SUITE 4 213 BALCATTA ROAD BALCATTA 6021 WESTERN AUSTRALIA PO BOX 572 BALCATTA WESTERN AUSTRALIA 6914 TEL (08) 9240 4111 FAX (08) 9240 4054 EMAIL [email protected] WWW www.conquestmining.com.au ASX RELEASE 5 AUGUST 2004 MODELLING OF ELLENDALE 17 REVEALS TONNAGE POTENTIAL Conquest Mining Limited [Conquest] is pleased to advise that it has completed its solid modelling of the diamondiferous Ellendale 17 lamproite (refer Figure 1 – Location Map). Modelling was completed ahead of schedule and was based upon 414 drill holes for 15,764m of geological logging data (Figure 2). The 3D model provides volumes for geological zones within the Ellendale 17 lamproite and, together with Conquest’s microdiamond results, provides the basis for large diameter drilling and bulk sampling planned in September-November 2004. In total, Conquest has identified 83.8 million tonnes of lamproite host material at Ellendale 17 of which 36.9 million tonnes (>40%) may contain macrodiamonds. Importantly, potential host rocks remain open along strike. Figure 1. Location Map showing Ellendale 17 near Kimberley Diamonds Ellllendalle 17 Prrosspectt Ellllendalle 9 Ellllendalle 4 Prrojjectt Conquesstt Miiniing Lttd Kiimberrlley Diiamondss // Blliina Figure 2. Drill Plan showing near surface projection of Ellendale 17 Figures 2 & 3 show that prospective geological domains remain open along strike to the west and northeast of drilled areas. These potential extensions are supported by existing geochemical and geophysical data and will form the basis for ongoing exploration work in the area. Figure 3. Solid Model of the Ellendale 17 Lamproite 1.0 Km 0.5 Km Strike Open Strike Open Sill Open at Depth Strike Open Strike Open The Ellendale 17 lamproite is comprised of a narrow sub vertical fissure transected by a large sill intruded into faulted sediments (Figure 3). A second minor sill is also apparent above the main sill. The fissure zone is the principal focus for tuffaceous material explored for diamonds by previous workers including CRA (1978) and Western Reefs (1992). Drill data is sufficient to model the fissure to a depth of 150m. The margins of the sills contain traces of macrodiamonds along with significant microdiamonds and will also be the subject of bulk sampling by Conquest. The upper and lower chilled contacts of the sills are modelled to a depth of 100m vertical. The entire lamproite body is overlain by a layer of calcrete up to 5m thick. Up to 2m of black soil covers the calcrete cap-rock overlying the lamproite. Tonnage estimates for the all geological domains have been determined based on specific density assumptions for similar materials. Conquest has yet to determine accurate density information for individual domains and will update its database using material obtained from its bulk test work programme. Estimates of 1.2 g/cm3 for Black Soils, 1.6 g/cm3 for Calcrete zones, 2.5 g/cm3 for Tuff zones, 2.7 g/cm3 for Chilled zones and 2.8 g/cm3 for the core of the “Magmatic” sill were used to convert volumes to the tonnage estimates shown in Table 1. Zone Average Microdiamond Count per 100kg Solid Model Volume Estimate (x 1,000,000 m3) Tonnage Estimate (X 1,000,000 t) Black Soils Not sampled 1.0 1.2 Calcrete Layer Not sampled 0.9 1.4 Tuffs (Fissure) 29 7.2 18.0 Chilled Margins 12 6.1 16.3 Magmatic (Sill) <2 16.7 46.9 Totals 31.9 83.8 Table 1. Tonnage Estimates for Ellendale 17 Lamproite Zones Conquest believes that its modeled fissure and chilled margin zones (totaling 34.3 Mt) are the most prospective for diamonds and has committed to bulk sampling of these areas in September-November 2004. Overlying calcrete and black soils (totaling 2.6 Mt) may also contain diamonds. Drilling will concentrate on the first 50m of the profile, targeting diamond grade and valuation data for use in resource estimation. Conquest Mining Limited is an ASX-listed multi-commodity explorer. Conquest’s exploration projects include the North Ellendale lamproite field in West Kimberley, the Napier Range Ag-Pb-Zn project, the Bow River and Smoke Creek alluvial diamond deposits adjacent to the Argyle Diamond Mine, the Crush Creek Gold JV with Goldfields Australasia, the Mt Carlton Au-Ag-Cu-Zn project near Charters Towers and the Collinsville Cu-Au project. This report is based on and accurately reflects information compiled by Mr David Burton, BSc. (Hons), MBA, who is a full time employee of the Company. Mr Burton has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 1999 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves. J TERPU D BURTON Managing Director
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