Olivut Resources Ltd. Exploration Update
Olivut Resources Ltd. Exploration Update
TORONTO, Jan. 15, 2020 -- Olivut Resources Ltd. (“Olivut” or the “Company”) (TSXV:OLV), is pleased to provide an exploration
update for the Seahorse Project.
As previously reported, the field portion of the 2019 drill program on the Seahorse Project located in Canada’s Northwest
Territories (the “Seahorse Project”) ended in late September. Encouraging results from this program warrant additional work.
Six holes were drilled to test certain regional geophysical targets that had been confirmed and further delineated by a detailed
helimag program that was conducted during April and May 2019. The six holes were drilled to a maximum depth of 316’ using
a reverse circulation, heli portable drill.
Each of the holes intersected varying depths of extremely fine-grained clays that do not appear to be derived from the dolomite
country rock that is exposed proximal to the targets. Down hole drilling conditions were exceptionally challenging in the
holes, as was the recovery of drill sample material, due primarily to the nature of the intersected clays. Samples were
collected from each of the holes and sent for analysis to Saskatchewan Research Council.
Preliminary visual inspection of the down hole material, as well as further microscopic examination of many of samples
collected, could not specifically identify with certainty the host rock from which the clay material is derived. However, whole
rock and multi-element geoanalytical results have returned complex chemistry that warrants further work.
Initial results reflect anomalous, elevated levels of numerous heavy and light rare earth elements relative to levels of the same
elements found in till samples obtained in the general region. These levels are generally higher than, or consistent with, levels
of rare earths detected in clays found to occur over certain kimberlites identified in some locations of the world. Sulphides,
including pyrite and sphalerite, as well as other mafic minerals were easily identified in many downhole samples. None of
these findings can be explained by the exposed country dolomitic rocks.
Additional sample material has recently been sent to Saskatchewan Research Council for heavy mineral analysis. The
Seahorse Project area underwent periods of extreme warming and laterization that destroyed silicate indicator minerals as
evidenced from regional till sampling results. However, some opaque oxide indicator minerals and diamonds survive this type
of weathering. Given the anomalous drill hole geochemical results, this work constitutes the obvious next cost effective step.
In addition to the drilling program described above, limited regional prospecting was conducted. A large gossan zone was
identified on the property that appears to have a strike length of approximately eight kilometres. Very limited sampling was
conducted due to budget and fuel constraints. Some of these samples returned trace amounts of gold which may be
significant given the limited number of samples collected. The linear gossan zone occurs within the dolomite country rock and
likely represents a sulphide bearing fault zone.
While analyses have been ongoing, a great deal of time has been spent further reviewing the geophysical and geological
information considering these new anomalous results. This region has been subjected to no known previous detailed
exploration work.
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 above; 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.
Due to its remoteness, the project area must be supplied by small aircraft and helicopter. Olivut is the Operator pursuant to
the terms of the previously announced option agreement with Talmora Diamond Inc. (“Talmora”) to earn 50%. On December 7,
2019 Olivut informed Talmora that $1,295,256 had been spent on the Seahorse Project to October 31, 2019. Olivut must
decide whether to exercise its option by July 6, 2020. The Company will report further details once they are available.
Numerous targets are drill ready on the HOAM Project and a detailed helimag program is proposed for additional regional
geophysical anomalies in order to finalize the drill priority list. Completion of this work program is contingent on the raising of
funds.
Olivut is a diamond exploration company with a 100% mineral interest in the HOAM Project (the “HOAM Project”) and an
option to earn 50% interest in the Seahorse Project, both projects being located in Canada’s Northwest Territories. Please
visit www.olivut.com for detailed corporate and project information.
This press release contains forward-looking statements with respect to the Company, and matters concerning the raising of
additional capital, the business, operations, strategy, and financial performance of the Company. Actual results may differ
materially from those indicated by such statements. These statements generally, but not always, can be identified by use of
forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue" or the
negative thereof or similar variations. 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. Such forward-looking statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future expectations, including that the estimates and projections
regarding the Company’s properties are realized. Forward-looking statements are based on a number of assumptions which
may prove to be incorrect. Unless otherwise stated, all forward looking statements speak only as of the date of this press
release and the Company does not undertake any obligation to update such statements except as required by law.
Martin St. Pierre, P.Geophys., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the
scientific and technical disclosure in this press release.
Leni Keough, P.Geo.
President and Chief Executive Officer
For further information, please contact:
Leni Keough
President and Chief Executive Officer
Olivut Resources Ltd.
(780) 866-2226
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.