for personal use only - asx · 2014. 11. 4. · 1 fast facts tsx-v/asx: cyy share price (4 nov...

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Fast Facts TSX-V/ASX: CYY

Share price (4 Nov 2014) A$0.01

Shares on issue 91,012,182

Options (C$0.05) 6,594,850

Market capitalisation ~$0.91M

Directors and Management

Michael Haynes

Director, President and CEO

Ian Cunningham

Director, CFO and Company Secretary

Robert Boaz

Non-Executive Director

5 NOVEMBER 2014

Contact Details

Australian registered office addressSuite 9, 5 Centro AvenueSubiaco WA 6008Tel: +61 8 9226 1356Fax: +61 8 9226 2027

Email: [email protected]

Postal AddressPO Box 457West Perth WA 6872

Website: www.coventryres.com

Coventry Resources Inc. is a limited liabilitycorporation existing under the laws of BritishColumbia. Australian Registered BusinessNumber 161615783

AGREEMENT REACHED TO EARN AN 80% INTEREST INTHE HIGHLY PROSPECTIVE, VERY HIGH-GRADE

CARIBOU DOME COPPER PROJECT

Highlights

Executed agreements providing Coventry the right to earn an80% interest in the Caribou Dome Copper Project in Alaska

The Project hosts shallow, very high-grade sediment-hostedcopper mineralisation

Exceptional results in limited drilling to date include:

18.1m at 9.34% copper







Significant exploration upside:

Mineralisation has been identified over >4,000metres of strike

Previous drilling concentrated on just 250 metres ofstrike

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 anoperating railway line

Attractive earn-in terms

To continue to minimise corporate overheads, Coventryintends de-listing from the TSX-V and continuing solely withan ASX-listing

Coventry Resources Inc (TSX-V and ASX – “CYY”; “Coventry” and “theCompany”) is pleased to advise that it has entered into agreementsthat provide it the right to acquire 80% of the highly prospectiveCaribou Dome Copper Project in Alaska, USA (“the Project”), via theacquisition of unlisted Australian company Aldevco Pty Ltd(“Aldevco”).

Sediment-hosted copper mineralisation has been delineated acrossthe 10,240 acre Project area, including nine outcropping pods of

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AGREEMENT REACHED TO EARN AN 80% INTEREST IN

THE HIGHLY PROSPECTIVE, VERY HIGH GRADE


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mineralisation over ~750 metres of strike. Despite this, virtually all previous drilling has focused on a 250 metre longcorridor of mineralisation, where exceptional drilling results include:















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/orpoorly tested targets within the Project area, the Company believes there is extremely good potential to delineate asubstantial economically viable high-grade copper resource at the Project. Initially the Company will target thedelineation 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 ofmineralisation. In line with this the Company believes there is potential to discover a very large copper deposit withinthe Project area.

Based on the information disclosed, the Company considers that there is a reasonable basis for the stated explorationtarget. Further drilling programs will be required to delineate this target, including additional drilling to confirmhistoric 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 beeninsufficient 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 amineral 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 locatedapproximately 250km northeast of Anchorage in the Clearwater Mountains of Alaska, USA (see Figure 1). The Project isreadily accessible by road. The Denali Highway passes within 20 kilometres of the Project and from there a purposebuilt road provides direct access to the underground workings at the Project.

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Figure 1. Location of the Caribou Dome Copper Project in Alaska, USA.

Significantly the fully operational Anchorage-Fairbanks railway line is located approximately 100 kilometres west of theProject. In the event copper concentrate is produced at the Project, it could be readily transported by road to therailway 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 ofexploration was undertaken at the Project between 1963 and 1970. Nine lenses of outcropping mineralisation weredelineated 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 1,000metres 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 completedtogether with 3,282 metres of underground percussion drilling.

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Figure 2. Location of the nine lenses of mineralisation delineated at surface at the Caribou Dome Copper Project todate, together with surface traces of diamond drill holes and underground development.

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

18.1m at 9.34% copper from 22.7m (DH9)


15.4m at 7.01% copper (DH93U)








12.2m at 5.04% copper from27.1m (DH32)




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

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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.

Figure 3. Cross section through mineralised lenses 4 and 6 at the Caribou Dome Copper Project, including selectdrilling results.

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Figure 4. Longitudinal section through mineralised lenses 5 and 6 at the Caribou Dome Copper Project, includingselect drilling results.

