Coventry Resources Inc.
ASX : CYY

Coventry Resources Inc.

August 25, 2015 09:00 ET

Coventry Resources Announces: High-Grade Copper Mineralisation Discovered in Lense 2 at the Caribou Dome Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 25, 2015) -

HIGHLIGHTS

  • Assay results received for a further four holes drilled recently at the highly prospective, high-grade Caribou Dome Copper Project in Alaska (CD15-06 to CD15-09)
  • Exploration hole CD15-09 - the first hole drilled deep enough to begin evaluation of the 250m-long strong IP anomaly at Lense 2, intersected high-grade sulphide mineralisation including 0.7m @ 11.8% Cu, within broader zones of:
    • 3.4m @ 4.8% Cu from 51.6m, and
    • 3.5m @ 1.9% Cu from 67.9m
  • CD15-06, drilled to evaluate Lense 5, intersected shallow high-grade sulphide mineralisation including:
    • 4.6m @ 10.6% Cu from 3.0m, and
    • 3.2m @ 8.7% Cu from 14.5m
  • Results from CD15-09 continue to confirm that strong IP anomalies are associated with thicker and/or higher grade mineralisation
  • The ongoing 4,000m drilling program to initially test five highly prospective IP targets which combined, extend over >1,200m of strike, provides considerable potential to increase the resource base
  • Further assay results from new drilling are expected in the next week

2. INTRODUCTION

Coventry Resources Inc. (ASX:CYY) ("Coventry" or "the Company") is pleased to announce that it has received analytical results from a further four holes drilled recently at the highly prospective high-grade Caribou Dome Copper Project in Alaska, USA (the "Caribou Dome Project" or "the Project").

One of these drill holes was a "confirmatory" hole (CD15-06) and the other three were "exploration" holes (CD15-07 to CD15-09).

3. EXPLORATION DRILLING

3.1 Lense 2

CD15-09 was drilled to test the shallow portions of Lense 2, approximately 30 metres along strike from, and to the east of, holes CD15-04 and CD15-05 - the first two holes that intersected massive sulphides beneath 200m of outcropping mineralisation at Lense 2 (see Figure 1). CD15-09 itself was a shallow hole, with a total depth 77.7m. Notwithstanding this, CD15-09 was the first hole drilled deep enough to begin evaluation of the 250m-long, strong IP anomaly at Lense 2 (CD15-04 and CD15-05, which intersected 8.7m at 1.7% Cu from 54.3m and 10.0m at 1.6% Cu from 62.5m respectively, were both too shallow to intersect the underlying IP anomaly).

Very significantly, high-grade mineralisation was intersected in CD15-09. Assay results included 0.7m @ 11.8% Cu from 51.6m within broader zones of:

  • 3.4m @ 4.8% Cu from 51.6m, and
  • 3.5m @ 1.9% Cu from 67.9m

To view Figure 1: Geology around the nine known lenses of mineralisation at the Caribou Dome Copper Project, together with surface traces of underground development and locations of Coventry's recent drill holes with analytical results received to date, please visit the following link: http://media3.marketwire.com/docs/1022500-F1.pdf.

The cross section of recently acquired three dimensional Induced Polarisation ("3DIP") data through CD15-09 illustrates that CD15-09 was drilled into the narrow, very upper portions of a substantially larger IP anomaly that broadens with depth (Figure 2). Accordingly, several holes have been planned to test directly down-dip of the intersection in CD15-09, where thicker and/or higher-grade mineralisation may be responsible for the stronger, broader IP anomaly.

The analytical results from CD15-09 further validate the Company's theory that strong IP anomalies (in prospective geological settings) are likely to be associated with thick and/or high-grade mineralisation.

Numerous similar untested strong IP anomalies are evident across the area surveyed recently with 3DIP (see Figure 3). Hence there is considerable potential to delineate additional high-grade mineralisation at these targets.

Last week the Company commenced a 4,000m drilling program that will involve initial testing of five of these high-priority IP targets, that collectively extend over >1,200m of strike. This program will include further drilling at Lense 2, where mineralisation remains open both along strike and at depth.

