Coventry recalculates Cameron Resource

THE DRILL SERGEANT: Coventry Resources has completed a recalculation of the mineral resource estimate for its Cameron gold deposit in Canada.

The recalculation is the result of additional 29,170 metres of new drilling data being integrated with 84,541 metres of historic drilling data.

 

Location of Coventry’s Cameron and Rainy River Gold Projects in NW Ontario, Canada. Source: Company announcement

When applying a 1.0 grams per tonne lower cut-off, the JORC Code compliant Measured, Indicated and Inferred mineral resource estimate for the Cameron gold deposit now comprises:

– 19.4 million tonnes at 2.24 grams per tonne gold for 1.40 million ounces of gold.

“This represents a 17 per cent increase in the total number of ounces delineated at the Cameron gold deposit (at this cut-off grade) from the JORC Code compliant resource estimate reported by the Company previously in February 2010,” Coventry Resources said in its announcement to the ASX.

“In addition to the increase in the contained ounces at the Cameron Gold
Deposit, the level of confidence in the potential to develop an economically viable open pit mining operation has been enhanced considerably.”

While undertaking the recent drilling program, Coventry said it deliberately targeted shallow mineralisation that it considered to be potentially amenable to open pit mining.

As a result a substantial, robust, shallow component of the global resource base has now been defined.

When applying 1.0 grams per tonne lower cut-off, resources within 300 metres of surface now comprise:

– 8.1 Mt at 2.50 g/t gold for 653,100 ounces of gold.

The Resource recalculation has given Coventry confidence that an economically viable open pit mining operation can be developed at the Cameron gold deposit.

The company said it will commence a pre-feasibility study immediate that it anticipates completing during the second quarter of 2012.

Coventry said it has over 20 other known, underexplored gold occurrences and prospects within the Cameron project area.

The company said it intends to commence follow-up drilling within weeks to evaluate the exploration potential of the project.