The only significant work undertaken at the Project since 1970 comprised (i) drilling three diamond core holes fromsurface in 1977 (for a total of only 120 metres); (ii) drilling another three surface diamond core holes in 1999 (this time

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for a total of 744 metres); (iii) collection of a 225kg bulk sample for metallurgical testwork in 2008; (iv) drilling twodiamond core holes from surface in 2009 (621 metres); and (v) drilling nine shallow diamond core holes in 2011 tobegin evaluation of Lenses 7 and 9, for a total of 794 metres. Copper sulphide mineralisation was intersected in six ofthese 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 ofhigh-grade pyrite-chalcopyrite mineralisation were delineated over approximately 750 metres of strike. These arepredominantly located in argillites at an interface with a sequence of volcanic rocks (see Figure 5). Interbeddedlimestones appear to have had an important control on the location of mineralisation.

Figure 5. Geology around the nine known lenses of mineralisation at the Caribou Dome Copper Project, togetherwith surface traces of underground development.

Regionally the prospective contact between volcanic and sedimentary rocks has been mapped to extend over at least4,000 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 isa very encouraging sign, as the known mineralisation could comprise part of a substantially larger mineralised system.

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Figure 6. Regional geology at the Caribou Dome Copper Project, showing the argillite sequence that hosts the knownmineralisation extends for more than 4,000 metres within the Project area.

Metallurgy

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

Exploration Targets

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

Of particular immediate interest is the shallow along strike (to the west) extension of Lense 5. Previous shallow drillholes DH15 and DH43 intersected 10.7 metres at 4.99% copper from 18 metres and 9.1 metres at 6.97% copper from28.6 metres respectively (see Figure 4). Despite these extremely attractive grades and thicknesses no further drillingappears 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 Projectto date, underground diamond drill hole DH 93U, intersected 15.4 metres at 7.01% copper approximately 270 metresbelow surface (see Figures 4 and 5). This thick, high-grade mineralisation remains open to the east and at depth, andwill 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 areevident in most of these areas.

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During September and October 2014 a regional reconnaissance mapping and sampling program was undertaken at theProject. 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 wasidentified and sampled. Further immediate exploration targets may be evident once analytical results are returnedfrom 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:

i) Payment to Hatcher of US$75,000, being part reimbursement of expenses incurred by Hatcher in relationto its evaluation and exploration activities on the Project during 2014;

ii) Maintaining the claims (licenses) at the Project in good standing, including making annual claim rentalpayments and ensuring minimum expenditure commitments are met;

iii) Expending a minimum of US$100,000 on the Project for each of the 12 month periods ending 1 September2015, 2016 and 2017;

iv) Expending a minimum of US$2,000,000 (inclusive of payments in (iii) above) in each of the periods (i) 2September 2014 to 1 September 2017; (ii) 2 September 2017 to 1 September 2020; and (iii) 2 September2020 to 6 June 2023 (unless the Earn-in deadline of 6 June 2023 is extended)

v) Expending a total of US$9,000,000 on the Project (inclusive of the payments in (iii) and (iv) above) orcompleting a feasibility study on the Project by 6 June 2023 (unless the Earn-in deadline of 6 June 2023 isextended)

vi) Making annual payments to the underlying vendors of the Project, who are not related parties of Hatcheror Aldevco, in the amounts of:

Due Date Payment

6 June 2015 US$20,000

6 June 2016 US$30,000

6 June 2017 US$50,000

6 June 2018 US$100,000

6 June 2019 US$100,000

6 June 2020 US$100,000

6 June 2021 US$100,000

6 June 2022 US$100,000

Earn-in deadline (currently 6 June 2023) US$1,360,000

Subject to Aldevco exercising its right to acquire an 80% interest in the Project, Hatcher will retain a 10% interest inthe Project with the remaining 10% held by SV Metals LP. The current owner of the Project, C-D DevelopmentCorporation, would retain a 5.0% Net Smelter Returns royalty, with Coventry retaining the right to purchase thisroyalty 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 Aldevcoin consideration for the issue of 60 Million Coventry shares (“the Transaction”), subject to Coventry obtaining allnecessary regulatory and shareholder approvals in connection with the Transaction. Related parties of two ofCoventry’s directors, Michael Haynes and Ian Cunningham, are shareholders of both Aldevco and Hatcher, so therequisite shareholder and regulatory approvals will include applicable related-party approvals under ASX Listing Rule10.1 and Canadian Multilateral Instrument 61-101. In addition, the Company is in discussions with ASX to determine

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the applicability of Chapter 11 of the Listing Rules and will advise shareholders in due course on the outcome of thosediscussions.

