Coventry Resources Inc.: Agreement Reached to Earn an 80% Interest in the Highly Prospective, Very High Grade Caribou Dome Copper Project

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 5, 2014) -

Highlights

• Executed agreements providing Coventry the right to earn an 80% interest in the Caribou Dome Copper Project in Alaska
  
  
• The Project hosts shallow, very high-grade sediment-hosted copper mineralisation
  
  
• Exceptional results in limited drilling to date include:
  
  
  • 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
    
• Significant exploration upside:
  
  
  • Mineralisation has been identified over >4,000 metres of strike
    
    
  • Previous drilling concentrated on just 250 metres of strike
    
    
  • Multiple drill-ready and underexplored targets
    
• Metallurgical recoveries up to 91.7% in preliminary testwork
  
  
• ~1,000m of underground development
  
  
• Road access directly to the deposit; only ~100km to an operating railway line
  
  
• Attractive earn-in terms
  
  
• To continue to minimise corporate overheads, Coventry intends de-listing from the TSX-V and continuing solely with an ASX-listing
  

Coventry Resources Inc. (TSX VENTURE:CYY) (ASX:CYY) ("Coventry" and "the Company") is pleased to advise that it has entered into agreements that provide it the right to acquire 80% of the highly prospective Caribou Dome Copper Project in Alaska, USA ("the Project"), via the acquisition of unlisted Australian company Aldevco Pty Ltd ("Aldevco").

Sediment-hosted copper mineralisation has been delineated across the 10,240 acre Project area, including nine outcropping pods of mineralisation over ~750 metres of strike. Despite this, virtually all previous drilling has focused on a 250 metre long corridor of mineralisation, where exceptional drilling results include:

• 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
• 13.0m at 4.94% copper
• 9.1m at 6.97% copper
• 10.2m at 6.23% copper
• 12.2m at 5.04% copper
• 10.7m at 4.99% copper
• 10.2m at 4.96% copper
• 8.3m at 6.07% copper

Limited work has been undertaken at the Project since 1970.

Conceptual Exploration Target

Given the grade and thickness of mineralisation delineated to date and the abundance of additional untested and/or poorly tested targets within the Project area, the Company believes there is extremely good potential to delineate a substantial economically viable high-grade copper resource at the Project. Initially the Company will target the delineation of 5-10 million tonnes of mineralisation at 2.5-4.0% copper. Significantly, this geological style of (sediment-hosted) copper deposit around the world is known to have potential to host hundreds of millions of tonnes of mineralisation. In line with this the Company believes there is potential to discover a very large copper deposit within the Project area.

Based on the information disclosed, the Company considers that there is a reasonable basis for the stated exploration target. Further drilling programs will be required to delineate this target, including additional drilling to confirm historic drilling results as well as further exploration at some of the targets already delineated at the Project.

It is noted that the potential quantity and grade of these targets are conceptual in nature and there has been insufficient exploration completed to define a mineral resource (in accordance with Canadian National Instrument 43-101 and the 2012 JORC Code) and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The Caribou Dome Copper Project

Location and Access

The Caribou Dome Copper Project comprises 97 mineral claims covering 10,240 acres. The Project is located approximately 250km northeast of Anchorage in the Clearwater Mountains of Alaska, USA (see Figure 1). The Project is readily accessible by road. The Denali Highway passes within 20 kilometres of the Project and from there a purpose built road provides direct access to the underground workings at the Project.

To see Figure 1, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

Significantly the fully operational Anchorage-Fairbanks railway line is located approximately 100 kilometres west of the Project. In the event copper concentrate is produced at the Project, it could be readily transported by road to the railway for shipment from the ports of Anchorage, Seaward or Port Mackenzie.

History

Copper mineralisation was first discovered at the Caribou Dome Copper Project in 1963. The vast majority of exploration was undertaken at the Project between 1963 and 1970. Nine lenses of outcropping mineralisation were delineated over approximately 750 metres of strike. Despite this virtually all work was focused on three of these lenses (Lenses 4, 5 and 6; see Figure 2), with a view to developing a small high-grade underground mine. Approximately 1,000 metres of underground workings were installed on two levels (an adit and a decline). 6,024 metres of diamond drilling (43 diamond core holes drilled from surface and 48 diamond core holes drilled from underground) was completed together with 3,283 metres of underground percussion drilling.

