CARIBOU DOME COPPER PROJECT

CARIBOU DOME COPPER PROJECT
N OV E M B E R 2 0 1 5
TABLE OF CONTENTS
Section
1.0
2.0
3.0
4.0
5.0
6.0
7.1
7.2
8.1
8.2
8.3
9.0
9.1
9.2
9.3
9.4
10.0
10.1
11.0
12.0
Appendix 1
Appendix 2
Page
Project Summary
Corporate Structure
Board and Management
Location and Access
History
Geology
All Drilling
2015 Drilling
Discovery at the Lense 7/8 Target
Discovery Between Lenses 3 and 4
Discovery at Lense 2
Exploration Potential
IP Is A Very Effective Predictor Drill‐Ready IP Targets
The Menel Target
Copper‐In‐Soil Targets
Preliminary Mine Design Work
Historic Metallurgical Testwork Results
Further Exploration
Forward Work Program
Project Acquisition Terms
Analogous Deposits
3‐4
5
6
7‐8
9
10
11
12
13‐14
15
16
17
18
19
20
21
22
23
24
25
27
28
Page 2
1.0 CARIBOU DOME PROJECT SUMMARY
Exceptional results in drilling include:
51.1m* at 5.3% Cu from 4.4m
18.1m at 9.3% Cu from 22.7m
14.1m at 9.9% Cu from 134.6m
18.4m at 6.3% Cu from 31.4m
15.4m at 7.0% Cu from 145.2m (U/G hole)
10.4m at 7.9% Cu from 14.0m
12.8m at 5.8% Cu from 141.1m
10.1m at 7.1% Cu from 39.0m
9.1m at 7.0% Cu from 28.7m
Very high-grade mineralisation intersected over 700m of strike –
remains open in both directions and at depth
*Estimated true width ~25m
Page 3
1.0 CARIBOU DOME PROJECT SUMMARY
• 140 holes now drilled (12,662m) - 28 by Coventry during 2015 (4,300m)
• Rapidly expanding the resource base
• 3 new discoveries in the past 3 months
• Exceptional exploration upside:
• >15km of the prospective sedimentary host horizon within the Project area – half of which has never been
sampled
• High-grade mineralisation intersected over the entire 700m of strike drilled to date
• 7,000m of recently defined soil anomalies yet to be tested
• Only 1,500m of strike covered with IP, with multiple undrilled anomalies immediately along strike from known
mineralisation
• Mineralisation remains open in both directions along strike
• Mineralisation remains open at depth:
• Second deepest hole intersected 15.4m @ 7.0% Cu (~260m below surface)
• Metallurgical testwork and mining studies underway
• Examining an initial moderate sized, very high-grade, low CAPEX and OPEX mine
• Exploration/expansion drilling will continue along with initial mine design and permitting activities
Very high-grade mineralisation intersected over 700m of strike –
remains open in both directions and at depth
Page 4
2.0 CORPORATE STRUCTURE
Coventry Securities
Shares on issue (ASX:CYY)
Options (exercisable A$0.014 – C$0.05)
3 month share price range
Market capitalisation (at $0.031/share)
Number
251.6M
29.2M
3.0 – 8.0c
A$7.8M
Major Shareholders
Board and Management
Lowell Resources Fund
Top 20
%
16.7%
6.1%
55.5%
CYY share price/volume history on the ASX for the past 12 months.
Page 5
3.0 BOARD AND MANAGEMENT
Mark Bojanjac, Non-Executive Chairman
Ian Cunningham, Executive Director
Chartered Accountant
CFO and Company Secretary, Chartered Accountant
and Chartered Secretary
• 30 years minerals experience
• Former CEO of Adamus Resources Limited (Ghana)
• Former CFO and Company Secretary of
Adamus Resources Limited
• Founding director of Gilt-Edged Mining (Kundana)
and a 3Moz Chinese gold project
• Previous MD of AGR Limited (Boroo), in Mongolia
• Current non-exec director of Geopacific Resources
Limited
Mike Haynes, CEO
Michael Fowler, Non-Executive Director
Geologist
• Former Exploration Manager and
CEO of Croesus Mining Limited
• Current MD of Genesis Minerals Limited
Geologist/Geophysicist
• Formerly employed by BHP and Billiton
• Involved in multiple IPO’s/RTO’s during past 10 years
• Current Chairman of Overland Resources Limited
Bob Boaz – Non-Executive Director
Masters Degree in Economics
• Former Managing Director, Investment Banking with
Raymond James Ltd and Vice-President, Head of
Research and in-house portfolio strategist for Dundee
Securities Corporation
• Current CEO/President of Aura Silver Resources Inc
and director of Santa Barbara Resources Ltd,
Caracara Silver Inc and Renaissance Gold Inc.