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

Coventry Shares Number

Currently on issue 91,012,182

Shares to be issued to acquire 100% of Aldevco* 60,000,000

On issue following the Transaction 151,012,182

*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 6-8weeks. It has received regulatory approval to defer its Annual General Meeting (“AGM”), to allow sufficient time forthe requisite Transaction documentation to be prepared and made available to shareholders, such that shareholderscan 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 loanagreement 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 accruedinterest 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-Vapproval. 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 eitherregistered 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 ofdevelopment.

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 itsimultaneously seeks additional growth opportunities. The Company is led by a strong management team with theproven ability to explore, develop, finance and operate mining and exploration projects.

For further information about Coventry Resources Inc., please contact:

Michael Haynes Ian CunninghamPresident and CEO Executive Director, CFO and Company Secretary+61 8 9226 1356 +61 8 9226 [email protected] [email protected]

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX VentureExchange) 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 AnthonyJoyce, who is a consultant to the Company. Mr Joyce has reviewed the exploration results disclosed in this release, but has notverified 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 styleof mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person asdefined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results (JORC Code). Mr Joyce is also a QualifiedPerson as defined by Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr Joyce consents to theinclusion 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 ofapplicable securities regulations in Canada and the United States (collectively, forward-looking information"). Any forward-lookinginformation contained in this news release is made as of the date of this news release. Except as required under applicablesecurities legislation, Coventry Resources Inc. (“Coventry”) does not intend, and does not assume any obligation, to update thisforward-looking information. Forward-looking information includes, but is not limited to, statements with respect to resourceproject identification and evaluation and expected outcomes. Often, but not always, forward-looking information can be identifiedby 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 arereasonable, including, that the current price of and demand for mineral commodities will be sustained or will improve, thatgeneral business and economic conditions will not change in a material adverse manner, that financing will be available if andwhen needed on reasonable terms, that supplies, equipment, personnel, permits and local community approval required toconduct Coventry’s planned exploration and development activities will be available on reasonable terms and that Coventry willnot 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 theactual results, performance or achievements of Coventry to be materially different from any future results, performance orachievements expressed or implied by the forward-looking information. Such factors include, among others, risks anduncertainties relating to the actual results of exploration activities being different than anticipated, cost of labour increasing morethan expected, cost of equipment or materials increasing more than expected, fluctuations in the commodity prices, currencyfluctuations, risk of accidents, labour disputes and other risks generally associated with mineral exploration and unanticipateddelays in obtaining or failing to obtain governmental or community approvals or financing. Although Coventry has attempted toidentify 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 orintended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and futureevents could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance onforward-looking information due to the inherent uncertainty thereof.F

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APPENDIX 1 –

SIGNIFICANT INTERSECTIONS IN PREVIOUS DRILLINGAT THE CARIBOU DOME COPPER PROJECT

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Name Year Easting Northing Elevation Azimuth InclinationTotal Depth

(m)

