Coventry Resources Inc.
TSX VENTURE : CYY
ASX : CYY

Coventry Resources Inc.

November 05, 2014 08:30 ET

Coventry Resources Inc.: Agreement Reached to Earn an 80% Interest in the Highly Prospective, Very High Grade Caribou Dome Copper Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 5, 2014) -

Highlights

  • Executed agreements providing Coventry the right to earn an 80% interest in the Caribou Dome Copper Project in Alaska

  • The Project hosts shallow, very high-grade sediment-hosted copper mineralisation

  • Exceptional results in limited drilling to date include:

    • 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
  • Significant exploration upside:

    • Mineralisation has been identified over >4,000 metres of strike

    • Previous drilling concentrated on just 250 metres of strike

    • Multiple drill-ready and underexplored targets
  • Metallurgical recoveries up to 91.7% in preliminary testwork

  • ~1,000m of underground development

  • Road access directly to the deposit; only ~100km to an operating railway line

  • Attractive earn-in terms

  • To continue to minimise corporate overheads, Coventry intends de-listing from the TSX-V and continuing solely with an ASX-listing

Coventry Resources Inc (TSX VENTURE:CYY) (ASX:CYY) ("Coventry" and "the Company") is pleased to advise that it has entered into agreements that provide it the right to acquire 80% of the highly prospective Caribou Dome Copper Project in Alaska, USA ("the Project"), via the acquisition of unlisted Australian company Aldevco Pty Ltd ("Aldevco").

Sediment-hosted copper mineralisation has been delineated across the 10,240 acre Project area, including nine outcropping pods of mineralisation over ~750 metres of strike. Despite this, virtually all previous drilling has focused on a 250 metre long corridor of mineralisation, where exceptional drilling results include:

  • 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
  • 13.0m at 4.94% copper
  • 9.1m at 6.97% copper
  • 10.2m at 6.23% copper
  • 12.2m at 5.04% copper
  • 10.7m at 4.99% copper
  • 10.2m at 4.96% copper
  • 8.3m at 6.07% copper

Limited work has been undertaken at the Project since 1970.

Conceptual Exploration Target

Given the grade and thickness of mineralisation delineated to date and the abundance of additional untested and/or poorly tested targets within the Project area, the Company believes there is extremely good potential to delineate a substantial economically viable high-grade copper resource at the Project. Initially the Company will target the delineation of 5-10 million tonnes of mineralisation at 2.5-4.0% copper. Significantly, this geological style of (sediment-hosted) copper deposit around the world is known to have potential to host hundreds of millions of tonnes of mineralisation. In line with this the Company believes there is potential to discover a very large copper deposit within the Project area.

Based on the information disclosed, the Company considers that there is a reasonable basis for the stated exploration target. Further drilling programs will be required to delineate this target, including additional drilling to confirm historic drilling results as well as further exploration at some of the targets already delineated at the Project.

It is noted that the potential quantity and grade of these targets are conceptual in nature and there has been insufficient exploration completed to define a mineral resource (in accordance with Canadian National Instrument 43-101 and the 2012 JORC Code) and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The Caribou Dome Copper Project

Location and Access

The Caribou Dome Copper Project comprises 97 mineral claims covering 10,240 acres. The Project is located approximately 250km northeast of Anchorage in the Clearwater Mountains of Alaska, USA (see Figure 1). The Project is readily accessible by road. The Denali Highway passes within 20 kilometres of the Project and from there a purpose built road provides direct access to the underground workings at the Project.

To see Figure 1, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

Significantly the fully operational Anchorage-Fairbanks railway line is located approximately 100 kilometres west of the Project. In the event copper concentrate is produced at the Project, it could be readily transported by road to the railway for shipment from the ports of Anchorage, Seaward or Port Mackenzie.

History

Copper mineralisation was first discovered at the Caribou Dome Copper Project in 1963. The vast majority of exploration was undertaken at the Project between 1963 and 1970. Nine lenses of outcropping mineralisation were delineated over approximately 750 metres of strike. Despite this virtually all work was focused on three of these lenses (Lenses 4, 5 and 6; see Figure 2), with a view to developing a small high-grade underground mine. Approximately 1,000 metres of underground workings were installed on two levels (an adit and a decline). 6,024 metres of diamond drilling (43 diamond core holes drilled from surface and 48 diamond core holes drilled from underground) was completed together with 3,283 metres of underground percussion drilling.

