Conquest Mining Limited (ASX:CQT) Quarterly Report For The Period Ending 30 September 2009
Perth, Oct 30, 2009 AEST (ABN Newswire) - Conquest Mining Limited (ASX:CQT)(PINK:CQMLF) completed the Pre Feasibility Study (PFS) at the Silver Hill Project in north Queensland in April 2009. Following the robust results of the PFS, the Board of Directors of Conquest Mining Limited commissioned a Definitive Feasibility Study (DFS) in June 2009. The DFS is on track for completion in late November 2009.
An update resource calculation has recently been released by Conquest Mining Limited (refer to ASX announcement dated 22 October 2009). The Silver Hill Resource has increased from 22.8 million tonnes to 25.7 million tonnes, while total gold ounces have increased from 1.17 million ounces to 1.37 million ounces. The Mount Carlton Project Resources are now calculated to include 1.46 million ounces of gold, 40 million ounces of silver and 75 thousand tonnes of copper.
Drilling re-commenced late May at the Silver Hill Project with 17,081m reverse circulation (RC) and 4,686.2m diamond drilling completed for the quarter. Programs completed as part of the DFS this quarter included a trial grade control pattern, commencement of sterilization of proposed waste dump and infrastructure sites and geotechnical drilling to assess proposed pit shells for stability. Other work included the drilling of a number of deep diamond drill holes to test for a second mineralised horizon at depth and/or the source location of the Silver Hill Deposit and RC drilling to the west (Western Exploration area) of Silver Hill following conceptual trends.
Two RC rigs and two diamond drill rigs were employed to complete this work in a timely manner. Two RC rigs are currently on site completing step-out drilling on the satellite deposits (Western Lodes, Mt Carlton and Herbert Ck East) and assisting with engineering style studies.
Definitive Feasibility Study
Arccon Mining Services group was appointed in June 2009 to complete the DFS to 80% engineering which will allow a more rapid transition to construction, enabling production in the shortest possible timeframe, and provide a higher degree of confidence in capital and operating cost estimates.
A A$65m capital raising to fund development of the Mount Carlton Project is in progress. This equity component, in conjunction with potential debt alternatives that will be finalised after the DFS completion, will provide full funding for the development of the high grade concentrate operations from the Silver Hill Deposit.
Conquest Mining Limited has advised it has received a detailed debt financing proposal to fund construction at the Silver Hill Deposit. The company has also received a detailed proposal from a major Chinese smelter for an off-take of 30,000tpa of high grade gold, silver and copper concentrate from this deposit.
Preliminary results from the DFS indicate the potential for a high grade silver concentrate from the Area 39 pit at the Silver Hill Deposit. Conceptual studies indicate production in the first three months of 4.5-5 million ounces of silver.
The level of environmental assessment for the concentrate production will include developing an Environmental Management Plan supporting the proposed timelines set by Conquest. This level of assessment will ensure the appropriate management of any environmental issues while allowing Conquest to progress plans for sustainable production of high grade sulphide concentrate by early 2011.
For the complete Conquest Mining Quarterly Report for the period ending 30 September 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/61673-ASX-CQT-467034.pdf
Contact
John Terpu
Managing Director
Conquest Mining Limited
Tel: +61-8-9240-4111
Email: john@chellingtons.com.au
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