Significant Intercepts

From (m) To (m)Length

(m)% Cu

DH 01 1964 9690 9390 4668 350 -38 100.0 62.5 63.4 0.9 1.40

69.5 71.6 2.1 1.00

DH 02 1964 9690 9390 4668 180 -45 46.0 No Significant Intercept

DH 03 1964 9800 9537 4610 325 -35 81.1 59.1 62.4 3.4 1.01


DH 05 1964 9882 9843 4618 345 -45 67.4 53.3 55.5 2.1 0.60

DH 06 1964 9882 9843 4618 285 -40 85.0 35.1 35.7 0.6 11.75

53.6 55.2 1.5 0.80

DH 07 1964 9978 9895 4605 350 -38 65.8 30.2 31.7 1.5 3.05

34.1 39.3 5.2 2.06


DH 09 1965 9418 9363 4813 328 -35 57.3 22.7 40.8 18.1 9.34


DH 11 1965 9476 9462 4801 329 -40 99.1 53.9 56.4 2.4 0.45


DH 13 1965 9461 9495 4796 238 -20 48.8 29.3 31.1 1.8 2.00

32.6 40.1 7.5 7.28


DH 15 1965 9191 9136 4833 327 -30 44.2 18.0 28.7 10.7 5.00

DH 16 1965 9136 9110 4835 327 -30 36.6 18.0 19.2 1.2 0.40


DH 18 1965 9244 9053 4778 327 -20 61.0 50.9 55.8 4.9 5.89

DH 19 1965 9978 9894 4632 14 -35 61.0 32.6 34.4 1.9 7.70

36.7 40.2 0.8 3.44

DH 20 1965 9978 9894 4632 104 -20 53.3 46.2 47.2 1.1 8.03

DH 21 1965 9795 9475 4630 295 -15 46.3 6.1 24.4 18.3 2.80

DH 22 1966 9691 9390 4668 25 -40 61.6 39.3 43.0 3.7 2.34

46.3 47.1 0.8 4.75

DH 23 1966 9644 9476 4695 25 -45 46.9 33.5 36.3 2.7 1.65


DH 25 1966 9411 9359 4813 290 -35 77.4 32.0 33.5 1.5 1.12

52.3 53.9 1.7 9.48




DH 29 1966 9409 9081 4740 336 -25 51.2 33.8 37.8 4.0 8.80

DH 30 1966 9409 9081 4740 316 -20 30.2 20.1 25.1 5.0 8.84


DH 32 1966 9602 9168 4716 310 -25 69.5 27.1 39.3 12.2 5.05

46.6 56.8 10.2 6.23

DH 33 1966 10157 9970 4763 316 -35 79.6 39.3 39.9 0.6 5.56

61.2 61.9 0.7 2.49

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DH 34 1966 10157 9970 4763 5 -45 42.1 21.6 24.1 2.5 6.44


DH 36 1966 10169 9960 4763 119 -45 34.4 32.9 33.5 0.6 10.12

DH 37 1966 9592 9333 4724 219 -45 56.4 14.0 24.4 10.4 7.94

34.4 40.2 5.9 2.91

DH 38 1966 9300 9230 4841 221 -45 54.9 27.7 29.4 1.7 5.76

DH 39 1967 9295 9105 4794 9 -45 51.8 31.4 49.8 18.4 6.25

DH 40 1967 9427 9254 4789 130 -55 30.5 15.8 29.0 13.1 7.20

DH 41 1967 9426 9254 4789 130 -75 42.7 24.6 25.8 1.2 4.30

29.0 39.9 11.0 8.20


DH 43 1967 9160 9127 4837 327 -40 37.8 28.7 37.8 9.1 6.97

DH 44 1967 9345 9315 4844 130 -70 94.8 77.7 86.0 8.3 6.07

90.2 93.8 3.6 4.74

DH 45U 1969 9338 9393 4630 116 -65 122.8 86.9 102.1 15.2 3.23

105.2 108.8 3.6 1.48

DH 46U 1969 9337 9392 4630 154 -65 110.0 77.7 79.2 1.5 14.08

DH 47U 1969 9333 9391 4630 184 -65 88.7 71.9 81.1 9.1 3.01

DH 48U 1969 9330 9394 4630 211 -65 119.2 No Significant Intercept

DH 49 1969 9815 9630 4635 223 -45 94.8 87.5 92.4 4.9 2.45


DH 51U 1969 9230 9530 4630 131 -67 174.7 141.1 153.9 12.8 5.78

DH 52U 1969 9232 9525 4638 158 -65 167.0 37.5 134.4 7.5 5.32

DH 53U 1969 9231 9527 4638 189 -65 164.9 49.7 50.3 0.6 7.39

152.9 154.2 1.4 3.67




DH 57U 1970 9109 9301 4632 138 -45 60.0 37.6 39.1 1.5 1.37

DH 58U 1970 9101 9303 4632 191 -45 61.6 31.1 33.2 2.1 4.43

43.3 44.5 1.2 8.40

DH 59U 1970 9099 9303 4630 212 -60 69.8 49.8 56.1 6.3 2.04




DH 63U 1970 9472 9412 4440 171 -30 45.7 25.6 26.8 1.2 2.35

32.0 32.5 0.5 3.50



DH 66U 1970 9594 9444 4464 142 -15 45.7 27.7 28.0 0.4 6.20

37.2 38.6 1.4 5.50

DH 67U 1970 9594 9444 4465 38 15 27.1 No Significant Intercept


DH 69U 1970 9235 9580 4368 155 -50 106.1 90.5 94.2 3.7 5.23

DH 70U 1970 9275 9424 4378 164 -15 51.8 34.1 44.3 10.2 4.96

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DH 71U 1970 9275 9424 4378 164 -40 50.3 39.6 43.9 4.3 6.80