To see Figure 2, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

Exceptional results were returned from drilling at the Project, including:

  • 18.1m at 9.34% copper from 22.7m (DH9)
  • 18.4m at 6.25% copper from 31.4m (DH39)
  • 15.4m at 7.01% copper (DH93U)
  • 13.1m at 7.20% copper from 15.8m (DH40)
  • 11.0m at 8.20% copper from 29.0m (DH41)
  • 10.4m at 7.94% copper from 14.0m (DH37)
  • 12.8m at 5.78% copper (DH51U)
  • 13.0m at 4.94% copper (DH91U)
  • 9.1m at 6.97% copper from 28.7m (DH43)
  • 10.2m at 6.23% copper from 46.6m (DH32)
  • 12.2m at 5.04% copper from27.1m (DH32)
  • 10.7m at 4.99% copper from 18.0m (DH15)
  • 10.2m at 4.96% copper (DH70U)
  • 8.3m at 6.07% copper from 77.7m (DH44)

All significant interceptions in previous drilling are summarised in Appendix 1.

The cross-section in Figure 3 (through Lenses 4 and 6) and the long-section in Figure 4 (through Lenses 5 and 6) illustrate that mineralisation is predominantly comprised of sub-vertical lenses of good thickness.

Drilling is yet to constrain the extents of mineralisation at any of the known lenses.

To see Figure 3, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

To see Figure 4, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

The only significant work undertaken at the Project since 1970 comprised (i) drilling three diamond core holes from surface in 1977 (for a total of only 120 metres); (ii) drilling another three surface diamond core holes in 1999 (this time for a total of 744 metres); (iii) collection of a 225kg bulk sample for metallurgical testwork in 2008; (iv) drilling two diamond core holes from surface in 2009 (621 metres); and (v) drilling nine shallow diamond core holes in 2011 to begin evaluation of Lenses 7 and 9, for a total of 794 metres. Copper sulphide mineralisation was intersected in six of these nine holes, with results including 4.9 metres at 3.36% copper.

Geology

Copper mineralisation at the Caribou Dome Project is predominantly stratiform. Historically nine outcropping lenses of high-grade pyrite-chalcopyrite mineralisation were delineated over approximately 750 metres of strike. These are predominantly located in argillites at an interface with a sequence of volcanic rocks (see Figure 5). Interbedded limestones appear to have had an important control on the location of mineralisation.

To see Figure 5, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

Regionally the prospective contact between volcanic and sedimentary rocks has been mapped to extend over at least 4,000 metres within the Project area (see Figure 6). Recent mapping (completed during September and October 2014) has highlighted that there is considerable copper mineralisation along this contact throughout the Project area. This is a very encouraging sign, as the known mineralisation could comprise part of a substantially larger mineralised system.

To see Figure 6, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

Metallurgy

During 2008 a 225kg bulk sample was collected from the Project for metallurgical testwork and sent to G&T Metallurgical Services in Kamloops, Canada. The grade of this sample averaged 6.7% copper. Using flotation and Galvanox™ leaching, recoveries of 91.7% of the copper were achieved. These results were deemed "encouraging for the project". Further testwork was recommended.

Exploration Targets

Despite previous explorers discovering nine lenses of high-grade mineralisation over approximately 750 metres of strike, virtually all previous drilling focused on just three of these lenses (Lenses 4, 5 and 6; see Figure 2). Drilling is yet to close off the mineralisation at any of the known lenses. As such all nine of these lenses provide immediate drill targets.

Of particular immediate interest is the shallow along strike (to the west) extension of Lense 5. Previous shallow drill holes DH15 and DH43 intersected 10.7 metres at 4.99% copper from 18 metres and 9.1 metres at 6.97% copper from 28.6 metres respectively (see Figure 4). Despite these extremely attractive grades and thicknesses no further drilling appears to have been undertaken to follow up the shallow western extensions of this mineralisation.

Another high priority target for follow-up is the depth extent of Lense 6. One of the deepest holes drilled at the Project to date, underground diamond drill hole DH 93U, intersected 15.4 metres at 7.01% copper approximately 270 metres below surface (see Figures 4 and 5). This thick, high-grade mineralisation remains open to the east and at depth, and will be targeted during further exploration.

Only very limited drilling has been undertaken to date at Lenses 1, 2, 3, 7, 8 and 9. Numerous drill-ready targets are evident in most of these areas.

During September and October 2014 a regional reconnaissance mapping and sampling program was undertaken at the Project. Copper mineralisation was encountered along the entire east-west extent of the Project area. A previously (apparently) undocumented area of extensive quartz-vein and limestone hosted base metal mineralisation was identified and sampled. Further immediate exploration targets may be evident once analytical results are returned from the 45 samples collected during this work program.

