Australia | Mar 07 2007
By Rudi Filapek-Vandyck
Metals explorer Conquest Mining (CQT) did not disappoint with its anxiously anticipated update on the resource estimation process for its highly promising Silver Hill Deposit from consultants Hellman & Schofield.
According to today’s released update, the combined Indicated and Inferred Resource has increased by circa 2.5 times to a total of 9.8m tonnes at 2.4 g/t gold, 41 g/t silver, and 0.35% copper. The estimate is based on a combined metal cut-off of $30/tonne.
The previous resource estimate, published on 26 July 2006, mentions a total of 3.8 million tonnes at 1.76 g/t gold, 82 g/t silver, and 0.56% copper.
According to today’s release, the $30/tonne (circa 1.5g/t gold equivalent) cut-off is based on preliminary considerations of metallurgical recoveries and mining costs and at this stage is likely to represent an approximate economic cut-off.
The company hastens to add the Silver Hill deposit is still open to the north and east, suggesting continued drilling will further increase the estimated resource base. Also, as drilling progresses the value from gold compared to silver and copper appears to be increasing.
Investors seem rather lukewarm at this stage with Conquest Mining’s shares trading 1c higher at $0.82 a little before 12.30pm on Wednesday, March 07, 2007. However, trading volume is significantly higher than usual.