Conquest Resources Limited

Conquest Resources Limited

March 17, 2010 16:01 ET

Conquest Further Clarifies Its Detour Lake Area Property Holdings

TORONTO, ONTARIO--(Marketwire - March 17, 2010) - Conquest Resources Limited (TSX VENTURE:CQR) wishes to clarify that it has not acquired any interest in the Detour Lake Gold Project being developed by Detour Gold Corp. Conquest has been exploring its own Detour Lake Area properties (Aurora and Sunday Lake) since 2002 through an option/joint venture agreement with Prism Resources Inc. and Boliden Westmin (Canada) Limited (subsequently acquired by Breakwater Resources). 

On March 15, 2010 Conquest announced 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. whereby Conquest agreed to satisfy an 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.

Conquest's Aurora and Sunday Lake properties are located immediately adjacent to the current mine development project being operated by Detour Gold Corp. and Conquest has been requested by Detour Gold Corp. to clarify that Conquest does not hold and has not acquired an interest in Detour Gold Corp.'s "Detour Lake Gold Project".

Detour Gold Corp.'s gold deposit lies approximately 500 metres to the north of Conquest's Aurora property, while Conquest's Sunday Lake property lies approximately 5 km to the east of Detour Gold's proposed open pit and is on the same Sunday Lake Deformation Zone.

The Proposed Site Plan for the Detour Lake Gold Project, published by Detour Gold Corp., indicates that a substantial part of the Mine Rock Stockpile from the proposed open pit mine is to be located on Conquest's Aurora Property Mining Leases. Detour Gold Corp. has recently made an offer to Conquest to acquire Conquest's Detour Lake gold properties, which offer Conquest considers inadequate and has not been accepted.

Conquest's properties comprise a substantial land position in the Detour Lake Area of northeastern Ontario. Conquest's properties are strategically located along five (5) kilometers of the prospective Sunday Lake Fault structure and also cover some sixteen (16) kilometers of east-west trending fault zones within the parallel Lower Detour Lake Deformation Zone. The Detour Lake Deformation Zone is part of the prolific Abitibi Greenstone Belt and displays classic Abitibi style mineralization along several east-west structural breaks in the immediate Detour Lake area. 

Conquest's land position at Detour Lake is made up of mining leases, mining claims and staked tie-on claims. The land packages are designated as the Aurora Property and the Sunday Lake Property.

Substantial exploration programs have been completed on the various land holdings during the past 25 years, with over $10 million in exploration expended on target development and diamond drilling over the entire project area. The majority of the historic work was carried out by Westmin Resources (now Boliden-Westmin (Canada) Limited subsequently acquired by Breakwater) and its former partner Placer Dome Inc., the then operator of the historic Detour Lake Gold Mine. Having optioned the properties from Boliden Conquest and its partners have expended approximately $2.3 million on its Detour Lake area properties since 2002.

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).

There are 83,713,637 shares of Conquest 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
    Conquest Resources Limited
    D. Brett Whitelaw
    Conquest Resources Limited
    John F. Kearney
    Conquest Resources Limited
    Robert Kinloch