(TheNewswire)
Toronto, ON – TheNewswire – December 23, 2020 – Otso Gold Corp. (“ Otso ” or the“ Company ”), (TSXV:OTSO) is pleased toannounce a further update to its previously announced drillingprogram.
As previously announced, the first portion of anexpected 10,000 m drilling program was completed in 2019 with thesample assaying delayed while funding was completed. Further samplebatches began to be processed in October, 2020. The drill programresults will be compiled and interpreted as they are received and willinform the final 8,000m of the drill program planned for in February2021 which will test drill targets identified around the current pitareas and to infill currently identified mineralised targets. Thedrill program will be further enhanced by high tech ADROK geophysicsto target the veins accurately. The results will be used to inform anupdate to the Mineral Resource estimate.
The primary objective of this portion of the drillingprogramme has been to infill drill to improve confidence in themineralisation to form the basis of the mine plan for production. Thebalance of the drilling will be focused on further infill drillingwith some folllow up drilling of mineralisation from historicaldrilling programs to the north east of the North Pit (including 3.44g/t over 4 metres some 6 metres from to the surface) and the ‘petrolpump’ area (9 metres at 22.58 g/t at 53 m from surface), areas thatcould be indicative of new mineralisations on the edges of the currentpits. The completed drilling was focused on three prospective areas:the western edge of the north pit; south of the north pit; and thesouth pit. Assays from much of this drilling remain pending, butencouraging results received to date include:
- 19LV0009: 2 metres @ 2.93 g/t Au starting at 64.8metres;
- 19LV0066: 1 metres @ 3.52 g/t Au starting at 98metres;
- 19LV0066: 1 metres @ 9.9 g/t Au starting at 116metres;
- 19LV0068: 2 metres @ 10.63 g/t Au starting at 35.7metres;
- 19LV0081: 1 metres @ 9.72 g/t Au starting at 48.05metres; and
- 19LV0081: 1 metres @ 2.42 g/t Au starting at 52.05metres.
Brian Wesson, the Company’s CEO/President,stated:
“After a long 18 months putting all the pieces inplace for a return to production, including funding, we are excitedto be on the path to the production. Results from the drilling programcontinue to return positive results with the infill drillingconfirming our modelling and the identification of additional shallow,high-grade gold mineralisation in and around the North and South pitsdemonstrating the potential to expand the pits”.
Detailed Drilling Results
The following table summarizes significant drillresults 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 1mat at least 90% recovery. All results are from diamond core holes. Thesample intervals are constrained by geology and range from a minimumof 0.7 metres to a maximum of 3 metres, averaging to the targetinterval of 1 metre in length. Mean grades are calculated at thestated cut-off with no upper cap applied.
DH | Interval | Thickness | Au | |
From | To | (m) | (g/t) | |
(m) | (m) | |||
19LV0009 | 64.8 | 66.8 | 2 | 2.93 |
incl | 64.8 | 65.8 | 1 | 4.12 |
incl | 65.8 | 66.8 | 1 | 1.74 |
19LV0066 | 98 | 99 | 1 | 3.52 |
19LV0066 | 108 | 109 | 1 | 1.43 |
19LV0066 | 115 | 121 | 6 | 1.85 |
incl | 116 | 117 | 1 | 9.99 |
19LV0067 | 43.3 | 44.3 | 1 | 3.63 |
19LV0068 | 35.7 | 36.7 | 1 | 16.48 |
19LV0068 | 24.7 | 25.7 | 1 | 1.57 |
19LV0068 | 35.7 | 37.7 | 2 | 10.63 |
19LV0081 | 48.05 | 49.05 | 1 | 3.72 |
19LV0081 | 52.05 | 53.05 | 1 | 2.42 |
19LV0081 | 97.8 | 98.8 | 1 | 1.66 |
Qualified Person
The Qualified Person with overall responsibility forthis press release for the Company, and who has reviewed theinformation contained herein, is Mr. Joe Hirst B.Sc., M.Sc., EurGeol,CGeol, the Company’s Senior Resource Geologist. He is a geologistwith more than 17 years of experience in the Resources industry whohas sufficient experience relevant to the style of mineralisation andtype of deposit under consideration and to the activity which he isundertaking 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 mattersbased on this information in the form and context in which it appears.
QA/QC Procedures: Sampling Methodology and QualityControl
All results have been generated from diamond coreholes. Samples are shipped to the MSA Laboratory in Langley, BC,Canada for sample preparation and assay. Gold is analysed using a30-gramme fire assay with an atomic absorption spectroscopy (AAS)finish. A quality control/quality assurance protocol is employed inthe programme which includes standards and blanks in every batch ofassays.
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 funded,developed, fully permitted, has all infrastructure in place, two openpits and is progressing towards production in 2021 to process ore atname plate capacity of 2 million tonnes per annum.
Neither the TSX Venture Exchange nor its RegulationServices Provider (as that term is defined in the policies of the TSXVenture Exchange) accepts responsibility for the adequacy or accuracyof this release.
For furtherinformation, please contact:
Clyde Wesson
Vice President
1 917 287 0716
info@otsogold.com
www.otsogold.com
Forward-lookingStatements
This press release containsforward-looking statements regarding the Company based on currentexpectations andassumptions of management, which involve known andunknown risks and uncertainties associated with our business and theeconomic environment in which the business operates. All suchstatements are forward-looking statements under applicable Canadiansecurities legislation. Any statements contained herein that are notstatements of historical facts may be deemed to be forward-lookingstatements. By their nature, forward-looking statements require us tomake assumptions and aresubject to inherent risks and uncertainties. We caution our readers ofthis press release not to place undue reliance on ourforward-lookingstatements as a number of factors could cause actualresults or conditions to differ materially from current expectations.Please refer to the risks set forth in the Company's continuousdisclosure documents that can be found on SEDAR ( www.sedar.com ) under the Company’s issuer profile. The Company does notintend, and disclaims any obligation, except as required by law, toupdate or revise any forward-looking statements whether as a result ofnew information, future events or otherwise.
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