TSXV:OTSO

Updated Mineral Resource Estimate

(TheNewswire)



19 th August 2021 TheNewswire - Toronto, ON. Otso Gold Corp. (" Otso " or the " Company "), (TSXV:OTSO) (OTC:FIEIF) is pleased to announce a National Instrument 43-101 (NI 43-101) Mineral Resource Update for the Otso Gold Mine. The NI 43-101 Technical Report prepared by John T Boyd Company (‘Boyd') will be filed on SEDAR within 45 days of this release.

The updated technical report is the first deliverable from Boyd and will be followed by an NI 43-101 Feasibility Study, to include estimation of minable reserves.

Boyd is currently preparing mine designs and a production plan which will be used to begin initial mine preparation, waste removal and the restart of production  in September 2021. Further, the mine designs and a production plan will form a part of the feasibility study.

The following table summarizes the findings to be included in the Mineral Resource Technical Report.  The mineral resources are split between high grade and low grade to accommodate separate processing of the high grade and low grade plant feed through different circuits.

Resource

High Grade (COG = 0.60 g/mt)

Low Grade  (COG = 0.323 g/mt)

Total Mineral Resource

Category

Grade

Grade

Grade

Tonnes

(g/mt)

Tr Oz Au

Tonnes

(g/mt)

Tr Oz Au

Tonnes

(g/mt)

Tr Oz Au

Measured

1,050,000

1.717

58,000

591,000

0.447

8,500

1,641,000

1.260

66,500

Indicated

8,058,000

1.477

382,600

5,421,000

0.448

78,100

13,479,000

1.063

460,700

Total M& I

9,108,000

1.505

440,600

6,012,000

0.448

86,600

15,120,000

1.084

527,200

Inferred

4,666,000

1.583

237,500

2,667,000

0.449

38,500

7,333,000

1.171

276,000

* Based on parameters setforth below.

Otso Gold Mineral Resource Estimation Parameters

Parameter

Units

Value

Open Pit Waste Mining Cost

US$/Waste Tonne

$1.90

Open Pit Ore Mining Cost

US$/Ore Tonne

$2.73

Underground Mining Cost

US$/Ore Tonne

$75.00

Mill - High Grade Processing Cost

US$/Mill Ore Tonne

$11.78

Mill - Low Grade Processing Cost

US$/Mill Ore Tonne

$10.22

G&A Cost

US$/Feed Tonne

$2.20

Mill Gold Recovery (at cutoff)

%

92.0%

Mill - Low Grade Gold Recovery (at cutoff)

%

80.0%

Mill Annual Capacity (Both High & Low Grade)

Tonnes

1,500,000

Gold Price

US$/Troy Ounce

$1,600.00

Selling Cost

US$/Troy Ounce

$2.55

Royalty

%

0.15%

Notes to the Mineral Resource Resource Estimate:

(1) The effective date for this mineral resource estimate is August 5, 2021 and is reported on a 100% ownership basis.  This estimate is an update using additional assays and exploration drilling as well as updated economics.

(2)  Mineral Resources are calculated at a gold price of US$1,600 per troy ounce.

(3) The mineral resources presented above are global and do not include a detailed pit, only an economic pit shell was used to determine the in-pit mineral resources.

(4) Mineral resources which are not mineral reserves do not have demonstrated economic viability.  The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio-political, marketing, or other relevant issues.

(5) The mineral resources presented here were estimated using a block model with a block size of 9 m by 9 m by 9 m sub-blocked to a minimum block size of 3 m by 3 m by 3 m using ID 3 methods for grade estimation.  All mineral resources are reported using an open pit gold cut-off of 0.323 g/t Au.  Open pit mineral resources above 0.600 g/t are considered high grade material while material between 0.323 g/t and 0.600 g/t are considered low grade..

(6) The mineral resources presented here were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council May 10, 2014.

(7)  Figures are rounded and totals may not add correctly.

Processing of high grade  material will be processed through the existing plant with some flow sheet modifications intended to improve overall recovery. High grade processing is expected to commence in September 2021. Low grade material, which was previously below cut-off grade and was therefore treated as waste, will be treated through a separate circult currently being developed.

The Company is working closely with Boyd to complete metallurgical testing which will inform the recommendations in the feasibility in relation to the installation of a separate low grade circuit, however initial tests are encouraging.

Brian Wesson stated: "Otso is pleased with the results of this resource estimate and optimisation of waste management. The Company looks forward to completion of the Resource Technical Report, as well as the Feasibility Study to follow. The results of this work represent the culmination of extensive geological work and the infill drilling program the Company has been completing since February, and represents the final milestone before the restart of production next month".

Brian Wesson

President and CEO
Otso Gold Corp.

For further information, please contact:

Clyde Wesson
Vice President

Otso Gold Corp.

1 917 287-0716

info@otsogold.com
www.otsogold.com

The technical disclosure in this news release has been reviewed and approved by Sam J. Shoemaker, SME Registered Member, 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 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.

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This press release contains certain forward-looking information and forward-looking statements within the meaning of Canadian securities legislation (collectively, "Forward-looking Statements"). All statements, other than statements of historical fact, constitute Forward-looking Statements. Words such as "will", "intends", "proposed" and "expects" or similar expressions are intended to identify Forward-looking Statements. Forward looking Statements in this press release include statements related to the use of proceeds from the Offering; the final acceptance of the TSX Venture Exchange; the Company's mineral reserve and mineral resource estimates; the timing and amount of future production from the Koné project; expectations with respect AISC of the Koné project; anticipated mine life of the Koné project; and expected recoveries and grades of the Koné project. Forward-looking Statements involve various risks and uncertainties and are based on certain factors and assumptions. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include uncertainties inherent in the preparation of mineral reserve and resource estimates and definitive feasibility studies such as the Mineral Reserve Estimate and the UFS, including but not limited to, assumptions underlying the production estimates not being realized, incorrect cost assumptions, unexpected variations in quantity of mineralized material, grade or recovery rates, unexpected changes to geotechnical or hydrogeological considerations, unexpected failures of plant, equipment or processes, unexpected changes to availability of power or the power rates, failure to maintain permits and licenses, higher than expected interest or tax rates, adverse changes in project parameters, unanticipated delays and costs of consulting and accommodating rights of local communities, environmental risks inherent in the Côte d'Ivoire, title risks, including failure to renew concessions, unanticipated commodity price and exchange rate fluctuations, risks relating to COVID-19, delays in or failure to receive access agreements or amended permits, and other risk factors set forth in the Company's 2023 AIF under the heading "Risk Factors". The Company undertakes no obligation to update or revise any Forward-looking Statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Montage to predict all of them, or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any Forward-looking Statement. Any Forward-looking Statements contained in this press release are expressly qualified in their entirety by this cautionary statement.

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SOURCE Montage Gold Corp.

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