VANCOUVER, BC – Otis Gold Corp. ("Otis" or the "Company") is pleased to announce the receipt of formal approval from the United States Forest Service (the "USFS") to construct approximately 1,200 metres of new access roads within the Caribou-Targhee National Forest and conduct drilling at approximately 16 sites into the untested "North Target" area at the Kilgore Gold Project, Clark County, Idaho. The planned North Target drill program will comprise between 4,000 to 7,000 metres of reverse circulation drilling, and is scheduled to commence mid-July 2015, subject to, among other things, securing appropriate development financing.
The approval was received after the completion of an Environmental Assessment by the USFS and subsequent collaborative negotiations with the USFS and other interested parties. States Otis President and CEO Craig Lindsay: "The approval of our Plan of Operation is a major milestone in the development of the Kilgore Gold Project. We can now proceed with further drilling in the exciting and highly prospective Kilgore "North Target" area, where our last program at the northern end of the Kilgore deposit encountered +80 m to +100 m intercepts of over 1.0 g/t gold at the very edge of our drill pattern" (see Otis January 17, 2013 news release).
A copy of the final and approved Decision Notice and Finding of No Significant Impact has been posted on the USFS website at www.fs.usda.gov/projects/ctnf/landmanagement/projects.
The Kilgore Gold Deposit contains a NI 43-101 Indicated Resource of 520,000 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 Kilgore Gold Deposit is a zoned low-sulfidation quartz-adularia epithermal hot-spring system hosted in volcanic rocks of Late Miocene age. Gold mineralization is of the classic disseminated, bulk-tonnage type similar to that comprising the classic and world-class size volcanic-hosted gold deposits at Round Mountain, Nevada. The deposit features very attractive metallurgy with excellent gold recovery averaging greater than 80% at 1.5" crush size based on column leach testing (see http://otisgold.com/_resources/kilgore/Column_Leach_Profiles.pdf and Otis News Release dated June 5, 2012).
Otis is a Canadian-based mineral exploration company focused on the acquisition and development of quality precious metal deposits in Idaho, USA. Otis is currently developing its flagship property, the Kilgore Gold Project, located in Clark County, Idaho (approximately 60 miles north of Idaho Falls). Additionally, Otis is conducting exploration via a joint venture relationship at its Oakley Property in southern Cassia County, Idaho.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. 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.