Page 6
4.0 PROJECT LOCATION
ALASKA, USA
• Stable mining law
• Pro-mining –
80% GDP is oil/gas/mining
• In the Fraser Institute’s 2014
“Top 10” jurisdictions for
Investment Attractiveness Index
• Population under 1.0M
• Sub-arctic climate
operable all year
• Produced 40M+ oz gold to date
• Hosted world’s richest-grade
(13%) copper mine at Kennecott
• 6 currently producing mines
• Readily available mining support,
suppliers and services
• Good mining infrastructure road,
rail and shipping
Page 7
4.0 PROJECT ACCESS
• 250km NE of Anchorage
• Road access the whole way to the Project:
• 20km of purpose built road from the Denali Highway
• Only ~100km east of the Anchorage-Fairbanks railway line and
high-voltage power at Cantwell
• Coventry has doubled the Project area to ~21,280 acres
(~86km2)
• Valdez Creek Gold Mine – Alaska’s largest alluvial goldfield, is
~10 miles away in the next valley north:
• Discovered in 1903
• 459,000 oz Au production 1984 - 1995
• Cambior was producing at a rate of 75,000 oz Au per annum
in 1992
Location of the Caribou Dome Copper Project
Alaska, USA
Page 8
5.0 PROJECT HISTORY
1963 – Mineralisation first discovered
1964 – First 7 diamond holes drilled
1969 – 425m exploration adit developed on 4,630ft RL
1970 – 520m exploration decline developed from 4,510ft
2008 – 225kg bulk sample acquired for metallurgical testwork
Virtually all
previous
work
undertaken
1964-1970
(95 of 112
diamond
holes)
34% of all
diamond
drilling
completed
during the
past 4
months
Date
1964
1965
1966
1967
1969
1970
Diamond Drilling
Percussion Drilling
Surface
Underground
Underground
No. Holes Metres No. Holes Metres No. Holes Metres
7 465 14 857 17 877 6 367 2 196 7 947 42 2,374 134 3,283 1977
3 120 1999
3 744 2009
2011
2 9 621 794 2015
28 4,300 Totals
91 9,340 Outcropping mineralisation at Lense 6 at the
Caribou Dome Copper Project
Portal to
the adit
Portal to
the decline
49 3,321 134 Summary of previous drilling completed at the Caribou Dome Copper Project
3,283 Road access and entries to the historic adit and
decline
Page 9
6.0 GEOLOGY
• Multiple lenses of outcropping stratiform mineralisation mapped at surface over ~750 metres of strike
• Lenses predominantly located in argillites at interface with volcanics
• Lenses are sub-vertical; dipping slightly to the north
• Until recently, the majority of mineralisation was understood to be contained within Lenses 4, 5 and 6
– where previous exploration was focused
Geology around
the known
lenses of
mineralisation at
the Caribou
Dome Copper
Project, together
with surface
traces of
underground
development
Page 10
7.1 ALL DRILLING
• 140 diamond core holes have been drilled
(49 from underground), for 12,661m
• 28 (20%) of these were drilled by Coventry
during 2015, for 4,300m (34%)
• Economic grades and thicknesses of
mineralisation have been intersected over
the entire 700m of strike drill-tested to date
Results include:
• 51.1m* at 5.3% Cu from 4.4m
• 18.1m at 9.3% Cu from 22.7m
• 14.1m at 9.9% Cu from 134.6m
• 18.4m at 6.3% Cu from 31.4m
• 15.4m at 7.0% Cu (U/G drill hole)
• 10.4m at 7.9% Cu from 14.0m
• 12.8m at 5.8% Cu (U/G drill hole)
• 13.0m at 4.9% Cu (U/G drill hole)
• 10.1m at 7.1% Cu from 39.0m
• 9.1m at 7.0% Cu from 28.7m
• 10.2m at 6.2% Cu from 46.6m
Location of the mapped lenses of mineralisation at the Caribou Dome Copper Project,
together with surface traces of all diamond drill holes and select analytical results
• 12.2m at 5.0% Cu from 27.1m
*Estimated true width ~25m
Page 11
7.2 2015 DRILLING
• 22 exploration holes and 6 confirmatory holes
drilled for 4,300m over 700m of strike
• Discovered 3 new zones of mineralisation:
• Lense 7/8
• Between Lenses 3 and 4
• Lense 2
• 2015 exploration results include:
•
•
•
•
•
•
•
•
•
•
•
•
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
• 2015 confirmatory results include:
•
•
•
•
•
•
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
*Estimated true width ~25m
Location of the nine known lenses of mineralisation at the Caribou Dome Copper Project, together
with location of 2015 drill holes and analytical results
Page 12
8.1 DISCOVERY AT THE LENSE 7/8 TARGET
Eastern extension of
the MALM anomaly is
yet to be drill tested
• 7 holes drilled to evaluate a previously undrilled
discrete IP anomaly between Lenses 7 and 8
• A strong undrilled 200m long mise-a-la-masse anomaly
was also evident in 1999 data
• Multiple parallel lenses of high-grade
mineralisation intersected in drilling