Acquisition Terms

Aldevco holds the right to acquire an 80% interest in the Caribou Dome Copper Project from Hatcher Resources Inc. ("Hatcher") by:

  1. Payment to Hatcher of US$75,000, being part reimbursement of expenses incurred by Hatcher in relation to its evaluation and exploration activities on the Project during 2014;

  2. Maintaining the claims (licenses) at the Project in good standing, including making annual claim rental payments and ensuring minimum expenditure commitments are met;

  3. Expending a minimum of US$100,000 on the Project for each of the 12 month periods ending 1 September 2015, 2016 and 2017;

  4. Expending a minimum of US$2,000,000 (inclusive of payments in (iii) above) in each of the periods (i) 2 September 2014 to 1 September 2017; (ii) 2 September 2017 to 1 September 2020; and (iii) 2 September 2020 to 6 June 2023 (unless the Earn-in deadline of 6 June 2023 is extended)

  5. Expending a total of US$9,000,000 on the Project (inclusive of the payments in (iii) and (iv) above) or completing a feasibility study on the Project by 6 June 2023 (unless the Earn-in deadline of 6 June 2023 is extended)

  6. Making annual payments to the underlying vendors of the Project, who are not related parties of Hatcher or Aldevco, in the amounts of:
Due Date Payment
6 June 2015 US$20,000
6 June 2016 US$30,000
6 June 2017 US$50,000
6 June 2018 US$100,000
6 June 2019 US$100,000
6 June 2020 US$100,000
6 June 2021 US$100,000
6 June 2022 US$100,000
Earn-in deadline (currently 6 June 2023) US$1,360,000

Subject to Aldevco exercising its right to acquire an 80% interest in the Project, Hatcher will retain a 10% interest in the Project with the remaining 10% held by SV Metals LP. The current owner of the Project, C-D Development Corporation, would retain a 5.0% Net Smelter Returns royalty, with Coventry retaining the right to purchase this royalty for US$1million for each 1.0%.

Coventry has entered into agreements with all Aldevco shareholders to acquire 100% of the shares on issue in Aldevco in consideration for the issue of 60 Million Coventry shares ("the Transaction"), subject to Coventry obtaining all necessary regulatory and shareholder approvals in connection with the Transaction. Related parties of two of Coventry's directors, Michael Haynes and Ian Cunningham, are shareholders of both Aldevco and Hatcher, so the requisite shareholder and regulatory approvals will include applicable related-party approvals under ASX Listing Rule 10.1 and Canadian Multilateral Instrument 61-101. In addition, the Company is in discussions with ASX to determine the applicability of Chapter 11 of the Listing Rules and will advise shareholders in due course on the outcome of those discussions.

Coventry's capital structure following completion of the Transaction would comprise:

Coventry Shares Number
Currently on issue 91,012,182
Shares to be issued to acquire 100% of Aldevco* 60,000,000
On issue following the Transaction 151,012,182

* Note: In accordance with ASX Listing Rules 40,930,233 shares will be subject to 12 month escrow.

Coventry intends preparing all documents required to obtain requisite approvals for the Transaction in the next 6-8 weeks. It has received regulatory approval to defer its Annual General Meeting ("AGM"), to allow sufficient time for the requisite Transaction documentation to be prepared and made available to shareholders, such that shareholders can vote on the Transaction at the AGM, which is now expected to be held in January 2015.

In order to ensure work continues at the Project in an orderly manner, Coventry has entered into a separate loan agreement with Aldevco pursuant to which Coventry has agreed to provide Aldevco a loan facility of up to $100,000, on commercial terms. In the event the Transaction is not completed by 31 March 2015 any loans, including accrued interest calculated on outstanding amounts at 10% per annum, will be repayable in full to Coventry.

Voluntary de-listing from the TSX-V

The Company also advises that it has applied to delist from the TSX Venture Exchange (TSX-V), subject to TSX-V approval. In the event that it is required by the TSX-V, minority shareholder approval will be sought for the delisting. The decision to apply for delisting from the TSXV has been driven by the following factors:

  • the Company's executive management team being based in Australia, and the majority of shareholders either registered on the Australian share register and/or residing in Australia;

  • the need to reduce the administrative burden and costs associated with a dual listing; and

  • the ASX being a more appropriate listing given the Company's current capital structure, size and stage of development.

The Company will keep shareholders informed on the status of the delisting application.