DH 73U 1970 9262 9422 4376 182 -30 50.6 45.4 46.6 1.2 13.00



DH 76U 1970 9373 9427 4365 130 -25 46.3 38.4 39.3 0.9 7.10

42.7 45.7 3.0 2.41

DH 77U 1970 9373 9427 4364 130 -50 52.1 46.6 49.6 3.0 2.23

DH 78U 1970 9393 9427 4365 160 -25 45.7 37.2 39.0 1.8 7.80

DH 79U 1970 9373 9427 4364 160 -50 53.3 42.1 42.4 0.3 5.80

45.3 46.7 1.4 2.95

DH 80U 1970 9370 9427 4365 182 -20 50.6 40.8 44.8 4.0 4.71

DH 81U 1970 9235 9580 4368 175 -50 115.2 86.4 88.5 2.0 3.06






DH 87U 1970 9007 9293 4378 226 0 45.7 16.5 22.9 6.4 4.33

DH 88U 1970 9007 9293 4377 315 30 30.2 19.1 22.8 3.7 3.73

DH 89U 1970 9262 9445 4379 215 -30 17.7 7.5 7.8 0.3 4.30

DH 90U 1970 9262 9445 4381 348 33 30.5 8.1 11.7 3.7 8.77

DH 91U 1970 9263 9446 4351 186 -70 25.9 7.5 20.4 13.0 4.94

DH 92U 1970 9234 9578 4365 148 -70 163.7 85.3 85.9 0.5 1.95

153.3 153.7 0.4 2.90

161.1 161.7 0.6 3.80

DH 93U 1970 9235 9578 4368 214 -60 176.8 145.2 160.6 15.4 7.01

165.2 165.8 0.6 4.60

DH 94U 1970 9233 9578 4368 209 53 199.3 18.0 19.2 1.2 9.80

27.1 30.5 3.4 1.73

185.6 187.5 1.8 1.76

191.3 191.9 0.6 1.20

DH 95U 1970 9177 9408 4365 265 -60 65.2 52.6 54.4 1.8 10.00

57.6 59.7 2.1 1.18

DH1-77 1977 9695 9595 4675 46.6 22.9 24.4 1.5 0.61

34.1 35.7 1.5 0.56

DH2-77 1977 9692 9613 4675 39.3 21.2 22.9 1.7 0.48

DH3-77 1977 9692 9613 4675 34.3 No information available to date

DH99-100 1999 8824 8616 4721 18 -45 94.5 No information available to date

DH99-101 1999 9453 8841 4721 341 -55 353.6 306.6 307.6 1.0 0.99

322.8 324.3 1.5 5.93

DH99-102 1999 9041 8737 4745 339 -48 296.3 84.1 85.6 1.5 1.85

88.4 88.8 0.5 1.82

94.2 94.5 0.3 6.28

DH103 2009 9415 8855 4640 129 30 370.9 No Significant Intercept

DH104 2009 9236 8945 4750 250.1 103.3 105.5 2.1 1.87

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204.8 205.4 0.6 0.88

CD-11-01 2011 Collar details yet to be determined 40.2 40.8 0.5 16.45


45.6 46.3 0.5 3.83



40.2 41.1 0.9 3.13


53.8 55.3 1.5 3.19


40.6 40.9 0.6 3.31

CD-11-07 2011 Collar details yet to be determined No Significant Intercept



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APPENDIX 2 –

JORC CODE 2012 EDITION, TABLE 1 REPORT

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JORC Code, 2012 Edition – Table 1Section 1: Sampling Techniques and Data(Criteria in this section applies to all succeeding sections)

Criteria JORC Code Explanation CommentarySamplingTechniques

Nature and quality of sampling (e.g. cutchannels, random chips, or specificspecialised industry standardmeasurement tools appropriate to theminerals under investigation, such asdownhole gamma sondes, or handheldXRF instruments, etc.). Theseexamples should not be taken aslimiting the broad meaning of sampling.

Include reference to measures taken toensure sample representivity and theappropriate calibration of anymeasurement tools or systems used.

Aspects of the determination ofmineralisation that are Material to thePublic Report.

