Sep. 10, 2009 (Filing Services Canada) -- Covenant Resources Ltd. (CVA - CNQ), (CVA - CNSX), announces that it has renegotiated the Option Agreement and has completed the acquisition of additional mineral claims at its Piebiter property, bringing the mineral land tenure coverage to 6,020 hectares. The cost of the acquisition for the Company is to reimburse the Optionor solely for the staking costs of the new claims.
To date the Company has spent $150,000 on mineral exploration related activities on the Piebiter property, including an Aeroquest airborne geophysical survey, ground prospecting and sampling and the compilation into a digital database of all the historical exploration data on the Property. There has been more than $6 million (in 2009 dollars) spent on the Property since expenditure records have been kept by the BC government (early 1960s). In addition, several exploration adits and shafts were developed in the 1930s with no associated costs reported.
The renegotiated terms of the Piebiter Option Agreement consist of the timing and the amount of expenditures to be incurred on the property. The new terms are outlined below.
Exploration Completed By
$ 25,000 October 31, 2009
$ 200,000 October 31, 2010
$ 300,000 October 31, 2011
$ 325,000 October 31, 2012
The Company will be completing a focused grid soil sampling program and Mobile Metal Ion analyses with a budget of approximately $25,000 prior to October 31, 2009. This program will assist in more clearly defining potential drill targets in the glacially disrupted floor of the Cadwallader Creek valley between the confluences of Piebiter and Standard Creeks. The Company has retained Discovery Consultants of Vernon to undertake this work because of their prior successful experience in the Bralorne camp.
The Company is a junior mining resource exploration company focused on the acquisition, exploration, and development of economically viable mineral resources. The Company's 6,060 hectare Piebiter mineral property is comprised of 11 mineral claims located in southwest British Columbia. The Property contains 13 BC MinFile occurrences within its boundaries and it is approximately 10 km southeast along strike on the Cadwallader fault system from the famous Bralorne and Pioneer mines. The prolific Bralorne camp has produced over 4.2 million oz. of gold since the early 1900s - it is BC's largest gold producer.
The Company Trades on the CNSX under the trading symbol "CVA".
For more information, please refer to the Company's prospectus and engineering report available on SEDAR (www.sedar.com).
For further information contact:
Frank Port
President, Chief Executive Officer and Director
604-805-9999
E-mail: frank@covenantresources.com
www.covenantresources.com
Covenant Resources Ltd. (CNSX: CVA)
2659 162nd St
Surrey, BC V3S 8E4
Telephone: 604-805-9999
Facsimile: 1-866-256-9719
Source: Covenant Resources Ltd. (CVA - CNQ)
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