TORONTO, Jan. 13 /CNW/ - Olivut Resources Ltd. ("Olivut" or the "Company" - TSX-V:OLV) is pleased to provide an update for its exploration programs.
Highlights to date include the following:
- a total of 23 kimberlite discoveries to date on the HOAM project
- 18 holes drilled in 2009, 10 intersected kimberlite
- discovery of 5 new kimberlite occurrences
- caustic fusion returned limited number of microdiamonds
- drilled targets apparently not source of diamond stability field
indicator minerals; expanded program being designed to establish and
test other anomalies
- Uruguay exploration program underway
- well financed to conduct ongoing exploration
The Company had a very successful 2009 drill season on the HOAM project despite cutbacks to preserve capital during unsettled market conditions. Drill targets were restricted to an area of limited dimensions to maximize cost effectiveness. A total of 13 targets were tested by 18 drill holes resulting in the discovery of five new kimberlite occurrences. Both kimberlite dyke and diatreme bodies were intersected and 236 kg of kimberlite submitted for caustic fusion returned two microdiamonds from one of the new occurrences. Examination of drill core material and caustic fusion residues indicates that none of the discoveries are the source of the extremely positive indicator mineral populations that have been obtained from stream and till samples collected by the Company. Indicator mineral results vary within the areas covered by regional and local sampling. The Company believes that a number of up-ice proximal targets may be the source for at least some of these very positive indicators.
The 2009 exploration program was designed specifically to drill untested targets that were identified in previous seasons by airborne magnetic and helimag geophysical surveys. Many geophysical targets remain to be tested and it is anticipated that additional targets will be generated through a re-evaluation of existing geophysical data. Since all previously drilled kimberlite occurrences have only minor microdiamond content, methods to locate other anomalies that may reflect diamond bearing targets and the source for the Company's positive indicator minerals are being evaluated. Appropriate targets will be tested during the 2010 field season.
The Company completed the 2009 HOAM field season with approximately $4.3 million in working capital at year end October 31, 2009.
In December 2009 diamond exploration began in Uruguay, South America. Olivut is operator for the exploration program and is anticipating a productive season in this relatively unexplored region. A combination of geophysical and geomorphological targets, along with excellent geochemistry, provides the focus for the initial exploration program that includes sampling, geophysics and drilling. The stable craton of Uruguay is consistent with that of southern Africa and provides a high degree of encouragement that diamondiferous kimberlite bodies could occur in the region.
As reported on May 26, 2009, the Company signed an Option Agreement with Uruguay Mineral Exploration Inc., which announced a name change on January 7, 2010 to Orosur Mining Inc. ("Orosur" or "OSI" - TSX-V: OSI) whereby Olivut may earn up to an 80% interest in diamond prospecting and exploration licenses (the "Properties") located in northern Uruguay, South America. These Properties are held by Cinco Rios S.A., a wholly owned subsidiary of Orosur. Olivut must incur a minimum expenditure of $CDN250,000 by June 1, 2010 and a total of $CDN750,000 by December 31, 2011 in order to acquire a 51% interest in the Properties.
Olivut is a diamond exploration company with a 100% mineral interest in over 2,000,000 acres in the HOAM Project in Canada's Northwest Territories and the option as described above with OSI. 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.
Dale Mah (P.Geol.), a Qualified Person as defined by National Instrument 43-101, has reviewed the contents of this press release.
Leni Keough, P.Geol.
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