Emerging Canadian Gold Producer AGM Presentation - November 2012
| ASX: CVY | COVENTRYRES.COM
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| Corporate Highlights
Coventry Resources is focused on taking the Cameron Gold Project into production by early 2015
Near-term gold producer in Ontario, one of the top mining friendly jurisdictions in the world
PEA study to be completed by year end 2012 on the 1.4 million oz. Cameron Gold Deposit
Potential to develop a “mine camp” to include many other prospects within the Cameron Project area
Very prospective exploration potential at the Rainy River Project and the Cameron Gold Camp
Drilling program to commence at Rainy River Project in Q1 2013
New listing on TSX-V in Q4 2012 will introduce Coventry to North American markets
M&A very prevalent with Ontario mining projects. Recent bids at significant premiums for Trelawney and Prodigy, 27% and 55% respectively, confirms advantages of working in Ontario
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| Corporate Details
Fast Facts ASX:CVY Nov. 2012 Ordinary Shares 240.2M
Market Capitalisation ~ $26M
Cash Position ~ $1.5M
EV/Resource ~ $16/oz
Share Price Performance .
(January 2012- November 2012)
Top Shareholders .
Sun Valley 12.65%
Macquarie Bank 10.49%
Directors/Management 4.83%
Top 20 55.89%
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| 2012 Highlights 4
Preliminary Economic Assessment (“PEA”) on Cameron Gold Project nearing completion
Key new management appointments
Initiation of research/coverage
Argonaut – Speculative Buy - $0.25
TSX-V listing nearing completion with strong support from Haywood Securities Inc.
Stabilisation of share price
Acquisition of JORC-Code Resources near Cameron Gold Project
Delineation of significant gold anomalies at Rainy River Project
Additional anomalies identified along strike at the Cameron Gold Project
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| Management
Michael Naylor: CEO, Director: Mr. Naylor has over 16 years experience in feasibility studies, project finance, development and risk management of gold projects.
Tony Goddard: VP Exploration, Director: Mr. Goddard has
more than 18 years exploration experience worldwide, primarily for gold and copper, with companies such as BHP Billiton, Rio Tinto, Phelps Dodge and Barrick Gold.
Steven Chadwick: VP Development, Director: Mr. Chadwick has over 35 years’ experience in the mining industry, incorporating technical, operating and management roles, as well as a strong metallurgical background. Mr. Chadwick has been a director and consulted to Teck Resources Australian subsidiary company for the past 10 years.
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| Management/Directors
Don Halliday: VP Investor Relations, Director: Mr. Halliday has over 24 years experience in investor relations, corporate development and fund raising for junior resource companies.
Mike Haynes: Non-Executive Director: Mr. Haynes is a qualified geologist/geophysicist with more than 19 years experience in the mining industry, including BHP and Billiton.
Eric Edwards: Non-Executive Director: Since 1996, Mr. Edwards has served as Chief Executive or Chief Financial Officer for a number of publicly traded gold companies. Mr. Edwards has had over 25 years experience in the gold mining sector in operations, business development and corporate finance.
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| TSX-V Listing - Why 7
Merger expected to significantly enhance the Company’s profile in the North American investment community, where its projects are located.
Approximately 20% of the Company’s share register is held by North American Institutions.
Canadian investor and research community is familiar with the potential, development and valuations of Canadian mining projects, often reflecting higher valuations.
Enhanced board of directors and management team will be well suited to advancing Cameron towards production.
Direct exposure to TSX-V, which is renowned for its trading liquidity and access to equity finance in the mining industry.
The merged entity will have access to North American capital, including “flow through” financing.
The transaction is supported by Haywood Securities Inc. which has an extensive network of retail and institutional investors in North America and globally.
