Coventry Resources Inc. (TSX-V:CYY, ASX:CYY) (the “Company”) is
pleased to report it has completed the acquisition of 100% of the
West Cedartree Gold Project (“Project”), located 10km from the
Company’s Cameron Gold Deposit, from Houston Lake Mining Inc.
(“Houston Lake”).
Commenting on the acquisition, Michael Naylor, President and CEO
stated, “The acquisition of the West Cedartree Gold Project further
consolidates the Company’s interest in the mineral resources
surrounding the Cameron Gold Deposit, thereby concentrating
ownership into a regional gold camp. We are confident that this
acquisition will have a positive impact on the economics of
developing a mining operation at the Cameron Gold Camp Project.
There is considerable potential to delineate additional high grade
resources with further exploration at the Project where historical
high grade intercepts have been recorded at numerous prospects
where compliant resources are yet to be determined. We intend
implementing an aggressive exploration program at the highest
priority prospects in the near term.”
WEST CEDARTREE GOLD PROJECT
The West Cedartree Gold Project incorporates 16.5km2 of mineral
rights that can be easily accessed via the all-weather road that
was constructed to access the Company’s Cameron Gold Deposit.
Figure 1 – Location of the West Cedartree Gold Project in
relation to the Cameron Gold Deposit
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Dubenski Gold Deposit
The Dubenski Gold Deposit is the most advanced of the prospects
within the West Cedartree Project. Mineralisation at Dubenski is
hosted by a sub-vertical shear zone over a strike length of 400m
that is up to 20m wide and has been delineated to a vertical depth
of more than 150m. The mineralisation consists of fine-grained
pyrite and free gold associated with carbonate, sericite, silica,
and local fuchsite alteration within strongly-deformed mafic
volcanic rocks. The mineralisation is open in all directions. Table
1 summarises the current mineral resource estimate.
Table 1 - NI 43-101 and JORC-Code
Compliant Mineral Resource, Dubenski Gold Deposit*
Cut-off Resource Classification
Tonnes Gold
g/t Gold Oz 1.0 g/t
Indicated 806,000
2.28 59,000
Inferred 392,000 1.44
18,200
*Mineral resources are not mineral reserves and do not have
demonstrated economic viability. All figures are rounded to reflect
the relative accuracy of the estimate.
Figure 2 – Dubenski Gold Deposit Cross Section
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On the basis of current information it is considered likely that
an open pit mine can be developed at Dubenski. As such these
resources have been incorporated into the Preliminary Economic
Assessment of the development of the Cameron Gold Camp Project that
was announced on January 14 2013.
Dogpaw Gold Prospect
The Dogpaw Prospect comprises a mineralised zone that extends
over a strike length of 310m and to a vertical depth of 210m. The
Dogpaw Prospect is one of six vein sets that have been identified
within the West Cedartree Gold Project by previous explorers. Gold
mineralisation occurs mainly in gabbro at the contact with mafic
volcanic rocks, where porphyry intrusions are apparently localised
by a series of northwest-trending faults.
In 1995, a 500 ton bulk sample was extracted from the Dogpaw
Prospect and processed at a third party smelter. The average grade
of this sample was 6.53 g/t gold.
Houston Lake completed a 17 hole (2,561m) drilling program in
2007. Intercepts included:
- 6.0m @ 47.97 g/t gold from 48.2m
- 2.6m @ 46.54 g/t gold from 51.7m
- 4.6m @ 10.51 g/t gold from 49.9m
No further work has been undertaken subsequently.
The Company has commenced a Mineral Resource Estimate for the
Dogpaw Prospect, which is due for completion by the end of the
first quarter of 2013. It is anticipated that diamond drilling to
assess potential extensions of the mineralisation will also
commence in the March quarter of 2013.
