SUITE 4 213 BALCATTA ROAD BALCATTA 6021 WESTERN AUSTRALIA PO BOX...

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