(TheNewswire)
Toronto, ON – TheNewswire – June 1, 2021 - Otso Gold Corp. (“ Otso ” or the “ Company ”),(TSXV:OTSO) (OTC:FIEIF) ispleased to announce the following update on its drilling program.
Further to the announcement on May 17 ,2021, thedrilling campaign continues to deliver exciting results, exceeding theCompany’s expectations, including:
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1. LV21027 5.45m @ 7.17 g/t Au starting at 37.85 m
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2. LV21027 3.68m @ 2.32 g/t Au starting at 50.65 m
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3. LV21001 18.47m @ 1.69 g/t Au starting at 28.90 m
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4. LV21001 3.42 m @ 1.34 g/t Austarting at 63.58 m
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5. LV21003 1.65 m @ 1.20 g/t Austarting at 67.95 m
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6. LV21009 2.13 m @ 1.37 g/t Austarting at 72.45 m
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7. LV21015 6.30 m @ 1.78 g/t Austarting at 18.50 m
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9. LV21017 2.55 m @ 1.81 g/t Austarting at 37.95 m
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10. LV21019 1.70 m @ 1.27 g/t Austarting at 24.40 m
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11. LV21024 1.40 m @1.17 g/t Austarting at 28.20 m
All results are all from drill holes within 500m of theexisting pits in line with the Company’s plan to restart productionin Q3 2021 by extending the foot prints of the North and South Pits byfocusing initial mining on the pit extensions. Figure 1, below,demonstrates the progress of the drilling program.
As previously announced, the results from the Phase Twodrilling campaign will inform the John T. Boyd authored NI 43-101Technical Report and inital mine plan of ~3Mt expected to be publishedin June 2021 in advance of the restart of production in Q32021.
The pit extensions include the New Hope area which hadbeen partially cleared of overburden to investigate geochemicalanomalies in the area. The Company expects to release assay results onthis area shortly; however, logging of the core and previous channelsamples suggest on surface extensions of the mineralization, that is,mineralized shear zones and sulphide-bearing quartz veins with thesame style of deformation and mineralization characterising thedeposit. The Company will be focusing part of the Phase Two drillprogram on testing the continuity of mineralization in the area. TheCompany notes this area was not included in the Company’s previousresources.
The core is analysed using cyanide leach with AAfinish. Fire assays are used for comparative analysis to CN solubledeterminarions. Overall, CN soluble gold represents approximarely 95%of total contained gold for this deposit demonstrating theconservative nature of the results, presented below:
Area-
Hole LV21027 | Collar 2527936.84 mE 7160147.31 mN, 54.96 mEL, Azimuth 0,Dip -45, Depth 61.80 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 23.68 | 0.97 | 1.61 |
Intersection | 27.25 | 1.20 | 1.15 |
Includes | 0.57 | 2.13 | |
Intersection | 37.85 | 5.45 | 7.17 |
Includes | 0.85 | 12.38 | |
Also Includes | 0.85 | 17.70 | |
Also Includes | 0.75 | 11.80 | |
Intersection | 50.65 | 3.68 | 2.32 |
Includes | 1.10 | 7.65 |
Hole LV21019 | Collar 2528221.04 mE 7160124.13 mN, 57.88 mEL, Azimuth 0,Dip -45, Depth 100.90 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 24.40 | 1.70 | 1.27 |
Includes | 0.72 | 1.95 | |
Intersection | 36.48 | 0.92 | 1.01 |
Hole LV21024 | Collar 2527927.68 mE 7160189.91 mN, 53.98 mEL, Azimuth 0,Dip -45, Depth 52.15 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 28.20 | 1.40 |
Area-
(Eastern Zone)
Collar 2528575.09 mE 7160392.18 mN, 61.48 mEL, Azimuth 0,Dip -45, Depth 79.90 m | |||
FROM (m) | Length (m) | Au g/t | |
Intersection | 28.90 | 18.47 | 1.69 |
Includes | 0.79 | 1.12 | |
Also Includes | 0.53 | 20.40 | |
Also Includes | 1.05 | 3.09 | |
Also Includes | 1.41 | 2.13 | |
Intersection | 58.61 | 1.44 | 1.14 |
Intersection | 63.58 | 3.42 | 1.34 |
Includes | 0.46 |
Hole LV21003 | Collar 2528574.94 mE 7160292.39 mN, 61.45 mEL, Azimuth 0,Dip -45, Depth 80.00 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 67.95 | 1.65 | 1.20 |
Includes | 0.85 | 1.58 |
Hole LV21009 | Collar 2528624.97 mE 7160342.49 mN, 63.49 mEL, Azimuth 0,Dip -45, Depth 100.40 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 26.60 | 0.97 | 1.09 |
Intersection | 39.05 | 0.91 | 1.28 |
Intersection | 72.45 | 2.13 | 1.37 |
Includes | 0.85 | 2.54 | |
Intersection | 97.68 | 1.21 | 1.54 |
Hole LV21015 | Collar 2528524.99 mE 7160341.96 mN, 58.65 mEL, Azimuth 0,Dip -45, Depth 80.20 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 18.50 | 6.30 | 1.78 |
Includes | 0.90 | 7.49 | |
Also Includes | 0.73 | 3.25 | |
Intersection | 28.22 | 0.90 | 1.13 |
Intersection | 50.13 | 0.82 | 1.73 |
Intersection | 56.73 | 0.93 | 1.38 |
Intersection | 59.45 | 0.93 |
Hole LV21017 | Collar 2528525.23 mE 7160442.48 mN, 56.21 mEL, Azimuth 0,Dip -45, Depth 100.70 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 4.63 | 0.46 | 2.68 |
Intersection | 11.55 | 1.01 | 2.99 |
Intersection | 37.95 | 2.55 | 1.81 |
Includes | 0.80 | 1.53 | |
Also Includes | 0.53 | 3.70 | |
Intersection | 42.26 | 0.91 | 1.08 |
Significant drill intercepts, defined as anymineralization of 1 metre lengths or longer, are presented in thetables above.
“Brian Wesson”
President and CEO
Otso Gold Corp.
For furtherinformation, please contact:
Clyde Wesson
Vice President
info@otsogold.com
www.otsogold.com
The technical disclosure in this news release has beenreviewed and approved by Gregory B. Sparks P.Eng, a Qualified Personas defined by National Instrument 43-101.
Caution
The Company cautions that it has notdefined or delineated any proven or probable reserves for the OtsoMine Project and mineralization estimates may therefore requireadjustment or downward revision based upon further exploration ordevelopment work or actual production experience. Mineral resourcesthat are not mineral reserves do not have demonstrated economicviability.
The Company also cautions that thedecision by the Company to proceed to develop the Osto Mine Projectand extract mineralization proceeded without the Company firstestablishing reserves supported by a technical report and completing apre-feasibility or feasibility study. Accordingly, there is a higherrisk of technical and economic failure at Osto because developmentproceeded without first establishing reserves supported by a technicalreport and completing a feasibility study. This is particularlyrelevant as the Company has proceeded with development at Osto onindicated and inferred resources without first completing apreliminary economic report.
About the Company
Otso Gold Corp. wholly owns the Otso Gold Mine near thetown of Raahe in Finland. The
Otso Gold Mine is fully built, fully permitted, has allinfrastructure in place, two open pits
and is progressing towards a restart at 2 milliontonnes per annum throughput.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
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