Otis Gold Corp (OGLDF: OTC Link) | Otis Files Kilgore Ni 43-101 Resource Estimate Report

Otis Files Kilgore Ni 43-101 Resource Estimate Report

Sep 14, 2012

OTC Disclosure News Service

Vancouver, BC, Canada –

Otis Gold Corp. (“Otis” or the “Company”) is pleased to announce that it has filed on SEDAR (www.sedar.com) its final National Instrument Policy 43-101 Resource Estimate on its 100%-owned Kilgore Gold Deposit (“Kilgore”) located in Clark County, Idaho. 

This is the first resource estimate prepared by Otis (see Otis July 31, 2012 news release) since acquiring the property in the fall of 2008.  The updated resource estimate includes all historical drilling, plus an additional 92 HQ core holes (totaling 19,630 m) drilled by Otis between 2008 through 2011.  This updated resource estimate supersedes the original NI 43-101 Resource Estimate prepared by Rayner and Associates and Van Brunt in 2002 (“2002 Estimate”; see Otis March 2, 2009 news release for details of estimate).

Highlights

       An Indicated Resource of 520,000 oz Au in 27.35 million tonnes at a grade of 0.59 g/t Au; this new Indicated Resource represents an increase of 138% in the number of ounces and 328% in the number of tonnes over the 2002 Estimate.

       An Inferred Resource of 300,000 oz Au in 20.23 million tonnes at a grade of 0.46 g/t Au; this new Inferred Resource represents an increase of 12% in the number of ounces and 131% in the number of tonnes over the 2002 Estimate.

As stated in the July 31, 2012 Otis News Release, the results from Otis’ drilling programs have moved previously defined Inferred resources into the Indicated category and have added new resources to both the Indicated and Inferred categories.

Table 1. Kilgore Project – Kilgore Gold Deposit Resource Statement*

 

Notes*

1   Mineral Resources are at a gold cut-off grade of 0.24 g/t.

2   Mineral Resource tonnage and contained metal are rounded off to reflect the precision of the estimate, thus metal quantity varies slightly from the product of tonnes and grade.

3   Contained gold ounces are in-situ, and include metallurgical recovery losses.

 

Resource Modeling

Mineral Resources were estimated by ordinary kriging and inverse distance methods using 3-D Micromine block modeling software in 6-by-6-by-3 m (20-by-20-by-10 ft) blocks.  Grade estimates were based on capped, 3 m (10 ft) composited assay data.  Gold capping levels range between 0 g/t Au and 25 g/t Au in five different estimation domains.  Blocks were considered for Indicated Mineral Resources if at least two drill holes and three composites in at least two quadrants are found within first-pass search ellipses with dimensions up to a maximum of 75 m for the kriged domains and 135 m for the inverse distance-estimated domains, and if they fell within an optimized pit shell.  All other interpolated blocks were classified as Inferred Mineral Resource.

Donald E. Cameron, M.S., an independent Qualified Person as defined by National Instrument Policy 43-101, has prepared, verified, and reviewed the information that constitutes the basis of this press release.  Mr. Cameron is a Registered Member (#4018521RM) of the Society of Mining Engineers and a QP Member (#01434QP) of the Mining and Metallurgical Society of America, and is responsible for the technical information contained in this news release.  Verification included a review and validation of the applicable assay databases, reviews of assay certificates, duplicate core sampling, and a site visit.

Mineral resources are not mineral reserves and do not have a demonstrated economic viability.  Environmental, permitting, legal, taxation, socio-political or other relevant issues may materially affect the estimate of mineral resources.  The quantity and grade of reported Inferred Resources in this estimation is uncertain in nature.  There has been insufficient exploration to define these Inferred Resources as Indicated or Measured Mineral Resources, and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.  The mineral resources reported in this news release were estimated using current Canadian Institute of Mining Metallurgy and Petroleum (“CIM”) standards, definitions and guidelines.

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.craig@otisgold.com

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/OGLDF/news?id=52585

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