Conquest Resources Limited
TSX VENTURE : CQR

Conquest Resources Limited

March 15, 2010 15:46 ET

Conquest Acquires 60% Interest in Detour Lake Gold Project

Issues 1,000,000 Shares to Breakwater

TORONTO, ONTARIO--(Marketwire - March 15, 2010) - Conquest Resources Limited (TSX VENTURE:CQR) is pleased to report that it has signed an Amending Agreement to an earlier Option Agreement with NVI Mining Ltd., an indirectly wholly-owned subsidiary of Breakwater Resources Ltd. and successor to Boliden Westmin (Canada) Limited, a signatory to the original agreement, (collectively "Breakwater") and with Prism Resources Inc. ("Prism") whereby Conquest will satisfy the outstanding payment obligation to Breakwater of $200,000 through the issuance to Breakwater of 1,000,000 common shares of Conquest and thereby complete the acquisition by Conquest of a 60% interest in the Aurora and Sunday Lake properties, located at Detour Lake, Ontario.

The issue of the shares to Breakwater is subject to regulatory approval.

Conquest also has the right to increase its interest in the Aurora and Sunday Lake properties to 100%, by spending a further $2,000,000 on exploration and development by December 31, 2012. Approximately $2,300,000 has already been expended as at December 31, 2009. Breakwater will retain a 2% net smelter royalty, and as part of the Agreement Conquest shall have the right to purchase half of the net smelter royalty interest (1%) for a consideration of $1,000,000. Prism retains a net profits interest equal to 7.5% of Conquest's net profit from the Aurora property.

Conquest's Aurora and Sunday Lake gold properties at Detour Lake total 88 square kilometers and cover portions of the Sunday Lake Deformation Zone and a substantial part of the parallel Lower Detour Lake Deformation Zone located respectively to the east and south of the Detour Lake project currently under development by Detour Gold Corp ("Detour Gold").

Detour Gold has reported an open pit reserve of 8.8 million ounces of gold contained within 238.6 million tonnes at a grade of 1.15 g/t gold and total measured and indicated resources of 445.9 million tonnes at 1.20 g/t gold.

Detour Gold's deposit lies approximately 500 metres to the north of Conquest's Aurora property, while Conquest's Sunday Lake property lies approximately five kilometers to the east of Detour Gold's proposed open pit and lies on the same Sunday Lake Deformation Zone. 

ABOUT THE COMPANY

Conquest is exploring several gold projects in Ontario. These include the Alexander Gold Project at Red Lake; the Aurora and Sunday Lake properties at Detour Lake; the King Bay Gold Project at Sturgeon Lake (60% interest); and the Smith Lake Gold Project at Missanabie. Conquest is currently undertaking a drilling program on its 100% owned Alexander Gold Project in Red Lake, Ontario (See Press Release dated February 25, 2010).

Following the issue of the shares to Breakwater, 83,713,637 shares of Conquest will be issued and outstanding.

This news release may include certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization, resources and reserves, exploration results, and future plans and objectives of Conquest, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Conquest's expectations are exploration risks detailed herein and from time to time in the filings made by Conquest with securities regulators.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

Contact Information

  • Conquest Resources Limited
    Terence N. McKillen
    President & CEO
    647-728-4126
    or
    Conquest Resources Limited
    D. Brett Whitelaw
    Vice-President
    604-662-8633
    or
    Conquest Resources Limited
    John F. Kearney
    Chairman
    416-362-6686
    or
    Conquest Resources Limited
    Robert Kinloch
    Director
    306-343-5799
    info@conquestresources.net
    www.conquestresources.net