Conquest Mining Limited: Acquires SAG Mill From Hillgrove Resourcs For A$6.95 Million For The Mt Carlton Project
09.08.2010 | ABN Newswire
10:12 AEST Aug 9, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.Perth, Australia (ABN Newswire) - The Board of Conquest Mining Limited (ASX: CQT) (PINK: CQMLF) is pleased to announce that it has agreed to acquire a new SAG mill from Hillgrove Resources Limited (ASX: HGO) (PINK: HLGVF) for a cash price of A$6.95 million. The purchase includes: Outotec 3.6MW Grate Discharge SAG Mill with major spares: main electric motor: girth gear; gearbox; pinion and pinion bearings; and Russell (RME) 7-Axis Mill Re-lining Machine.
All equipment is new, complete and in original packing. The mill shell is still at Dorbyl works in South Africa and all other items are warehoused at Hillgrove's Kanmantoo project in South Australia.
The SAG mill and ancillary equipment were originally purchased by Hillgrove prior to Hillgrove's purchase of the process plant and associated equipment of the Lennard Shelf Pillara mine for use at its Kanmantoo project. As a result of that purchase, this SAG mill is now surplus to Hillgrove's requirements.
A review of the mill, conducted by specialist consultants on behalf of Conquest, has shown that it is ideally suited to Conquest's Mt Carlton project and is capable of achieving the expected design throughput rate and product size (800,000tpa with P80 of 106 micrometre).
Commenting on the acquisition, Conquest Executive Chairman, Jake Klein said:
'The acquisition represents a significant cost saving for the Mt Carlton project. The acquisition cost of A$6.95 million compares with an original procurement cost of A$9.1 milllion and the Mt Carlton definitive feasibility study capital cost estimate of A$8.7 million. The acquisition also secures what is ordinarily one of the longest lead-time items for a mining project.'
The acquisition cost will be funded from current cash reserves (A$56.1 million as at 30 June 2010) and is expected to be completed by mid September 2010.
About Conquest Mining Limited:
Conquest is an Australian based and listed mining company with a focus on activities in north Queensland. The company has a 100% interest in the Mt Carlton gold-silver-copper project, near Townsville, that is being advanced towards development. Work to optimise the project and a review of the proposed process flowsheet is underway.
Conquest is a growth oriented company that has the focus and ability to deliver a growth plan to achieve mid-tier market status and to take advantage of the benefits available to a company of this status. Conquest will seek to deliver this growth through successful development of its Mt Carlton project and by acting on consolidation opportunities in the relatively fragmented and poorly funded junior market sector.
Contact:
Jake Klein, Executive Chairman
Conquest Mining Limited
Tel: +61-411-422-474
www.conquestmining.com.au