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| TSX Companies - Attractive Valuations
EV/Resource - Ontario Junior Gold Exploration and Development Companies
Market Enterprise Total Attributable Resource EV Per AU/oz
Company Cap Value Key Asset Stage M&I MI&I M&I MI&I
(C$M) (C$M) (oz AU) (oz AU) (C$/oz) (C$/oz
Rubicon Minerals $1,018 $823 Phoenix (100%) Optimized PEA Q4/12 0.5 2.8 $1,725.28 $294.54
Premier Gold $842 $775 Trans Canada (100%) PEA Due Q4/12 2.9 4.7 $270.05 $163.30
Harte Gold Corp $35 $33 Sugar Zone (100%) PEA Completed Q2/12 0.3 0.5 $102.02 $68.54
Queenston Mining $338 $228 Upper Beaver (100%) Opitmized PEA Q1/13 2.2 4.1 $105.06 $55.42
Rainy River $498 $418 Rainy River (100%) BFS Due Q2/13 6.2 8.5 $67.35 $49.12
Northern Gold Mining $94 $72 Garrison (80%) PEA Completed 1.1 1.6 $66.71 $44.47
Prodigy Gold $302 $252 Magino (100%) PFS Q2/13 6.3 6.6 $40.25 $38.09
Gold Canyon Resources $175 $134 Springpole (100%) PEA Due Q1/13 4.4 5.1 $37.28 $32.24
Treasury Metals $52 $49 Goliath (100%) PEA Completed Q3/13 0.8 1.6 $64.86 $30.24
Probe Mines Ltd $109 $82 Borden Lake (100%) PEA Due Q4/12 2.8 3.8 $29.85 $21.81
Lexam VG Gold Inc $39 $34 Buffalo (100%) Ad. Exploration 1.0 1.9 $33.16 $18.01
Temex Resources $45 $37 Judy/Hallnor (100%) Ad. Exploration 1.7 2.9 $21.42 $12.86
Moneta Porcupine Mines $39 $36 Golden Highway (100%) Ad. Exploration 1.1 4.3 $33.37 $8.48
Average (EXC. High/Low) $230 $195 2.2 3.6 $77.27 $48.55
Coventry Resources (Post RTO) $37 $35 Cameron Lake (100%) PEA Due Q4/13 0.6 1.5 $55.35 $23.85
Source: Haywood Securities, Company Reports, October 2012
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| TSX-V Listing – Transaction Structure 9
Dual ASX/TSX-V listing to be achieved by way of merger with TSX-V listed Crescent Resources Corp.
The merger is being implemented by means of a court sanctioned scheme of arrangement
Crescent will undertake a 1:5 consolidation of its common shares prior to completion of the merger
Crescent will then offer to acquire all of Coventry’s shares on the basis of 0.2513 “post consolidation” shares
Based on a Coventry share price of $0.11, the merged entity should have an equivalent share price of approximately $0.45
Approximately 69.1m shares will be on issue resulting in a market capitalisation of approximately $31.0m
Coventry shareholders will have the option to hold their shares on the TSX-V or ASX (CDI’s)
Coventry will maintain its commitment to trade on ASX as there is strong support from its Australian register
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| TSX-V Listing – CDI’s 10
The electronic transfer system used on ASX, known as CHESS, cannot be used directly for the transfer of securities of foreign companies
To enable foreign companies to have their securities cleared and settled electronically through CHESS, chess depositary interests (CDI’s) are issued
CDI holders receive all the benefits of actual ownership of the underlying shares including:
Voting rights
Priority issues such as Rights Issues
Dividends, if any
Computershare (Company’s Share Registry) offers a cross border service designed to accelerate the transfer of securities between the ASX and TSX-V
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| TSX-V Listing – Important Dates and Timetable 11
Events Date Latest time and date for lodgement of completed proxy forms for the: 11 December 2012
Share Scheme Meeting 10.00 am Option Scheme Meeting 10.30 am
Time and date for determining eligibility for voting at the Scheme Meetings 4.00 pm on 11 December 2012
Scheme Meetings to be held at Holiday Inn, 778-788 Hay Street, Perth, WA 13 December 2012
Share Scheme Meeting 10.00 am (WST) Option Scheme Meeting 10.30 am (WST) (or, if later, immediately after
the Share Scheme Meeting) If the Schemes are approved by the Requisite Majorities, the expected timetable for implementation of the Schemes is: Second Court Date for approval of the Scheme(s) 14 December 2012 Effective Date of the Scheme(s) and last day of trading of CVY Shares on the ASX
14 December 2012
Suspension of trading of CVY Shares on the ASX 14 December 2012 Crescent CDIs to begin trading on the ASX on a deferred settlement basis 17 December 2012
Deadline for receipt of CVY Option exercise notices from those CVY Optionholders who wish to exercise their options
12.00 noon 18 December 2012
Deadline for receipt of Share Election Forms by the CVY Share Registry 2.00 pm (WST) on 18 December 2012
Record Date for determining entitlements to the Scheme Consideration 4.00 pm on 21 December 2012
Implementation Date for the transfer of CVY Shares and Coventry Options to Crescent and issue of Scheme Consideration
2 January 2013
Despatch of holding statements for Crescent CDIs and certificates7 for Crescent Consideration Shares
3 January 2013
Crescent Consideration Shares issued to Scheme Shareholders commence trading on TSX-V
4 January 2013
Termination of official quotation of CVY on the ASX 4 January 2013 Crescent CDIs begin trading on the ASX on a normal settlement basis 4 January 2013
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|The Projects
Cameron Gold Camp, Ontario, Canada
JORC-Code resources at the Cameron Gold Deposit of:
1.4 million ounces of gold at 2.24 g/t gold
Shallow JORC-Code resources at the Dubenski Gold Deposit of:
64,000 ounces of gold at 3.50 g/t gold
Preliminary Economic Study (“PEA”) due in Q4 2012
Simple metallurgy
