resource upgrade

MT CARLTON RESOURCE UPDATE
Conquest Mining Limited [Conquest] advises that the company has succeeded in
upgrading over 60% of its inferred gold-silver-copper resources in Queensland to an
indicated category following the company’s evaluation drilling campaign and detailed
resource studies conducted with the assistance of Snowden’s.
Conquest is also pleased to report that the company has fulfilled its joint venture
commitments in order to earn a further 40% share of the Crush Creek JV project from
Gold Fields Australasia Pty Ltd, taking Conquest’s total interest to 80%. The
company maintains a 100% share in resources at Mt Carlton and Herbert Creek East
(Fig. 1).
Resources are geostatistically estimated using ordinary kriging and are constrained
to open pit mining shells using Whittle 4X (Table 1). A reduction in the modelled
grade of gold resources at Herbert Creek East from April 2004 has been offset by the
addition of gold resources at Crush Creek.
Conquest is presently undertaking metallurgical studies on its three main resources
at Mt Carlton, Herbert Creek East and Crush Creek in order to determine the optimal
recovery methodology and sequence along with indicative plant capital and operating
costs. Preliminary test work indicates good gold leach recoveries at Herbert Creek
East and Crush Creek of up to 95.6% and 92.7% respectively with 33-75% of gold
reporting to gravity separates using a Knelson Concentrator.