(TheNewswire)
Toronto, ON – TheNewswire – May 17, 2021 - Otso Gold Corp. (“ Otso ” or the “ Company ”),(TSXV:OTSO) (OTC:FIEIF) ispleased to announce the following update on its drilling program.
As announced on April 7, 2021, the Company has beencompleting the second phase of its infill drilling campaign to definean intial mining plan and the planned release of an updated NI 43-101Technical Report in June 2021 in advance of the planned restart ofproduction in Q3 2021.
The Company has completed 5,300m of drilling since mid2019 with over 3,000m of the planned 4,500m completed of its Phase Twodrilling program. The balance of the drilling, sampling and assayingis expected to be completed during the next month. The Company has hadbetween three and four drilling rigs on site over the last few weeks.To manage the drilling program and prepare for the return toproduction, the Company has built a team of six geologists on siteincluding highly experienced staff and supported by Warren Pratt andBoyd Geologists.
The below figure shows the drilling completed todate:
Figure 1 - Map showing theadvances of the current drilling program
Assays for much of the drilling are pending, buthighlights of the results received thus far include:
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1. LV21025 4.40 metres@ 5.13 g/tAu starting at 61.70 metres;
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2. LV21029 9.95 metres@ 1.86 g/tAu starting at 18.75 metres;
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3. 19LV0026 4.00 metres@ 1.71g/t Au starting at 9.00 metres;
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4. 19LV0026 4.00 metres@ 1.20g/t Au starting at 44.65 metres;
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5. 19LV0064 4.00 metres@ 1.43 g/tAu starting at 24.75 metres;
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6. 19LV0001 4.00 metres@ 2.17 g/tAu starting at 35.40 metres;
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7. 19LV0001 5.20 metres@ 1.37 g/tAu starting at 65.00 metres;
The Phase Two drilling campaign is focused on theresulting planned publication of the Technical Report definingsufficient resources to support an inital mine plan of ~3Mt, for therestart of production in Q3 2021. The feasibility study, progressingin parallel with the return to production, is currently expected inAugust 2021 and is expected to further upgrade and extend theresources and define a further life of mine plan encompassing anincreased pit footprint of up to four times the existing pit shells.As previously announced, John T Boyd have been appointed asindependent technical consultants to complete both the TechnicalReport and the Feasibilty Study.
Drilling is currently focused in an area within 500m ofthe edges of the two existing pits, infilling lateral extensions ofthe shear hosted structures to the east and west of the red shear. Thestructures remain open on strike and are known to extend to 250m belowsurface as confirmed by deep drilling below the south pit. The Companyobserves that the mineralization is similar to major operations suchas Red Lake (Canada) and Boddington (Australia).
The ongoing drill program is confirming the continuityof the mineralized structures outside the pit area, with well-definedtrends, roughly NW-SE. The style of the minerlization consists ofsteeply-dipping sheeted quartz vein systems and shear zones bearingsulphides in meta-volcanics and quartz-diorite hosts.
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 (bolded toindicate highlights above).
Second Phase (2021 program)
Area-
(Central Zone)
Hole LV21023 | Collar 2527888.23 mE 7160149.66 mN, 55.19 mEL, Azimuth 320,Dip -45, Depth 50.00 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 22.15 | 2.70 | 1.25 |
Includes | 0.70 | 3.60 | |
Intersection | 26.70 | 5.65 | 1.18 |
Includes | 0.85 | 4.50 | |
Also Includes | 0.85 | 1.33 |
Hole LV21025 | Collar 2527875.07 mE 7160171.87 mN, 54.14 mEL, Azimuth 0,Dip -45, Depth 67.30 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 28.67 | 1.03 | 3.16 |
Intersection | 44.05 | 0.80 | 1.77 |
Intersection | 61.70 | 4.40 | 5.13 |
Includes | 0.90 | 20.50 | |
Also Includes | 0.80 | ||
Also Includes | 1.00 | 2.21 |
Hole LV21026 | Collar 2527927.19 mE 7160165.35 mN, 54.73 mEL, Azimuth 0,Dip -45, Depth 52.70 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 15.55 | 1.00 | 8.05 |
Intersection | 26.60 | 2.30 | 1.05 |
Includes | 0.80 | 1.61 | |
