Results for 12 Drill Holes Confirm Increased Presence of Gold at Kilgore

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We are pleased to share our latest drilling intercepts at the Kilgore Gold Project, in Clark County, Idaho. These results represent the final 12 holes of the 10,300-meter, 40-hole drill program completed in November 2016. Analytical results for the 12 drill holes reported in today’s press release, along with those for the initial 28 holes reported in 2016 (September 26, October 31, and November 29), confirm the presence of significant gold mineralization in the Aspen Formation sedimentary host rocks, the primary target of last year’s drill program.

A majority of these intercepts are of both higher grade and longer intervals than most of those encountered in prior drilling at Kilgore and thus demonstrate a clear potential to increase the overall size and grade of the Kilgore Deposit.

 

The last four holes reported today as follows:

• 128.0 meters (m) of 1.79 grams per tonne gold (g/t Au) in hole 16 OKC-353

• 27.5 m of 2.63 g/t Au and 80.8 m of 1.87 g/t Au in hole 16 OKC-354

• 120.4 m of 1.18 g/t Au in hole 16 OKC-349

• 74.6 m of 1.01 g/t Au and 35.9 m of 1.12 g/t Au in hole 16 OKC-352

Craig Lindsay, Otis President and CEO states: “We are extremely pleased with the drill intercepts encountered in the previously under-explored sedimentary Aspen Formation.  We expect the Aspen Formation will be a significant new host for gold mineralization at Kilgore and will continue to be a focus of expansion drilling going forward.  Our technical team, led by Dr. John Carden and Mr. Mitch Bernardi, have done an excellent job targeting new mineralization at Kilgore in 2016.”

For a comprehensive chart with details of all 12 holes, please review the full January 19th, 2017 press release.   

2016 Kilgore Drill Program Highlights

Throughout last year, the drill program at Kilgore yielded key results of outmost importance for future development of the Kilgore Deposit. Twenty-five of the 40 holes drilled encountered mineralization in the newly-emerging Aspen Formation host. An additional 11 holes encountered mineralization in Tertiary lithic tuff and dikes, the primary host of gold mineralization within the existing deposit. In total, 36 of the 40 holes drilled in 2016 intersected reportable gold mineralization, representing a drill success rate of 90%.

In other words, results of our 2016 drill campaign continue to support the premise that gold mineralization in the Aspen Formation is more extensive than indicated by previous drill testing.

Furthermore, it appears to lie along a northwesterly-trending belt or corridor in the northern half of the deposit, much of which remains open for further drilling. Results of drill holes targeting the basement Aspen Formation sedimentary host rocks continue to reveal the presence of significant open-ended mineralization that is typically higher-grade and displays thicker mineralized intercepts than those comprising the current bulk of the deposit in the overlying volcanic host rocks. Our reported intercepts demonstrate that mineralization exists to depths of up to 300-meters below the surface of the deposit, with some still open at depth.

Also, the Tertiary intrusive sill (Tct), which directly overlies the Aspen Formation and locally intrudes the upper portion of it, has been proven to host significant mineralization and the extensive contact between the two rock types is an important locus for additional mineralization in the basement. Significant intercepts can and do exist in both the Aspen Formation and the Tct, and in many cases straddle the contact between them to occur continuously throughout both units. Some intercepts drilled in Aspen Formation rocks along the mineralized northwest-trending corridor contain coarse-grained visible gold indicative of potential bonanza grades at depth.

Immediate next steps at the Kilgore Gold Project include production of an updated set of geologic cross-sections reflecting the 2016 drill results, preparation of an updated NI 43-101 resource estimate; and development of a 2017 drill program and completion of associated program permitting.

About Analysis and Otis’ QA/QC Program

All analytical work was performed by ALS Chemex Labs located in Reno, Nevada and Vancouver, British Columbia that have quality management system certification and technical capability accreditation. A 50-gram pulp of all samples was assayed for gold by Fire Assay/AA finish methods. Certified reference materials, duplicates, and blanks were inserted into the sample stream for quality control.        

Intercepts reported in the previously mentioned table are calculated using a 0.25 g/t Au cutoff grade and may include a few internal waste intervals less than this cutoff. The RC drilling reported in this release was conducted by O’Keefe Drilling, Inc., Butte, Montana, employing a Foremost 650 Reverse Circulation drill rig outfitted with a circulating wet splitter. The core drilling was conducted by Timberline Drilling of Hayden, Idaho employing two rigs, a DE-140 NQ core rig and an LF-90 HQ core rig. The Qualified Person under National Instrument (NI 43–101) Standards of Disclosure for Mineral Projects for today’s News Release is Paul D. Gray, P. Geo, who has reviewed and approved its technical content.

The Kilgore Gold Project has been on the news lately, as investors’ interest increases. We invite you to have a look at key interviews from recent weeks in our recap article, published here.