Otis Gold Corporation OGLDF

MANAGEMENT UPDATE

[herbacious]

The first 4 holes at Prospect Ridge have hit mineralization, marking the beginnings of the 2^nd deposit at Kilgore; and

2.       The first 3 holes at Mine Ridge have hit mineralization, continuing to expand the existing Mine Ridge deposit.

 

As you know, we are ultimately targeting 3 to 5 million ounces of gold at Kilgore.  We will achieve this by continuing to grow the existing Mine Ridge deposit, that remains open in all directions.  We have a near term target of 0.7 to 1.0 million ounces, and given the open-ended nature of the deposit things could well grow into the 1.5 million ounce range or more.  Secondly, Prospect Ridge, where we have just announced the discovery holes, is on strike with Mine Ridge and has the potential to hold a similar-sized deposit to Mine Ridge.  Thirdly, Gold Ridge is a target that has never been drilled but has same geologic characteristics as Mine Ridge (located several kilometres to the southeast).  These three targets alone have a minimum 3.0 million ounce potential.  When you factor in the potential at Dog Bone Ridge, as well as other earlier-stage targets at Kilgore, you quickly get to 5.0 million ounce potential.

 

In the next several months we will:

1.       Continue to issue Mine Ridge and Prospect Ridge results;

2.       Drill a minimum 1,000 metres at Gold Ridge;

3.       Issue a new resource estimate at Mine Ridge;

4.       Initiate 12 month environmental baseline studies;

5.       Begin permitting work on road network required to continue drill development at all Kilgore drill targets;

and

6.       Commence advanced-stage metallurgical testing on larger crush size material (we are drilling some P-size core) to follow up on our very successful met testing from 2010.


DO YOUR OWN DUE DILIGENCE

HERB