Coventry Resources Inc.
TSX VENTURE : CYY
ASX : CYY

Coventry Resources Inc.

June 10, 2013 14:45 ET

Coventry Reports Further Significant Results at Its Rainy River District Properties

HIGHLIGHTS - Conventional analytical results returned from recent drilling at the Company's Rainy River District Properties.

- Highly anomalous nature of the Conqueror Anomaly confirmed, with considerable gold present in both bottom-of-hole bedrock samples and silt samples.

- High-order, coherent base metal anomalism also confirmed at the Charybdis and Bellepheron Anomalies.

- Follow-up work programs currently being formulated for all three targets.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 10, 2013) - Coventry Resources Inc. (TSX VENTURE:CYY) (ASX:CYY) is pleased to report further results from the Company's Rainy River District Properties located in the southern part of western Ontario (Figure 1) from samples collected during a 47 hole, 1,058 metre overburden reverse circulation (RC) drilling program completed in March 2013.

The results received recently include analytical results from: (i) bottom of hole (BOH) bedrock samples; (ii) heavy mineral concentrate (HMC) samples derived from glacial till isolated as part of the gold grain counting process; and (iii) fine silt samples collected from the circulation water used as part RC drilling process. These new results complement gold grain counts reported by the Company for the same 47 drill holes on 29 April 2013.

The collection of silt samples is a new technique the Company has trialled to capture fine silt- and clay-size material which is suspended in the drilling water and hence typically lost as a part of the drilling process. Numerous studies have shown that most gold particles derived from mineralized bedrock are of silt-size and smaller. It is considered that silt results above detection are highly-anomalous because very low recoveries of silt from the drilling water are achieved.

Conqueror Anomaly

A total of eight RC drillholes were completed at the Conqueror Anomaly (Figure 1). Highly anomalous gold grain counts were returned from five of these holes, with pristine and modified grains dominating, indicating the gold has been derived from a local source, most likely within 1,000 metres of the sample sites. The highest sample from the drillholes completed recorded up to 60 gold grains per sample at Conqueror, with some samples recording modified and pristine gold grains as comprising up to 83% of the total gold grains present.

The highly anomalous nature of this area has been confirmed by recent anomalous gold analysis of silt samples from four drillholes. A maximum result of 59 ppb gold was returned from these silt samples, with the most anomalous silt sample derived from the drillhole that had the highest gold grain counts (Figure 2).

Further confirming the highly anomalous nature of this area, three BOH bedrock samples returned gold assays above detection, to a maximum of 94 ppb gold (Figure 2).

The anomalous silt and BOH bedrock samples returned from the Conqueror Anomaly further enhances the prospectivity of this target, especially given that the Conqueror Anomaly is located adjacent to a prominent, ovoid-shaped magnetic anomaly and along the interpreted trace of the large-scale Pinewood Fault (Figures 1 and 2), which are geological and structural features that may be associated with mineralization.

Charybdis Anomaly

The Charybdis Base Metal Anomaly (Figure 1) was identified from highly-anomalous Ni-Zn-Sb-Mn results recorded during an RC drilling program the Company completed during the winter of 2012. As part of the recent 2013 program, an additional five RC drillholes were completed immediately up ice from the anomalous 2012 drillhole (Figure 3). Results from assays of HMC samples from two holes have repeated highly-anomalous Ni-Mn results (Ni up to 528 ppm, Mn up to 10,500 ppm), with less anomalous but elevated Zn, Co, Cu, Ag and Mo. An area of base metal anomalism in till has now been delineated over an area of about 500m x 500m (Figure 3). Significantly, part of this area corresponds to an area of ankerite-dolomite carbonate alteration in bedrock - further geological indications that mineralisation could be present in this area.

It is interpreted that the source of the base metal anomalism may relate to one of a series of prominent NW-trending Proterozoic dolerite/diabase dykes that characterise the region. Nickel-copper-platinum-paladium mineralization associated with these lithologies is known within the district, with such mineralization occurring at the 34 Zone within the Rainy River Gold Deposit and at the Pinewood South Prospect located 1km to the south of the Rainy River Gold Deposit (both controlled by Rainy River Resources Limited). In the case of the Charybdis Anomaly, the interpreted dyke and possible source to the anomalism appears also to be associated with a magnetic high 'blow out'. Any mineralisation at the Charybdis Anomaly will be hidden because there is no outcrop in the area; with overburden thickness ranges between 28 and 36 metres.

Bellepheron Anomaly

The Bellepheron Base Metal Anomaly (Figure 1) was identified from highly-anomalous Cu-As-Zn-Mn-Ni results recorded from three historic RC drillholes completed by a previous explorer in the 1990's. As part of the recent 2013 program, an additional five RC drillholes were completed immediately up ice from the anomalous historic drillholes. Results from assays of HMC samples for three holes have repeated highly-anomalous Cu-Pb-Zn-As results (Cu up to >10,000 ppm, Pb up to 268 ppm, Zn up to 256 ppm, As up to 230 ppm), with less anomalous but elevated Co, Ag, and Sb, defining an area of base metal anomalism in till with an aerial extent of about 500m x 800m.

No outcrop exists at the Bellepheron Anomaly with overburden thickness ranging between 21 and 38 metres. The relationship of the Bellepheron Anomaly to local geology is presently unclear because of the poor resolution of available geophysical datasets. Given the element association recorded however, a volcanogenic sulphide association appears to be indicated.

