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Aussie outfit Conventry Resources options Nucanolan Property from King`s Bay Gold

Published: 03:50 16 Sep 2010 AEST

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Coventry Resources (ASX:CVY) has entered into an option to acquire an 80% interest in the Nucanolan Property, from Toronto listed King’s Bay Gold (TSX-V: KBG) and a privately held company, Lasir Gold.

The property is located along strike from and within five kilometres to the Cameron Gold Project in Ontario, Canada.

Nucanolan comprises 20 granted mining claims covering 325 hectares (3.25 km2). Numerous significant gold occurrences located within the property, including the Meston Prospect.

Only limited exploration has been undertaken previously. Previous trenching returned assays up to 18.5m @ 6.56 g/t gold.  Limited drilling has returned intersections including 6.4m @ 3.11 g/t gold, and 18.2m @ 1.24 g/t gold.

Consideration comprises monies and shares, plus a joint venture and royalty.

Coventry has the right to earn 80% by spending CAD $1,000,000 on exploration over the next three years, and is also required to pay Lasir CAD $20,000 and to issue Lasir 50,000 shares by February 16, 2011.

Coventry is then required to make annual payments to Lasir comprising CAD $30,000 and 50,000 shares for the following three years, by February 16, through until 2014.

Coventry is also required to immediately pay King’s Bay Gold CAD $15,000, and once the Company has met its expenditure commitment on the property, it will establish a Joint Venture with King’s Bay Gold.

Subsequent expenditure on the Property will be pro-rated on an 80/20 basis, until a production decision is made.

Lasir will retain a 3% NSR royalty interest in the Property, which the Company and King’s Bay Gold may reduce to 1.5% by paying Lasir CAD $1,500,000.

Access to the property is easily available, with the extension of the access road to the Cameron Gold Deposit transecting the Property.

Mike Haynes, executive chairman said the Company plans to undertake an aggressive exploration program on the Property in tandem with its activities on the larger Cameron Gold Project.

Work will include line cutting and geological mapping and sampling, to be followed by airborne magnetic and IP surveying. A property-wide geochemical sampling program will also be undertaken in conjunction with the rest of the Cameron Project.

Diamond drilling will be undertaken at the Meston Prospect as soon as all titles have been transferred according to the conditions of the Ontario Provincial Government.

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