TORONTO, Aug. 11 /CNW/ - Olivut Resources Ltd. ("Olivut" or the "Company"--TSX-V:OLV) is pleased to provide an update for its exploration programs.
Highlights include the following:
Rivera Project, Uruguay
- JV earn-in commitment met
- positive sample program results
- encouraging drill program results
HOAM Project, NWT
- geophysical interpretation of airborne magnetic data successful
in delineating additional drill targets
- continuation of 2010 exploration program underway
The Company had a successful initial exploration program on the Rivera Project in Uruguay. Expenditures in excess of $CDN 250,000 have been made to meet the August 1, 2010 earn-in commitment deadline. Olivut plans to continue exploration during 2010 based on the positive results received to date.
Phase 1 exploration work included stream and pit sampling at both regional and local scales. Positive kimberlite indicator minerals ("KIMs") including diamond were recovered. Surface features of most of the recovered pyrope garnets indicate a probable proximal source. An early stage drill program was undertaken to test several geomorphological targets. Shallow reverse circulation ("RC") holes ((less than)110 metres) were drilled into four targets. Intensely serpentinized, ultramafic material was intersected within sandstone in one of the targets. A geophysical interpretation of airborne and ground magnetic data has now been completed and numerous additional targets have been established for further investigation.
The Company is extremely encouraged by the coincidence of anomalous stream sediment samples, geophysical targets, favourable structures and the presence of ultramafic material, all of which support the presence of kimberlite in the project area. Management is pleased with the amount of positive information obtained from this early stage investigation and that the initial results justify continued work. Planning is underway for further exploration which can be carried out on a year round basis in Uruguay. The stable Rio de la Plata craton of Uruguay is consistent with cratonic regions in southern Africa which provides a high degree of encouragement that diamondiferous kimberlite bodies may be present in the region.
The joint venture earn-in structure was established in order for Olivut to evaluate the potential for kimberlites in this relatively unexplored region without exposing shareholders to high front end costs. Olivut is operator for the Rivera project, a joint venture with Orosur Mining Inc. ("Orosur" or "OMI" - TSX-V: OMI). An additional CDN$500,000 must be spent by the Company by December 31, 2011 in order for Olivut to earn 51% of the project.
On the HOAM Project, the 2010 exploration program was initiated with an interpretation of airborne magnetic data conducted by an independent expert. The objective was to assess the possibility of identifying new areas of potential kimberlite occurrences that may have been overlooked by initial assessments. The Company has been very successful in identifying kimberlite occurrences in this previously unexplored area of the NWT. Twenty-three kimberlite discoveries have been made to date. Although some of these are microdiamond bearing, the sources of the extremely positive, yet discrete, KIM populations (including G10 garnets), recovered from stream sediment and till samples collected throughout this large project area, remain to be found. The Company is pleased that this independent geophysical evaluation has resulted in numerous additional targets located up-ice from the areas of anomalous KIMs. Consequently, a program is being planned to further evaluate many of the high priority target areas. This work may include additional detailed airborne geophysical surveys and drilling during the 2010 season.
The Company had approximately $3.5 million in working capital at April 30, 2010.
Olivut is a diamond exploration company with a 100% mineral interest in over 1,500,000 acres in the HOAM Project in Canada's Northwest Territories and the option as described above with OMI. Please visit www.olivut.com for detailed corporate and project information.
This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward-looking statements that involve various risks and uncertainties. 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.
Martin Jackson MAusIMM, a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this press release.
Leni Keough, P.Geo.
President and Chief Executive Officer
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE OLIVUT RESOURCES LTD.
For further information: For further information: Leni Keough, President and Chief Executive Officer, Olivut Resources Ltd., (780) 866-2226