To view Figure 2: Cross section of inverted 3DIP data through the central portion of Lense 2, showing mineralisation intersected in drill hole CD15-09. This mineralisation coincides with a narrow portion of a strong IP anomaly that broadens and strengthens at depth. Deeper drilling will be undertaken during the Company's ongoing 4,000m exploration drilling program to help determine whether thicker and/or higher-grade extensions of this mineralisation coincide with this anomalism, please visit the following link: http://media3.marketwire.com/docs/1022500-F2.pdf.

3.2 Lense 6

CD15-07 was drilled from the same drill pad as confirmatory hole CD15-06 (see Figure 1 and below) to explore the possibility that Lense 6 could extend parallel to the south east rather than be connected with Lense 5. No significant mineralisation was intersected, but the sedimentary unit that hosts massive sulphide mineralisation was intersected where expected. This area will be investigated further in due course.

3.3 Lense 5

CD15-08 was drilled to test the shallow western extension of Lense 5 (see Figure 1). No significant mineralisation was intersected. However a very strong IP anomaly lies directly below this hole, hence further deeper drilling will be undertaken in this area in the near-term as it remains a high-priority target.

4. CONFIRMATORY DRILLING

In early July 2015, Coventry commenced its inaugural drilling program at the Caribou Dome Project. Aside from commencing exploration to begin evaluation of some of the numerous under-explored targets evident, one of the objectives of drilling program was to verify the results of previous drilling so that, in due course, historic drilling data (most of which was acquired between 1964 and 1970) can be incorporated into an overall Project mineral resource estimate in accordance with the JORC Code and Canadian National Instrument 43-101.

Five "confirmatory" holes have been completed to date. Analytical results have been announced previously for the first three of these (CD15-01 to CD15-03). CD15-06 was the fourth "confirmatory" hole drilled. Analytical results for this hole have now also been received.

4.1 Lense 5

CD15-06 was drilled to evaluate the shallow central portion of Lense 5 (see Figure 1). It was drilled in close proximity to DH15 (drilled in 1965; intersected 10.7m at 5.0% copper) and DH18 (also drilled in 1965; intersected 4.9 metres at 5.9% copper).
Analytical results show CD15-06 intersected:

  • 4.6m @ 10.6% Cu from 3.0m, and
  • 3.2m @ 8.7% Cu from 14.5m

These results are very much in-line with expectations and (i) provide further confidence in the reliability of the historic Project data, and (ii) provide further confirmation that it should be possible to integrate historic drilling data with new drilling data to calculate an inaugural resource for the Project following the completion of the current drilling program.

5. ONGOING DRILLING PROGRAM

On 20 August 2015 the Company announced it had commenced a 4,000 metre drilling program focused on exploration of five very-high-priority 3DIP anomalies - the Lense 2, Lense 6 East, Lense 4 West, Caribou South and Lense 7/8 Targets (see Figure 3).

The first hole in this program, CD15-14, is currently being drilled to evaluate the Lense 7/8 Target. It is progressing well.

A second drilling rig is being mobilised to the Project to accelerate this program. This rig is expected to be operational later this week.

Assay results are pending for a further four holes (CD15-10 to CD15-13). These are expected within the next week.

To view Figure 3: "100-metre depth slice" of inverted 3DIP chargeability data - showing the chargeability of the modelled source of 3DIP anomalies, 100 metres below the surface, together with labels highlighting higher-priority targets that will be evaluated further. (It is noted that the sources of some of the highest priority targets are modelled to be greater than and less than 100 metres deep - so not all targets appear as intense anomalies in the 100m depth slice plan above), please visit the following link: http://media3.marketwire.com/docs/1022500-F3.pdf.

Table 1. Collar details for the drill holes completed to date during the Company's 2015 drilling program.

