Coventry Resources to finalise Cameron Lake Gold Project deal

Coventry Resources (ASX: CVY) anticipates finalising the acquisition of a 100% interest in the +1Moz Cameron Lake Gold Project in Ontario, Canada, during the week commencing 19 April 2010. The company intends undertaking an extensive drilling program shortly thereafter.

The drilling program plans to convert resources within the conceptual open pit and underground mine models to reserves and to extend the known limits of mineralisation at the Cameron Lake Deposit, which is open along strike in both directions and at depth, hence adding resource ounces.

Coventry will evaluate the considerable exploration upside of the project, where essentially no exploration has been undertaken since the late 1980s.

The company intends to acquire additional metallurgical, geotechnical and hydrological data so that feasibility studies on the project can be completed.

Executive Chairman Mike Haynes stated that “the completion of the acquisition of the Cameron Lake Gold Project is an important milestone in Coventry’s rapid growth."

"This acquisition provides the company with a very realistic near-term production opportunity, in one of the best mining jurisdictions in the world, at a time when the company can capitalise on the prevailing record high gold prices,” he added.

The resource base at the Cameron Lake Gold Project now comprises 11.3 million tonnes at 2.77 g/t gold for 1,005,833 ounces of gold (1.5 g/t gold cutoff).

Coventry said its medium term  target is to delineate 1.5-2.0 million ounces of gold as it moves the project through feasibility studies and towards production during 2010.

http://www.proactiveinvestors.com.au/companies/news/6404/coventry-resources-to-finalise-cameron-lake-gold-project-deal-6404.html