Otis Acquires Cold Creek Gold Project



    
    /NOT FOR DISSEMINATION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/

    OOO (TSX-V)
    

    VANCOUVER, Oct. 9 /CNW/ - Otis Capital Corp. ("Otis" or the "Company") is
pleased to announce the acquisition, via staking, of the Cold Creek Gold
Project ("Cold Creek"), an intermediate-stage, epithermal hot spring-type
precious metals exploration target located in Cassia County, Idaho. Cold Creek
comprises 53 unpatented federal lode mining claims located approximately
6 miles north of the Company's existing Blue Hill Creek Gold Project. Work
presently being conducted at Cold Creek, and concurrently at Blue Hill Creek,
includes detailed geological mapping and geochemical sampling and a
ground-based CSAMT survey. Additionally, the Company is in the process of
acquiring additional land located in the area of the two projects that
effectively creates a district-wide play encompassing approximately 1,500 to
2,000 acres.
    Gold mineralization at Cold Creek was originally discovered by Meridian
Minerals in the summer of 1985. This mineralization is at the northern end of
a larger, north-trending, 5-mile-long by 1-mile-wide belt of precious metal
occurrences along the western margin of the Albion Range metamorphic core
complex. At Cold Creek, alteration and gold mineralization are hosted by
Tertiary Salt Lake Formation epiclastic sedimentary and tuffaceous volcanic
rocks within a northwest-trending, fault-bounded graben. Pervasive
silicification and local strong chalcedonic quartz veining are the primary
alteration types present at the main target in the altered zone. This zone, at
least 5,000-feet long and up to 3,500-feet wide, contains surface gold values
to 0.060 opt. Mineralization appears related to north- and northeast-trending,
high-angle structures. The margins of the graben remain unexplored.
    A total of 9,205 feet in thirty-eight (38) RC holes was drilled by
Meridian in 1986 and 1987 and by WestGold in 1988 to partially test the
Tertiary-hosted target. Results of this drilling define a non-NI 43-101
compliant 85,000 ounce gold resource that is still open in every direction
laterally. The reader is cautioned that Otis is not treating the estimate as a
current mineral resource as it has not been verified and therefore should not
be relied upon. Of the thirty-eight (38) holes drilled, fifteen (15)
encountered significant intercepts of near-surface gold mineralization greater
than 0.020 opt, as well as extensive zones of silicification. Some of the
higher grade and thicker intercepts include 30 feet @ 0.063 opt Au (hole CC
87-29), 40 feet @ 0.048 opt Au (hole CC 86-14), 150 feet @ 0.020 opt Au (hole
CC 86-12), and 260 feet @ 0.014 opt Au (hole CC 86-13). These results confirm
the presence of significant thicknesses of mineralization in the known
resource area, as well as the potential for additional mineralization along
the open-ended, lateral extensions of the deposit.
    The possibility of finding additional Tertiary-hosted resources at
Cold Creek is considered good and specifically exists in the following areas:
1) within the main resource area where the deposit requires further in-fill
and extension drilling; 2) within and along the extensions of the north- to
northeast-trending vein zones in the main mineralized area where higher-grade
feeders may exist; and 3) along the northwest extension and margins of the
northwest-trending graben containing the mineralization. Furthermore,
additional potential exists for possible high-grade, feeder-type
mineralization, which may be present at depth in Paleozoic carbonate basement
rocks underlying the mineralized Tertiary section.
    John R. Carden, Ph.D., P. Geo., a Qualified Person (QP) as defined by
National Instrument Policy 43-101, is responsible for the technical
information contained in this news release.

    
    ON BEHALF OF THE BOARD

    "Craig T. Lindsay"
    President & CEO
    

    This news release does not constitute an offer to sell or a solicitation
of an offer to sell any of securities in the United States. The securities
have not been and will not be registered under the United States Securities
Act of 1933, as amended (the "U.S. Securities Act") or any state securities
laws and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and applicable state
securities laws or an exemption from such registration is available.

    %SEDAR: 00025833E




For further information:

For further information: Tel: (604) 683-2507, Fax: (604) 683-2506,
E-mail: craig@otiscapital.com, www.otiscapital.com

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OTIS CAPITAL CORP.

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