Coventry Resources Limited (ASX:CVY) Resource Upgrade Substantially Enhances The Potential to Develop the Cameron Gold Deposit

Perth, Nov 9, 2011 AEST (ABN Newswire) - Coventry Resources Limited (ASX:CVY) is pleased to advise that it has completed the recalculation of the mineral resource estimate for the Cameron Gold Deposit.

An additional 29,170 metres of new drilling data has been integrated with 84,541 metres of historic drilling data to recalculate the new resource estimate.

When applying a 1.0 g/t lower cut-off, the JORC Code compliant Measured, Indicated and Inferred mineral resource estimate for the Cameron Gold Deposit now comprises:

19.4 Mt at 2.24 g/t gold for 1.40 Moz of gold

This represents a 17% 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.

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.

Throughout the recent drilling program the Company has deliberately targeted shallow mineralisation that is potentially amenable to open pit mining. A substantial, robust, shallow component of the global resource base has now been defined. When applying a 1.0 g/t lower cut-off, resources within 300 metres of surface now comprise:

8.1 Mt at 2.50 g/t gold for 653,100 oz of gold

Importantly there is a very high level of confidence in the robustness of these shallow resources. Greater than 81% of the gold resources within 300 metres of surface are now classified as "Measured" and "Indicated".

Furthermore, comparison of the shallow resources at various depths and cut-off grades demonstrate that the grade and size of the shallow, potentially open-pittable resource base is very robust.

Pre-Feasibility Study

With a shallow, robust resource delineated, at a grade that is readily amenable to open pit mining, the Company has considerable confidence that an economically viable open pit mining operation can be developed at the Cameron Gold Deposit. As such it will proceed immediately with a pre-feasibility study into the development of the Cameron Gold Deposit. The Company anticipates completing this study during the second quarter of 2012.


Follow-up Drilling Program

Mineralisation at the Cameron Gold Deposit remains open along strike to the northwest and at depth.

Considerable potential remains to delineate additional resources at the Cameron Gold Deposit itself with further drilling.

In addition there are more than 20 other known, underexplored gold occurrences and prospects within the 12,800 hectare Cameron Gold Project area. Many of these are high-priority targets for further exploration that also provide considerable potential for expanding the Project's resource base.

A follow-up drilling program will commence within weeks to continue to evaluate the considerable exploration potential of the Cameron Gold Project.

Mine Permitting

The Company continues to advance the Cameron Gold Deposit towards production as quickly as possible. An integral part of this process is the ongoing acquisition of all data required to apply for mine permits, particularly environmental baseline and archaeological data. Permitting activities will continue throughout the follow-up drilling program and pre-feasibility study.

For the complete Coventry Resources announcement including figures and tables, please view the following link:
http://media.abnnewswire.net/media/en/docs/ASX-CVY-565950.pdf

Contact

Mike Haynes Executive Chairman E-mail: info@coventryres.com Tel: +61-8-9324-1266