Olivut updates on HOAM project

Olivut Resources Ltd announces start-up of the $4.9 Million 2008 Exploration Program on the HOAM project.

The Company is anticipating an exciting 2008 exploration year, given the following combination of very encouraging results from 2007:

- discovery of seven new kimberlite bodies within a new kimberlite province in Canada during Olivut’s first exploration season

- recovery of microdiamonds indicating that the mantle in this area is diamondiferous

- many additional untested drill targets

- relatively large size of geophysical targets

- very encouraging indicator mineral chemistry in the HOAM project area

The $4.9M 2008 Program will include extensive drilling as well as airborne magnetic, helimag and gravity geophysical surveys. The intent of the drill program is to complete 20-25 holes. These holes will be drilled into a combination of previously untested targets as well as additional drilling of the newly discovered kimberlites intersected in 2007.

These previously drilled targets include both diatreme and dyke bodies that appear to have volume potential. One diatreme model target is in excess of 3 ha (greater than 7 acres) and another occurrence exceeds 10 ha (greater than 25 acres).

Given the inferred size of the targets from their respective geophysical signatures, each of the kimberlite bodies that was intersected in 2007 is considered to have the potential to host multiple phases. As the seven new discoveries were penetrated only by single drill holes, they must have additional holes drilled into them to ensure that the targets are properly evaluated. The majority of the holes planned for 2008 will be drilled into untested targets. Saskatchewan Research Counsel (SRC) caustic fusion results from the 2007 drill program, returned three microdiamonds from two of the seven holes sampled.

This is significant in that it proves that the mantle source being tapped is diamondiferous and supports the work program outlined above. The largest stone was recovered from the 0.15 mm sieve. The two smaller diamonds were colorless, clear fragments and the largest is a colorless, clear octahedron.

The 2008 Program will commence in April with a gravity survey over several priority targets to provide additional information on the size and nature of the intrusive bodies. In-fill regional airborne magnetics as well as detailed helimag for target delineation will follow as the season progresses. Drilling is expected to commence in June and continue through September.

The Company at January 31, 2008 has working capital of $8.2M and is well financed to carry out the 2008 Exploration Program.

Story link: Olivut updates on HOAM project