Excellent infrastructure
Considerable upside to develop a “mine camp” on the dozens of other prospects within the combined 170.3km2 project area
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|The Projects
Rainy River Project, Ontario, Canada
132.7km2 project adjacent to the 8.5M oz Rainy River Gold Deposit in NW Ontario
Rainy River Resources announced new discovery on Oct. 22, 2012 1km east of the deposit:
18.0m @ 4.3 g/t gold and 33.3 g/t silver
18.5m @ 2.2 g/t gold and 38.5 g/t silver
Coventry’s ground covers the extensions of the same geological sequence that hosts Rainy River, part of a large, essentially unexplored Archean belt
Numerous anomalies identified for drilling in Q1 2013
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| Cameron Gold Project - Location and Access
90km SE of Kenora (population ~15,000)
Access by a purpose built all-weather gravel road, 23km from a sealed highway
High voltage power within 30km
Numerous services and supplies within a short distance
Numerous +1Moz deposits and mines
3,000oz’s gold in ore stockpile
Waste dump
Offices and accommodation
Workshops Mine portal
Aerial view of the Cameron Gold Deposit and surface infrastructure
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115kV high voltage power line within 30km of Cameron
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| Cameron Gold Project – The Opportunity
Resource of 19.4Mt @ 2.24 g/t gold for 1,397,200 ounces
Lycopodium Engineering and AMC (from Perth and Toronto) undertaking PEA
PEA to be completed Q4, 2012 to examine developing an initial open pit mining operation
To be followed by underground mining
Opportunity to develop satellite deposits to feed a centralised processing facility
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|Cameron Gold Project – Shallow Resources
Resources within 200 metres of surface Resources within 250 metres of surface Cut-off grade
(g/t gold) Tonnes (Mt) Grade
(g/t gold) Ounces of
gold
% Measured +
Indicated Tonnes (Mt) Grade
(g/t gold) Ounces of
gold
% Measured +
Indicated
0.5 7.44 1.89 452,893 97% 9.49 1.97 602,250 89%
1.0 5.14 2.42 399,607 97% 6.59 2.52 533,690 89%
Re-sampled and assayed ~10% of previous ~85,000 metres of diamond drill core
Completed 29,170 metres of diamond drilling at Cameron Gold Deposit
High confidence in grade and distribution of shallow mineralisation, with >97% of resources within 200 metres of surface classified as “Measured” and “Indicated”
Robust resource base, with few ounces “lost” when applying a 1.0g/t vs 0.5 g/t cut off
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| Cameron Gold Project - Metallurgy
Considerable metallurgical test work undertaken 1985 – 1989.
Metallurgical test work program completed in July 2012 from a representative sample sourced from conceptual open pit and underground.
Gold recoveries of circa 91-93% from cyanide leach tests.
Highly amenable to conventional crush, grind and CIL route.
Communition testing indicates low to moderate work indices prevail.
Bond mill index of 12.4 kWh/t Rod mill bond index averaged 15.5
kWh/t Abrasion indices averaged 0.328.
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Drill core from the Cameron Gold Project
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| Cameron Gold Project – Pipeline to production
2012 2013 2014 2015
ACTIVITY Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Exploration - Cameron
Exploration – Rainy River
Resource Upgrade
Environmental Baseline
Preliminary Economic Assessment
Definitive Feasibility Study
ESIA/Mine Permitting/Financing
Construction
Production
Projected Production
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| West Cedartree Property – Further Growth 19 F
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|West Cedartree Property – Further Growth
Dubenski Gold Deposit
JORC-Code compliant Indicated and Inferred Resource of 573,000 tonnes at 3.50 g/t gold for 64,000 ounces of gold
New resource calculation underway
Dogpaw Gold Prospect
Representative historical intercepts of:
6.0m @ 47.97 g/t gold from 48.2m 2.6m @ 46.54 g/t gold from 51.7m 4.6m @ 10.51 g/t gold from 49.9m
Resource calculation underway
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|West Cedartree Properties – Further Growth
McLennan Gold Prospect
Mineralised zone greater than 300m in length
Significant results from trench samples
Historical intercepts under TR1-TR3 include:
5.8m @ 5.80 g/t gold from 24.0m
9.0m @ 4.04 g/t gold from 26.0m
16.5m @ 1.67 g/t gold from 44.0m
2.2m @ 5.25 g/t gold from 66.9m
Follow-up drilling to commence in Q1 2013.
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|Rainy River Project - Exploration Upside
Secured mineral rights covering 132.7km² adjacent to 8.5Moz Rainy River Gold Deposit in NW Ontario
Coventry is the second largest landholder in the District
Rainy River Gold Deposit discovered in 1994 by follow-up of anomalies delineated in a 1987-88 regional till geochemistry survey
Rainy River is a gold-rich type deposit related to the VMS family
VMS deposits commonly occur in clusters sometimes over hundreds of kilometres of strike
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|Rainy River Project – Exploration Technique 23 F
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|Rainy River Project – Exploration Upside
Hole 77 returned BOH till sample of highly anomolous Nickel, Copper and Chrome.
