Olivut Resources Ltd. Update on the 2008 Drilling and Exploration Program for the HOAM Project, NWT
Monday, August 25th 2008
Olivut Resources Ltd. provide an update of the $4.9 Million 2008 Exploration Program on the HOAM project. This follows our successful 2007 $2.7 Million program that resulted in the discovery of seven new kimberlite bodies within a new kimberlite province in Canada during Olivut’s first exploration season. As well, microdiamonds were recovered indicating that the mantle in this area is diamondiferous.
Progress on the 2008 program includes the following:
– Successful completion of the planned 2008 regional airborne and gravity programs – Successful commencement of the drill program – 11 drill holes into 6 targets
– Kimberlite intersected in 6 holes of 9 drilled into bedrock
The 2008 exploration program was designed to conduct gravity, regional airborne magnetic and helimag surveys and diamond drilling. Completion of a spring gravity survey has provided additional information for previously prioritized targets that has been useful for the 2008 drilling program. The regional airborne program was successful in delineating numerous new targets that will be further defined by a helimag survey scheduled to be conducted this fall.
2008 Drilling has accomplished the following:
– 11 holes have been drilled into 6 targets, 5 of which have not been previously drilled
– Kimberlite has been intersected in 6 of the 9 holes that successfully penetrated bedrock
The intent of the drill program is to complete at least 20 holes, weather and logistics permitting. The additional holes to be drilled this season will focus on previously untested targets, although possible drilling of kimberlites intersected in 2007 may be undertaken. Previously drilled targets include both diatreme and dyke bodies that appear to have volume potential. Given the inferred size of the targets from their respective geophysical signatures, the known kimberlite bodies are considered to have the potential to host multiple phases. As the new discoveries were penetrated only by single drill holes, additional holes should be drilled into them to ensure that the targets are properly evaluated. The recovery of microdiamonds from the 2007 drill program is significant in that it proves that the mantle source being tapped is diamondiferous and supports the work program planned for 2008. Kimberlite recovered during the 2008 program will be sent to the Saskatchewan Research Counsel (“SRC”) for microdiamond recovery and results will be reported as they become available.
The Company at April 30, 2008 has working capital of $7.8M and is well financed to carry out the 2008 Exploration Program.
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. Please visit www.olivut.com for detailed corporate and project information.
