Olivut Announces 50% Option Exercise on Seahorse Project

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TORONTO, July 06, 2020 (GLOBE NEWSWIRE) -- Olivut Resources Ltd. (“Olivut” or the “Company”) (TSXV:OLV)  is pleased to announce that it has exercised its option to earn 50% of the Seahorse Project, located in the Northwest Territories, Canada in accordance with the terms of the Option Agreement signed with Talmora Diamond Inc. (“Talmora”) on July 6, 2018.  Olivut and Talmora will be joint (50/50) owners of the assets.   

All earn-in requirements have been completed: on December 9, 2019 Olivut provided notice to Talmora that it had incurred the minimum work cost requirement of $1,200,000 ($1,295,000 spent to October 31, 2019) and a cash payment of $200,000 was made to Talmora in July, 2018.  Talmora retains a 1% net smelter return royalty on certain land.

The Company considers the Seahorse Project to have the potential to host diamondiferous kimberlite bodies of significant size and perhaps other mineral deposits, based on a combination of: 2019 program results as described below; favourable diamond stability indicator minerals found regionally and locally, including 18 macro diamonds found in regional samples to the west and northwest; specific geophysical targets; regional and local faults that would favour kimberlite emplacement; occurrence of diamondiferous kimberlites  to the north and southeast, as well as other geochemical data in the area.

As previously announced, Olivut successfully completed a helimag geophysical program during April and May 2019.  Detailed, low-level, 50 metre line spacing magnetic information was collected and analyzed over multiple anomalies previously identified from regional geophysics.

During August and September 2019 six holes were drilled to test certain regional geophysical targets that had been confirmed and further delineated by the detailed helimag program.  The holes were drilled to a maximum depth of 316’ (96.3 metres) using a reverse circulation, heli-portable drill.

Beneath tills, each of the holes intersected varying depths of a distinct homogeneous, extremely fine-grained clay that did not appear to be derived from the dolomite country rock that is exposed proximal to the targets.  Down hole drilling conditions were exceptionally challenging, as was the recovery of drill sample material, due primarily to the nature of these intersected clays.  Samples were collected from each of the holes and sent for analysis to Saskatchewan Research Council (“SRC”).