Coventry Resources Inc.
ASX : CYY

Coventry Resources Inc.

June 12, 2015 09:13 ET

Field Work Commenced at the Caribou Dome Copper Project, With Additional Approx. A$250,000 Raised to Further Expand Drilling

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 12, 2015) -

Highlights

  • Field work has commenced at the high-grade Caribou Dome Copper Project in Alaska, with:
    • A geological team now on-site;
    • A geophysical contractor engaged and scheduled to commence surveying next week; and
    • Drilling scheduled to commence in early July
  • Commitments received for a Placement to raise an additional ~A$250,000
  • Proceeds will be used to expand the Company's inaugural drilling program at the Caribou Dome Project

Coventry Resources Inc. ("Coventry" or the "Company") (ASX:CYY) is pleased to announce that it has commenced its inaugural field program at the highly prospective high-grade Caribou Dome Copper Project in Alaska, USA (the "Caribou Dome Project" or "the Project").

An intensive exploration program comprising geochemical sampling, geophysical surveying and drilling has commenced to expand on the extensive mineralisation at the Project which remains open in all directions. Mineralisation was first discovered in 1963, and between 1964 and 1970 some 95 diamond core holes were drilled, 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 has been undertaken since 1970, until now.

The Company is also pleased to announce that it has received commitments from new institutional and sophisticated investors to raise approximately A$250,000. This follows the recent successful A$800,000 placement in May 2015. The additional funds will be used to expand Coventry's inaugural drilling program at the Caribou Dome Project.

Field Work Commenced

Having recently prioritised multiple high-quality targets for further exploration (see News Release April 16, 2015), the Company has now commenced its inaugural field program.

A geological team has been mobilised to the Project and is now on-site. A geophysical contractor has been engaged and is scheduled to commence surveying next week.

The mineralisation comprises semi-massive to massive sulphides and should accordingly respond very well to electrical geophysical techniques. Geophysical data will immediately be used to refine the optimal locations for new drill hole collars and to help gauge the potential strike and depth extent of the mineralisation.

The Company's preferred drilling contractor has been selected and this week visited site. A drilling contract is being finalised in preparation for the commencement of drilling in early July, immediately following the completion of the geophysical survey.
Objectives of the drilling program are to:

  1. confirm results of previous drilling so historic results can be incorporated into a mineral resource estimate for the Project in accordance with applicable codes; and
  2. commence exploration of some of the high-priority targets at the Project that are yet to be drilled.

Untested targets include the Lense 2 Target, where outcropping mineralisation:

  • has been mapped previously to extend over 200 metres of strike and to be up to 15 metres wide; and
  • coincides with a 350 metre long very strong IP anomaly.

Previous drilling focused on just 250m 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.

Placement

Following recent marketing in Asia, institutional and sophisticated investors have agreed to subscribe for approximately 15.8 million common shares, to be held in the form of CHESS Depositary Interests ("Shares"), at A$0.016 per Share to raise approximately A$250,000 ("the Placement").

Settlement of the Placement is expected to take place on June 19, 2015 and it is being undertaken within the Company's available capacity under the ASX Listing Rules.

Qualified and Competent Person

The information in this announcement that relates to exploration results for the Project has been approved by Mr Ben Vallerine, who is a consultant to the Company and holds an indirect shareholding in the Company. Mr Vallerine 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 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.

Fast Facts ASX: CYY
CDI price (June 11, 2015) A$0.020
Shares on issue (post Placement) ~224M
Options 26.4M
Market capitalisation ~A$4.5M
Directors and Management
Mark Bojanjac
Non-Executive Chairman
Michael Haynes
Director, President and CEO
Ian Cunningham
Director, CFO and Company Secretary
Robert Boaz
Non-Executive Director
Michael Fowler
Non-Executive Director

Contact Information