VANCOUVER, BRITISH COLUMBIA–(Marketwired – Nov. 9, 2015) – Coventry Resources Inc. (ASX:CYY) –
- Analytical results received for hole CD15-26, drilled in an under-explored 200m long corridor between Lenses 3 and 4 that were previously thought to be disconnected
- Multiple intervals of high-grade copper mineralisation have been discovered, with intersections including:
- 2.2m @ 7.8% Cu from 112.8m
- 1.8m @ 8.9% Cu from 118.6m
- 1.4m @ 1.8% Cu from 138.7m
- 1.1m @ 5.7% Cu from 143.8m; and
- 1.4m @ 1.4% Cu from 202.8m
- These indicate the high-grade mineralisation at Lenses 3 and 4 may be connected through the intervening 200m long corridor
- The very successful recent 4,300m drilling program has:
- Consistently intersected economic thicknesses of shallow, high-grade copper sulphide mineralisation over the entire 700m of strike tested with drilling to date
- Resulted in the discovery of 3 new substantial mineralised zones
- Significantly enhanced the Project’s resource base
- NEW ASSAYS FROM DRILLING AT CARIBOU DOME
Coventry Resources Inc. (ASX:CYY) (“Coventry” or “the Company”) is pleased to announce it has received assay results for the final three holes (CD15-24, -26 and -28) drilled during the Company’s recent 28 hole, 4,300m diamond core drilling program at the Caribou Dome Copper Project in Alaska, USA (the “Caribou Dome Project” or “the Project”).
2.1 Drilling Between Lenses 3 and 4
Hole CD15-26 was drilled to evaluate an under-explored 200-metre long corridor between high-grade copper mineralisation at Lenses 3 and 4 (see Figure 1). Minimal, and only very shallow drilling had previously been undertaken in this corridor (most recently in 1965). Previously available data indicated these lenses may be disconnected.
Multiple intervals of high-grade copper sulphide mineralisation were intersected in CD15-26, with assay results including:
- 2.2m @ 7.8% Cu from 112.8m
- 1.8m @ 8.9% Cu from 118.6m
- 1.4m @ 1.8% Cu from 138.7m
- 1.1m @ 5.7% Cu from 143.8m, and
- 1.4m @ 1.4% Cu from 202.8m
The mineralisation intersected appears to be steeply dipping, hence the reported intervals are currently interpreted to be close to true widths.
The discovery of high-grade mineralisation in CD15-26 now indicates Lenses 3 and 4 may be connected over the intervening 200m long under-explored corridor. This would boost the resource base (adding more tonnes), and ultimately enhance the economics of developing a mining operation at the Project, providing:
- Opportunities to recover more mineralisation from the same mining infrastructure;
- Potential benefits of economies of scale; and
- Reduced operating costs as higher-grade mineralisation is mined and processed.
Further drilling will be undertaken to evaluate both the strike and depth extensions of this mineralisation.
Figure 1. Geology around the nine known lenses of mineralisation at the Caribou Dome Copper Project, together with surface projections of underground development and locations of Coventry’s drill holes with analytical results received to date. The surface traces of, and assay results from, the 112 holes drilled prior to Coventry’s involvement in the Project are not shown on this plan.
To view Figure 1., please visit the following link: http://media3.marketwire.com/docs/COV_figs.pdf
CD15-26 was drilled to also test the possible eastern extension of deep mineralisation at Lense 6 (the “Lense 6 East Target”; see Figure 2). Drilling difficulties prevented CD15-26 from reaching its target depth. Accordingly the Lense 6 East Target remains insufficiently tested. Further drilling to evaluate the strong induced polarisation (“IP”) target at Lense 6 East is therefore planned.
Figure 2. Traces of all drill holes on the “100-metre depth slice” of inverted 3DIP chargeability data – showing the chargeability of the modelled source of 3DIP anomalies, 100 metres below the surface, together with labels highlighting higher-priority targets. (It is noted that the sources of some of the highest priority targets are modelled to be greater than and less than 100 metres deep – so not all targets appear as intense anomalies in the 100m depth slice plan above).
