Mineral explorer Conquest Mining Ltd (ASX: CQT) has given the formal approval for the development of the Mt Carlton Project in North Queensland following the positive results achieved in the project's optimisation study.

First production of high-grade precious metals concentrates from Mt Carlton is expected to begin in mid-2012 subject to financing and permitting, with site works commencing in mid-2011.

The project will create approximately 150 new jobs during the construction period and 150 permanent new jobs during operations.

Total capital construction costs, including pre-stripping is estimated at $126.9 million supporting a minimum 12-year project life based on current ore reserves.

Conquest said it has sufficient funds to commence pre-development activities while project permits are progressed. As of December 14, 2010 the company had $39 million in available cash.

"With completion of the optimisation study, Conquest will now commence discussions with debt providers to gauge the level of interest and likely terms."

"Conquest is targeting a financing structure that will retain its unhedged status and not restrict its growth ambitions."

Conquest Executive Chairman, Jake Klein said today's announcement marks another significant milestone in the company's transition into a profitable and sustainable mid-tier Australian gold producer.

"The development of this long-life, low-cost project will bring considerable benefits to both Conquest shareholders and the local community for many years to come," he said.