2010-06-16 10:05 ET – News Release
Mr. Steve Smith reports
Otish Energy Inc. has entered into an option agreement to acquire a 100-per-cent interest in 33 mineral claims (the RB claims) situated in Noyelles township in the Abitibi area of Quebec. In consideration, the company will pay the vendor $2,500 cash and issue 250,000 of its common shares upon and subject to regulatory approval. The RB claims will be subject to a 2-per-cent net smelter returns royalty payable to the vendor. The company will have the option at any time to reduce the NSR to 1 per cent for a one-time cash payment of $1-million to the vendor. As part of the option agreement, Otish will also acquire rights to a proprietary geophysical database from the vendor. The database includes 91.7 kilometres of horizontal loop electromagnetic data, 106.9 km of total field and vertical gradient magnetic data and 15.7 km of induced polarization and resistivity data. These excellent geophysical data provide numerous drill-ready targets. The RB claims form two distinct blocks. The R block includes 15 mineral titles (839.8 hectares) that tie directly onto the northwestern corner of the company’s Noyelles property (see news release in Stockwatch Dec. 3, 2009) and cover the extension of three well-defined, drill-ready geophysical anomalies deemed favourable for gold mineralization. The Noyelles property is located roughly 60 km northwest of the town of Lebel-sur-Quevillon, Que. Several logging roads provide excellent access. The property covers part of the Casa Berardi-Cameron Lake deformation corridor that hosts several gold deposits, notably the Casa Berardi gold mine, with over five million ounces of gold, and the Discovery gold deposit, located 20 km southwest of the property, with more than 500,000 ounces of gold. The B block includes 18 mineral titles (1007.1 hectares), is located 1.8 km due north of the Noyelles property and covers 5.4 km of several parallel, gold-bearing structures that are collectively known locally as the Berthiaume gold zone (BGZ). Drill intersections up to 7.3 grams per tonne gold over 8.2 metres have been reported from the BGZ at a point eight km due east of the B block east boundary. Grab samples up to 16 grams per tonne gold have been reported from the BGZ at a point four km due west of the B block west boundary. The database identifies at least two drill-ready geophysical anomalies on the B block deemed favourable for gold mineralization. Otish is currently compiling all the existing data relevant to the RB claims and the adjacent Noyelles property in order to launch a diamond drill campaign in 2010.
Benoit Moreau, PEng, vice-president exploration for Otish Energy, is a qualified person (as defined in National Instrument 43-101) and is responsible for the geological information presented herein.
We seek Safe Harbor.
