Coventry Resources Inc.
ASX : CYY

Coventry Resources Inc.

July 21, 2015 04:30 ET

Coventry Resources Inc.: Immediate Drilling Success at the Caribou Dome Copper Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 21, 2015) - Coventry Resources Inc. (ASX:CYY)

  1. HIGHLIGHTS

The first two exploration holes drilled to test 200m of outcropping mineralisation at Lense 2 have discovered substantial primary mineralisation:

CD15-04: Intersected ~9m of semi-massive to massive sulphide mineralisation
CD15-05: Intersected ~12m of predominantly massive sulphide mineralisation
  • These holes have immediately confirmed the exceptional exploration potential of the Caribou Dome Copper Project

Three confirmation drill holes have also been completed to date:

CD15-01: Intersected ~16m of mineralisation over two intervals at Lense 6
CD15-02: Intersected ~10m of semi-massive to massive sulphide mineralisation at Lense 6
CD15-03: Intersected multiple horizons of semi-massive to massive sulphide mineralisation over a total of >20m at Lense 4

Assay results are imminent with results expected for:

  • CD15-01 and CD15-02 within 10-14 days, and
  • CD15-03, CD15-04 and CD15-05 to follow shortly thereafter

Ongoing exploration and confirmation drilling continues as planned

  1. 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, with exceptional results 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 now.

Previous drilling focused on just 250 metres of strike. Outcropping copper mineralisation is evident over more than 15,000m of strike within the Project area. The Company's Directors believe there is considerable potential to delineate additional mineralisation.

3. RECENT DRILLING

Coventry Resources Inc. (ASX:CYY) ("Coventry" or "the Company") is very pleased to announce that thick semi-massive to massive sulphide mineralisation, comprising predominantly chalcopyrite (copper-sulphide) and pyrite, has been intersected in all five diamond core drill holes completed to date at the highly prospective high-grade Caribou Dome Copper Project in Alaska, USA (the "Caribou Dome Project" or "the Project").

Very significantly, the two most recent holes, drilled to evaluate the previously untested bedrock beneath 200 metres of outcropping copper mineralisation at Lense 2, have intersected considerable thicknesses of massive sulphide mineralisation.

These are the first holes the Company has drilled for pure exploration purposes at the Caribou Dome Project. They have immediately confirmed the exceptional exploration potential of the Project.

3.1 Discovery of New Primary Mineralisation

Holes CD15-04 and CD15-05 were drilled to evaluate the central portion of the previously untested Lense 2, which surface mapping indicates is at least 200 metres long (see Figure 1). Both of these holes were collared 140 metres along strike from the closest drill hole that had previously intersected thick mineralisation (in Lense 5).

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/1018056_Figure_1.pdf.

Hole CD15-04 was inclined at 55°, and drilled to the south. Approximately 9 metres of mineralisation, comprising predominantly semi-massive to massive sulphides (predominantly chalcopyrite and pyrite), was intersected from 53 metres depth. The mineralisation is hosted by argillites, the same sedimentary rocks that host mineralisation elsewhere at the Project (see photos below).

To view the first photo associated with this press release, please visit the following link: http://media3.marketwire.com/docs/1018056_Photo_1.pdf.

Immediately following the successful intersection of mineralisation in CD15-04, hole CD15-05 was drilled from the same location, with the drilling rig inclined at 75°, to test for deeper mineralisation and to begin determining the attitude of the mineralisation at Lense 2 to assist further follow-up.

Drill hole CD15-05 intersected approximately 11 metres of predominantly massive sulphide mineralisation, some 30 metres deeper than the mineralisation intersected in CD15-04 (see photos below).

To view the second photo associated with this press release, please visit the following link: http://media3.marketwire.com/docs/1018056_Photo_2.pdf.

The Company considers this a very significant initial result, as it clearly confirms the potential to immediately discover and delineate additional mineralisation at the Project.

Diamond drill core from holes CD15-04 and CD15-05 is currently being logged and sampled. It will be submitted to a laboratory for analysis in the coming days, with assay results anticipated 2-3 weeks later.

Follow-up drilling is being planned and will commence in the next week.

3.2 Confirmation Drilling

In addition to commencing further exploration, one of the purposes of the current drilling program is 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.

The Company previously announced that approximately 16 metres of mineralisation had been intersected in drill hole CD15-01, over two intervals of approximately 12 metres and 4 metres respectively. CD15-01 was drilled to evaluate the eastern end of Lense 6. Assay results for this hole are expected in 10-14 days.

The Company's second hole, CD15-02, was also drilled to evaluate Lense 6, approximately 30 metres along strike from CD15-01 (see Figure 1). Approximately 10 metres of semi massive to massive sulphide mineralisation (predominantly chalcopyrite and pyrite) was intersected in CD15-02 from ~39 metres (see photos below). Samples have been submitted to the laboratory for analysis, with assay results expected in 10-14 days.

To view the third photo associated with this press release, please visit the following link: http://media3.marketwire.com/docs/1018056_Photo_3.pdf.