To view Figure 2., please visit the following link: http://media3.marketwire.com/docs/COV_figs.pdf
2.2 Drilling at the Lense 2 Target
The Lense 2 Target comprises a 200 metre long corridor immediately southwest of Lenses 5 and 6 (which have historically been believed to comprise the main mineralisation at the Caribou Dome Project). A strong IP anomaly coincides with irregularly outcropping mineralisation along this 200m long corridor (see Figure 2). Recent drilling has confirmed the presence of substantial copper-sulphide mineralisation at Lense 2 (see Figure 1).
CD15-24 was drilled to evaluate the zone where Lense 2 meets Lense 5 (see Figure 1). Faulting and shearing was observed in drill core through much of this hole, which failed to reach target depth because of drilling difficulties. While no significant intersections of mineralisation were recorded in CD15-24, the favourable sedimentary sequence that hosts high-grade mineralisation elsewhere at the Project was intersected. Hence it is interpreted that the mineralised horizon may not have been reached because of the premature termination of drilling, or that faulting may have offset and/or remobilised mineralisation. Accordingly, further drilling in this vicinity is to be undertaken.
2.3 Drilling at the Caribou South Target
CD15-28 was drilled at the western end of the 500m long Caribou South Target – a strong IP anomaly that runs parallel to, and is immediately south of, the mineralisation (and a coincident IP anomaly) at Lenses 2, 5 and 6 (see Figure 2). Encouragingly CD15-28 revealed that a series of sedimentary rocks are interbedded with volcanic rocks in the tested area. Very high-grade copper mineralisation at the Project, including that at the Lense 7/8 Target, is hosted in a very similar geological setting. Whilst no significant intersections of mineralisation have yet been returned from Caribou South, the Company is very encouraged that a favourable geological environment is present. Further work will therefore be undertaken to continue to evaluate the Caribou South Target.
- CONCLUSIONS FROM RECENT DRILLING PROGRAM
3.1 Exploration Drilling
Analytical results have now been received for all 28 holes drilled during the recent 4,300m diamond core drilling program at the Caribou Dome Project. 22 of these holes were exploration holes (~80%), drilled to increase the resource base at the Project; the other 6 holes were drilled to confirm the reliability of historic drilling results (“confirmatory” holes). Multiple intersections of shallow high-grade copper sulphide mineralisation have been reported from recent exploration drilling over the entire 700m of strike that has now been tested, with exploration results including:
- 14.1m @ 9.9% Cu from 134.6m
- 7.0m @ 6.8% Cu from 35.1m
- 3.5m @ 9.3% Cu from 72.9m
- 2.0m @ 13.9% Cu from 79.4m
- 3.7m @ 7.3% Cu from 39.0m
- 1.9m @ 10.8% Cu from 116.0m
- 1.8m @ 10.4% Cu from 30.4m
- 6.4m @ 2.8% Cu from 173.3m
- 2.2m @ 7.8% Cu from 112.8m
- 3.4m @ 4.8% Cu from 51.6m
- 10.0m @ 1.6% Cu from 62.5m
- 1.8m @ 8.9% Cu from 118.6m
- 8.7m @ 1.7% Cu from 54.3m
- 5.1m @ 2.1% Cu from 201.4m
- 2.0m @ 5.2% Cu from 24.0m
(see Coventry’s September Quarterly Activities Report, 30 October 2015, for a more detailed summary of recent drilling results). Immediate exploration success has resulted in the discovery of three new, very significant zones of mineralisation, namely at:
- The Lense 7/8 Target
- The Lense 2 Target, and
- A 200m long under-explored corridor between high-grade Lenses 3 and 4
The discovery of substantial, very high-grade mineralisation at these targets has added considerably to the Project’s resource base, which prior to the commencement of the Company’s drilling program predominantly comprised the mineralisation at Lenses 4, 5 and 6, where the majority of the previous drilling had been focused (112 historic holes for a total of 8,362 metres, primarily over just 250 metres of strike).
