TSXV:OTSO

Otso Gold Drilling Program Well Advanced

(TheNewswire)



Toronto, ON TheNewswire May 17, 2021 - Otso Gold Corp. (" Otso " or the " Company "), (TSXV:OTSO) (OTC:FIEIF) is pleased to announce the following update on its drilling program.

As announced on April 7, 2021, the Company has been completing the second phase of its infill drilling campaign to define an intial mining plan and the planned release of an updated NI 43-101 Technical Report in June 2021 in advance of the planned restart of production in Q3 2021.

The Company has completed 5,300m of drilling since mid 2019 with over 3,000m of the planned 4,500m completed of its Phase Two drilling program. The balance of the drilling, sampling and assaying is expected to be completed during the next month. The Company has had between three and four drilling rigs on site over the last few weeks. To manage the drilling program and prepare for the return to production, the Company has built a team of six geologists on site including highly experienced staff and supported by Warren Pratt and Boyd Geologists.

The below figure shows the drilling completed to date:


Click Image To View Full Size

Figure 1 - Map showing the advances of the current drilling program

Assays for much of the drilling are pending, but highlights of the results received thus far include:

  1. 1. LV21025 4.40 metres@ 5.13 g/t Au starting at 61.70 metres;

  2. 2. LV21029 9.95 metres@ 1.86 g/t Au starting at 18.75 metres;

  3. 3. 19LV0026  4.00 metres@ 1.71 g/t Au starting at 9.00 metres;

  4. 4. 19LV0026  4.00 metres@ 1.20 g/t Au starting at 44.65 metres;

  5. 5. 19LV0064 4.00 metres@ 1.43 g/t Au starting at 24.75 metres;

  6. 6. 19LV0001 4.00 metres@ 2.17 g/t Au starting at 35.40 metres;

  7. 7. 19LV0001 5.20 metres@ 1.37 g/t Au starting at 65.00 metres;

The Phase Two drilling campaign is focused on the resulting planned publication of the Technical Report defining sufficient resources to support an inital mine plan of ~3Mt, for the restart of production in Q3 2021. The feasibility study, progressing in parallel with the return to production, is currently expected in August 2021 and is expected to further upgrade and extend the resources and define a further life of mine plan encompassing an increased pit footprint of up to four times the existing pit shells. As previously announced, John T Boyd have been appointed as independent technical consultants to complete both the Technical Report and the Feasibilty Study.

Drilling is currently focused in an area within 500m of the edges of the two existing pits, infilling lateral extensions of the shear hosted structures to the east and west of the red shear. The structures remain open on strike and are known to extend to 250m below surface as confirmed by deep drilling below the south pit. The Company observes that the mineralization is similar to major operations such as Red Lake (Canada) and Boddington (Australia).

The ongoing drill program is confirming the continuity of the mineralized structures outside the pit area, with well-defined trends, roughly NW-SE. The style of the minerlization consists of steeply-dipping sheeted quartz vein systems and shear zones bearing sulphides in meta-volcanics and quartz-diorite hosts.

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 (bolded to indicate 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

1.91

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

1.52

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-

(Western Zone)

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

1.34

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

1.24

Hole 19LV0046

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

1.18

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 any mineralisation 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

1 917 287-0716

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 Gold 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 Gold 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, 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

The Conversation (0)
Otso Gold

Otso Gold

Overview

Otso Gold Corp (TSXV:OTSO) is a gold company nearing production at its wholly-owned Otso Gold Mine in the premiere mining jurisdiction of Finland. The past operating mine complex, which includes the 2 million tonne per annum processing plant, is fully built, licensed, and permitted. The company has advanced through a phased redevelopment plan that is reaching its conclusion with the return to long-term, sustainable production. Moving forward, Otso Gold will launch an extensive exploration and drilling program across the lease areas with a view to expand the life of mine.

The redevelopment plan was centered on gaining an in-depth understanding of the mine areas to inform a comprehensive mine plan. Otso Gold Corp understands that a successful restart is contingent on a robust mine plan and in-depth knowledge of the deposit’s geology. Importantly, Otso Gold have built a team of diverse and highly skilled technical professionals to carry out each phase of the redevelopment plan and sustain production.

Located in Finland, Otso Gold operates within one of the world’s leading mining jurisdictions. In 2018, Forbes ranked Finland as the world’s second-best country for property rights while the Fraser Institute ranked Finland third-best in the world for mining policies, owing to the government’s support of mineral exploration and production. Finland has a 20 percent corporate tax rate and gold producers pay a low royalty of 0.15 percent. Otso Gold seek to leverage technological innovation and ESG standards to promote sustainable mining practices. This includes;

  • Over 70 percent of power is carbon neutral
  • In partnership with Neste, all vehicles on site will run on renewable diesel
  • Advanced, continuous environmental monitoring systems across the site.

Otso Gold received US$11.155 million from the exercise of 284,944,440 common share purchase warrants previously issued to Brunswick Gold Ltd (“Brunswick Gold”) on a private placement basis on February 8, 2021. The Company allocated the proceeds  from  the  exercise  of  the Warrants  toward continuing the Company’s return to production of the Otso Gold Mine, targeted in Q3.

