner, P.Geo, Littleton, Colorado an Independent Qualified Person as defined by NI 43-101, is rapidly progressing with thorough due diligence review and development of a geologic model.  The new estimate will include over 12,500 metres of Otis diamond drill results. We originally anticipated completion of the 3-D model and resource estimate by the end of July, but due to the greater amount of technical data required for the estimate, we now anticipate the updated resource to be completed around the end of the third quarter.


Environmental Baseline Studies


We have now received several bids for hydrologic and air monitoring.  The monitoring will be designed to meet the requirements of the Idaho Department of Environmental Quality and will form part of a future mine Plan of Operations at Kilgore.  We expect to award a contract within the next two weeks, and the monitoring program will progress for a period of 12 months.


Additional Metallurgical Testing


Otis plans to follow up on the extremely successful column leach testing completed in 2010 (see News Release dated April 11, 2011), which was performed on ½” crush material.  Specifically, Otis plans to complete additional testing on larger-size crush material (minimum crush size of 1”).  Drilling to secure appropriate P-size core material for this work will be completed later this fall.


Craig Lindsay, President CEO  of Otis, states:  “We are pleased with the progress of our work program at Kilgore, as we continue to aggressively develop this project.  We continue to believe that significant opportunity exists to expand our resource base at Kilgore, and we remain very optimistic about future developments.”


John R. Carden, Ph.D., P. Geo., a Qualified Person (QP) as defined by National Instrument Policy 43-101, is responsible for 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, Clark County, Idaho.



“Craig T. Lindsay”

President and CEO

For additional information, please contact:


Craig Lindsay


Tel:           604.683.2507

E-mail:     craig@otisgold.com

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