Exploration results include:
• 14.1m @ 9.9% Cu from 134.6m
• 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
• 5.1m @ 2.1% Cu from 201.4m
• 2.0m @ 5.2% Cu from 24.0m
All drilling superimposed upon image of 1999 mise-a-la-masse data at Lense 7/8
• Eastern extension of the mise-a-la-masse anomaly
is yet to be drilled – this is a very high priority
expansion target
Drilling at the Lense 7/8 Target
during September 2015
Page 13
8.1 DISCOVERY AT THE LENSE 7/8 TARGET
• To date only 7 holes have been
drilled on 4 fences spaced ~40m
apart
• Remains significantly
underexplored
• Initial interpretation is that
mineralisation “pinches and
swells”
• Mineralisation remains open
along strike in both directions
and at depth
• Considerable additional highgrade tonnes already
discovered
• Further drilling will be
undertaken
All drilling to date on Section 70265N at the Lense 7/8
Target
All drilling to date on Section 70300N at the Lense 7/8
Target
Page 14
8.2 DISCOVERY BETWEEN LENSES 3 AND 4
• Minimal and only very shallow drilling had previously been
undertaken in the 200m corridor between Lenses 3 and 4 (most
recently in 1965)
• With the limited data, these two lenses were previously thought
to be disconnected
New
mineralisation
at the Lense
7/8 Target
Lense 3
New
mineralisation
between Lenses
3 and 4
• CD15-26 was drilled to evaluate this corridor:
Multiple intersections of high-grade mineralisation, including:
• 2.2m @ 7.8% Cu from 112.8m
Lense 4
• 1.8m @ 8.9% Cu from 118.6m
• 1.4m @ 1.8% Cu from 138.7m
Lenses 5
and 6
• 1.1m @ 5.7% Cu from 143.8m
• 1.4m @ 1.4% Cu from 202.8m
Continuity between Lenses 3 and 4 would be very significant:
Lense 2
• More tonnes to mine
• Mineralisation is high-grade
• Mine development capital would be optimised
View from above of 3-dimensional model of mineralised lenses
Massive sulphide mineralisation intersected in CD15-26
Page 15
8.3 DISCOVERY AT LENSE 2
• A strong IP anomaly coincides with irregularly
outcropping mineralisation over 200m
• Never previously drilled
• 9 new holes drilled over ~150m of strike
Multiple intersections of high-grade
mineralisation, including:
• 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
• 3.5m @ 1.9% Cu from 67.9m
• Mineralisation intersected at >200m depth
Drilling CD15-04, July 2015
• Mineralisation probably “pinches and swells”
• Further drilling will be undertaken
Caribou Dome Project Camp, 2015
Logging Diamond Drill Core, 2015
Page 16
9.0 EXPLORATION POTENTIAL
• >15km of the prospective sedimentary
sequence lies within the Project
• Multiple copper occurrences along this
corridor
• No drilling outside the 700m strike that
has been drill tested to date
• 95% of the strike remains undrilled
• Mineralisation remains open at depth
• Second deepest hole on the Project
intersected:
15.4m @ 7.0% Cu (~260m below surface)
Regional geology of the Caribou Dome Copper Project
Sediment hosted mineralisation = Project-wide potential
Page 17
9.1 IP IS A VERY EFFECTIVE PREDICTOR
• Coventry reprocessed the 1999 IP data in April 2015 – it showed known mineralisation closely
coincides with distinct IP anomalies
• So new IP data were acquired over 1,500m of strike during June/July 2015
Page 18
9.2 DRILL-READY IP TARGETS
• 4 very-high priority undrilled IP
targets remain:
• Menel Target
• Guardian Target
• Lense 9 Target
• Lense 3 Target
• All in close proximity to, and interpreted
to be probable extensions of, the veryhigh grade mineralisation intersected
recently at the Lense 7/8 Target
• Strong copper-in-soil anomalies
coincide with all of these targets
• Rock chips assaying up to 16.5% Cu
were returned from the Guardian
Target recently
100m Depth Slice of Inverted 2015 IP Chargeability Data
Page 19
9.3 THE MENEL TARGET
• A strong IP anomaly
immediately along strike from
the Lense 1 and Lense 7/8 IP
anomalies – both of which are
associated with very highgrade mineralisation
• Completely undrilled
• IP anomaly lies within a
distinct coincident >1,300m
long undrilled copper-in-soil
anomaly
• Rock chips to 9.1% Cu have
been returned from within this
soil anomaly
Combination of 50-metre and 200-metre “depth slices” of inverted IP chargeability data at the Lense 7/8 and Menel
Targets – showing the chargeability of the modelled source of IP anomalies, 50 and 200 metres below the surface
respectively, together with previous (white text boxes) and recent (yellow text boxes) drilling results in the vicinity.
