Toronto, ON. – Otso Gold Corp. (“Otso” or the “Company”), (TSX.V:OTSO) is pleased to announce a further update to its previously announced drilling program.
As previously announced, the first portion of an expected 10,000 m drilling program was completed in 2019 with the sample assaying delayed while funding was completed. Further sample batches began to be processed in October, 2020. The drill program results will be compiled and interpreted as they are received and will inform the final 8,000m of the drill program planned for in February 2021 which will test drill targets identified around the current pit areas and to infill currently identified mineralised targets. The drill program will be further enhanced by high tech ADROK geophysics to target the veins accurately. The results will be used to inform an update to the Mineral Resource estimate.
The primary objective of this portion of the drilling programme has been to infill drill to improve confidence in the mineralisation to form the basis of the mine plan for production. The balance of the drilling will be focused on further infill drilling with some folllow up drilling of mineralisation from historical drilling programs to the north east of the North Pit (including 3.44 g/t over 4 metres some 6 metres from to the surface) and the ‘petrol pump’ area (9 metres at 22.58 g/t at 53 m from surface), areas that could be indicative of new mineralisations on the edges of the current pits. The completed drilling was focused on three prospective areas: the western edge of the north pit; south of the north pit; and the south pit. Assays from much of this drilling remain pending, but encouraging results received to date include:
o 19LV0009: 2 metres @ 2.93 g/t Au starting at 64.8 metres;
o 19LV0066: 1 metres @ 3.52 g/t Au starting at 98 metres;
o 19LV0066: 1 metres @ 9.9 g/t Au starting at 116 metres;
o 19LV0068: 2 metres @ 10.63 g/t Au starting at 35.7 metres;
o 19LV0081: 1 metres @ 9.72 g/t Au starting at 48.05 metres; and
o 19LV0081: 1 metres @ 2.42 g/t Au starting at 52.05 metres.
Brian Wesson, the Company’s CEO/President, stated:
“After a long 18 months putting all the pieces in place for a return to production, including funding, we are excited to be on the path to the production. Results from the drilling program continue to return positive results with the infill drilling confirming our modelling and the identification of additional shallow, high-grade gold mineralisation in and around the North and South pits demonstrating the potential to expand the pits”.
Detailed Drilling Results
The following table summarizes significant drill results obtained from the first batch of 2019 drilling results. Significant intercepts are defined as greater than 1m in width above a 1.5 g/t cut-off, with max internal waste of 1m at at least 90% recovery. All results are from diamond core holes. The sample intervals are constrained by geology and range from a minimum of 0.7 metres to a maximum of 3 metres, averaging to the target interval of 1 metre in length. Mean grades are calculated at the stated cut-off with no upper cap applied.
The Qualified Person with overall responsibility for this press release for the Company, and who has reviewed the information contained herein, is Mr. Joe Hirst B.Sc., M.Sc., EurGeol, CGeol, the Company’s Senior Resource Geologist. He is a geologist with more than 17 years of experience in the Resources industry who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Qualified Person as defined by NI 43-101. He has supervised the work which is the subject of this release. Mr. Hirst consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.
QA/QC Procedures: Sampling Methodology and Quality Control
All results have been generated from diamond core holes. Samples are shipped to the MSA Laboratory in Langley, BC, Canada for sample preparation and assay. Gold is analysed using a 30-gramme fire assay with an atomic absorption spectroscopy (AAS) finish. A quality control/quality assurance protocol is employed in the programme which includes standards and blanks in every batch of assays.
The Company cautions that it has not defined or delineated any proven or probable reserves for the Otso Mine Project and mineralization estimates may therefore require adjustment or downward revision based upon further exploration or development work or actual production experience. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The Company also cautions that the decision by the Company to proceed to develop the Osto Mine Project and extract mineralization proceeded without the Company first establishing reserves supported by a technical report and completing a pre-feasibility or feasibility study. Accordingly, there is a higher risk of technical and economic failure at Osto because development proceeded without first establishing reserves supported by a technical report and completing a feasibility study. This is particularly relevant as the Company has proceeded with development at Osto on indicated and inferred resources without first completing a preliminary economic report.
About the Company
Otso Gold Corp. wholly owns the Otso Gold Mine near the town of Raahe in Finland. The Otso Gold Mine is fully funded, developed, fully permitted, has all infrastructure in place, two open pits and is progressing towards production in 2021 to process ore at name plate capacity of 2 million tonnes per annum.
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.
For further information, please contact:
1 917 287 0716
This press release contains forward-looking statements regarding the Company based on current expectations and assumptions of management, which involve known and unknown risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are forward-looking statements under applicable Canadian securities legislation. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. We caution our readers of this press release not to place undue reliance on our forward-looking statements as a number of factors that could cause actual results or conditions to differ materially from current expectations. Please refer to the risks set forth in the Company’s continuous disclosure documents that can be found on SEDAR (www.sedar.com) under the Company’s issuer profile. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise.