Coventry Resources Inc. (TSX-V:CYY, ASX:CYY) (the “Company” or
“Coventry”) is pleased to announce positive results from its
recently completed 46 hole, 1,058 metre, overburden RC drill
program at its Rainy River District Properties (the “Project”) in
the western part of southern Ontario (Figure 1). The Project
comprises the Company’s mineral rights covering an area of 132.7
km² adjacent to the Rainy River Gold Deposit (owned by Rainy River
Resources Limited). The Rainy River Gold Deposit is currently
reported to contain Proven and Probable Mineral reserves of 4.0
million ounces of gold and 10.3 million ounces of silver (Rainy
River Resources Limited News Release April 10, 2013) and is one of
the most significant gold discoveries in Canada in the past
decade.
The objective of this program was to further define previously
identified overburden targets in order to refine the probable
location of the bedrock source of gold anomalism.
HIGHLIGHTS:
- Two significant, discrete,
high-priority gold anomalies defined.
- High proportions of “modified” and
“pristine” gold grains within both these anomalies suggest distance
to the primary source of the mineralization to be between 500-1,000
metres.
- An additional 15 precious and base
metal anomalies identified.
As part of its exploration strategy to target highly
prospective, underexplored mineralized belts with high known metal
endowment, Coventry recently secured a substantial package of
mineral rights to become the second-largest ground holder in the
Rainy River Greenstone Belt.
The process of sampling glacial till and then using gold grain
counting together with conventional analytical techniques led
directly to the discovery of the Rainy River Gold Deposit. This
relatively new methodology is based on glacial erosion and down-ice
transportation of primary mineralization. Importantly the shape or
morphology of gold grains is changed as they are liberated and
transported during glacial erosion. The modified shape provides
indications of the proximity of any gold grains in the glacial till
to the primary source, as illustrated in Figure 2. The Company’s
recently completed RC drilling program sought to further refine
previously identified gold anomalies in glacial overburden at the
Project.
The drilling program targeted four high-priority gold anomalies
(Conqueror, Royal, Aries and Martin) and three base metal anomalies
(Scylla, Charybdis and Bellepheron) generated from the Company’s
initial overburden RC drilling program, completed during the winter
of 2012, as well as from historical anomalies delineated by
previous explorers that have not been subject to systematic
follow-up work (Figure 1).
Overburden samples were collected for gold grain counts
(undertaken by consultants Overburden Drilling Management (ODM) of
Ottawa, Ontario) as well as analysis with conventional geochemical
methods. Heavy mineral concentrates (HMC) samples were also
collected from glacial till samples and from bottom-of-hole bedrock
samples, for analysis with conventional multi-element analytical
techniques.
Gold grain count data have been received for all 145 samples of
glacial till collected during drilling. A summary of these results
is presented in Table 1. Conventional precious and base metal
analytical data are yet to be received, but are expected within 2-3
weeks. The conventional analytical results may enhance the
interpretation of the results described below, and may highlight
anomalous quantities of pathfinder elements that may further assist
in the location of the source of the target anomalies.
Conqueror Anomaly
The Conqueror Anomaly (Figures 1 and 3) was delineated by a
previous explorer in 2007 when 90 gold grains were reported in a
sample of glacial till from a single overburden RC drillhole. Half
of these gold grains were “modified” or “pristine” in morphology,
suggesting a local source of mineralization. Follow-up work was
never undertaken.
The Company recently completed eight RC drillholes, up-ice to
the northeast of the initial anomalous sample to better define the
potential source of the anomalism. Samples from five of these holes
returned significantly anomalous results that averaged more than 10
gold grains per sample (see Table 1; Figure 3).
Drilling defined a gold-in-till “train” up to 950m wide, with a
strike length greater than 1.4 km. This “train” remains open along
strike (Figure 3). The dominance of modified and pristine gold
grains (Table 1) indicates that the source of the gold is
relatively proximal (interpreted to be approximately 500m-1,000m
from the sample locations). Encouragingly, the Conqueror Anomaly is
adjacent to a prominent, ovoid-shaped magnetic anomaly and is
located along the interpreted trace of the large-scale Pinewood
Fault (Figure 3). These are geological and structural features that
may be associated with mineralization.
The Conqueror Anomaly is a very high-priority target. Further
limited RC drilling is required to define the overburden anomalism
prior to testing with diamond drilling, however the dominance of
“modified” and “pristine” grains suggests that a possible source to
the mineralization is close.
Royal Anomaly
The Royal Anomaly (Figure 4) was delineated during the Company’s
RC drilling program in 2012. A highly-anomalous hole contained 428
gold grains, with an average of 36 gold grains per sample. A total
of seven follow up RC drillholes were completed recently (Table 1)
along two fences spaced 400m apart to the NNE of the anomalous 2012
drillhole, in an area that is interpreted to be the “up-ice flow”
direction (Figure 4). Holes drilled immediately along strike from
the interpreted “up-ice” position returned low results. However a
single hole at the eastern end of the southern-most drill fence
returned strongly-anomalous gold grain counts in the upper part of
the hole, with a maximum of 67 grains recorded in a single sample,
51% of these being “modified” or “pristine” in morphology (Table
1).
It is interpreted that this recent anomalous drillhole may
represent the top part of a gold-in-till “train” with a possible
source “up-ice” to the northeast, less than 550m away. The “head”
of the “train”, or potential source of the anomaly, appears to be
closed off by a line of regional RC drillholes completed by the
Company in 2012. The overall extent of the gold-in-till “train” may
extend over a strike of about 2.4 km and is up to 500m wide (Figure
4).
The Royal Anomaly is a priority target that warrants infill RC
drilling to narrow the bedrock gold source on a 100m drill pattern
prior to testing by diamond drilling.
Aries Anomaly
A total of seven RC drillholes were completed at the Aries
Anomaly (Figure 1) to follow-up on a pit that was excavated by
Coventry in 2012 which returned 42 gold grains, 19% of which were
“modified” or “pristine”. Of the seven drillholes completed,
anomalous gold grain counts were recorded in four drillholes (Table
1), with a maximum of 49 gold grains recorded in a single sample
(29% “modified” or “pristine”).
Further work is required to determine the significance of this
anomaly.
Martin Anomaly
A total of six RC drillholes were completed at the Martin
Anomaly to follow-up on previous work, which included RC drilling
and pitting by Coventry in 2012, as well as similar work by
previous explorers during the 1990’s. All six drillholes returned
anomalous gold grain counts, but grains were dominated by reshaped
morphologies (Table 1). A maximum of 61 grains were recorded in a
single sample (16% pristine and modified).
Further work will be undertaken to assess the likelihood of
possible other local sources associated with gold mineralization
that may be obscured by the swamping effect of the
distally-sourced, “reshaped” gold grains.
Base Metal Anomalies
A total of 18 RC drillholes were completed at the Scylla,
Charybdis and Bellepheron Base Metal Anomalies (Figure 1 and Table
1) where previous work had delineated HMC geochemical results
worthy of additional follow-up. Conventional precious and base
metal assay results from HMC samples derived from glacial till and
silt samples from these drillholes are yet to be received.
Elevated gold grain counts were returned from a single RC
drillhole completed at the Scylla Anomaly, however the pending HMC
assay data is required to determine the significance of this
anomaly as the target is principally base metal in nature.
Additional Precious and Base Metal Anomalies
Significant compilation and interpretation of historic
exploration data as well as the data the Company has derived itself
has led to the recognition of at least 15 additional precious and
base metal anomalies within the glacial overburden that blankets
about 95% of the Rainy River Greenstone Belt.
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 previous
exploration.
Further Exploration
Once all assay results have been received and evaluated the
Company will be in a position to plan follow-up RC and diamond
drilling, in particular focusing on the Conqueror and Royal
Anomalies. The Company anticipates the outstanding assay results
will be received within the next two to three weeks.
Figure 1 – Coventry’s Rainy River District Project land
holding and current anomalies on first vertical derivative total
magnetic intensity image (TMI).
To view the Figure1 graphic, please click on the following
link:http://www.usetdas.com/pr/coventryPR04282013map1.jpg
Figure 2 – Idealized dispersal train of gold in glacial
overburden showing anomaly shape and change in gold grain
morphology relative to distance from source. Adapted from Miller,
1984.
To view the Figure 2 graphic, please click on the following
link:http://www.usetdas.com/pr/coventryPR04282013map2.jpg
Figure 3 – Conqueror Anomaly drillhole plan and
interpretation on total magnetic intensity (TMI) image showing
extent of gold-in till anomaly.
To view the Figure 3 graphic, please click on the following
link:http://www.usetdas.com/pr/coventryPR04282013map3.jpg
Figure 4 – Royal Anomaly drillhole plan and interpretation on
total magnetic intensity (TMI) image showing extent of gold-in till
anomaly.
To view the Figure 3 graphic, please click on the following
link:http://www.usetdas.com/pr/coventryPR04282013map3.jpg
TABLE 1. Gold grain count summary data for all RC drillholes
reported. Note – NVG = No Visible Gold
Anomaly
Hole ID
TotalGoldGrainsperHole
MaximumGoldGrains
perSampleper Hole
Morphology
Reshaped
Modified Pristine
Royal CRO-13-182 5
3 3
0 0 CRO-13-183
5 3
3 0 0
CRO-13-184 2
2 1
1 0 CRO-13-185
1 1
0 1 0
CRO-13-186 3
2 2
0 0
CRO-13-187 119
67 33
23 11 Charybdis CRO-13-188
31 16
14 2
0 CRO-13-189 22
6 5
1 0 CRO-13-190
25 13
11 2
0 CRO-13-191 11
4 4
0 0 CRO-13-192
7 4
4 0
0 CRO-13-193 14
7 6
1 0 CRO-13-194
21 16
14 2
0 CRO-13-195 NVG
NVG NVG
NVG NVG
CRO-13-196 NVG
NVG NVG
NVG NVG
Scylla CRO-13-197 NVG
NVG NVG
NVG NVG CRO-13-198
31 23
15 7
1 CRO-13-199 7
5 5
0 0 CRO-13-200
11 5
4 1
0 CRO-13-201
26 11
8 3
0 Conqueror CRO-13-202 8
3 3
0 0 CRO-13-203
31 28
21 7
0 CRO-13-204 8
8 8
0 0 CRO-13-205
79 53
9 31
13 CRO-13-206 9
4 3
1 0 CRO-13-207
58 48
12 13
23 CRO-13-208 45
45 21
13 11
CRO-13-209
96 60 26
28 6 Aries
CRO-13-210 57
16 14
2 0 CRO-13-211
50 16
14 2
0 CRO-13-212 106
47 34
12 1 CRO-13-213
71 25
17 7
1 CRO-13-214 71
18 16
2 0 CRO-13-215
49 49
35 14
0
CRO-13-216 25
25 16
9 0 Bellepheron CRO-13-217
NVG NVG
NVG NVG
NVG CRO-13-218
7 7
6 1 0
CRO-13-219 23
14 10
4 0 CRO-13-220
14 14
10 4
0 CRO-13-221
10 6
4 2
0 Martin CRO-13-222 37
37 31
2 4 CRO-13-223
66 35
32 3
0 CRO-13-224 148
61 54
7 0 CRO-13-225
21 21
18 3
0 CRO-13-226 57
40 39
1 0
CRO-13-227 77
31 28
2 1
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.
For further information about Coventry
Resources Inc., please contact:
Steven Chadwick
Interim President and CEO
+61 8 9324 1266
schadwick@coventryres.com
Don Halliday
Vice President, Investor
Relations
+1 (604) 899 1505
dhalliday@coventryres.com
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
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 43-101and is
responsible for the content of this press release. Mr. Goddard is 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 2004 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.
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.
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