Page 20
9.4 COPPER-IN-SOIL TARGETS
• >600 new soil samples
collected recently over 7,000m
of strike
• Extensive copper anomalism
evident
• Indicates that the Caribou
Dome Deposit may be much
bigger:
• Only 700m of a coincident
2,000m long soil anomaly
drill-tested to date
• Rock chips up to 16.5% Cu
returned recently from followup at the Guardian Target
• Further exploration at multiple
other soil anomalies is being
planned
• Further IP surveying will be
undertaken
Page 21
10.0 PRELIMINARY MINE DESIGN WORK
• Evaluating development of a moderate-sized, very high-grade, low
CAPEX/OPEX initial mining operation
• Average grade of all drill core samples >0.5% = 5.8% Cu,
so head-grade may be +4% Cu
• Possibly mining/processing 400,000–800,000 tpa
Mining Studies
• Geological model is currently being refined to include all new drill
assay results
• Initial block model of the mineralisation and grade distribution will
then be generated
4630 level adit at the Caribou Dome Copper Project.
• Initial mining studies will then be undertaken, including evaluation
of open pit and underground methodologies
Metallurgical Studies
• 70kg of representative ¼ core samples from 2015 drilling have been
collected from across the Deposit
• Samples are currently being transported to a laboratory for further
metallurgical testwork
Initial Economic Evaluation
• A preliminary evaluation of potential economics will be undertaken
following completion of the mining and metallurgical studies
• Given the thick, shallow and very high-grade of some of the
mineralisation, scheduling is expected to have a positive impact on
project economics
Second
deepest hole
on the Project
• Results will be used to guide planning for further exploration
Page 22
10.1 HISTORIC METALLURGICAL TESTWORK RESULTS
• Most recent metallurgical testwork was undertaken on a
225kg bulk sample (6.7% Cu) in 2009:
Conventional Flotation
• 82-85% recoveries were achieved to produce concentrates
grading 17.4-19.3% Cu
• Recoveries up to 90.8% have been achieved during previous
conventional flotation testwork, with concentrates grading >20% Cu
• Consultants have recently confirmed that modern methodologies
provide multiple viable processing alternatives
• New tests to be undertaken on representative samples from
across the 700m of strike drill-tested to date
Drill core from CD15-14 (Lense 7/8 Target) – containing
>16% Cu
Page 23
11.0 FURTHER EXPLORATION
2015 exploration program has been extremely successful:
3 new discoveries in past 3 months
• Economic thicknesses of very high-grade mineralisation
intersected over 700m of strike
• Mineralisation remains open in both directions along strike and at
depth
• Second deepest hole drilled at the Project intersected
15.4m at 7.0% Cu ~260m below surface
• Geological model has been refined
• Grade of mineralisation increasing to the northeast
• Four very high-priority undrilled but drill-ready IP targets
immediately adjacent to the very high-grade mineralisation in
the northeast
Looking NE from outcropping mineralisation at Lense 6
(foreground) to trenching at Lense 3 (background)
• >13km of the prospective sediment-volcanic contact present
further to the northeast
• Multiple Cu occurrences identified previously along this trend
• Multiple strong Cu-in-soil anomalies evident over >7,000m
in new data (and no soil sampling over the remainder)
• But negligible exploration undertaken previously
• IP has proven to be very effective – so IP coverage will be
extended significantly to the northeast
• Further drilling is being planned
Lenses 3, 4, 7, 8 and 9
drilled to ~120m below
surface and open at
depth and to the north
Lense 6 drilled to
~290m below surface
and open at depth
Lense 2 drilled
to ~150m below
surface and
open at depth
and to the
south
Side-on view of 3-dimensional model of mineralised lenses Page
24
12.0 FORWARD WORK PROGRAM
Nov
2015 Dec 2015
Jan
2016
Feb
2016 March
2016
2Q
2016
3Q
2016
4Q
2016
1Q
2017
Geological Modelling
Metallurgical Testwork
Preliminary Economic Studies
Additional Ground Geophysics Further Exploration and Infill Drilling
Pre‐Feasibility Studies
Page 25
DISCLAIMER
This presentation is not a prospectus nor an offer for securities in any jurisdiction nor a securities recommendation. The information in
this presentation is an overview and does not contain all information necessary for investment decisions. In making investment
decisions in connection with any acquisition of securities, investor should rely on their own analysis of the Company and consult their
own legal and/or financial advisers. The information contained in this presentation has been prepared in good faith by the Company,
however no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any
statements, estimates, opinions or other information contained in this presentation. To the maximum extent permitted by law, the
Company, its directors, officers, employees and agents disclaim liability for any loss or damage which may be suffered by any person
through the use or reliance on anything contained in or omitted from this presentation.