ABOUT COVENTRY RESOURCES INC.

Coventry Resources Inc. is advancing exploration at the Uncle Sam Gold Project in the United States while it simultaneously seeks additional growth opportunities. The Company is led by a strong management team with the proven ability to explore, develop, finance and operate mining and exploration projects.

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.

Qualified and Competent Person

The information in this announcement that relates to exploration results for the Project has been approved by Kevin Anthony Joyce, who is a consultant to the Company. Mr Joyce has reviewed the exploration results disclosed in this release, but has not verified the information due to the programs having been undertaken by the previous owners of the Project.

Mr Joyce is a Member of the Australian Institute of Geoscientists. Mr Joyce 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 Joyce is also a Qualified Person as defined by Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr Joyce 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.

APPENDIX 1 -

SIGNIFICANT INTERSECTIONS IN PREVIOUS DRILLING AT THE CARIBOU DOME COPPER PROJECT

Name Year Easting Northing Elevation Azimuth Inclination Total Depth (m) Significant Intercepts
From (m) To (m) Length (m) % Cu
DH 01 1964 9690 9390 4668 350 -38 100.0 62.5 63.4 0.9 1.40
69.5 71.6 2.1 1.00
DH 02 1964 9690 9390 4668 180 -45 46.0 No Significant Intercept
DH 03 1964 9800 9537 4610 325 -35 81.1 59.1 62.4 3.4 1.01
DH 04 1964 9882 9843 4618 22 -38 19.2 No Significant Intercept
DH 05 1964 9882 9843 4618 345 -45 67.4 53.3 55.5 2.1 0.60
DH 06 1964 9882 9843 4618 285 -40 85.0 35.1 35.7 0.6 11.75
53.6 55.2 1.5 0.80
DH 07 1964 9978 9895 4605 350 -38 65.8 30.2 31.7 1.5 3.05
34.1 39.3 5.2 2.06
DH 08 1965 9635 9223 4706 324 -35 59.4 No Significant Intercept
DH 09 1965 9418 9363 4813 328 -35 57.3 22.7 40.8 18.1 9.34
DH 10 1965 9580 9452 4727 334 -35 103.6 No Significant Intercept
DH 11 1965 9476 9462 4801 329 -40 99.1 53.9 56.4 2.4 0.45
DH 12 1965 9479 9286 4774 328 -35 84.7 No Significant Intercept
DH 13 1965 9461 9495 4796 238 -20 48.8 29.3 31.1 1.8 2.00
32.6 40.1 7.5 7.28
DH 14 1965 9461 9495 4795 238 -45 69.5 No Significant Intercept
DH 15 1965 9191 9136 4833 327 -30 44.2 18.0 28.7 10.7 5.00
DH 16 1965 9136 9110 4835 327 -30 36.6 18.0 19.2 1.2 0.40
DH 17 1965 9089 9074 4838 327 -30 31.7 No Significant Intercept
DH 18 1965 9244 9053 4778 327 -20 61.0 50.9 55.8 4.9 5.89
DH 19 1965 9978 9894 4632 14 -35 61.0 32.6 34.4 1.9 7.70
36.7 40.2 0.8 3.44
DH 20 1965 9978 9894 4632 104 -20 53.3 46.2 47.2 1.1 8.03
DH 21 1965 9795 9475 4630 295 -15 46.3 6.1 24.4 18.3 2.80
DH 22 1966 9691 9390 4668 25 -40 61.6 39.3 43.0 3.7 2.34
46.3 47.1 0.8 4.75
DH 23 1966 9644 9476 4695 25 -45 46.9 33.5 36.3 2.7 1.65
DH 24 1966 9644 9476 4695 334 -30 48.8 No Significant Intercept
DH 25 1966 9411 9359 4813 290 -35 77.4 32.0 33.5 1.5 1.12
52.3 53.9 1.7 9.48
