Seahorse Project, NWT, Canada
On July 6, 2018 Olivut announced that it had signed an option agreement (the “Option Agreement”) with Talmora Diamond Inc. (“Talmora”) to earn 50% in Talmora’s Seahorse Project, located in Canada’s Northwest Territories (the “Seahorse Project”), by spending $1,200,000 over two years on exploration expenditures and making a $200,000 payment to Talmora (the “Option Payment”). Olivut is the operator during the option period.
The Company considers the Seahorse Project to have the potential to host economic diamondiferous kimberlite bodies of significant size based on a combination of: favourable diamond stability indicator minerals found regionally and locally, including 18 macro diamonds found in regional samples to the west and northwest; specific target geophysics; faulting on a regional and local scale; occurrence of diamondiferous kimberlites to the north and south east, as well as other geological data affecting the area. New research and geological information have added further support to a very compelling exploration project.
A helimag program and possible follow-up drilling were planned to test multiple targets during the 2018 field season. During August, crews and equipment were mobilized to initiate the detailed airborne geophysical survey program on the Seahorse Project. Unseasonable, extremely poor weather conditions severely hampered field progress with the helimag survey since flying was not possible throughout the majority of the field program.
However, reconnaissance work to assist with the planned drill program has been carried out. The work that could not be completed during the fall of 2018 is rescheduled to be conducted during the spring of 2019 when crews can benefit from lengthening daylight hours and hopefully, more stable air masses. Due to its remoteness, the project must be supplied by small aircraft and helicopter. The Company is looking forward to being able to drill test the targets as soon as practical.
Although Talmora has been active in the area of the Seahorse Project, it has not been able to conduct meaningful exploration due to a lack of financing during the prolonged negative capital market environment for junior exploration companies.