TSXV:OTSO

Otso Gold Drilling Program Exceeds Expectations

(TheNewswire)



Toronto, ON TheNewswire June 1, 2021 - Otso Gold Corp. (" Otso " or the " Company "), (TSXV:OTSO) (OTC:FIEIF) is pleased to announce the following update on its drilling program.

Further to the announcement on May 17 ,2021, the drilling campaign continues to deliver exciting results, exceeding the Company's expectations, including:

  1. 1. LV21027 5.45 m @ 7.17 g/t Au starting at 37.85 m

  2. 2. LV21027 3.68 m @ 2.32 g/t Au starting at 50.65 m

  3. 3. LV21001 18.47 m @ 1.69 g/t Au starting at 28.90 m

  4. 4. LV21001 3.42 m @ 1.34 g/t Au starting at 63.58 m

  5. 5. LV21003 1.65 m @ 1.20 g/t Au starting at 67.95 m

  6. 6. LV21009 2.13 m @ 1.37 g/t Au starting at 72.45 m

  7. 7. LV21015 6.30 m @ 1.78 g/t Au starting at 18.50 m

  8. 8. LV21003 1.65 m @ 1.20 g/t Au starting at 67.95 m

  9. 9. LV21017 2.55 m @ 1.81 g/t Au starting at 37.95 m

  10. 10. LV21019 1.70 m @ 1.27 g/t Au starting at 24.40 m

  11. 11. LV21024 1.40 m @1.17 g/t Au starting at 28.20 m

All results are all from drill holes within 500m of the existing pits in line with the Company's plan to restart production in Q3 2021 by extending the foot prints of the North and South Pits by focusing initial mining on the pit extensions. Figure 1, below, demonstrates the progress of the drilling program.

As previously announced, the results from the Phase Two drilling campaign will inform the John T. Boyd authored NI 43-101 Technical Report and inital mine plan of ~3Mt expected to be published in June 2021 in advance of the restart of production in Q3 2021.


Click Image To View Full Size

Figure 1

The pit extensions include the New Hope area which had been partially cleared of overburden to investigate geochemical anomalies in the area. The Company expects to release assay results on this area shortly; however, logging of the core and previous channel samples suggest on surface extensions of the mineralization, that is, mineralized shear zones and sulphide-bearing quartz veins with the same style of deformation and mineralization characterising the deposit. The Company will be focusing part of the Phase Two drill program on testing the continuity of mineralization in the area. The Company notes this area was not included in the Company's previous resources.


Click Image To View Full Size

The core is analysed using cyanide leach with AA finish. Fire assays are used for comparative analysis to CN soluble determinarions. Overall, CN soluble gold represents approximarely 95% of total contained gold for this deposit demonstrating the conservative nature of the results, presented below:

Area-

(Central Zone)

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

1.17

Area-

(Eastern Zone)

Hole LV21001

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

4.23

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

1.69

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 any mineralization of 1 metre lengths or longer, are presented in the tables above.

"Brian Wesson"

President and CEO
Otso Gold Corp.

For further information, please contact:

Clyde Wesson
Vice President

info@otsogold.com
www.otsogold.com

The technical disclosure in this news release has been reviewed and approved by Gregory B. Sparks P.Eng, a Qualified Person as defined by National Instrument 43-101.

Caution

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 built, fully permitted, has all infrastructure in place, two open pits

and is progressing towards a restart at 2 million tonnes per annum throughput.

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.

Copyright (c) 2021 TheNewswire - All rights reserved.

News Provided by TheNewsWire via QuoteMedia

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