To see Figure 2, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

Exceptional results were returned from drilling at the Project, including:

• 18.1m at 9.34% copper from 22.7m (DH9)
• 18.4m at 6.25% copper from 31.4m (DH39)
• 15.4m at 7.01% copper (DH93U)
• 13.1m at 7.20% copper from 15.8m (DH40)
• 11.0m at 8.20% copper from 29.0m (DH41)
• 10.4m at 7.94% copper from 14.0m (DH37)
• 12.8m at 5.78% copper (DH51U)
• 13.0m at 4.94% copper (DH91U)
• 9.1m at 6.97% copper from 28.7m (DH43)
• 10.2m at 6.23% copper from 46.6m (DH32)
• 12.2m at 5.04% copper from27.1m (DH32)
• 10.7m at 4.99% copper from 18.0m (DH15)
• 10.2m at 4.96% copper (DH70U)
• 8.3m at 6.07% copper from 77.7m (DH44)

All significant interceptions in previous drilling are summarised in Appendix 1.

The cross-section in Figure 3 (through Lenses 4 and 6) and the long-section in Figure 4 (through Lenses 5 and 6) illustrate that mineralisation is predominantly comprised of sub-vertical lenses of good thickness.

Drilling is yet to constrain the extents of mineralisation at any of the known lenses.

To see Figure 3, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

To see Figure 4, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

The only significant work undertaken at the Project since 1970 comprised (i) drilling three diamond core holes from surface in 1977 (for a total of only 120 metres); (ii) drilling another three surface diamond core holes in 1999 (this time for a total of 744 metres); (iii) collection of a 225kg bulk sample for metallurgical testwork in 2008; (iv) drilling two diamond core holes from surface in 2009 (621 metres); and (v) drilling nine shallow diamond core holes in 2011 to begin evaluation of Lenses 7 and 9, for a total of 794 metres. Copper sulphide mineralisation was intersected in six of these nine holes, with results including 4.9 metres at 3.36% copper.

Geology

Copper mineralisation at the Caribou Dome Project is predominantly stratiform. Historically nine outcropping lenses of high-grade pyrite-chalcopyrite mineralisation were delineated over approximately 750 metres of strike. These are predominantly located in argillites at an interface with a sequence of volcanic rocks (see Figure 5). Interbedded limestones appear to have had an important control on the location of mineralisation.

To see Figure 5, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

Regionally the prospective contact between volcanic and sedimentary rocks has been mapped to extend over at least 4,000 metres within the Project area (see Figure 6). Recent mapping (completed during September and October 2014) has highlighted that there is considerable copper mineralisation along this contact throughout the Project area. This is a very encouraging sign, as the known mineralisation could comprise part of a substantially larger mineralised system.

To see Figure 6, go to: http://media3.marketwire.com/docs/976979_Fig1-6.pdf

Metallurgy

During 2008 a 225kg bulk sample was collected from the Project for metallurgical testwork and sent to G&T Metallurgical Services in Kamloops, Canada. The grade of this sample averaged 6.7% copper. Using flotation and Galvanox™ leaching, recoveries of 91.7% of the copper were achieved. These results were deemed "encouraging for the project". Further testwork was recommended.

Exploration Targets

Despite previous explorers discovering nine lenses of high-grade mineralisation over approximately 750 metres of strike, virtually all previous drilling focused on just three of these lenses (Lenses 4, 5 and 6; see Figure 2). Drilling is yet to close off the mineralisation at any of the known lenses. As such all nine of these lenses provide immediate drill targets.

Of particular immediate interest is the shallow along strike (to the west) extension of Lense 5. Previous shallow drill holes DH15 and DH43 intersected 10.7 metres at 4.99% copper from 18 metres and 9.1 metres at 6.97% copper from 28.6 metres respectively (see Figure 4). Despite these extremely attractive grades and thicknesses no further drilling appears to have been undertaken to follow up the shallow western extensions of this mineralisation.

Another high priority target for follow-up is the depth extent of Lense 6. One of the deepest holes drilled at the Project to date, underground diamond drill hole DH 93U, intersected 15.4 metres at 7.01% copper approximately 270 metres below surface (see Figures 4 and 5). This thick, high-grade mineralisation remains open to the east and at depth, and will be targeted during further exploration.

Only very limited drilling has been undertaken to date at Lenses 1, 2, 3, 7, 8 and 9. Numerous drill-ready targets are evident in most of these areas.

During September and October 2014 a regional reconnaissance mapping and sampling program was undertaken at the Project. Copper mineralisation was encountered along the entire east-west extent of the Project area. A previously (apparently) undocumented area of extensive quartz-vein and limestone hosted base metal mineralisation was identified and sampled. Further immediate exploration targets may be evident once analytical results are returned from the 45 samples collected during this work program.