Mineralisation at all lenses remains open in both directions along strike and at depth, providing considerable potential to continue increasing the size of the resource base, and enhancing the economics of developing a mining operation, with further drilling.
3.2 Confirmation Drilling
In addition to commencing exploration to begin evaluation of some of the numerous under-explored targets evident at the Project, one of the objectives of Company’s recent drilling program was 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.
Six confirmatory holes were completed at Lenses 4, 5 and 6 (CD15-01, -02, -03, -06, -12 and -13; see Figure 1). Very high-grade mineralisation was intersected in all six drill holes, with analytical results including:
- 51.1m* @ 5.3% Cu from 4.4m
- 10.1m @ 7.1% Cu from 39.0m
- 10.6m @ 5.4% Cu from 30.6m
- 4.6m @ 10.6% Cu from 3.0m
- 8.9m @ 5.0% Cu from 32.6m
- 12.2m @ 3.2% Cu from 39.8m
- 3.3m @ 10.1% Cu from 5.9m
- 3.2m @ 8.7% Cu from 14.5m
*Estimated true width is interpreted to be approximately 25 metres
These results were very much in-line with, or exceeded, expectations and provide:
- Confidence in the reliability of the historic Project data, and
- Confirmation that, in due course, historic drilling data can be integrated with new drilling data to calculate an inaugural, interim compliant resource for the Project as it continues to be expanded.
- REGIONAL SOIL SAMPLING
The Company recently collected more than 600 soil samples over approximately 7,000 metres (7km) of strike; predominantly where the prospective sedimentary sequence that hosts mineralisation abuts the underlying sequence of volcanic rocks.
Preliminary assessment of results is currently being finalised, with an announcement regarding these expected later this week.
- FORWARD PLANS
With analytical results now returned from all recent drilling, the geological model for the Project is currently being refined. Planning for further metallurgical testwork is well advanced, with representative samples from recent drilling currently being sent to a laboratory for testing. Results from these two programs will then be utilised to undertake preliminary mining studies.
It is significant that the average grade of all (including historic) drill core samples that have returned assays >0.5% copper (being a nominal potential cut-off grade for a mining operation) is 5.8% copper. Accordingly early indications are that mining studies 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 may 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 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 to be tested, further exploration drilling presents compelling upside and will continue in conjunction with mining studies.
Mike Haynes, CEO/President
Table 1. Collar details for the drill holes completed during Coventry’s 2015 drilling program.
|Name||UTM Easting||UTM Northing||Elevation (m)||Azimuth||Inclination||Total Depth (m)||Significant Intercepts|
|From (m)||To (m)||Length (m)||% Cu|
|CD15-07||492691||7001119||1444||140||-55||89.9||No significant intercept|
|CD15-08||492658||7001080||1426||140||-45||118.8||No significant intercept|
|CD15-10||492590||7001070||1453||150||-55||97.5||No significant intercept|
|CD15-17||492959||7001100||1311||140||-57||236.2||No significant intercept|
|CD15-20||492506||7001117||1485||140||-60||210.3||No significant intercept|
|CD15-24||492579||7001166||1493||155||-65||234.7||No significant intercept|
|CD15-28||492624||7001022||1421||140||-70||268.2||No significant intercept|
Note: Within the reported mineralized intervals in CD15-03 and CD15-04, in both holes, there were two separate intervals of 0% core recovery that totaled 1.2 metres per hole. Within the first reported mineralized interval in CD15-06, there was a 1.2m interval of 0% core recovery and in the second reported mineralized interval there was a 0.7m interval of 0% core recovery. Within the first reported mineralized interval in CD15-13 there was a 0.3m interval of 0% core recovery. These intervals have been assumed to be mineralized at the average grade of the overall mineralized interval.
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.
APPENDIX 1 –
JORC CODE 2012 EDITION, TABLE 1 REPORT
(to view the Table 1 Report click on the link – http://coventryres.com/editor/articles/getfile.php?productindex=600&mode=1)
+61 8 9226 1356
+61 8 9226 2027