DH 26 1966 9411 9359 4813 260 -20 44.2 No Significant Intercept
DH 27 1966 9245 9160 4831 327 -30 50.0 No Significant Intercept
DH 28 1966 9303 9054 4764 358 -20 21.9 No Significant Intercept
DH 29 1966 9409 9081 4740 336 -25 51.2 33.8 37.8 4.0 8.80
DH 30 1966 9409 9081 4740 316 -20 30.2 20.1 25.1 5.0 8.84
DH 31 1966 9602 9168 4716 286 -20 54.9 No Significant Intercept
DH 32 1966 9602 9168 4716 310 -25 69.5 27.1 39.3 12.2 5.05
46.6 56.8 10.2 6.23
DH 33 1966 10157 9970 4763 316 -35 79.6 39.3 39.9 0.6 5.56
61.2 61.9 0.7 2.49
DH 34 1966 10157 9970 4763 5 -45 42.1 21.6 24.1 2.5 6.44
DH 35 1966 10169 9960 4763 94 -35 53.0 No Significant Intercept
DH 36 1966 10169 9960 4763 119 -45 34.4 32.9 33.5 0.6 10.12
DH 37 1966 9592 9333 4724 219 -45 56.4 14.0 24.4 10.4 7.94
34.4 40.2 5.9 2.91
DH 38 1966 9300 9230 4841 221 -45 54.9 27.7 29.4 1.7 5.76
DH 39 1967 9295 9105 4794 9 -45 51.8 31.4 49.8 18.4 6.25
DH 40 1967 9427 9254 4789 130 -55 30.5 15.8 29.0 13.1 7.20
DH 41 1967 9426 9254 4789 130 -75 42.7 24.6 25.8 1.2 4.30
29.0 39.9 11.0 8.20
DH 42 1967 9448 9310 4790 310 -35 109.7 No Significant Intercept
DH 43 1967 9160 9127 4837 327 -40 37.8 28.7 37.8 9.1 6.97
DH 44 1967 9345 9315 4844 130 -70 94.8 77.7 86.0 8.3 6.07
90.2 93.8 3.6 4.74
DH 45U 1969 9338 9393 4630 116 -65 122.8 86.9 102.1 15.2 3.23
105.2 108.8 3.6 1.48
DH 46U 1969 9337 9392 4630 154 -65 110.0 77.7 79.2 1.5 14.08
DH 47U 1969 9333 9391 4630 184 -65 88.7 71.9 81.1 9.1 3.01
DH 48U 1969 9330 9394 4630 211 -65 119.2 No Significant Intercept
DH 49 1969 9815 9630 4635 223 -45 94.8 87.5 92.4 4.9 2.45
DH 50 1969 9816 9630 4635 244 -45 100.9 No Significant Intercept
DH 51U 1969 9230 9530 4630 131 -67 174.7 141.1 153.9 12.8 5.78
DH 52U 1969 9232 9525 4638 158 -65 167.0 37.5 134.4 7.5 5.32
DH 53U 1969 9231 9527 4638 189 -65 164.9 49.7 50.3 0.6 7.39
152.9 154.2 1.4 3.67
DH 54U 1970 9335 9390 4631 165 -30 59.7 No Significant Intercept
DH 55U 1970 9110 9303 4632 112 -45 53.0 No Significant Intercept
DH 56U 1970 9107 9302 4632 156 -45 60.4 No Significant Intercept
DH 57U 1970 9109 9301 4632 138 -45 60.0 37.6 39.1 1.5 1.37
DH 58U 1970 9101 9303 4632 191 -45 61.6 31.1 33.2 2.1 4.43
43.3 44.5 1.2 8.40
DH 59U 1970 9099 9303 4630 212 -60 69.8 49.8 56.1 6.3 2.04
DH 60U 1970 9102 9303 4630 175 -60 85.3 No Significant Intercept
DH 61U 1970 9097 9303 4632 217 -37 24.8 No Significant Intercept
DH 62U 1970 9472 9412 4440 158 -55 48.8 No Significant Intercept
DH 63U 1970 9472 9412 4440 171 -30 45.7 25.6 26.8 1.2 2.35
32.0 32.5 0.5 3.50
DH 64U 1970 9472 9421 4440 313 -5 50.0 No Significant Intercept
DH 65U 1970 9223 9580 4368 158 -50 7.6 No Significant Intercept
DH 66U 1970 9594 9444 4464 142 -15 45.7 27.7 28.0 0.4 6.20
37.2 38.6 1.4 5.50
DH 67U 1970 9594 9444 4465 38 15 27.1 No Significant Intercept
DH 68U 1970 9594 9444 4465 36 8 25.6 No Significant Intercept
DH 69U 1970 9235 9580 4368 155 -50 106.1 90.5 94.2 3.7 5.23
DH 70U 1970 9275 9424 4378 164 -15 51.8 34.1 44.3 10.2 4.96
DH 71U 1970 9275 9424 4378 164 -40 50.3 39.6 43.9 4.3 6.80