10 other high priority anomalies to be followed up in the winter drilling program
Anticipated 6,000m drilling program to commence in Q1 2013
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| Value Drivers
Moving Cameron Gold Project to production to capitalise on high gold prices
Results of PEA to be released in December 2012
Well balanced pipeline of highly prospective projects in NW Ontario, Canada
Exploration to continue at Cameron, West Cedartree and Rainy River projects
Considerable news flow with drilling programs, economic study, final feasibility study and mine permitting activity ongoing
TSX-V listing to raise the Company’s profile in North America is scheduled for year end 2012
Ongoing M and A activity with gold companies in Ontario. Prodigy Minerals recently acquired at premium of 55% premium or valuation of $65-70 on an EV/oz gold basis. Trelawney Res. acquired at 27% premium in June 2012 and Brett Res. acquired at 53% premium in March 2010
ASX:CVY, www.coventryres.com
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|Competent Persons Statement
The information in this report that relates to Mineral Resources or Ore Reserves is based on information compiled by Mr Peter Ball who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ball is the Director of Data Geo Geological Consultants. Mr Ball has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ and a Qualified Person as defined in the Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Mr Ball consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information in this announcement that relates to exploration results is based on information
compiled by or under the supervision of Anthony Brendon Goddard. Mr Goddard is Technical Director of Coventry Resources Limited and a Member of the Australian Institute of Geoscientists. Mr Goddard 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and a Qualified Person as defined in the Canadian National Instrument 43-101 (Standards of Disclosure for Mineral Projects). Mr Goddard consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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|Appendix 1 – Cameron Gold Deposit/JORC Resource
Cut-off grade (g/t gold) Category Tonnes Grade
(g/t gold) Ounces of gold
0.5 Measured 3,230,000 2.23 232,000 Indicated 6,922,000 1.82 405,000 Inferred 17,847,000 1.68 962,000
Total 27,999,000 1.78 1,599,000
1.0 Measured 2,472,000 2.68 213,400 Indicated 4,724,000 2.33 353,700 Inferred 12,226,000 2.11 830,100
Total 19,422,000 2.24 1,397,200
1.5 Measured 1,793,000 3.23 186,000 Indicated 3,084,000 2.91 289,000 Inferred 7,853,000 2.60 658,000
Total 12,730,000 2.77 1,133,000
2.0 Measured 1,288,000 3.81 158,000 Indicated 2,068,000 3.49 232,000 Inferred 4,867,000 3.14 491,000
Total 8,223,000 3.33 882,000
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| Appendix 2 - Cameron Gold Deposit/Shallow Resources
Resources within 200 metres of surface
Resources within 250 metres of surface
Resources within 300 metres of surface
Cut-off grade (g/t
gold) Category Tonnes
Grade (g/t
gold)
Ounces of gold Tonnes
Grade (g/t
gold)
Ounces of gold Tonnes
Grade (g/t
gold)
Ounces of gold
0.5 Measured 2,246,000 2.25 162,600 2,888,000 2.28 211,800 3,145,000 2.25 227,700
Indicated 5,007,000 1.72 277,500 5,680,000 1.78 324,800 6,351,000 1.81 370,500
Inferred 187,000 2.13 12,800 922,000 2.21 65,700 2,125,000 2.02 137,800
Total 7,440,000 1.89 452,900 9,491,000 1.97 602,200 11,621,000 1.97 736,000
1.0 Measured 1,698,000 2.74 149,400 2,203,000 2.75 195,100 2,406,000 2.71 209,800
Indicated 3,311,000 2.25 239,100 3,784,000 2.31 280,500 4,279,000 2.34 321,900
Inferred 125,000 2.75 11,100 601,000 3.00 58,000 1,427,000 2.65 121,500
Total 5,135,000 2.42 399,600 6,589,000 2.52 533,700 8,112,000 2.50 653,100
1.5 Measured 1,243,000 3.28 131,200 1,619,000 3.30 171,800 1,762,000 3.25 184,000
Indicated 2,074,000 2.85 190,300 2,404,000 2.93 226,100 2,773,000 2.94 262,400
Inferred 117,000 2.85 10,800 402,000 3.88 50,300 822,000 3.69 97,400
Total 3,434,000 3.01 332,300 4,425,000 3.15 448,100 5,356,000 3.16 543,800
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|Appendix 3 - Dubenski Gold Deposit/JORC Resource
Resource Classification Tonnes Gold Grade (g/t Au) Gold Ounces
Indicated 551,000 3.53 62,700
Inferred 22,000 2.57 1,800
Total 573,000 3.50 64,500
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