Conquest Mining Limited (ASX:CQT) Resource Upgrade For Silver Hill Deposit At Mt Carlton
Perth, Oct 22, 2009 AEST (ABN Newswire) - Conquest Mining Limited (ASX:CQT)(PINK:CQMLF) is pleased to announce a resource upgrade for the Silver Hill Deposit at its Mt Carlton project in northern Queensland, including a significant increase in the overall resource, incorporating Area 39 and V2.
Managing Director John Terpu said the resource upgrade, which includes a 19% increase in the Measured plus Indicated Resource tonnes at Silver Hill, validated the Company's belief in the project as one of Australia's most significant new gold and silver projects.
The upgrade follows a 7,250m drilling program designed to improve understanding of both the Silver Hill project and the broader Mt Carlton region.
At Silver Hill, the main deposit, known as V2, is now estimated to contain 23.8 million tonnes at 1.77 g/t gold, 26 g/t silver and 0.28% copper, based on a metal value cut off A$20 per tonne.
In addition, the results have confirmed the presence of a discrete high grade silver zone at Area 39, as announced on 18th September 2009, which is now estimated to contain 16 million ounces of silver, based on a metal value cut off A$20 per tonne.
Area 39 has been identified as a geologically discrete zone amenable to separate treatment in the same flotation plant envisaged for the main zone.
"We are focusing the current Definitive Feasibility Study on the production of high grade concentrate in the most timely manner," Mr Terpu said.
Silver Hill Resource Estimate
Based on the drilling completed to September 2009, the resource estimate at the Silver Hill deposit has been updated by independent experts Hellman and Schofield (H&S). This estimate increases confidence over the previous estimate completed in March 2009. At a A$20/t value cut-off grade, the tonnage in the Measured and Indicated categories has increased to 24.2 million tonnes while the Inferred category has reduced to 1.5 million tonnes. Measured plus Indicated resource tonnage has increased by 19% whilst the overall estimated tonnage has increased by 13%.
An itemisation of the tonnes and grades for V2 Area and Area 39 where the high silver tenor of Area 39 is evident. The silver grade of 273g/t in Area 39 compares to 26 g/t in V2.
Equivalent Metal prices, exchange rate and metallurgical recoveries used to calculate the value (A$) variable used in the resource estimation were:
Gold - US$868/ounce and 80% recoverySilver - US$12/ounce and 68% recoveryCopper - US$5597/tonne and 86% recoveryExchange Rate - US$0.83 to A$1.00
Comments on Mt Carlton Project Area
Mr Terpu said the value of the broader Mt Carlton project - spanning an area 20 times that of Silver Hill - is also starting to emerge.
The total Mt Carlton Resource, comprising Silver Hill, Mt Carlton-Main Hill, Mt Carlton- Western Lodes and Herbert Creek East - is now estimated to contain 1.46 million ounces gold, 40 million ounces silver and 75,000 tonnes copper.
"While our objective has been on defining the full resource at Silver Hill, which is our production focus, we are also undertaking a drill program in adjacent areas which feature similar geology," Mr Terpu said.
For the complete Conquest Mining ASX Announcement, please click the link below:
http://www.abnnewswire.net/media/en/docs/61621-ASX-CQT-465045.pdf
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