CQT 0.00% 51.5¢ conquest mining limited


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    press Release - Conquest Mining Limited (CQT)

    Conquest Locks in Normandy Bow River Diamond Mine Ground

    Conquest Mining is pleased to announce the successful negotiation of an agreement to acquire 70 square kilometres of tenements which encompass the Bow River Alluvial Diamond Mine operated by Normandy Mining Limited from 1988 to 1996. The acquisition makes Conquest the second largest landholder in the Argyle region next to Rio Tinto.

    Conquest had been carefully analyzing the potential of the new ground in the course of the Company's exploration work currently being undertaken in the adjacent Argyle Diamond Mine region of Western Australia. A strategic review of the tenements identified compelling reasons to investigate the re-commencement of alluvial diamond mining at the Bow River Diamond Mine site, and Conquest moved quickly to secure the ground.

    Key factors considered by the company and which led to the decision to actively pursue the ground include:

    * The acquisition includes alluvial areas that Normandy had planned to explore and/or mine but had been prevented from doing so due to Native Title restrictions. Conquest is confident of now being able to resolve access to these areas.

    * Normandy produced 7.5 million carats of diamonds from 27 million tonnes of alluvial ore. Anticipated additional resources from the acquired tenements add to the 90 million tonnes potential resources on Conquest's exisiting tenements.

    * The Company's diamond specialist, Manfred Marx, is the former Bow River Diamond Mine exploration manager. His unique knowledge has enabled Conquest to develop an effective and efficient alluvial exploration strategy.

    * Current airborne gravity survey technology was not available to Normandy when it held the ground. This technology which Conquest plans to utilise has directly been responsible for the discovery of new diamond pipes and alluvial deposits in many parts of the world.

    * Higher diamond prices may allow for the mining of lower grade gravels which were not economic at the time of the previous mine closure.

    * Mine dumps from the Normandy operation will be tested as a potential resource.

    * The agreement includes the securement of an extensive mine and exploration database developed by Normandy.

    * Since acquiring the ground from Normandy in 1996 the previous tenement holders, Astro Bow River Mines Limited, had not undertaken any significant exploration on the tenements.

    Consulting Geologist Manfred Marx said, "This project has potential to produce alluvial diamonds at a low cost of production. We will be attempting to mirror what was achieved during the alluvial mining at the Bow River Mine".

    The Managing Director of Conquest Mr. John Terpu said, "This acquisition is a very big step forward for Conquest. We have identified a significant opportunity with great potential, invested the necessary resources, and then moved quickly to secure it".

    "Analysts believe there is an emerging supply /demand shortfall in the world supply of diamonds which is driving the growing international and domestic investor interest in Australian diamond companies evident in today's market."

    "Our aim is to ensure that the next Australian diamond mine is a Conquest Mining project".

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