DH 72U 1970 9275 9424 4376 140 -40 52.1 No Significant Intercept
DH 73U 1970 9262 9422 4376 182 -30 50.6 45.4 46.6 1.2 13.00
DH 74U 1970 9262 9422 4376 205 -30 51.8 No Significant Intercept
DH 75U 1970 9260 9440 4376 300 -35 26.2 No Significant Intercept
DH 76U 1970 9373 9427 4365 130 -25 46.3 38.4 39.3 0.9 7.10
42.7 45.7 3.0 2.41
DH 77U 1970 9373 9427 4364 130 -50 52.1 46.6 49.6 3.0 2.23
DH 78U 1970 9393 9427 4365 160 -25 45.7 37.2 39.0 1.8 7.80
DH 79U 1970 9373 9427 4364 160 -50 53.3 42.1 42.4 0.3 5.80
45.3 46.7 1.4 2.95
DH 80U 1970 9370 9427 4365 182 -20 50.6 40.8 44.8 4.0 4.71
DH 81U 1970 9235 9580 4368 175 -50 115.2 86.4 88.5 2.0 3.06
DH 82U 1970 9232 9580 4368 210 -58 54.3 No Significant Intercept
DH 83U 1970 9232 9580 4368 187 -72 8.5 No Significant Intercept
DH 84U 1970 9232 9580 4368 202 -62 7.6 No Significant Intercept
DH 85U 1970 9240 9580 4372 129 5 38.1 No Significant Intercept
DH 86U 1970 9240 9580 4373 215 0 33.8 No Significant Intercept
DH 87U 1970 9007 9293 4378 226 0 45.7 16.5 22.9 6.4 4.33
DH 88U 1970 9007 9293 4377 315 30 30.2 19.1 22.8 3.7 3.73
DH 89U 1970 9262 9445 4379 215 -30 17.7 7.5 7.8 0.3 4.30
DH 90U 1970 9262 9445 4381 348 33 30.5 8.1 11.7 3.7 8.77
DH 91U 1970 9263 9446 4351 186 -70 25.9 7.5 20.4 13.0 4.94
DH 92U 1970 9234 9578 4365 148 -70 163.7 85.3 85.9 0.5 1.95
153.3 153.7 0.4 2.90
161.1 161.7 0.6 3.80
DH 93U 1970 9235 9578 4368 214 -60 176.8 145.2 160.6 15.4 7.01
165.2 165.8 0.6 4.60
DH 94U 1970 9233 9578 4368 209 53 199.3 18.0 19.2 1.2 9.80
27.1 30.5 3.4 1.73
185.6 187.5 1.8 1.76
191.3 191.9 0.6 1.20
DH 95U 1970 9177 9408 4365 265 -60 65.2 52.6 54.4 1.8 10.00
57.6 59.7 2.1 1.18
DH1-77 1977 9695 9595 4675 46.6 22.9 24.4 1.5 0.61
34.1 35.7 1.5 0.56
DH2-77 1977 9692 9613 4675 39.3 21.2 22.9 1.7 0.48
DH3-77 1977 9692 9613 4675 34.3 No information available to date
DH99-100 1999 8824 8616 4721 18 -45 94.5 No information available to date
DH99-101 1999 9453 8841 4721 341 -55 353.6 306.6 307.6 1.0 0.99
322.8 324.3 1.5 5.93
DH99-102 1999 9041 8737 4745 339 -48 296.3 84.1 85.6 1.5 1.85
88.4 88.8 0.5 1.82
94.2 94.5 0.3 6.28
DH103 2009 9415 8855 4640 129 30 370.9 No Significant Intercept
DH104 2009 9236 8945 4750 250.1 103.3 105.5 2.1 1.87
204.8 205.4 0.6 0.88
CD-11-01 2011 Collar details yet to be determined 40.2 40.8 0.5 16.45
CD-11-02 2011 Collar details yet to be determined 11.5 12.2 0.6 8.48
45.6 46.3 0.5 3.83
CD-11-03 2011 Collar details yet to be determined 29.8 30.9 1.1 12.45
CD-11-04 2011 Collar details yet to be determined 34.4 36.6 2.2 2.17
40.2 41.1 0.9 3.13
CD-11-05 2011 Collar details yet to be determined 50.8 52.3 1.4 0.96
53.8 55.3 1.5 3.19
CD-11-06 2011 Collar details yet to be determined 32.0 36.9 4.9 3.36
40.6 40.9 0.6 3.31
CD-11-07 2011 Collar details yet to be determined No Significant Intercept
CD-11-08 2011 Collar details yet to be determined No Significant Intercept
CD-11-09 2011 Collar details yet to be determined No Significant Intercept

