Conquest expands portfolio

Junior Conquest Resources (YQR-V) has expanded its Zimbabwean gold portfolio by acquiring the Babs and Beehive properties.

The US$1.5-million acquisition was financed by $2.6 million worth of convertible debentures, leaving the company with $250,000 in working capital. The debentures, which carry interest at 8% annually, mature in late 2005.

The Babs and Beehive mines saw periodic production between 1906 and 1984. In 1997 and 1998, London-listed African Gold spent a total of $4.5 million on both mines to resume production in the following year, only to close both nine months later, owing to low gold prices and the collapse of Zimbabwe’s economy.

Combined inferred resources are pegged at 360,000 tonnes averaging 5.7 grams gold per tonne. An additional 400,000 tonnes of lower-grade material may be amenable to open-pit, heap-leach methods.

The Beehive mine includes a 300-tonne-per-day carbon-in-leach plant. Conquest intends to use this as a central processing plant for Babs, Beehive and other projects it owns in the vicinity.

Conquest’s Zimbabwean portfolio now covers 5 km of strike along the Eiffel Reef gold structure. The structure is famous for hosting the Cam & Motor mine, which produced 4 million oz. in its day, making it the country’s largest. Conquest also explores for gold in Tanzania.