Otso Gold’s Company Highlights

  • Executed redevelopment plan nearing completion in Q3, 2021.
  • Over 70% of power is carbon neutral with cutting-edge environmental monitoring systems in place.
  • Well-funded, fully-permitted and licensed past-producing mine.
  • Low-cost mining operation with two open pits and a 2 million tonne per annum processing plant.
  • Proven recoveries of 87.5 percent.
  • Further exploration potential.
  • Received US$11.155 million to start production of its Otso Gold Mine

Otso Gold’s Flagship Project

Bringing Finland’s Otso Gold Mine Back into Production

The fully-built Otso Gold Mine is located near the town of Raahe, Finland. The access to skilled labor and infrastructure in this established mining jurisdiction directly benefits the Otso Gold Mine. Infrastructure includes low-cost power on-site, a network of paved all-weather roads leading to the mine site, a seaport within twenty minutes and an airport within an hour of the mine site. The €250 million Otso Gold Mine operation includes two developed pits and a completely built 2 million-tonne throughput process plant designed by Metso and Outotec.

The well-defined mineralized zone on the Otso Gold Mine is one of the largest gold resources in the region.

*The materials remaining in the low-grade stockpile from the previous production has been included in the measured category as it is ready to be fed to the mill at start-up. The sulphidic waste rock dump (potentially acid-forming) is included in the inferred category of the estimate as it is considered to be above the planned cut-off grade of 0.3 g/t Gold.

Mine and processing plant

The Otso Gold Mine operation consists of two open pits: the 50-meter-deep North Pit and the 25-meter deep South Pit. Otso Gold Corp’s mine plan emphasizes grade control and reconciliation. Conservative estimates for mining costs come in at €506 per gold ounce.

The plant has a proven operating recovery of 87.5 percent gold at a process cost of €305 per gold ounce. Having already operated in 2019, the processing plant is production-ready with minimal CAPEX required to return to production.

Otso Gold’s Management Team

Vladimir Lelekov – Chairman of the Board

Mr. Lelekov currently serves as Chairman of Brunswick Rail, the largest railcar operating leasing company in Russia. Prior thereto, Mr. Lelekov was CEO of Brunswick Rail from 2006 to February 2013 and returned to the company in May 2017. In 2014, Mr. Lelekov acquired an interest in OOO “Liga-Trans” (one of the largest companies in the sector of collection and environmentally friendly waste disposal) and assumed the position of the Chairman of the Board of the company until 2017.

Brian Wesson – President, Chief Executive Officer & Director

Mr. Brian Wesson has extensive experience spanning a career of over 40 years in the management, operation design and construction of natural resource operations globally. He qualified as an engineer in South Africa, gained an MBA in Australia, studied Economics at the University of South Africa and is a fellow of the Australasian Institute of Mining and Metallurgy and a fellow of the Australian Institute of Company Directors.

Clyde Wesson – Vice-President and Director

Clyde Wesson has significant experience in all aspects of the management of corporate entities, both listed and unlisted. His expertise includes the restructuring and recapitalizing of distressed assets, corporate finance, design and execution of corporate strategy, legal management and bringing assets to market. Wesson holds bachelor’s degrees in both Law and Commerce (LLB, B.Com) and is currently a candidate for a Master’s of Law (LLM) from Melbourne University (2019). He is a solicitor and member of the Supreme Court of NSW and a member of the Australian Institute of Company Directors, Australian Institute of Mining and Metallurgy and the Law Society of NSW.

Yvette Harrison – Chief Financial Officer

Ms. Harrison is a Chartered Professional Accountant with over 20 years of experience in permanent positions as well as in bridge leadership consulting roles with organisations in “immediate-need” situations in mining, real estate investments, technology, forest products, manufacturing and not-for-profit. She has worked as Chief Financial Officer, VP Finance, Director Finance, Controller and Consultant with numerous public and private companies as well as not-for-profits. She also has worked in public practice. Ms. Harrison received her CGA designation from the Certified General Accountants Association of British Columbia in 2002.

Nicolas Pascault – Director

Mr. Pascault serves as CEO of Brunswick Rail, the largest railcar operating leasing company in Russia, a position he has held since November, 2016. Mr. Pascault joined Brunswick Rail in 2004 as Managing Partner and CFO. In January 2015, Mr. Pascault assumed the position of Deputy CEO, reporting directly to the Chairman, and was asked by the Board to support a bond restructuring. Prior thereto, Mr. Pascault served as CFO of Danone Group in Russia from 1998 to 2004 and, from 1990 to 1998, Mr. Pascault worked at Ernst & Young in Moscow, St. Petersburg and Paris in the Audit and Corporate Finance Department. Mr. Pascault graduated from the Institut d’Etudes Politiques of Paris and holds a Master of Finance degree from the University of Paris II.

Victor Koshkin – Director

Mr. Koshkin serves as General Director of Brunswick Rail Management, a management company for Brunswick Rail, the largest railcar operating leasing company in Russia. Prior thereto, from 2003 to 2010, Mr. Koshkin worked in Moscow as CFO at Integrated Energy Technologies, Deputy Head of Business Development at SUAL, and adviser to shareholders of MDM Group. Mr. Koshkin served on the board of privately owned Samara Transformer. Prior to that, from 1996 to 2001, Mr. Koshkin worked as an investment banker at JP Morgan and Lehman Brothers in New York. Mr. Koshkin holds an MBA degree from Harvard Business School and a BA degree in Economics from Wabash College.

Martin Smith – Independent Director

Mr. Smith is an Independent Mining Consultant with over 40 years’ experience in open pit mining. From 2006 to 2015, Mr. Smith was Technical Director of Petropavlovsk Plc (formerly Peter Hambro Mining) based in the Russian Far East and overseeing three large open pit gold mines and their associated processing plants producing c.500,000 ounces of gold per year. Prior thereto, Mr. Smith worked as Country Director for Joy/P&H in India; General Manager of Comedat Phosphate in Jordan and Chief Mining Engineer for Costain Mining Ltd. Martin holds a BSc in Mining Engineering from the Royal School of Mines, Imperial College of Science, London.

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