In cases where ‘industry standard’ workhas been done, this would be relativelysimple (e.g. ‘reverse circulation drillingwas used to obtain 1 m samples fromwhich 3 kg was pulverised to produce a30 g charge for fire assay’). In othercases, more explanation may berequired, such as where there is coarsegold that has inherent samplingproblems. Unusual commodities ormineralisation types (e.g. submarinenodules) may warrant disclosure ofdetailed information

Multiple soil, rock chip, stream sediment, trenching,geophysical and drilling programs have beencompleted at the Project since 1963. All programsemployed different methodologies from program toprogram. Previous work programs appear to havebeen undertaken in accordance with industrystandard practices at the time they wereimplemented.

The majority of drilling was completed between 1964and 1970. Samples were routinely collected fromdiamond drill core and assayed over varying lengths.

Information relating to sample preparation andanalysis techniques has not been documented.

Drilling Techniques Drill type (e.g. core, reverse circulation,open-hole hammer, rotary air blast,auger, Bangka, sonic, etc.) and details(e.g. core diameter, triple or standardtube, depth of diamond tails, face-sampling bit or other type, whethercore is oriented and if so, by whatmethod, etc.).

Approximately 8,362 metres of diamond drilling and3,283 metres of underground percussion drilling hasbeen completed at the Project to date.

Diamond drilling has been from both surface andunderground, in multiple programs since 1963.Accordingly various drilling contractors completedthe drilling, using a variety of drill rigs, recovering avariety of core sizes.

Open hole percussion drilling was undertaken fromunderground openings. The drilling technique wasemployed primarily to define geological contacts.Sampling was undertaken on material collected fromthe percussion holes, however assay results areconsidered to be unreliable and have therefore notbeen reported in this announcement.

Drill SampleRecovery

Method of recording and assessingcore and chip sample recoveries andresults assessed.

Measures taken to maximise samplerecovery and ensure representativenature of the samples.

Whether a relationship exists betweensample recovery and grade andwhether sample bias may haveoccurred due to preferential loss/gainof fine/coarse material

Drill hole logs for diamond drill holes generallyinclude statistics on core recoveries. In many casescore recovery has been poor, including, at times,within the mineralized intervals.

At this time it is not possible to ascertain whethersample recovery may influence grade. New drillingwithin previously identified mineralized zones wouldbe required to determine this.F

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Criteria JORC Code Explanation CommentaryLogging Whether core and chip samples have

been geologically and geotechnicallylogged to a level of detail to supportappropriate Mineral Resourceestimation, mining studies andmetallurgical studies.

Whether logging is qualitative orquantitative in nature. Core (orcostean, channel, etc.) photography.

The total length and percentage of therelevant intersections logged

Geological logs were recorded for the entire length ofall diamond drill holes.

It is anticipated that additional drilling in the knownmineralised areas will be necessary in order toconfirm the geological model and collect appropriategeotechnical data prior to defining any MineralResource.

Sub-Samplingtechniques andsample preparation

If core, whether cut or sawn andwhether quarter, half or all core taken.

If non-core, whether riffled, tubesampled, rotary split, etc. and whethersampled wet or dry.

For all sample types, the nature, qualityand appropriateness of the samplepreparation technique.

Quality control procedures adopted forall sub-sampling stages to maximiserepresentivity of samples.

Measures taken to ensure that thesampling is representative of the in situmaterial collected, including forinstance results for fieldduplicate/second-half sampling.

Whether sample sizes are appropriateto the grain size of the material beingsampled.

Historical diamond drill core was typically sampled bysplitting the drill core in half along its long axis.

Details of laboratory sample preparation techniqueshave not been documented by previous workers.

Details of previous quality control measures have notbeen documented by previous workers.

Routine resampling and/or duplicate sample analysiswas not undertaken for the historical drilling.

Sample sizes are considered appropriate for thegrain size and nature of material sampled.

Quality of assay dataand laboratory tests

The nature, quality andappropriateness of the assaying andlaboratory procedures used andwhether the technique is consideredpartial or total.

For geophysical tools, spectrometers,handheld XRF instruments, etc., theparameters used in determining theanalysis including instrument make andmodel, reading times, calibrationsfactors applied and their derivation, etc.

