Conquest Mining Limited (ASX:CQT) Reports Significant Mineralisation On Its Silver Hill Deposit

Perth, Sep 4, 2009 AEST (ABN Newswire) - Conquest Mining Limited (ASX:CQT)(PINK:CQMLF) is pleased to announce that recent trial grade control drilling at the Silver Hill Deposit has reported significant mineralisation with all results now received.

REVERSE CIRCULATION DRILLING

Grade Control Drilling

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

All results have been received for this grade control work.

This program was undertaken with a number of objectives including to

- assess drill hole spacing for grade control purposes;

- confirm the continuity of mineralisation in a tight spaced drill pattern in an early stage pit shell;

- provide the likely location for early feed to the mill to assist with metal recovery/reconciliation; and

- provide additional sample volumes for metallurgical testwork.

All drill holes have intersected significant grades of mineralisation with a number receiving substantial gold with lesser silver and copper grades over long widths. The best of these include HC09RC767 with 26m at 9.04g/t gold, 34g/t silver and 0.70% copper from 44-70m including 8m at 15.8g/t gold, 59g/t silver and 0.76% copper from 56m. Also HC09RC768 with 46m at 6.55g/t gold, 37g/t silver and 0.55% copper from 24-70m including 6m at 29.5g/t gold, 140g/t silver and 2.33% copper from 50m.

Importantly, the grade control drilling has shown and confirmed the robust and consistent nature of the mineralisation at the Silver Hill deposit.

Sterilisation Drilling

Sterilisation reverse circulation drilling around the Silver Hill deposit commenced during June with a view to locating mill/plant infrastructure and waste dumps. Assay results have been received from 27 drill holes (HC09RC561-578; HC09RC770-778).

As expected, no economic mineralization has been encountered in this drilling to date with over 5,300m completed. Conquest is part way through this sterilisation program.

Western Exploration Drilling

Reverse circulation drilling is ongoing in the "gap" between the Silver Hill & Herbert Ck East deposits to the east and the Mt Carlton deposit to the west. Over 3,300m has been completed in the Western Exploration area in this program.

Results from 14 drill holes (HC09RC779-792) have been received to date with no significant assay results received.

DIAMOND DRILLING

Deep Drilling

During June & July this year, Conquest completed over 2,300m on four deep drill holes targeting beneath the central part of the Silver Hill deposit. This drilling was exploring for a second prospective volcanic horizon &/or porphyry source intrusion beneath the planned Silver Hill deposit pit.

In the broadest terms, the geology occurs as a "layercake" allowing a possible interpretation to include a second deeper volcanic host in the system &/or a porphyritic intrusive source as a focal point for the origin of the Silver Hill deposit mineralisation.

Results have been received for the second of these drill holes (HC09RCD201) which failed to intersect values of economic interest at depth. Results from the remaining two deep drill holes will be released as they become available.

Recent diamond drilling focus has been on the infill & geotechnical programs.

Conquest will now assess the results received with a view to future deep work at and under the Silver Hill deposit.

Area 39 Infill Drilling

During July & August this year, Conquest has completed over 1,800m on infill diamond drilling in the Area 39 part of the Silver Hill deposit.

This drilling has been undertaken to assist with resource definition of the spectacular silver mineralisation that occurs at this part of the Silver Hill deposit and was completed during late August.

Results have been received from 3 drill holes (HC09DD023, 024, 035) to date. HC09DD023 & HC09DD024 were drilled as infill holes while HC09DD035 twinned HC06DD004, an early discovery diamond drill hole at Area 39.

HC09DD035 with 57m at 0.04g/t gold, 727g/t silver and 1.39% copper twinned HC06DD004 which returned 59m at 0.05g/t gold, 808g/t silver and 1.45% copper showing good repeatability and short range continuity of the mineralisation.

Geotechnical Drilling

Also during July & August this year, Conquest has completed over 1,000m on nine holes of a twelve hole geotechnical program. Expected completion of this program will be in mid September.

No assay results have been received from this drilling to date. Those results will be released as they become available. Geotechnical consultants are expected to report on rock characteristics, pressure/compaction tests, expected pit wall stabilities and angles etc during early October.

Definitive Feasibily Study (DFS) on Track for November 2009 Completion

The DFS is on schedule and approximately 58% complete at this time. All key activities have commenced and are progressing in line with their specific schedules. A short summary of these is as follows

- Geological Resource and Metallurgical samples - drilling has been completed and mine area sterilisation drill is currently targeted to be completed by end of September.

- DFS Geological Model - the detailed grade control drilling has been completed and assay results have been entered into the geological database along with additional drilling information. The mineralisation has been geologically modelled by consultants and wireframe established. The geological block model has been modified to include recommendations from the DFS geostatistical consultant on the mineralised domains.

- Mining - detailed mining cost are being obtained from mining contractors to accurately estimate the cost of mining for inclusion into the DFS. These costs will be used to determine accurate ore cut off grades and the mining reserves. Detailed mine design and scheduling have commenced this month.

- Metallurgy - comprehensive metallurgical test work has been progressed utilising samples available from the geological drilling. Comminution tests to obtain design data to select the appropriate ore grinding mill and other plant has been completed. Variability metallurgical testing has been carried out on a spread of drill holes to understand the multimetal variance within the mineralisation. Results are encouraging and have enabled detailed process flowsheets to be developed for the process plant design.

- Engineering - process plant design is in progress based on the metallurgical flowsheets and major equipment selection is well advanced and priced. Plant layout and engineering are progressing utilising industry standard equipment.

- Infrastucture - major infrastructure aspects are being progressed and meetings and discussions have been held with the State authorities regarding the power line. A take-off is planned from the State grid power system relatively close to the mine site. Adequate water supplies have been identified within and adjacent to the plant Site.

- Environmental and native title issues are being progressed in line with the legislated due process and submissions and negotiations are being progressed.

- Landowner and heritage issues are also being addressed through the due process as legislated and consultation and negotiation as required.

FUTURE WORK PROGRAM

In the coming month or so, Conquest is planning to complete the geotechnical diamond drilling at the Silver Hill deposit. Reverse circulation sterilising drilling for proposed plant/mill and waste dump sites will also be completed.

Conquest is also considering assessing regional targets within the Mt Carlton Project tenement package with a view to planning additional drill programs before the onset of the northern wet season.

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

http://www.abnnewswire.net/media/en/docs/61382-ASX-CQT-459117.pdf

Contact

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