Perth, Nov 13, 2008 AEST (ABN Newswire) - Conquest Mining Limited's (ASX:CQT)(PINK:CQMLF) is pleased to announce that mining consultants Hellman & Schofield Pty Ltd ("H&S") have completed QAQC (quality assurance and control) validation of the Silver Hill deposit drilling data.
Sampling and assaying quality at Silver Hill allows reporting of Measured Resources under the JORC (2004) code.
HIGHLIGHTS
- A substantial 40% of Silver Hill resources have been upgraded to Measured Resource status.
- Consultants Hellman & Schofield Pty Ltd have completed QAQC (quality assurance and control) validation of the Silver Hill deposit.
- The upgraded resource estimate is considered an appropriate statement of resources on which to base feasibility studies.
- Total Mt Carlton Resources (Silver Hill, Mt Carlton, Mt Carlton-Western Lodes & Herbert Ck East) are estimated to be 25 million tonnes at 1.70 g/t gold, 60 g/t silver, and 0.28% copper for a contained 1.35 million ounces gold, 48 million ounces silver and 70,000 tonnes copper above a $20/tonne cut-off grade (approximately 0.86 g/t gold equivalent).
- Recent significant intersections, including 16m at 5.31 g/t gold, and 25m at 210 g/t silver, are expected to add to measured status resources at a future date.
A combined Measured, Indicated and Inferred Resource of 23.1 million tonnes at 1.70 g/t gold, 61 g/t silver, and 0.29% copper was reported based on a metal value cut-off of $20/tonne. The $20/tonne (~0.86 g/t gold equivalent) cut-off was calculated using commodity prices of A$850 per ounce gold, A$15 per ounce silver, and A$5,500 per tonne copper together with recoveries indicated from metallurgical studies of 90% copper, 80% gold and 60% silver,
Resource Classification Notes
H&S now considers that the Silver Hill Resource estimated in April 2008 can be reported at the Measured, Indicated and Inferred classifications in accordance with the JORC(2004) reporting code. The resources are based on holes up to HC08RCD390
Conquest acknowledges that information on grade distribution, metallurgical recoveries and long term price estimates for the metals estimated will change as Silver Hill progresses towards mining. These and other factors will impact on cut-off grades and on the design of the mining strategy and thus on resources reported as a result of future resource estimation.
Further, the amount and density of close spaced grade control drilling prior to and during mining is critical to the realisation of the resource by selective mining. It has been assumed that mining will be conducted with a selective mining unit of 25m x 25m x 5mRL panels using a grade control pattern of 5m x 5m and 2.5m high benches. Whether such a density of drilling at Silver Hill is optimum remains to be assessed.
A trial grade control drilling program, envisaged during the feasibility study, will provide information on the very short range continuity of grade distribution and enable both a refinement of the resource model and allow an optimisation of grade control drilling, potentially a significant cost in selective mining. No resource re-estimation of resources has been conducted as part of the work discussed in this release.
Exploration Results
Exploration and resource definition infill drilling has returned significant results both from Area 39 Silver zone, and from the eastern gold zone. At Area 39, a line of diamond holes (numbers 445 - 450) has intersected consistent high grade silver mineralisation including 25 metres at 210 g/t silver, and 51 metres at 157 g/t silver.
At the eastern side of the pit, in the gold zone, intersections of 20 metres at 4.29 g/t gold, 16 metres at 5.31 g/t gold, and 96 metres at 1.54 g/t gold have similarly improved confidence in the grades. These intersections are expected to convert part current indicated resources to measured status with the next resource estimate.
Planned Programs and Exploration Potential
Regional Joint Venture partner Gold Fields Australasia is currently RC drilling at Strathmore and Boundary prospects. It also has field exploration programs underway with Pole-Dipole IP geophysical surveys, and geological mapping and soil sampling programs.
Contact
John Terpu
Managing Director
TEL: +61-8-9240-4111
FAX: +61-8-9240-4054
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