TORONTO, Feb. 16 /CNW/ - Olivut Resources Ltd. ("Olivut" or the
"Company") (TSXV: OLV) is pleased to announce that it has signed a
non-binding Letter of Intent ("LOI") dated February 15, 2011 with Latin
American Minerals Inc. ("LAT") (TSXV: LAT) to explore the Itapoty
Diamond Project located in central Paraguay, South America.
The Company is very pleased to be working on this new opportunity as it
complements Olivut's existing portfolio of diamond exploration
properties in Canada and Uruguay, South America. The Company will be
able to utilize its team located in Montevideo, Uruguay to evaluate the
potential of the Itapoty Diamond Property.
Highlights of the Itapoty Diamond Project include:
Stream and rock sample results have yielded numerous Kimberlite
Indicator Minerals (KIMs)
37 diamonds have been recovered from the property by LAT
Diamond distribution suggests local and multiple sources
Diamonds found in coarse fraction (1-2 mm)
Surface features of diamonds indicate proximal sources
Regional and local geology supports emplacement of diatremes and dykes
Pursuant to the LOI, the Company and LAT have agreed to negotiate a
binding agreement (the "Definitive Agreement") with respect to the
Itapoty Diamond Project, anticipated to be finalized no later than
March 31, 2011, and if executed, it is anticipated that work will begin
immediately on the Itapoty Diamond Project. Pursuant to the LOI terms,
the Definitive Agreement would provide Olivut with an option to earn
50% of the project by incurring CDN$250,000 in expenses related to the
property in the first 12 months and an additional CDN$750,000 in the
following 18 months. Olivut would be the operator of the project. As
the LOI is non-binding and is subject to further negotiations, there is
no assurance that a Definitive Agreement will be entered into on these
terms or at all.
Paraguay remains largely underexplored. It depends for the most part on
agriculture production which comprises the vast majority of the
country's exports. Argentina and Brazil are its main trading partners.
Rivera Project Update
An early 2011 exploration program is scheduled for the Rivera Diamond
Project in Uruguay. Olivut is operator for the Rivera project, a joint
venture with Orosur Mining Inc. ("Orosur") (TSXV: OMI). The Company has
an option to earn 51% in the project by incurring a total of
CDN$750,000 by December 31, 2011. The August 1, 2010 CDN$250,000
earn-in expenditure commitment has been met. Encouraging results from
the 2010 pit and stream sampling program as well as the shallow,
reverse-circulation drill program, justifies further work. Geophysical
analysis conducted over the past several months, combined with very
positive indicator mineral chemistry from an unknown source and local
geomorphology, has resulted in numerous new drill targets being
Negotiations have been undertaken to allow access to test these
anomalies. Landowner agreements are being finalized, as is the
government permitting process, to enable drilling on the priority
HOAM Project Update
The Company's third area of focus, the HOAM Project, will have a full
field season of work conducted during 2011. A drill program is being
planned to test targets. The Company is very pleased that
reinterpretation and analysis of its geophysical data, as well as
additional detailed geophysical work, has resulted in numerous new
priority targets. Analysis is ongoing. The source of the Company's very
positive indicator mineral chemistry, which includes a high percentage
of diamond stability field indicator minerals, remains to be
found. Additional airborne magnetic surveys and geochemical surveys may
also be undertaken. Olivut has discovered 23 kimberlites in this new
kimberlite province in Canada.
The Company had approximately $2.9 million in working capital at October
Olivut is a diamond exploration company with a 100% mineral interest in
the HOAM Project in Canada's Northwest Territories and the option as
described above with Orosur. 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. Without limitation, the terms and
conditions of the prospective transaction for the Itapoty Diamond
Project may change, or such transaction may not occur at all, based on
the Company's due diligence on the properties and the negotiation of
the binding Definitive Agreement.
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:
President and Chief Executive Officer
Olivut Resources Ltd.