McLennan Gold Prospect
Located at the sheared contact between mafic volcanic rocks and
gabbro, the mineralised zone at the McLennan Prospect has been
traced over a strike length of more than 450m. A recent drill
program of 15 holes (3,000m) by Houston Lake in 2011 returned
significant intercepts including:
- 5.8m @ 5.80 g/t gold from 24.0m
- 9.0m @ 4.04 g/t gold from 26.0m
- 16.5m @ 1.67 g/t gold from 44.0m
The mineralisation remains open in all directions and a diamond
drilling program is expected to commence in the March quarter of
2013 to further evaluate this prospect.
Figure 3 – Plan of Historical Trenching and Drill Results
from the McLennan Gold Prospect
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Robertson Gold Prospect
The Robertson Prospect comprises a northeast-southwest trending
mineralised shear zone that has been delineated over a strike
length of 200m and to a vertical depth of 120m.
Drilling in 2010 and 2011 by Houston Lake recorded best
intercepts of:
- 16.7m @ 2.00 g/t gold from 19.8m
- 20.5m @ 2.17 g/t from 62.0m
- 9.0m @ 4.04 g/t gold from 26.0m
- 16.5m @ 1.67 g/t gold from 44.0m
The mineralisation remains open along strike to the north-west
and at depth. Importantly, the highest grades returned from
previous work have been from the deepest drillholes completed at
the Robertson Prospect. A follow-up diamond drilling program,
aiming to extend the known mineralisation, is expected to commence
in the March quarter of 2013.
Figure 4 – Surface plan of the Robertson Prospect showing
significant drilling intercepts.
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Angel Hill Gold Prospect
The Angel Hill Prospect is located 2.8km to the west of the
Dubenski Gold Deposit (Figure 1). The mineralisation at Angel Hill
is contained within a shear zone at the contact of differential
units within a gabbro sill. It comprises silica, carbonate and
sericite alteration that ranges from 1-11m wide over a strike of
130m and to a vertical depth of 75m. Visible gold is common in
discontinuous quartz veins. The mineralisation is also associated
with pyrite, chalcopyrite, galena and molybdenite. Mineralisation
remains open along strike to the south and at depth.
Table 2 summarises the current mineral resource estimate.
Table 2 - NI 43-101 and JORC-Code
Compliant Mineral Resource, Angel Hill Gold Deposit*
Cut-off Grade (g/t Au) Resource
Classification Tonnes
Gold Grade (g/t Au) Gold
Ounces 1.00 Inferred
164,000 1.62 8,500
Total Inferred
164,000 1.62
8,500
*Mineral resources are not mineral reserves and do not have
demonstrated economic viability. All figures are rounded to reflect
the relative accuracy of the estimate.
In May 2006, Houston Lake extracted a 1,041 tonne bulk sample
that yielded a total of 190 ounces of gold at an average grade of
5.67 g/t gold following processing at a third party mill.
CONSIDERATION
The Company paid Houston Lake $100,000 on the execution of a
binding Letter of Intent in June 2012. It recently completed the
acquisition by paying Houston Lake a further $400,000 and issuing
it 1.935 million common shares in the Company.
The Company believes there is considerable potential to
delineate additional high grade resources with further exploration
at the West Cedartree Gold Project. Additional resources could have
a significant impact on the economics of developing a mining
operation at the Cameron Gold Camp Project. Plans are in place to
implement an aggressive exploration program at the highest priority
prospects within the Project in the near term.
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 Persons
Tony Goddard, MAIG, VP Exploration for Coventry Resources Inc.
is the Qualified Person as defined by National Instrument 43-101
and supervised the preparation of the technical information in this
release.
The information in this announcement that relates to Exploration
Results and Mineral Resources is based on information compiled by
or under the supervision of Anthony Brendon Goddard. Mr Goddard is
Technical Director of Coventry Resources Limited and a Member of
the Australian Institute of Geoscientists. Mr Goddard 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 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.
The information in this announcement that relates to Mineral
Resources or Ore Reserves is based on information compiled by Mr
Peter Ball who is a Chartered Professional and Member of the
Australasian Institute of Mining and Metallurgy. Mr Ball is the
Director of DataGeo Geological Consultants. Mr Ball has sufficient
experience which is relevant to the style of mineralisation and
type of deposit under consideration and to the activity which 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 Ball 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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following link:
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