DIAMONDS - OLIVUT

print page

DIAMONDS: Rivera Diamond Joint Venture

OMI signed an Option Agreement with Olivut Resources Limited ("Olivut") (TSX-V: OLV) during 2009 on its prospecting and exploration licences which cover an area of 55,786 hectares in the department of Rivera, approximately 500 kilometres north of Montevideo (see map below). Olivut, an experienced Canadian diamond explorer, who is the Joint Venture operator, can acquire a 51% interest in all of the licences through expending a minimum of $CDN250,000 by 1 August 2010 (Phase 1), and a total of $CDN750,000 by 31 December 2011 (Phase 2). The Option Agreement allows Olivut to earn up to an 80% interest in the licences through further expenditure beyond Phase 2.

The Joint Venture is located on the Palaeoproterozoic Rio de la Plata Craton, in an area which is covered by Jurassic sandstones of the Parana Foreland Basin . Alluvial diamonds have been recovered from the licence area during the 1970's by a local prospector, and Orosur has recovered micro-diamonds and other kimberlite indicator minerals (KIMS) during the period 2004 - 2007. Some of these KIMS, whose chemistry is indicative of diamondiferous kimberlite, are associated with geomorphological anomalies in northwest-southeast trending structural corridors. Similar trending regional structural corridors host numerous kimberlites in Brasil.

During Phase 1, Olivut will drill these geomorphological and KIM coincident anomalies. A follow-up sample program is in progress at six areas, one of which includes the micro-diamond discovered by Orosur during 2007. Although there are no known kimberlites in Uruguaya recent independent air-photo and drainage interpretation concluded that all of the kimberlite indicator minerals in the licence area are sourced from within northern Uruguay .

The presence of kimberlites and diamonds on the Rio de la Plata Craton in southern Brasil and Paraguay , together with the unexplained diamonds and indicator minerals in northern Uruguay , illustrate the prospectivity of the region.

Click here for larger version

Click here to access Olivut Resources Limited website