Nature of quality control proceduresadopted (e.g. standards, blanks,duplicates, external laboratory checks)and whether acceptable levels ofaccuracy (i.e. lack of bias) andprecision have been established

Details of previous assaying of samples of diamonddrill core, which dates back to 1964, are largelyunknown at this time.

There is no documentation available to determinethe nature of any quality control measures adoptedfor sampling and analysis of the reported drill holes.

Verification ofsampling andassaying

The verification of significantintersections by either independent oralternative company personnel.

The use of twinned holes. Documentation of primary data, data

entry procedures, data verification,data storage (physical and electronic)protocols.

Discuss any adjustment to assay data

Drill hole data was compiled from historical paperrecords, digitally captured, and subsequently verifiedand validated by the Company.

Twin holes were not utilized to verify results directly,however multiple companies have undertaken drillingprograms at the Project previously. Such programshave included infill drilling programs, whereby newholes have been drilled between previous holes thathad successfully intersected mineralisation. Hencethe presence and extents of mineralisation (to someextent) has been confirmed.

There were no adjustments to assay data.

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Criteria JORC Code Explanation CommentaryLocation of datapoints

Accuracy and quality of surveys usedto locate drillholes (collar and down-hole surveys), trenches, mine workingsand other locations used in MineralResource estimation.

Specification of the grid system used. Quality and adequacy of topographic

control.

Extensive surveying has been undertaken using atotal station survey technique for topographic andlocal grid control.

Drill hole collars are pegged to a local grid.Transformations are available to convert local griddata to UTM grid.

Drill hole azimuth and inclination was generallyrecorded at the collar only. Records are incompletefor down-hole surveys.

Locational accuracy at collar and down the drill holeis considered adequate for this stage of exploration.

Data Spacing anddistribution

Data spacing for reporting ofExploration Results.

Whether the data spacing anddistribution is sufficient to establish thedegree of geological and gradecontinuity appropriate for the MineralResource and Ore Reserve estimationprocedure(s) and classificationsapplied.

Whether sample compositing has beenapplied.

Data spacing is variable. Maps, plans, andappropriate sectional views have been provided inthe text to illustrate relative data spacing for reportedresults.

While considerable data have been acquired on theProject previously, additional work, includingadditional drilling, will be required before a MineralResource can be declared.

No sample compositing has been documented.

Orientation of data inrelation to geologicalstructure

Whether the orientation of samplingachieves unbiased sampling ofpossible structures and the extent towhich this is known, considering thedeposit type.

If the relationship between the drillingorientation and the orientation of keymineralised structures is considered tohave introduced a sampling bias, thisshould be assessed and reported ifmaterial.

Previous sampling programs appear to have beenappropriate, however further evaluation would berequired to determine if any sample biases exist.

The orientation of drill holes relative to key geologicalstructures does not appear to have introduced asampling bias.

Sample Security The measures taken to ensure samplesecurity

Sample security measures have not beendocumented for any of the historical drilling.

Audits or reviews The results of any audits or reviews ofsampling techniques and data

The Company is unaware of any sampling auditsadopted previously.

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Section 2: Reporting of Exploration Results(Criteria listed in section 1 also apply to this section)

Criteria JORC Code Explanation CommentaryMineral tenementand land tenurestatus

Type, reference name/number,location and ownership includingagreements or material issueswith third parties such as jointventures, partnerships, overridingroyalties, native title interests,historical sites, wilderness ornational park and environmentalsettings.

The security of the tenure held atthe time of reporting along withany known impediments toobtaining a licence to operate inthe area

When undertaking due diligence on the Project during2014, Hatcher engaged an Alaskan lawyer to confirmthe Claims (tenements) are in good standing. This wasconfirmed.

During October 2014 Aldevco paid the annual renewalfees for all of the Claims, well in advance of the 1December 2014 renewal deadline. This ensures theyare all in good standing until 1 September 2015.

While the Claims are in good standing, additionalpermits/licences may be required to undertake specific(generally ground-disturbing) activities such as drillingand underground development.

Exploration doneby other parties

Acknowledgment and appraisal ofexploration by other parties.

A brief history of previous exploration is included in thebody of this announcement.

Geology Deposit type, geological settingand style of mineralisation

A brief description of the deposit type, geological settingand style of mineralisation is included in the body of thisannouncement.

DrillholeInformation

A summary of all informationmaterial to the understanding ofthe exploration results including atabulation of the followinginformation for all Materialdrillholes: easting and northing of the

drillhole collar elevation or RL (Reduced

Level elevation above sealevel in metres) of thedrillhole collar

dip and azimuth of the hole downhole length and

interception depth hole length.

