Otis Receives Drilling Permits for its Buckhorn High-Grade Silver Project November 9, 2010 OOO (TSXV)
Vancouver, B.C. – Otis Gold Corp. (“Otis” or the “Company”) is pleased to announce that it has just received permits from the U.S. Forest Service (“USFS”) and the Bureau of Land Management (“BLM”) to drill its Buckhorn High-Grade Silver Project (the “Buckhorn Project” or “Buckhorn”) located in Lemhi County, Idaho. The planned drilling comprises a 1,000 metre (“m”), seven-hole program designed to test multi-ounce silver chip-channel intervals obtained from shallow trenches in the fall of 2009 (see Otis News Release dated December 17, 2009). These trenches are situated in gossan-rich zones along a 2.7-km-long range-front fault structure controlled by Otis. Highlights of this trench sampling include 16.5 m grading 236.6 grams per tonne silver (“g/t Ag”), further including a 5.8 m section assaying 462.9 g/t Ag. The Buckhorn Project is a silver-rich manto or Leadville-type replacement target that could contain significant grades of primary high-grade silver mineralization below the zone of oxidation. Several of Otis’ holes are planned to test the range-front fault proximal to the trenches containing the high-grade silver channel samples. The property is located 36 miles south of Salmon, Idaho. Commencement of the drill program is currently weather dependent.
Historic exploration conducted at the Buckhorn Project includes 365 m of underground workings, a shallow air-rotary hole that encountered 12 m of mineralized material grading 411 g/t Ag (1979 Sunshine Mining Company notes), numerous prospect pits and trenches developed on surface gossan shows, and property reviews conducted by the U.S. Bureau of Mines during the period from 1952 to 1955. Otis’ trenching program confirms initial grab samples that contain up to 900 g/t silver with substantial lead and zinc credits. Geologic controls of mineralization are previously summarized in the Company’s News Release dated December 17, 2009. High-grade silver and additional target types existing at Buckhorn include: 1) Leadville silver-lead-zinc manto replacements in Mississippian limestone; 2) a precious metals porphyry system at depth; and 3) gold associated with marbleized limestone.
Otis is leasing the Buckhorn Project from M3 Resources LLC (the “Vendor”), Idaho Falls, Idaho. Terms of the revised and finalized agreement dated October 12, 2010, allowing Otis to earn a 100% interest in the Buckhorn, include a $36,000 cash payment, issuance of 100,000 shares to the Vendor upon TSXV approval and a requirement of $110,000 in property expenditures by July 2011. Additional terms include paying the Vendor an Advanced Minimum Royalty (“AMR”) of $25,000 in 2011, $30,000 per year thereafter, and a 3.5% NSR should the property go to production.
Additionally, Otis reports it has just completed its 2010 Kilgore Project drilling program. This drilling comprises 40 core holes spread over 7,750 m in the Mine Ridge bulk-tonnage gold deposit and Dog Bone Ridge geophysical target areas. Drill results will continue to be released as they become available.
John R. Carden, Ph.D., Lic. Geo., a Qualified Person as defined by National Instrument Policy 43-101, is responsible for the technical information contained in this News Release.
