CQT 0.00% 51.5¢ conquest mining limited

bring it home jt

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    I'm pretty new to this stock and have put together a handy summary from various sources - Conquest Mining NL (CQT) is a minerals exploration company focused on exploration for gold, silver and copper. CQT currently has two projects: Mount Carlton Gold-Silver-Copper Project and Collinsville Copper-Gold Project.

    Mount Carlton Gold-Silver-Copper Project:
    The Mount Carlton Gold-Silver-Copper Project consists of 18 tenements (12 approved and 6 pending), covering 6,195 sq kms. A 20,000 metre drilling program at the Silver Hill prospect commenced in January 2007 during the wet season, and has made progress with 4,181m in 36 RC holes (HC07RC161 to 196), and 974m HQ Diamond Core in 9 holes (HC07RCD137-142, 150-151 and 156).

    This follows the 20,000 metres completed in the 2006 calendar year. The new program aims to expand the resources already identified with drilling along strike to the east and north of the deposit. Conquest is also planning to explore areas surrounding its tenements at Mt Carlton, Queensland, over a three year period with the intent of identifying intrusive mineralised systems capable of supporting large-scale mining operations. Recent results are consistent with previous drill results and provide some confidence that the full potential of the current tenements could well be significantly more than current figures show.

    Based on a recent analysis of the Silver Hill prospect by independent consultants Hellman & Schofield Pty Ltd the Mt Carlton Project has had an increase of its total combined Indicated and Inferred Resource to 12.6 million tonnes. This is a large upward increment given that a previous resource estimate in 2006 reported 6.6 million tonnes of total resource, including the exciting Silver Hill prospect.

    The results of Conquest’s 20,000 metre drilling program during 2006 at the Silver Hill prospect came back “spectacular”, significantly extending the target gold and silver deposits of the Mt Carlton Project.
    Preliminary pit optimisation modelling was undertaken by Australian Mine Design and Development Pty Ltd (AMDD). AMDD generated an optimal pit shell for the Silver Hill prospect with an extractable resource of 10.03 million tonnes @ 2.09 g/t gold, 35 g/t silver, and 0.30% copper.

    Conquest has completed construction of a new campsite which is now ready for occupancy. The campsite will provide accommodation units for a larger workforce and also provide state-of-the art satellite communications. This will generate efficiencies not previously available to on-site personnel and allow the Company to continue its work program uninterrupted, regardless of seasonal weather conditions.

    Excessive demand coupled with a floundering supply for global commodities has seen a surge in prices across the board. Gold and Silver prices are at a 23-year high given strong demand and a buoyant market. Current price levels are forecasted to be sustained for the next five years. The positive results from drilling at the Mt Carlton Project represent an exciting prospect for Conquest to extend its gold and silver deposit targets.

    A quick loose valuation based on the preliminary pit optimisation model at today's metals prices:
    10.03 million tonnes @ 2.09 g/t gold, 35 g/t silver, and 0.30% copper.
    20,962.7 tonnes gold (739,354 ozs) in situ value @ $650 = $USD489,580,100
    351,050 tonnes silver (12,381,533 oz) in situ value @ = $USD154,521,532
    30,090 t copper (66,318,360 lbs) in situ value @$3.6/lb = $USD238,746,096
    Total combined in situ value $USD882,847,728 ($AUD1,024,103,364)
    Current market cap is $AUD185m = c18% of in situ resource value (probably about right). But makes no account of the further upside that an expanded resource will provide or further increases in the price of gold and silver which many see as the likely strong performers in the metals market in the coming years.

    Collinsville Copper-Gold Project:
    CQT has expanded its exploration repertoire in Queensland to include porphyry copper-gold mineralisation and polymetallic skarn mineralisation hosted within arc terranes east and west of Mt Carlton. Conquest will explore areas within 100 km of its exploration headquarters in Collinsville over a three year period with the intent of identifying intrusive mineralised systems capable of supporting large-scale mining operations.

    We already have a great resource and this is only set to get bigger - all the ducks are beginning to line up. Anything around or just below 80c is great value for this stock I think. I'mlong a good few at this stage and pleased to be set. I feel this stock will be one of the better performers this year.

    Each to his own but not the time to depart for me - I think it is starting to look more interesting with each announcement.
 
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