Total Significant Intercepts
Name UTM
Easting
UTM
Northing
Elevation
(m)
Azimuth Inclination Depth
(m)
From
(m)
To
(m)
Length
(m)
% Cu
CD15-01 492800 7001137 1401 302 -55 89.9 39.8 52.0 12.2 3.23
Incl. 39.8 45.5 5.7 5.15
CD15-02 492758 7001153 1418 130 -75 53.4 39.0 49.1 10.1 7.09
CD15-03 492750 7001195 1437 328 -55 59.4 4.4 55.5 51.1 5.29
Incl. 4.4 6.7 2.3 17.08
and 10.7 24.8 14.1 10.60
and 29.7 35.4 5.7 3.60
and 39.8 43.1 3.3 9.03
and 45.0 46.9 1.9 2.87
and 52.3 55.5 3.2 9.57
CD15-04 492559 7001035 1433 130 -55 74.7 54.2 62.9 8.7 1.72
CD15-05 492559 7001035 1433 130 -75 102.1 62.5 72.5 10.0 1.59
CD15-06 492688 7001121 1444 327 -45 45.7 3.0 7.6 4.6 10.61
and 14.5 17.7 3.2 8.73
CD15-07 492691 7001119 1444 140 -55 89.9 No Significant Intercept
CD15-08 492658 7001080 1426 140 -45 118.8 No Significant Intercept
CD15-09 492557 7001032 1433 200 -75 77.7 51.6 55.0 3.4 4.83
and 67.9 71.4 3.5 1.87
CD15-10 492590 7001070 1453 150 -55 97.5 Assay results pending
CD15-11 492590 7001070 1453 150 -75 123.4 Assay results pending
CD15-12 492725 7001101 1428 TBC TBC 48.8 Assay results pending
CD15-13 492810 7001171 1407 TBC TBC 54.9 Assay results pending
CD15-14 492968 7001446 TBC 145 -45 - Drilling in Progress

Note: Within the reported mineralized intervals in CD15-03 and CD15-04, in both holes, there were two separate intervals of 0% core recovery that totaled 1.2 metres per hole. Within the first reported mineralized interval in CD15-06, there was a 1.2m interval of 0% core recovery and in the second reported mineralized interval there was a 0.7m interval of 0% core recovery. These intervals have been assumed to be mineralized at the average grade of the overall mineralized interval. TBC = To Be Confirmed.

CARIBOU DOME COPPER PROJECT - BACKGROUND

Mineralisation was first discovered at the Caribou Dome Copper Project in 1963. Between 1964 and 1970 nine lenses of sediment-hosted copper mineralisation were delineated over approximately 750 metres of strike. Some 95 diamond core holes were drilled during this period from surface and underground, primarily concentrated on just 250 metres of strike. Exceptional results were returned, including:

  • 18.1m at 9.34% copper
  • 18.4m at 6.25% copper
  • 15.4m at 7.01% copper
  • 13.1m at 7.20% copper
  • 11.0m at 8.20% copper
  • 10.4m at 7.94% copper
  • 12.8m at 5.78% copper

Very limited exploration had been undertaken since 1970, until Coventry secured the rights to explore the Project in February 2015. Since then Coventry has compiled all historic technical information, prioritised targets arising, undertaken a ground geophysics (induced polarisation) survey, and commenced a diamond core drilling program. Coventry's initial results have been very promising.

Qualified and Competent Person

The information in this announcement that relates to exploration results for the Project is based on information compiled by Mr Ben Vallerine, who is a consultant to the Company and holds an indirect shareholding in the Company. Mr Vallerine is a Member of the Australian Institute of Geoscientists. Mr Vallerine has sufficient experience which is relevant to the style of mineralisation 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 (JORC Code). Mr Vallerine is also a Qualified Person as defined by Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr Vallerine consents to the inclusion in the report of the matters based on the 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 resource project identification and evaluation 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, that the current price of and demand for mineral commodities 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 commodity prices, currency fluctuations, 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.

To view APPENDIX 1, please visit the following link: http://media3.marketwire.com/docs/1022500-Appendix.pdf.

Contact Information