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Otis Gold's latest "groundbreaking" drilling results extend Kilgore deposit

Otis Gold (CVE:OOO)(OTCQX:OGLDF) Wednesday unveiled "groundbreaking" drilling results at its 100%-owned Kilgore Gold Project in Idaho as it encountered new ore-grade intercepts in excess of 100-metres thick, some of the thickest and shallowest intercepts drilled to date.

The mineral exploration company said the intercepts include 0.89 grams per tonne (g/t) gold over 114.3 metres, that includes 1.10 g/t gold over 80.8 metres hole 11 OKC-258 and 0.89 g/t gold over 118.8 metres that includes 1.65 g/t gold over 36.5 metres in hole 11 OKC-259.

Shares of Otis Gold closed up 6% at 26 cents Wednesday.

Otis Gold's Chief Geologist Mitch Bernardi said: "These intercepts represent the thickest and shallowest part of the Mine Ridge deposit encountered to date in an area previously thought to represent the boundary or edge of the deposit. The intercepts found in holes 11 OKC-256, 258, 259, and 260, along the northwestern edge of the deposit, are associated with a thick dike or sill and suggest a new area of significant open-ended gold mineralization has been discovered with economics that can only improve those of the overall deposit, which is already good."

Based on these new results, Otis said it expects there is a "strong probability" to increase the overall size and economic viability of its Kilgore Mine Ridge Deposit.

Otis Gold is allocating additional time for the preparation of its ongoing independent NI 43-101 resource estimate to consider the inclusion of these new results in the resource estimate, to allow a comprehensive review and vetting of the historic drill results and for completion of a new geologic interpretation of the controls on gold mineralization at Mine Ridge. This extended timeframe will ensure that the Kilgore resource estimate adheres to CIM Best Practice Guidelines, and complies with NI 43-101 reporting requirements, Otis Gold said.

The new intercepts defining the new Mine Ridge northwest extension of mineralization are shallow, beginning at depths between 6 metres and 35 metres, and as such further enhance the potential mineability of the Kilgore Mine Ridge bulk-tonnage deposit. Of the five holes reported Thursday, four are located in this new extension area, and the fifth hole, 11 OKC-257, which contains 0.70 g/t gold over 50.3 metres, was drilled as an infill in the central part of the deposit.

Last month, the resource company said the first four holes drilled at Prospect Ridge within Kilgore collectively comprise intercepts that extend the Mine Ridge deposit at least 130 metres beyond its previously known boundary, potentially marking a new gold deposit at Kilgore.

The intercepts encountered last month were roughly on strike with historic Echo Bay hole 95 EKR-98 that contains 27.4 metres at 1.30 g/t Au and is located approximately 300 metres further to the southeast.

Otis Gold's flagship Kilgore Gold Project consists of 162 federal mining claims totaling 3,250 acres located in southeastern Idaho within Clark County, 60 miles north of Idaho Falls. Major gold mining companies spent more than $8 million for property acquisition, drilling (197 holes drilled totaling 38,531.9 meters), geophysical and geochemical surveying and metallurgical testing on the project from 1983 to 1998. The last exploration conducted on the property by a major company was 1996.

Otis Gold is targeting 3 to 5 million ounces of gold at Kilgore which it hopes to achieve by continuing to grow the existing Mine Ridge deposit.