Conquest Mining Limited (ASX:CQT) Outstanding Drill Results Support Potential Upside At Silver Hill

Perth, Aug 20, 2009 AEST (ABN Newswire) - Conquest Mining Limited (ASX:CQT)(PINK:CQMLF) is pleased to announce that recent trial grade control drill results at the Silver Hill Deposit have reported significant mineralisation.

Conquest Managing Director John Terpu said the highly encouraging results confirmed the robust and consistent nature of the mineralisation at the Silver Hill deposit.

"These results, which include spectacular and wide zones of high grade gold mineralisation, further underpin our confidence in the potential upside of Silver Hill, which is already set to be one of Australia's premier new gold mines," he said.

"Our robust exploration program is designed to quantify the full Silver Hill resource and allow us to realise its potential for all shareholders."

The Company also confirmed that the Silver Hill Definitive Feasibility Study (DFS), being undertaken by Arccon Mining Services, is on track for completion in November 2009.

"The findings of the Pre Feasibility Study (PFS), which indicated a Net Present Value of more than $300 million and an internal rate of return of 70%, encouraged us to expedite development work at Silver Hill based on the significant existing resource," Mr Terpu said.

"With the key DFS teams appointed and working on long lead time engineering, development and procurement, we're on target for completion of the study in November 2009 and a rapid move into the construction phase by March next year.

"With the continued work to quantify the further upside of the project, we have every confidence in Silver Hill's potential as Australia's next significant low cost, high value gold mine."

Drilling results underpin confidence in further resource upside

In May 2009, Conquest recommenced drilling programs to quantify the significant potential upside to its production target at the Silver Hill project.

During June and July, reverse circulation drilling focused on a close spaced (5m by 5m) trial grade control pattern at Silver Hill with 99 drill holes completed for a total of 6,852m.

All drill holes intersected significant grades of mineralisation, with the best results including:

- HC09RC544 with 24m at 13.1g/t gold, including 4m at 62.9g/t gold;

- HC09RC543 with 44m at 10.1g/t gold, including 28m at 14.2g/t gold; and

- HC09RC549 with 40m at 11.7g/t gold, including 8m at 47.3g/t gold.

A number of other drill programs are also underway, including:

- Completion of over 1,000m of RC drilling in the "gap" between the Silver Hill & Herbert Ck East deposits to the east and the Mt Carlton deposit to the west, known as Western Exploration Area, with results pending;

- Infill drilling around the flanks of the Silver Hill deposit with a view to upgrading the resource category in these areas. The best result was in HC09RC511 with 36m at 2.23g/t gold;

- 1,300m of infill drilling on Area 39 to assist with resource definition of the spectacular silver mineralisation that occurs at this section of the Silver Hill deposit. Drilling is expected to be completed later this month with results pending;

- Diamond drilling beneath the central section of the Silver Hill deposit, exploring for a second prospective volcanic horizon and/or porphyry source intrusion beneath the planned pit. While the first drill hole has not returned significant results, further results are pending;

- Sterilisation RC drilling commenced in June to determine the location of mill/plant infrastructure and waste dumps; and

- Geotechnical drilling to support project development.

Definitive Feasibility Study on Track for November 2009 Completion

Following the outstanding results of the PFS in April 2009, Conquest appointed Arccon Mining Services to complete an expedited DFS by November 2009.

In parallel, Arccon is completing the engineering, development and procurement of long lead items for the project, with the aim of enabling gold production from Silver Hill in the shortest possible timeframe.

Design and engineering work on both the mine and the concentrate processing plant is now well progressed, including the recent issue of the mill tender and the engagement of geological and mining, design and engineering teams.

Mr Terpu said the progress of the DFS supported the early construction and production targets set by Conquest for Silver Hill.

"By including long lead time engineering, design and procurement work in the DFS, we're getting a head start on the construction phase and are well positioned to bring Silver Hill into production by late 2010," he said.

For the complete Conquest Mining ASX Announcement, please click the link below:

http://www.abnnewswire.net/media/en/docs/61295-ASX-CQT-457201.pdf

Contact

John Terpu Managing Director Conquest Mining Limited Tel: +61-8-9240-4111 Email: john@chellingtons.com.au