Follow-up Work Programs

Work programs to follow-up on the high-priority anomalies at Conqueror, Charybdis and Bellepheron are now being planned. The timing of implementation of these programs may be determined by accessibility, with some parts of the Company's Rainy River Project being more readily accessible in winter. Further details of plans will be provided in due course.

Additional Precious and Base Metal Anomalies

As previously highlighted, a further 15 additional precious and base metal anomalies have been identified by the Company (Figure 1) from the compilation of previous exploration data and from work completed by Coventry which also require follow-up work.

These anomalies highlight the prospectivity of the Rainy River Greenstone Belt. They also demonstrate the low-level of exploration maturity of the district, which, despite hosting a multi-million ounce gold deposit, has been subject to very little exploration.

To view the figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/n610cyy1.pdf.

ABOUT COVENTRY RESOURCES INC.

Coventry Resources Inc. is advancing the Cameron Gold Camp in northwestern Ontario, Canada towards production. In addition to the existing resource, Coventry has identified a number of exploration targets along the Cameron Lake Shear Zone and at its highly-prospective Rainy River District properties where the Company believes it can continue to expand Coventry's resource base. The Company is led by a strong management team with the proven ability to explore, develop, finance and operate mining projects.

QUALIFIED AND COMPETANT PERSONS

Tony Goddard, Vice-President Exploration and Director of Coventry Resources Inc., who is supervising the Company's exploration at the Rainy River District Properties, is the Company's Qualified Person, as defined by National Instrument 43-101 and is responsible for the content of this press release.

The information in this announcement that relates to Exploration Results is based on information compiled by or under the supervision of Anthony Brendon Goddard. Mr Goddard is Vice-President Exploration and a Director of Coventry Resources Inc. and a Member of the Australian Institute of Geoscientists. Mr Goddard has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Goddard consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

The mineral resource statement was prepared by Mr Peter Ball of Datageo Geological Consultants, an, "independent qualified person" as that term is defined in National Instrument 43-101.

The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by Mr Peter Ball who is a Chartered Professional and Member of the Australasian Institute of Mining and Metallurgy. Mr Ball is the Director of DataGeo Geological Consultants. Mr Ball has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ball consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

FORWARD LOOKING STATEMENTS

This news release may contain "forward-looking statements" and/or "forward-looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, forward-looking information"). Any forward-looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, Coventry Resources Inc. ("Coventry") does not intend, and does not assume any obligation, to update this forward-looking information. Forward-looking information includes, but is not limited to, statements with respect to mineral resource estimates, drill plans, planned work programs, future upgrading of mineral resources and expected outcomes. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects, "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes", or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will" be taken, occur or be achieved.

Any forward-looking information contained in this news release is based on certain assumptions that Coventry believes are reasonable, including, with respect to any mineral resource estimates, the key assumptions and parameters on which such estimates are based, that the current price of and demand for gold will be sustained or will improve, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed on reasonable terms, that supplies, equipment, personnel, permits and local community approval required to conduct Coventry's planned exploration and development activities will be available on reasonable terms and that Coventry will not experience any material accident, labour dispute, or failure of equipment.

However, forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Coventry to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, risks and uncertainties relating to the actual results of exploration activities being different than anticipated, cost of labour increasing more than expected, cost of equipment or materials increasing more than expected, fluctuations in the price of gold and other commodities, currency fluctuations, mineral resources not being as estimated, unexpected variations in mineral resources, grade or recovery rates, risk of accidents, labour disputes and other risks generally associated with mineral exploration and unanticipated delays in obtaining or failing to obtain governmental or community approvals or financing. Although Coventry has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to not be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking information due to the inherent uncertainty thereof.

Appendix 1

NI 43-101 and JORC-Code (2004) compliant mineral resource estimate* for the Cameron Gold Deposit, part of the Cameron Gold Camp Project.

Cut-off grade (g/t gold) Category Tonnes Grade
(g/t gold)
Ounces of Gold
1.0 Measured 2,472,000 2.68 213,000
Indicated 4,724,000 2.33 354,000
Measured & Indicated 7,196,000 2.45 567,000
Inferred 12,226,000 2.11 829,000

*Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate.

NI 43-101 and JORC-Code (2004) compliant mineral resource estimate* for the Dubenski Gold Deposit, part of the Cameron Gold Camp Project.

Cut-off grade (g/t gold) Category Tonnes Grade
(g/t gold)
Ounces of Gold
1.0 Indicated 806,000 2.28 59,000
Inferred 392,000 1.44 18,200

*Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate.

Fast Facts TSX-V/ASX: CYY
Share price (10 June 2013) AU $0.105
Shares on issue 90.97M
Options ($0.50-$5.00) 3.7M
Warrants ($0.45) 9.4M
Market capitalisation ~ $9.6M
Major Shareholders
Sun Valley Gold Master Fund 15.0%
Macquarie Bank Limited 7.0%
Directors/Management 7.23%
Directors and Management
Steven Chadwick
Director, Interim President and CEO
Tony Goddard
Director and VP Exploration
Don Halliday
Director and VP Investor Relations
Nick Day
Director, CFO and Company Secretary
Eric Edwards
Non-Executive Chairman
Mike Haynes
Non-Executive Director
Robert Boaz
Non-Executive Director
Key Projects
Cameron Gold Camp Project, 100%
Gold Exploration and Development, NW Ontario, Canada
Rainy River District Properties, 100%
Gold Exploration, NW Ontario, Canada
Investment Highlights
Positive Preliminary Economic Study completed for the Cameron Gold Camp Project.
Large underexplored ground position within close proximity to the Rainy River Gold Deposit.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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