CD15-03 was drilled to evaluate Lense 4. Because of difficult access CD15-03 was drilled in the same direction as the interpreted dip of the mineralisation in this area. Notwithstanding this, an interval of approximately 45 metres of mineralised sediments was intersected from approximately 10.5m depth, including multiple intervals of semi-massive to massive sulphides over a combined total of some 20m (see photos below). The true thickness of this interval is yet to be determined, but is estimated to be 15-20 metres. Diamond drill core from CD15-03 has been logged and sampled. Analytical results from this hole are expected to be available in 2-3 weeks.

To view the fourth photo associated with this press release, please visit the following link: http://media3.marketwire.com/docs/1018056_Photo_4.pdf.

4. GEOPHYSICS SURVEY

The Company recently completed a three-dimensional Induced Polarisation ("3DIP") survey over approximately 1,500m of strike at the Caribou Dome Project. The 3DIP survey has highlighted multiple highly chargeable zones that coincide with known mineralisation. Other strong anomalies appear to arise from significant extensions of the known mineralisation. Numerous new high priority targets have also been delineated.

A strong, continuous, 500m long 3DIP anomaly coincides with mineralisation at Lenses 2, 5 and 6 (see Figure 2). The continuity of this anomaly may indicate that the mineralisation at these three lenses is all connected. This is significant, because the mineralisation intersected in drilling at Lenses 5 and 6 is the thickest and most laterally consistent of all known mineralisation at the Project to date. Accordingly, extensions of this mineralisation may also be of similar (substantial) thickness. Furthermore, only about 150 metres of the strike of this 500m long 3DIP anomaly has been effectively drilled to date. There are untested extensions of this anomaly along strike from Lenses 5 and 6 in both directions. The intersections of substantial semi-massive and massive sulphide mineralisation in CD15-04 and CD15-05 confirm this entire corridor is highly prospective. Furthermore, mineralisation along this particular 500m of strike remains completely open at depth, affording more exploration upside.

Numerous other high-priority exploration targets are evident throughout the area covered by the 3DIP survey. These have been highlighted on Figure 2 and include:

  • A previously unrecognised strong anomaly between Lenses 7 and 8 that is immediately adjacent to known mineralisation, but completely untested by drilling;
  • A strong IP anomaly 150 metres along strike, and to the west of Lense 4, that may arise from a lateral extension of the thick, high-grade mineralisation at Lense 4;
  • The 400m long Caribou South Target that is a strong but slightly buried IP anomaly parallel to Lenses 2, 5 and 6. Soil geochemistry over this anomaly is highly elevated in copper;
  • Several deeper targets parallel to the Caribou South Target (the Camp, Airstrip and Spring Targets);
  • The Guardian Target, a new strong anomaly north of Lense 9 that coincides with recently identified outcropping gossans;
  • A discrete 3DIP anomaly within the previously delineated anomalous copper-in-soil geochemistry trend that comprises the Menel Target, which coincides with a location where a rock chip returned assays of 9.1% copper; and
  • A moderate-strong response adjacent to Lense 3, which may reflect the depth extension of mineralisation there.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/1018056_Figure_2.pdf

5. FORWARD WORK PROGRAM

Initial work at the Caribou Dome Copper Project has already confirmed the exceptional exploration potential of the Project. Accordingly confirmation and exploration drilling is continuing.

One of the immediate focuses of the drilling program is to systematically determine the extents and morphology of the mineralisation in the corridor between Lense 2 and Lense 5, within approximately 100 metres of surface, and to establish how this mineralisation is associated with mineralisation at Lenses 5 and 6. This will help determine the controls on any thicker and/or higher grade portions of Lenses 2, 5 and 6 before deeper mineralisation is targeted with further drilling.

Other undrilled 3DIP targets will be systematically evaluated with surface mapping and sampling (as appropriate), in advance of drilling.

Recent ground work has confirmed that it is very reasonable to expect that the sediment-hosted mineralisation delineated to date at the Caribou Dome Project is part of a larger mineralised system. Accordingly project-wide stream and soil sampling programs have commenced in conjunction with regional mapping, to endeavour to identify extensions of this mineralised system. Further ground geophysics surveying, with more regional and/or deeper penetration survey parameters, is also planned.

It is anticipated that analytical results for the Company's first two drill holes will be received in 10-14 days. Results from subsequent holes will follow systematically thereafter. The forward work program will be continually refined as new assay results come to hand.

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

Name UTM
Easting
UTM
Northing
Elevation
(m)
Azimuth Inclination Total
Depth
(m)
CD15-01 492800 7001137 1401 302 -55 89.9
CD15-02 492758 7001153 1418 130 -75 53.4
CD15-03 492750 7001195 1437 328 -55 59.4
CD15-04 492559 7001035 1433 130 -55 74.7
CD15-05 492800 7001137 1433 130 -75 102.1

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 the Appendix associated with this press release, please visit the following link: http://media3.marketwire.com/docs/1018056_APPENDIX.pdf

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