Intersection | 31.90 | 0.70 | 1.05 |
Intersection | 34.90 | 0.93 | 1.26 |
Hole LV21029 | Collar 2527888.23 mE 7160149.66 mN, 55.19 mEL, Azimuth 202,Dip -45, Depth 52.70 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 13.70 | 0.90 | 1.36 |
Intersection | 18.75 | 9.95 | 1.86 |
Includes | 1.65 | 6.64 | |
Also Includes | 0.80 | 10.20 | |
Also Includes | 0.85 | 3.07 | |
Also Includes | 0.90 | 1.79 | |
Also Includes | 0.75 | 2.83 |
(Eastern Zone)
Hole LV21005 | Collar 2528574.98 mE, 7160191.98 mN, 62.02 mEL, Azimuth 0, Dip-45, Depth 80.50 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 23.35 | 0.80 | 1.55 |
Intersection | 73.90 | 0.65 | 1.69 |
Hole LV21006 | Collar 2528624.97 mE 7160242.33 mN, 63.04 mEL, Azimuth 0,Dip -45, Depth 82.30 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 56.83 | 0.87 |
Hole LV21007 | Collar 2528626.44 mE 7160191.97 mN, 63.83 mEL, Azimuth 0,Dip -45, Depth 79.70 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 47.66 | 2.14 | 1.18 |
Includes | 1.21 | 1.65 | |
Intersection | 54.40 | 0.80 | 1.55 |
Intersection | 67.37 | 2.80 | 1.19 |
Includes | 0.97 | 3.34 |
First Phase (2019 program)
Area-
Hole 19LV0001 | Collar 2527650.88 mE, 7159871.80 mN, 45.57 mEL, Azimuth 0, Dip-50, Depth 115.50 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 35.40 | 4.00 | 2.17 |
Includes | 1.00 | 6.86 | |
Also Includes | 1.00 | 1.12 | |
Intersection | 43.40 | 1.00 | 1.24 |
Intersection | 65.00 | 5.20 | 1.37 |
Includes | 1.00 | 2.36 | |
Also Includes | 1.00 | 1.56 | |
Also Includes | 1.00 | 2.07 | |
Intersection | 83.20 | 1.00 | 1.03 |
Intersection | 87.30 | 2.00 | 1.09 |
Includes | 1.00 | 1.24 | |
Intersection | 95.30 | 7.00 | 1.79 |
Includes | 1.00 | 1.49 | |
Also Includes | 1.00 | 9.31 | |
Intersection | 110.30 | 1.10 |
Table – AA
(South Pit)
Hole 19LV0025 | Collar 2527877.54 mE, 7159867.77 mN, 40.40 mEL, Azimuth 0, Dip-50, Depth 100.50 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 32.85 | 7.05 | 1.04 |
Includes | 1.00 | 1.28 | |
Also Includes | 1.00 | 1.84 | |
Also Includes | 0.80 | 2.26 | |
Intersection | 67.55 | 6.00 | 1.18 |
Includes | 1.00 | 1.32 | |
Also Includes | 1.00 | 2.97 |
Hole 19LV0026 | Collar 2527879.89 mE 7159938.20 mN, 26.07 mEL, Azimuth 0,Dip -50, Depth 106.40 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 9.00 | 4.00 | 1.71 |
Includes | 1.00 | 3.89 | |
Also Includes | 1.00 | 1.01 | |
Also Includes | 1.00 | 1.47 | |
Intersection | 44.65 | 4.00 | 1.29 |
Includes | 1.00 | 3.86 | |
Intersection | 83.75 | 3.00 | 1.26 |
Includes | 1.00 | 2.20 | |
Also Includes | 1.00 |
Collar 2527974.85 mE 7159921.98 mN, 30.02 mEL, Azimuth 356,Dip -50, Depth 82.25 m | |||
FROM (m) | Length (m) | Au g/t | |
Intersection | 37.30 | 0.80 | 8.81 |
Hole 19LV0063 | Collar 2528126.67 mE 7160476.54 mN, 49.73 mEL, Azimuth 355,Dip -50, Depth 103.40 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 97.40 | 1.00 | 1.14 |
Hole 19LV0064 | Collar 2528127.44 mE, 7160523.22 mN, 46.94 mEL, Azimuth 0, Dip-50, Depth 72.5 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 15.80 | 1.00 | 1.13 |
Intersection | 24.75 | 4.00 | 1.43 |
Includes | 1.00 | 3.98 | |
Also Includes | 1.00 | 1.48 | |
Intersection | 36.85 | 2.00 | 1.53 |
Includes | 1.00 | 2.28 | |
Intersection | 54.85 | 1.15 |
Hole 19LV0069 | Collar 2528175.42 mE 7160112.52 mN, 56.11 mEL, Azimuth 358,Dip -50, Depth 97.90 m | |||
FROM (m) | Length (m) | Au g/t | ||
Intersection | 22.40 | 1.00 | 15.79 | |
Intersection | 31.00 | 2.00 | 6.00 | |
Includes | 1.00 | 11.20 | ||
Hole 19LV0079 | Collar 2528224.59 mE 7159952.05 mN, 56.97 mEL, Azimuth 359,Dip -50, Depth 101.00 m | |||
FROM (m) | Length (m) | Au g/t | ||
Intersection | 86.25 | 1.00 | 5.98 |
Hole 19LV0080 | Collar 2528228.09 mE, 7159992.46 mN, 56.40 mEL, Azimuth 359,Dip -50, Depth 109.80 m | ||
FROM (m) | Length (m) | Au g/t | |
Intersection | 28.00 | 1.00 | 1.03 |
Intersection | 44.00 | 1.00 | 1.17 |
Intersection | 47.00 | 1.00 | 1.37 |
Intersection | 87.50 | 3.00 | 1.10 |
Includes | 1.00 | 2.26 |
Significant drill intercepts, defined as anymineralisation 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
1 917 287-0716
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 OtsoGold Mine 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 Gold MineProject and 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, 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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