APPENDIX 2 -

JORC CODE 2012 EDITION, TABLE 1 REPORT

JORC Code, 2012 Edition - Table 1

Section 1: Sampling Techniques and Data

(Criteria in this section applies to all succeeding sections)

Criteria JORC Code Explanation Commentary
Sampling Techniques - Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

- Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

- Aspects of the determination of mineralisation that are Material to the Public Report.

- In cases where 'industry standard' work has been done, this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information
- Multiple soil, rock chip, stream sediment, trenching, geophysical and drilling programs have been completed at the Project since 1963. All programs employed different methodologies from program to program. Previous work programs appear to have been undertaken in accordance with industry standard practices at the time they were implemented.

- The majority of drilling was completed between 1964 and 1970. Samples were routinely collected from diamond drill core and assayed over varying lengths.

- Information relating to sample preparation and analysis techniques has not been documented.
Drilling Techniques - Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). - Approximately 8,362 metres of diamond drilling and 3,283 metres of underground percussion drilling has been completed at the Project to date.

- Diamond drilling has been from both surface and underground, in multiple programs since 1963. Accordingly various drilling contractors completed the drilling, using a variety of drill rigs, recovering a variety of core sizes.

- Open hole percussion drilling was undertaken from underground openings. The drilling technique was employed primarily to define geological contacts. Sampling was undertaken on material collected from the percussion holes, however assay results are considered to be unreliable and have therefore not been reported in this announcement.
Drill Sample Recovery - Method of recording and assessing core and chip sample recoveries and results assessed.

- Measures taken to maximise sample recovery and ensure representative nature of the samples.

- Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material
- Drill hole logs for diamond drill holes generally include statistics on core recoveries. In many cases core recovery has been poor, including, at times, within the mineralized intervals.

- At this time it is not possible to ascertain whether sample recovery may influence grade. New drilling within previously identified mineralized zones would be required to determine this.
Logging - Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

- Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.
The total length and percentage of the relevant intersections logged
- Geological logs were recorded for the entire length of all diamond drill holes.

- It is anticipated that additional drilling in the known mineralised areas will be necessary in order to confirm the geological model and collect appropriate geotechnical data prior to defining any Mineral Resource.
Sub-Sampling techniques and sample preparation - If core, whether cut or sawn and whether quarter, half or all core taken.

- If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

- For all sample types, the nature, quality and appropriateness of the sample preparation technique.

- Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

- Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

- Whether sample sizes are appropriate to the grain size of the material being sampled.
- Historical diamond drill core was typically sampled by splitting the drill core in half along its long axis.

- Details of laboratory sample preparation techniques have not been documented by previous workers.

- Details of previous quality control measures have not been documented by previous workers.

- Routine resampling and/or duplicate sample analysis was not undertaken for the historical drilling.

- Sample sizes are considered appropriate for the grain size and nature of material sampled.
Quality of assay data and laboratory tests - The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

- For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

- Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established
- Details of previous assaying of samples of diamond drill core, which dates back to 1964, are largely unknown at this time.

- There is no documentation available to determine the nature of any quality control measures adopted for sampling and analysis of the reported drill holes.
Verification of sampling and assaying - The verification of significant intersections by either independent or alternative company personnel.

- The use of twinned holes.

- Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

- Discuss any adjustment to assay data
- Drill hole data was compiled from historical paper records, digitally captured, and subsequently verified and validated by the Company.

- Twin holes were not utilized to verify results directly, however multiple companies have undertaken drilling programs at the Project previously. Such programs have included infill drilling programs, whereby new holes have been drilled between previous holes that had successfully intersected mineralisation. Hence the presence and extents of mineralisation (to some extent) has been confirmed.

- There were no adjustments to assay data.
Location of data points - Accuracy and quality of surveys used to locate drillholes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

- Specification of the grid system used.

- Quality and adequacy of topographic control.
- Extensive surveying has been undertaken using a total station survey technique for topographic and local grid control.

- Drill hole collars are pegged to a local grid. Transformations are available to convert local grid data to UTM grid.

- Drill hole azimuth and inclination was generally recorded at the collar only. Records are incomplete for down-hole surveys.

- Locational accuracy at collar and down the drill hole is considered adequate for this stage of exploration.
Data Spacing and distribution - Data spacing for reporting of Exploration Results.

- Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

- Whether sample compositing has been applied.
- Data spacing is variable. Maps, plans, and appropriate sectional views have been provided in the text to illustrate relative data spacing for reported results.

