Mount Carlton Gold-Silver-Copper Project

Resource Potential

A maiden Ore Reserves Statement was prepared for Conquest Mining Limited by Australian Mine Design and Development Pty Ltd (AMDAD) in December 2009 for the Silver Hill gold-silver-copper Project. It deals with the ore resources for the Area 39 and V2 zones as shown in the map at Mt Carlton in North Queensland. All of the reserves are for extraction by open pit mining.

The tonnes and grades are stated to a certain number of significant digits reflecting the confidence of the estimate. Since each number and total is rounded individually, the columns and rows may not show exact sums or weighted averages of the reported tonnes and grades.

Pit Locations


December 2009 Silver Hill project Ore Reserves

Category 
Volume(bcm)
Tonnes(t)
Grade
(g/t Au)
Grade (g/t Ag)
Grade (Cu%)
Metal Units Oz Au  
Metal Units
Oz Ag
Metal Units  T Cu  
Area 39







Proved 148,000 392,000 0.18 640 0.76 2,000 8,066,000 3,000
Probable 0 0


0 0 0
Total
A 39 Ore
148,000 392,000 0.17 640 0.76 2,000 8,066,000 3,000
Waste  2,290,000 5,714,000  




Ratio W:O 15.47 14.58





V2 Zone Pit







Proved 1,511,000 4,004,000 3.44 42 0.47 443,000 5,407,000 18,800
Probable 1,126,000 2,985,000 3.08 26 0.29 295,588 2,495,219 8,700
Total V2 Ore 2,637,000 6,988,000 3.29 35 0.39 738,588 7,902,219 27,500
Waste 16,038,000 36,212,000





Ratio W:O 6.08 5.18





Combined







Proved 1,659,000 4,395,000 3.15 95 0.49 445,000 13,424,000 21,500
Probable 1,126,000 2,985,000 3.08 26 0.29 295,588 2,495,219 8,700
Total Ore 2,785,000 7,380,000 3.12 67 0.41 740,588 15,919,219 30,200
Waste 18,327,000 41,926,000





Ratio
W:O
6.58 5.68





The metal represents 1.14 million gold equivalent ounces with a gold equivalent grade of 4.8 g/t.* 

October 2009 Total Resources V2 plus Area 39

 October 2009 Tonnes (Million)
Gold
g/t
Silver
g/t
Copper
%

Gold
koz
Silver
koz
Copper Tonnes
Measured
Indicated
11.1
13.2
1.72
1.60
70
25
0.32
0.25

610
679
24,764
10,474
35,600
32,700
Meas + Ind 24.2 1.65 45 0.28
1,289 35,238 68,300
Inferred 1.5 1.67 30 0.20
79 1,417 2,900
 Total  25.7  1.65 44   0.28
1,368 36,655 71,200

October 2009 V2 Area and Area 39 (Measured + Indicated + Inferred categories)  

Area
>$A 20/t*
Tonnes
(Million)
Gold
g/t
Silver
g/t
Copper
%
Gold
koz 
Silver
koz
Copper
Tonnes
Area 39
V2
1.9
23.8
0.20
1.77
273
26
0.28
0.28
12
1,355
16,541
20,114
5,200
66,000
Total 25.7 1.65 44 0.28 1,368 36,655 71,200

*Resources reported using a cutoff A$ 20/t

* Equivalent Metal prices, exchange rate and metallurgical recoveries used to calculate the gold equivalent ounces and the value (A$) variable used in the resource estimation were:

•     Gold – US$868/ounce and 80% recovery

•     Silver – US$12/ounce and 68% recovery

•     Copper – US$5597/tonne and 86% recovery

•     Exchange Rate – US$0.83 to A$1.00