Coventry Resources Limited (ASX:CVY) Drilling Intersected Up to 320 g/t Gold at Cameron Deposit

Sydney, Aug 30, 2011 AEST (ABN Newswire) - Coventry Resources Limited (ASX:CVY) is very pleased to advise that it has received final analytical results from diamond drill hole CCD-11-099, drilled recently to evaluate the poorly-explored footwall zone of the Cameron Gold Deposit.

As reported on 22 July 2011, CCD-11-099 intersected considerable visible gold. Analytical results have confirmed that very high-grade, shallow gold mineralisation is present. Results include:

3.4 metres at 58.73 g/t gold from 5.4 metres, including 0.6 metres at 320.0 g/t gold from 5.4 metres

Significantly the visible gold intersected in CCD-11-099 was contained within a quartz-carbonate-sulphide vein that appears to trend oblique to the main mineralisation at the Cameron Gold Deposit. Given the oblique orientation of this vein relative to the general direction of most previous drill holes, it is likely that additional high-grade vein sets of similar orientation exist. If so they would be under-represented in the drilling that has been completed to date (because previous drilling has not been optimally directed to test for mineralisation in this orientation). Further work is being planned to determine this. Additional drilling to target these oblique vein systems is likely.

The Company also recently received analytical results from two other holes drilled to further evaluate the footwall zone of the main deposit. These holes both intersected significant mineralisation, including:

7.0 metres at 6.95 g/t gold from 148.0 metres, including

- 2.0 metres at 17.40 g/t gold from 153.0 metres

- 9.0 metres at 2.92 g/t gold from 79.0 metres

- 3.0 metres at 6.05 g/t gold from 160.0 metres

Significant shallow mineralisation has now been delineated in the footwall zone of the main Cameron Gold Deposit over a strike length of more than 200 metres. These results are expected to further positively impact on the impending resource upgrade as well as the overall economics of an open pit mining operation at the Cameron Gold Project.

Northern and Northwestern Extensions of the Cameron Gold Deposit

The Company is also pleased to advise that it has received analytical results for a further 11 holes (1,668 metres) drilled to further evaluate the Cameron Gold Deposit and the potential northern and north-western extensions of this deposit. Very encouraging results continue to be returned from this ongoing drilling program, with recent results returned including:

- 5.0 metres at 6.55 g/t gold from 58.0 metres

- 6.0 metres at 4.29 g/t gold from 77.0 metres

- 5.0 metres at 2.48 g/t gold from 41.0 metres

Results are continuing to confirm that additional parallel plunging higher-grade "shoots" of mineralisation are present immediately along strike to the northwest of the Cameron Gold Deposit.

Recent results also continue to provide the Company additional confidence that it can substantially increase the shallow resource base at the Cameron Gold Project. This implies that it is highly likely that a much larger open pit mining operation can potentially be developed than that contemplated prior to the commencement of the current drilling program.

Status of Ongoing 40,000 Metre Drilling Program and Forward Work Plan

The Company acquired a 100% interest in the Cameron Gold Project in April 2010 and has been drilling at the Project continuously since June 2010. The Company has had as many as four drilling rigs operating at the Project simultaneously. Two diamond core rigs continue to drill there.

The Company has now completed more than 40,000 metres of drilling at the Project (in addition to the almost 85,000 metres of drilling completed by previous owners). As part of the current drilling program the Company intends drilling 10-20 more holes at and around the Cameron Gold Deposit during the next 2-3 weeks (a minimum of approximately 2,200 metres). It is anticipated that drilling will then be suspended for about a month while analytical results from all outstanding holes are returned and the results interpreted. Analytical results are currently pending (and as such yet to be announced) for 50 completed drill holes (8,749 metres) - all of which have been drilled to test the footwall, northwestern and northern extensions of the Cameron Gold Deposit.

Early in the fourth quarter of 2011, when all analytical results have been received, the Company intends updating the JORC Code compliant resource estimate for the Project. Utilising a 1.5 g/t lower cut-off grade this indicated and inferred resource currently comprises:

11.3Mt at 2.77 g/t gold for 1.0 Moz of gold.

This resource estimate has not been updated since the current 40,000 metre drilling program commenced. Throughout this program the Company has regularly returned highly-encouraging results, so a substantial upgrade in the resource is anticipated.

The upgraded resource estimate will be used to generate a new mine design for the Project. Economic parameters for an initial open pit mining operation (particularly operating and capital costs) will then be determined as part of a pre-feasibility study. The Company anticipates that these economic parameters will be established during the first quarter of 2012, and that the results of the pre-feasibility study will be available shortly thereafter.

It is anticipated that this new mine design, together with baseline environmental data that the Company has been acquiring since June 2010, will be used to apply for a mine permit in mid 2012.

For the complete Coventry Resources Limited announcement including figures and tables, please view the following link:
http://media.abnnewswire.net/media/en/docs/69254-ASX-CVY-555006.pdf

Contact

Mike Haynes Executive Chairman Email: info@coventryres.com Tel: +61-8-9324-1266 http://www.coventryres.com