VANCOUVER, British Columbia, Nov. 20, 2017 (GLOBE NEWSWIRE) -- Otis Gold Corp. (the “Company” or “Otis”) (TSX-V:OOO) (OTC:OGLDF) is pleased to announce assay results from the next five holes of its recently completed 25 hole, 8,000-metre drill program at the Kilgore Project, Clark County, Idaho. Bulk-tonnage intercepts of 110.6 metres (m) grading 0.90 grams per tonne gold (g/t Au) in hole 17 OKC-361, 65.5 m grading 1.21 g/t Au in hole 17 OKC-362 and 62.5 m grading 1.11 g/t Au in hole 17-OKC 364 were achieved. Core logging of the remaining holes is nearly completed and further assays will be reported when available.

Charts accompanying this announcement are available at

http://www.globenewswire.com/NewsRoom/AttachmentNg/6ca54ed6-5793-4a7c-81cb-7beb81e2e8c4

http://www.globenewswire.com/NewsRoom/AttachmentNg/fc4bd685-3aaa-4d8c-a156-52426d46b613

The primary goal of the drill program is to follow-up on open-ended drilling at depth and laterally as infill on drill intercepts from 2015 and 2016 at the Kilgore Deposit, primarily in the prospective Late Cretaceous Aspen Formation (or “Aspen”) sedimentary host unit within and along the “Aspen Corridor” (see News Releases dated February 9, 2016, and January 19, 2017). Timberline Drilling of Hayden, Idaho performed all the drilling employing two Atlas Copco CS14 track-mounted core rigs.

Table 1: 2017 Kilgore Drill Intercepts

Detailed Results of the Drilling

Previous drilling conducted in 2015 and 2016 defined numerous intervals of significant thicknesses and grades in the Aspen that were open at depth for extension of mineralization throughout much of the deposit, particularly along the “Aspen Corridor” (or “Corridor”) (see New Release February 9, 2016). The 2017 drilling program targeted these rocks.  

Holes 17 OKC-359 and 17 OKC-361 targeted the Aspen at depth and laterally in the “Segment 1 Road” area of the Corridor.   Hole 17 OKC-359 was drilled to determine the northeastern boundary of the Corridor, and hole 17 OKC-361 was drilled to test an extensive gap within the Corridor. Hole 17 OKC-359 successfully defined the limit of the Corridor, bounding the mineralization to the southwest, while 17 OKC-361 intersected a 110.6-metre bulk-tonnage intercept showing continuity within the southeastern-half of the Corridor (see Section 11650N).

Holes 17 OKC-360, -362 and -364 are all located on the “Segment B Road” in the northern half of the Corridor.  Hole 17 OKC-360 targeted the Corridor’s northeastern edge and contains several scattered mineralized horizons over a 150-m thick interval.  Holes 17 OKC-362 and 17 OKC-364, located on Section 12,250N, were drilled to infill and complete this sparsely drilled area of the Corridor.  Hole 17 OKC-364 extends the known mineralization at least 30 metres deeper to elevation 6,600 feet denoting the currently known bottom of the “zone of boiling” and hole 17 OKC-362 extends the gold mineralization 45-metres laterally to the northeast and the same depth as 17 OKC-364 (see Section 12250N).

Otis President & CEO, Craig Lindsay stated: “We continue to make good progress at better defining the limits of the Kilgore Deposit, with the Aspen Formation continuing to play an important role in the development of the deposit. In addition to our drill program, we have completed a project-wide, 465 line kilometre ground magnetometer survey at Kilgore and will be processing and analyzing the results shortly, and have completed a sampling program totaling over 2,550 soil, rock chip and stream sediment samples. The results of this field work will be used to better define drill targets for our planned 2018 program.”

Analysis and QA/QC Program

All assay work is being performed by ALS Chemex Labs, which has quality management system certification and technical capability accreditation. A 50-gram pulp of all samples is assayed for gold by Fire Assay/AA finish methods. RockLabs certified reference material and internally generated blanks are inserted into the sample stream every 10 samples for quality control. 

True widths are estimated between 80% and 100% of the drilled intervals, based on their approximate dip, association with diking, the orientation of sedimentary bedding and continuity of mineralization between drill holes.  Intercepts reported in Table 1 are calculated using a 0.20 g/t Au cut-off grade and may include a few internal waste intervals less than 4.5 m using this cut-off. 

The qualified person under National Instrument (NI 43-101) Standards of Disclosure for this News Release is Bruno Barde, P. Geo, who has reviewed and approved its technical content.

About the Kilgore Project

The Kilgore Project contains a current NI 43-101 (dated September 12, 2012) Indicated Resource of 520,000 ounces (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”). The Deposit is part of an extensive low-sulfidation quartz-adularia epithermal hydrothermal system hosted in Tertiary volcanic rocks and basement Aspen Formation calcareous siltstone, shale, and sandstone of Late Cretaceous age. Gold mineralization is of the traditional disseminated, bulk-tonnage type similar to that comprising the classic volcanic-hosted gold deposits at Round Mountain, Nevada and McDonald Meadows, Montana. The preparation of an updated NI 43-101 compliant resource calculation is ongoing and will include drilling completed in 2015, 2016 and 2017. This resource update will be released when available.

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 Project, located in Clark County, Idaho.

ON BEHALF OF THE BOARD

“Craig T. Lindsay”

President & CEO

For additional information, please contact:

Mr. Tony Perri – Corporate Development 
Tel:  (604) 424-8100  Email: tony@otisgold.com

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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 “US Securities Act”) or any State securities laws, and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable State securities laws, or an exemption from such registration is available.