If the exclusion of this informationis justified on the basis that theinformation is not Material and thisexclusion does not detract fromthe understanding of the report,the Competent Person shouldclearly explain why this is the case

Reported results are summarised in relevant tableswithin the attached announcement.

The drill holes reported in this announcement have thefollowing parameters applied:o Grid co-ordinates are reported here in a local grido Collar elevation is defined as height above sea

level in feeto Dip is the inclination of the hole from the horizontal.

Azimuth is reported as the direction toward whichthe hole is drilled relative to the local grid.

o Down hole length of the hole is the distance fromthe surface to the end of the hole, as measuredalong the drill trace

o Intersection depth is the distance down the hole asmeasured along the drill trace.

o Intersection width is the down hole distance of anintersection as measured along the drill trace

o Hole length is the distance from the surface to theend of the hole, as measured along the drill trace.

Data aggregationmethods

In reporting Exploration Results,weighting averaging techniques,maximum and/or minimum gradetruncations (e.g. cutting of highgrades) and cut-off grades areusually Material and should bestated.

Where aggregate interceptsincorporate short lengths of highgrade results and longer lengthsof low grade results, theprocedure used for suchaggregation should be stated andsome typical examples of suchaggregations should be shown indetail.

The assumptions used for anyreporting of metal equivalentvalues should be clearly stated

Sample intervals were geologically defined and as suchdownhole sample lengths are variable, howevergenerally do not exceed 5 feet in length.

Drill intersections have been calculated using aweighted (by length) average technique.

In order to present a succinct summary of previousdrilling results in this report, only significant interceptionsof mineralisation with a calculated “grade-thickness”value (copper assay as a percentage multiplied bythickness of mineralized intercept in metres) of1%-metreor more have been reported.

No grade top cut off has been applied. No aggregated intercepts are reported. No metal equivalent reporting is used or applied.

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Criteria JORC Code Explanation CommentaryRelationshipbetweenmineralisationwidths andintercept lengths

These relationships areparticularly important in thereporting of Exploration Results.

If the geometry of themineralisation with respect to thedrillhole angle is known, its natureshould be reported.

If it is not known and only thedownhole lengths are reported,there should be a clear statementto this effect (e.g. ‘down holelength, true width not known’).

Thickness of mineralisation reported is down-holethickness. There is insufficient interpretation of themineralisation to confidently report “true widths”. It ishowever noted that the mineralized lenses appear to berelatively steeply dipping. As such it is probable that“true widths” won’t be as large as down-hole widths.

It is noted that previous diamond drill holes were drilledfrom both surface and underground, with the drilling rigoriented at a large variety of azimuths and inclinations.therefore the reported downhole widths may notrepresent true mineralised widths.

Diagrams Appropriate maps and sections(with scales) and tabulations ofintercepts should be included forany significant discovery beingreported These should include,but not be limited to a plan view ofdrillhole collar locations andappropriate sectional views

Summary plans and sections are included in thisannouncement.

Balancedreporting

Where comprehensive reportingof all Exploration Results is notpracticable, representativereporting of both low and highgrades and/or widths should bepracticed to avoid misleadingreporting of Exploration Results

Representative results are included in thisannouncement.

Other substantiveexploration data

Other exploration data, ifmeaningful and material, shouldbe reported including (but notlimited to) geologicalobservations; geophysical surveyresults; geochemical surveyresults; bulk samples – size andmethod of treatment; metallurgicaltest results; bulk density,groundwater, geotechnical androck characteristics; potentialdeleterious or contaminatingsubstances.

A bulk sample was collected in 2008 for metallurgicaltestwork. Despite this work being recent and well-documented, it was preliminary in nature and furthermetallurgical test work is recommended.

Further Work The nature and scale of plannedfurther work (e.g. tests for lateralextensions or depth extensions orlarge-scale step-out drilling).

Diagrams clearly highlighting theareas of possible extensions,including the main geologicalinterpretations and future drillingareas, provided this information isnot commercially sensitive.

A suitable work program will be developed followingmore comprehensive review, compilation andinterpretation of previously acquired data.

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for personal use only - asx · 2014. 11. 4. · 1 fast facts tsx-v/asx: cyy share price (4 nov...

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