Acquisition Terms

Aldevco holds the right to acquire an 80% interest in the Caribou Dome Copper Project from Hatcher Resources Inc. ("Hatcher") by:

1. Payment to Hatcher of US$75,000, being part reimbursement of expenses incurred by Hatcher in relation to its evaluation and exploration activities on the Project during 2014;
   
   
2. Maintaining the claims (licenses) at the Project in good standing, including making annual claim rental payments and ensuring minimum expenditure commitments are met;
   
   
3. Expending a minimum of US$100,000 on the Project for each of the 12 month periods ending 1 September 2015, 2016 and 2017;
   
   
4. Expending a minimum of US$2,000,000 (inclusive of payments in (iii) above) in each of the periods (i) 2 September 2014 to 1 September 2017; (ii) 2 September 2017 to 1 September 2020; and (iii) 2 September 2020 to 6 June 2023 (unless the Earn-in deadline of 6 June 2023 is extended)
   
   
5. Expending a total of US$9,000,000 on the Project (inclusive of the payments in (iii) and (iv) above) or completing a feasibility study on the Project by 6 June 2023 (unless the Earn-in deadline of 6 June 2023 is extended)
   
   
6. Making annual payments to the underlying vendors of the Project, who are not related parties of Hatcher or Aldevco, in the amounts of:
   

Subject to Aldevco exercising its right to acquire an 80% interest in the Project, Hatcher will retain a 10% interest in the Project with the remaining 10% held by SV Metals LP. The current owner of the Project, C-D Development Corporation, would retain a 5.0% Net Smelter Returns royalty, with Coventry retaining the right to purchase this royalty for US$1million for each 1.0%.

Coventry has entered into agreements with all Aldevco shareholders to acquire 100% of the shares on issue in Aldevco in consideration for the issue of 60 Million Coventry shares ("the Transaction"), subject to Coventry obtaining all necessary regulatory and shareholder approvals in connection with the Transaction. Related parties of two of Coventry's directors, Michael Haynes and Ian Cunningham, are shareholders of both Aldevco and Hatcher, so the requisite shareholder and regulatory approvals will include applicable related-party approvals under ASX Listing Rule 10.1 and Canadian Multilateral Instrument 61-101. In addition, the Company is in discussions with ASX to determine the applicability of Chapter 11 of the Listing Rules and will advise shareholders in due course on the outcome of those discussions.

Coventry's capital structure following completion of the Transaction would comprise:

* Note: In accordance with ASX Listing Rules 40,930,233 shares will be subject to 12 month escrow.

Coventry intends preparing all documents required to obtain requisite approvals for the Transaction in the next 6-8 weeks. It has received regulatory approval to defer its Annual General Meeting ("AGM"), to allow sufficient time for the requisite Transaction documentation to be prepared and made available to shareholders, such that shareholders can vote on the Transaction at the AGM, which is now expected to be held in January 2015.

In order to ensure work continues at the Project in an orderly manner, Coventry has entered into a separate loan agreement with Aldevco pursuant to which Coventry has agreed to provide Aldevco a loan facility of up to $100,000, on commercial terms. In the event the Transaction is not completed by 31 March 2015 any loans, including accrued interest calculated on outstanding amounts at 10% per annum, will be repayable in full to Coventry.

Voluntary de-listing from the TSX-V

The Company also advises that it has applied to delist from the TSX Venture Exchange (TSX-V), subject to TSX-V approval. In the event that it is required by the TSX-V, minority shareholder approval will be sought for the delisting. The decision to apply for delisting from the TSXV has been driven by the following factors:

• the Company's executive management team being based in Australia, and the majority of shareholders either registered on the Australian share register and/or residing in Australia;
  
  
• the need to reduce the administrative burden and costs associated with a dual listing; and
  
  
• the ASX being a more appropriate listing given the Company's current capital structure, size and stage of development.
  

The Company will keep shareholders informed on the status of the delisting application.

ABOUT COVENTRY RESOURCES INC.

Coventry Resources Inc. is advancing exploration at the Uncle Sam Gold Project in the United States while it simultaneously seeks additional growth opportunities. The Company is led by a strong management team with the proven ability to explore, develop, finance and operate mining and exploration projects.

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

The information in this announcement that relates to exploration results for the Project has been approved by Kevin Anthony Joyce, who is a consultant to the Company. Mr Joyce 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 Joyce is a Member of the Australian Institute of Geoscientists. Mr Joyce 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 Joyce is also a Qualified Person as defined by Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr Joyce 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 -

SIGNIFICANT INTERSECTIONS IN PREVIOUS DRILLING AT THE CARIBOU DOME COPPER PROJECT

APPENDIX 2 -

JORC CODE 2012 EDITION, TABLE 1 REPORT

JORC Code, 2012 Edition - Table 1

Section 1: Sampling Techniques and Data

(Criteria in this section applies to all succeeding sections)

Section 2: Reporting of Exploration Results

(Criteria listed in section 1 also apply to this section)

Coventry Resources Inc. is a limited liability corporation existing under the laws of British Columbia. Australian Registered Business Number 161615783