GOLDEN KOPJE MINE

Conquest Resources has agreed to sell its interest in the Golden Kopje mine in Zimbabwe to Ontario-based Canzim Resources for $1, and has dropped its option on two exploration properties also in that country. The company cited increasing operational difficulties at the mine brought on by the worsening political climate, hyperinflationary economic pressures and artificially fixed currency exchange rates in Zimbabwe were behind this decision. In addition the company has taken a provision of CAD620,000 in its accounts for the year ended December 31, 2001, against the full carrying value of the Golden Kopje mine and against the Rama and Athem exploration projects.

Exclusive rights were granted to explore an additional 65,000 ha of the Chinhoyi greenstone belt and Elderado shear zone. A number of present and past producing mines are associated with this prominent deformation zone. Reconnaissance airborne magnetic surveys and reconnaissance soil geochemical surveys were to be followed up by more detailed work. A number of targets were identified and remained to be tested. The area was never been systematically explored using modern techniques and had the potential to host additional gold deposits in the 0.5 to 1.0 million ounce range. Drilling of 2 properties outlined increased mineralized material. Additional exploration was to be conducted on the mine site and on adjacent properties in 1996. As of the end of 1995, low ore grades and mill throughput were reported. In 1991, a feasibility study was completed for doubling of production from the Gilden Kopje Mine to 52,875 g (17,000 oz). Surface drilling confirmed the down plunge of the host Archean iron formation to a depth of 600 m with 5 of 6 boreholes intersecting ore grades over mineable widths. The expansion of the mine has been approved and was expected to cost US$6 million; shaft sinking, mine development and stope preparation was proceeding. The expansion was expected to be completed in early 1994.

Exclusive rights were granted to explore an additional 65,000 ha of the Chinhoyi greenstone belt and Elderado shear zone. A number of present and past producing mines are associated with this prominent deformation zone. Reconnaissance airborne magnetic surveys and reconnaissance soil geochemical surveys were to be followed up by more detailed work. A number of targets were identified and remained to be tested. The area was never been systematically explored using modern techniques and had the potential to host additional gold deposits in the 0.5 to 1.0 million ounce range. Drilling of 2 properties outlined increased mineralized material. Additional exploration was to be conducted on the mine site and on adjacent properties in 1996. As of the end of 1995, low ore grades and mill throughput were reported. In 1991, a feasibility study was completed for doubling of production from the Gilden Kopje Mine to 52,875 g (17,000 oz). Surface drilling confirmed the down plunge of the host Archean iron formation to a depth of 600 m with 5 of 6 boreholes intersecting ore grades over mineable widths. The expansion of the mine has been approved and was expected to cost US$6 million; shaft sinking, mine development and stope preparation was proceeding. The expansion was expected to be completed in early 1994.