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Coventry Resources Inc.: Copper in Soil Anomalies Extend Over > 7,000 Metres of Strike at the Caribou Dome Copper Project

November 13, 2015
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VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 13, 2015) - Coventry Resources Inc. (CYY.AX) -

  1. HIGHLIGHTS
  • Assay results received for >600 new soil samples
  • A cohesive, >2,000m long, strong copper-in-soil anomaly is evident directly over the Caribou Dome Copper Deposit:
    • Only 700m of this anomaly has been drill-tested to date, with economic grades and thicknesses of mineralisation intersected throughout this drilled corridor
    • No drilling has ever been undertaken over the >1,300m extension of this anomaly, which is now a very-high priority target for further resource expansion drilling
  • Elsewhere, extensive copper-in-soil anomalism is evident over the entire >7,000 metres of prospective strike covered during the recent soil sampling program
  • Multiple other high-priority copper-in-soil anomaly targets have been identified, providing even more quality opportunities to further expand the resource base at the Project
  1. REGIONAL SOIL SAMPLING AT CARIBOU DOME

Coventry Resources Inc. (ASX:CYY; "Coventry" or "the Company") is pleased to announce it has received assay results for more than 600 soil samples it collected recently at the Caribou Dome Copper Project in Alaska, USA (the "Caribou Dome Project" or "the Project").

Previously, detailed soil samples had been collected over only a 1,000m long corridor, directly over the known mineralisation.

The Company's new samples were collected over approximately 7,000 metres of strike where previously either wide-spaced or no sampling had been undertaken. The Company's samples were collected within the corridor where the prospective sedimentary sequence that hosts mineralisation abuts the underlying sequence of volcanic rocks. New samples were nominally collected on 400m x 100m spacings. Negligible exploration had been undertaken previously along most of this 7km long corridor.

The new analytical results have now been integrated with historic soil sampling data. Combined, they show a very strong, >2,000m long, copper-in-soil anomaly directly over the Caribou Dome Copper Deposit. Very significantly, only 700m of this anomalous corridor has been drill-tested to date, with economic grades and thicknesses of mineralisation intersected over the entire 700 metres. The >1,300m long extension of this strong copper-in-soil anomaly, which is completely undrilled, is interpreted to arise from the along-strike extension of the Caribou Dome Copper Deposit. Indeed rock chip samples collected within the north-eastern extension of this soil anomaly, along "the Menel Trend", have returned assays up to 9.1% copper (see Figure 1). Strong, undrilled induced polarisation ("IP") anomalies have also been identified previously within the Menel Trend. Accordingly this continues to be one of the Company's highest priority targets for further drilling.

To view Figure 1, visit: http://media3.marketwire.com/docs/1032854figure1.jpg

Figure 1. Image of copper anomalism in all soil sampling data collected to date at the Caribou Dome Project - showing a strong anomaly over the Caribou Dome Deposit itself, and multiple other undrilled strong and sizeable anomalies within the prospective geological corridor.

The new soil sampling data also highlight very strong copper-in-soil anomalism directly over the strong, undrilled Guardian IP Target. The Company recently collected rock-chip samples from outcropping gossans at the Guardian Target. These have returned assays up to 16.5% copper (see Figure 1). This, too, remains one of the Company's highest priority targets for further drilling.


It is further significant that, despite soil sampling and ground geophysics both being very effective tools that have greatly assisted in the recent discovery of additional mineralisation at the Caribou Dome Project, a large proportion of the prospective sedimentary sequence that hosts the mineralisation, which extends for more than 15km within the Company's Project area, is still yet to be covered with either methodology (see Figure 2). Accordingly plans are being made to further expand the coverage of both soil sampling and ground geophysics. This provides further opportunities to discover significantly more mineralisation at the Project.Multiple other coherent soil anomalies are evident over the >7,000m corridor now covered by soil sampling (see Figure 1). As drilling has never previously been undertaken beyond the 700m-long extents of the Caribou Dome Copper Deposit itself, the new soil anomalies provide quality targets for the discovery of additional resources. Follow-up work programs are being planned so these targets can be further prioritised in advance of drilling.

To view Figure 2, visit: http://media3.marketwire.com/docs/1032854figure2.jpg

Figure 2. Regional geology of the Caribou Dome Copper Project - showing the prospective sedimentary sequence extends for >15km within the Project area, but that much of this strike is yet to be covered with soil sampling and/or ground geophysical surveying.

  1. FORWARD PLANS

With analytical results now returned from all recent drilling, the geological model for the Project is currently being refined. A program of further metallurgical testwork has been designed and representative samples from recent drilling are currently being sent to a laboratory for testing. Results from these two programs will then be utilised to undertake preliminary mining studies that will most likely evaluate the development of a moderate-sized, hence relatively low CAPEX, very high-grade operation; processing possibly 400,000 - 800,000 tpa.

Given a considerable amount of very shallow (outcropping at surface), thick and very high-grade mineralisation has already been delineated, mine scheduling is expected to be important in economic considerations. If this thick, shallow, high-grade mineralisation can be mined in the early years of operations, capital outlays could be minimised with short payback periods, substantially boosting Project start-up economics.

Notwithstanding the commencement of mining studies, mineralisation remains open in all directions, and abundant undrilled IP and copper-in-soil anomaly targets are evident both within and outside the immediate 700m long corridor that has been subject to drilling to date. With >15km of prospective strike yet to be tested, further exploration drilling presents compelling upside and will continue in conjunction with mining studies, as there is considerable potential to continue to increase the resource base, and thereby enhance the economics of developing a mining operation, at the Project.

Mike Haynes

CEO/President

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.

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