This presentation contains forward looking statements which involve a number of risks and uncertainties. These forward looking
statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations,
intentions or strategies regarding the future and assumptions based on currently available information. Should one or more risks or
uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions
and strategies described in this announcement. The forward looking statements are made as at the date of this announcement and the
Company disclaims any intent or obligation to update publicly such forward looking statements, whether as the result of new information,
future events or results or otherwise.
Qualified and Competent Person
The information in this announcement that relates to exploration results for the Project has been approved by Mr Ben Vallerine, who is a
consultant to the Company and holds an indirect shareholding in the Company. Mr Vallerine 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 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.
Page 26
APPENDIX 1 – PROJECT ACQUISITION TERMS
• C-D Development Corp. is the underlying tenement owner:
• Receives 50% of annual cash payments (per table below); and
• Retains a 5% royalty, with Coventry having the right to purchase each 1% for US$1,000,000
• Unlisted US companies SV Metals LP and Hatcher Resources Inc. both retain 10% interests in the Project
• SV Metals receives 50% of annual cash payments (per table below)
• Coventry holds a 9-year option to acquire an 80% interest in the Project
• Coventry’s ongoing obligations comprise:
June
2015
2016
2017
2018
2019
2020
2021
2022
2023
Total
1
Annual Cash Payments
to SV Metals & C-D
Development Corp
(US$)
$20k PAID
$30k
$50k
$100k
$100k
$100k
$100k
$100k
$1.36m
$1.96m
Annual Expenditure Obligation
(US$)
$100k
$100k
$100k
nil
nil
nil
nil
nil
nil
SATISFIED
SATISFIED
Minimum Expenditure per 3-year period (US$)
$2.0m
~$1.4m SPENT TO
DATE
$2.0m
$2.0m
$9.0m or Complete Feasibility Study1
If the Feasibility Study is delivered before expending US$9million, the earn-in condition will be satisfied
Page 27
APPENDIX 2 – ANALOGOUS DEPOSITS
Kennecott Copper Deposit, Alaska
• 1911-1938: ~4.63Mt ore mined at 13% copper
• Identical age of mineralisation
• Hosted by same sequence of rocks as those hosting
Caribou Dome
• One of the worlds highest grade historic mines and
located only ~180 miles from Caribou Dome
White Pine Mine, Michigan
• 198Mt ore mined at 1.14% copper
Other sediment-hosted copper deposits
• Mt Isa Copper Deposit
Surface infrastructure at the Kennecott Copper Deposit, Alaska
• Deposits of the Zambian Copper Belt in Africa
Page 28
MARK BOJANJAC
COVENTRY RESOURCES INC.
MIKE HAYNES
COVENTRY RESOURCES INC.
CHAIRMAN
MANAGING DIRECTOR & CEO
COVENTRY RESOURCES INC.
SUITE 9, 5 CENTRO AVENUE
SUBIACO, WA 6008
PO BOX 457, WEST PERTH
WA 6872 COVENTRY RESOURCES INC.
T: +61 8 9226 1356 E: [email protected]
W: WWW.COVENTRYRES.COM
SUITE 9, 5 CENTRO AVENUE
SUBIACO, WA 6008
PO BOX 457, WEST PERTH
WA 6872 T: +61 8 9226 1356 E: [email protected]
W: WWW.COVENTRYRES.COM