Talmora Diamond Inc.- Olivut Exercises Option on Seahorse project
TALMORA DIAMOND INC.
( CSE – TAI )
6 Willowood Court Tel: 416-491-6771
Toronto, Ontario, M2J 2M3 Fax: 416 499 5187
[email protected] www.talmoradiamond.com
TALMORA DIAMOND INC. - OLIVUT EXERCISES OPTION ON SEAHORSE PROJECT
Toronto, July 6, 2020 – Talmora Diamond Inc. (CSE: TAI) (“Talmora” or the Company”) is pleased to announce that
Olivut Resources Ltd. (“Olivut”) 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 on July 6, 2018.
Talmora and Olivut will be joint (50/50) owners of the Seahorse assets and Talmora will retain a 1% net smelter
return royalty on certain Seahorse land. Talmora continues to hold 100% interest in ground adjoining the Seahorse
Project on which there are anomalous kimberlite indicator minerals and untested magnetic anomalies.
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 extremely fine-grained clays 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”).
Preliminary visual inspection, as well as further microscopic examination of many of the collected samples, could not
specifically identify the host rock from which the clay material is derived. Sulphides, including pyrite, galena and
sphalerite, as well as other mafic minerals were easily identified in many downhole samples. Subsequently, whole
rock and multi-element geochemical results defined a distinct homogeneous clay in the lower part of 4 of the 6 holes.
This clay is notably dark grey to black, with an oily feel and is chemically complex but fairly homogeneous and
characterised by elevated Rare Earth Element (“REE”) content and relatively low silica content. These REE levels are
generally higher than, or consistent with, levels of REE detected in clays found to occur over some identified
kimberlites in some locations of the world (e.g. Western Australia and Namibia). Above the homogeneous clay are
clays with lower REE and higher silica content that grade into the homogeneous clay and overlying glacial tills
The homogeneous clays have lead isotope ratios (Pb206/204 vs Pb207/204) that average that of rocks derived from
the mantle. The range of values is a little more than the mantle rock values indicating that there may have been re-
deposition of mantle material at the surface into a single secondary geological unit such as re-deposition of a volcanic
tuff ring into a crater.
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.
To determine the potenti al presence of any kimberlitic indicator minerals (“KIM”), additional samples from five drill
holes, four of which included sections of the deeper homogeneous clay, were submitted for heavy mineral analysis to
SRC. Chromites, ilmenites (some manganese bea ring) and abundant pseudorutile (an alteration product of ilmenite
which is common in intensely weathered kimberlite) are present. Although the chromites and ilmenites are not
unequivocally kimberlitic, they have compositions that match those of some incl usions in type 2a diamonds. A few
definite KIMs (G -9 pyropes and picroilmenites) were recovered from beach sand concentrates taken from a lake in
the vicinity of the drill holes.
A surprising result of the heavy mineral analysis is the number of microfossils and the abundance of various forms of
pyrite (some replacing organic material and microfossils) found in the concentrates. Also present are spherules (tiny
bead-like features) believed to be associated with a meteorite impact. Microfossils and pyrite indicate marine
deposition associated with anoxic (low oxygen) conditions for some of the clay. Given the results to date, there are a
number of possible scenarios that could explain the genesis of these clays and further work is required to obtain
more information before arriving at a conclusion.
In addition to the drilling program described above, limited regional prospecting was conducted. A large gossan zone
was identified on the property comprising the Seahorse Project 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. Further
work is required to obtain more information before arriving at a conclusion. The linear gossan zone occurs within
the dolomite country rock and likely represents a sulphide bearing fault zone.
This region has been subjected to no known previous detailed exploration work. Due to its remoteness, the project
area must be supplied by small aircraft and helicopter. Although Talmora has been active in the area, prior to Olivut’s
involvement it had not been able to conduct meaningful exploration due to a lack of financing during the prolonged
negative capital market environment for junior exploration companies.
The Company considers the Seahorse Project to have the potential to host diamondiferous k imberlite 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.
The Coronavirus pandemic and its effects particularly on planning and work in the Northwest Territories will likely
prevent any field work being conducted in 2020. Measures have been put in place to mitigate risks to the health and
safety of northern people and communities.
The scientific and technical portions of this news release were reviewed and approved by Alan W. Davies, P.Eng.,
who is the Vice -President of Exploration for Talmora Diamond Inc., a "qualified person" as defined by National
Instrument 43-101 Standards of Disclosure for Mineral Projects.
For further information please contact:
Raymond Davies,
President & CEO
Talmora Diamond Inc. Email: [email protected] Telephone 416-491-6771
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