- While considerable data have been acquired on the Project previously, additional work, including additional drilling, will be required before a Mineral Resource can be declared.

- No sample compositing has been documented.
Orientation of data in relation to geological structure - Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

- If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
- Previous sampling programs appear to have been appropriate, however further evaluation would be required to determine if any sample biases exist.

- The orientation of drill holes relative to key geological structures does not appear to have introduced a sampling bias.
Sample Security - The measures taken to ensure sample security - Sample security measures have not been documented for any of the historical drilling.
Audits or reviews - The results of any audits or reviews of sampling techniques and data - The Company is unaware of any sampling audits adopted previously.

Section 2: Reporting of Exploration Results

(Criteria listed in section 1 also apply to this section)

Criteria JORC Code Explanation Commentary
Mineral tenement and land tenure status - Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

- The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area
- When undertaking due diligence on the Project during 2014, Hatcher engaged an Alaskan lawyer to confirm the Claims (tenements) are in good standing. This was confirmed.

- During October 2014 Aldevco paid the annual renewal fees for all of the Claims, well in advance of the 1 December 2014 renewal deadline. This ensures they are all in good standing until 1 September 2015.

- While the Claims are in good standing, additional permits/licences may be required to undertake specific (generally ground-disturbing) activities such as drilling and underground development.
Exploration done by other parties - Acknowledgment and appraisal of exploration by other parties. - A brief history of previous exploration is included in the body of this announcement.
Geology - Deposit type, geological setting and style of mineralisation - A brief description of the deposit type, geological setting and style of mineralisation is included in the body of this announcement.
Drillhole Information - A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes:
-- easting and northing of the drillhole collar
-- elevation or RL (Reduced Level elevation above sea level in metres) of the drillhole collar
-- dip and azimuth of the hole
-- downhole length and interception depth
hole length.

- If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case
- Reported results are summarised in relevant tables within the attached announcement.

- The drill holes reported in this announcement have the following parameters applied:

-- Grid co-ordinates are reported here in a local grid
Collar elevation is defined as height above sea level in feet
-- Dip is the inclination of the hole from the horizontal. Azimuth is reported as the direction toward which the hole is drilled relative to the local grid.
-- Down hole length of the hole is the distance from the surface to the end of the hole, as measured along the drill trace
-- Intersection depth is the distance down the hole as measured along the drill trace.
-- Intersection width is the down hole distance of an intersection as measured along the drill trace
-- Hole length is the distance from the surface to the end of the hole, as measured along the drill trace.
Data aggregation methods - In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

- Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

- The assumptions used for any reporting of metal equivalent values should be clearly stated
- Sample intervals were geologically defined and as such downhole sample lengths are variable, however generally do not exceed 5 feet in length.

- Drill intersections have been calculated using a weighted (by length) average technique.

- In order to present a succinct summary of previous drilling results in this report, only significant interceptions of mineralisation with a calculated "grade-thickness" value (copper assay as a percentage multiplied by thickness of mineralized intercept in metres) of1%-metre or more have been reported.

- No grade top cut off has been applied.

- No aggregated intercepts are reported.

- No metal equivalent reporting is used or applied.
Relationship between mineralisation widths and intercept lengths - These relationships are particularly important in the reporting of Exploration Results.

- If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported.

- If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').
- Thickness of mineralisation reported is down-hole thickness. There is insufficient interpretation of the mineralisation to confidently report "true widths". It is however noted that the mineralized lenses appear to be relatively steeply dipping. As such it is probable that "true widths" won't be as large as down-hole widths.

- It is noted that previous diamond drill holes were drilled from both surface and underground, with the drilling rig oriented at a large variety of azimuths and inclinations. therefore the reported downhole widths may not represent true mineralised widths.
Diagrams - Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drillhole collar locations and appropriate sectional views - Summary plans and sections are included in this announcement.
Balanced reporting - Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results - Representative results are included in this announcement.
Other substantive exploration data - Other exploration data, if meaningful and material, should be reported including (but not limited to) geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. - A bulk sample was collected in 2008 for metallurgical testwork. Despite this work being recent and well-documented, it was preliminary in nature and further metallurgical test work is recommended.
Further Work - The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

- Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
- A suitable work program will be developed following more comprehensive review, compilation and interpretation of previously acquired data.
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Michael Haynes
Director, President and CEO
Ian Cunningham
Director, CFO and Company Secretary
Robert Boaz
Non-Executive Director
Contact Details
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Coventry Resources Inc. is a limited liability corporation existing under the laws of British Columbia. Australian Registered Business Number 161615783

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