QGX Commences Drilling at the Copper Ridge Prospect, Golden Hills, Mongolia
Tue Sep 4, 7:31 AM
ca.news.finance.yahoo.com
TSX - QGX
WATERDOWN, ON, Sept. 4 /CNW Telbec/ - QGX Ltd. (TSX: QGX.TO) is pleased to announce that exploration drilling is now underway at the Copper Ridge massive sulphide prospect, located approximately 3 km from the Central Valley Zone ("CVZ") copper-gold-silver massive sulphide deposit at Golden Hills, western Mongolia.
In 2006, QGX conducted an airborne electromagnetic survey over Golden Hills which delineated several prospects, including Copper Ridge (see press releases of March 3 and December 5, 2006). This year a ground gravity survey at Copper Ridge measured a gravity high coincident with the airborne EM anomaly, providing additional support that the source of the airborne EM anomaly may be massive sulphide. Nearby, two holes drilled in 2004 cut narrow widths of sulphide lenses and stringers containing significant zinc and gold values (e.g., 5.25 m containing 2.67% Zn and 0.55 g/t Au and 7.50 m containing 0.31% Zn and 0.13 g/t Au). Based on the location of the interpreted source of the airborne EM and gravity anomalies relative to the drill-hole intercepts, QGX believes that the two holes drilled in the past cut the fringe of the system. The drill hole now underway is collared approximately 200 m to the southwest of the previous holes and is designed to test the core of the airborne EM and gravity anomalies at a vertical depth of approximately 270 m.
Paul Zweng, President and CEO of QGX Ltd., commented as follows:
"We are excited to begin a new exploration campaign at Golden Hills where we have enjoyed considerable success in the past drilling for massive sulphide. The Copper Ridge prospect looks promising and holds the potential to deliver additional tonnes to the CVZ deposit located only three km away. If this potential is realized, then Copper Ridge could either increase the size of the CVZ project or extend its life. The potential for synergies between these two is clearly high."
QGX announced on April 26th the filing on SEDAR of the NI 43-101 compliant preliminary economic assessment regarding the development of the Company's 80%-owned copper-gold-silver resource at the CVZ. The study defines a two-stage development plan with a mine life of 15 years. The operation commences with open-pit mining of the gold-silver oxide resource followed by underground mining of the copper-gold-silver sulphide and high-grade quartz-telluride vein resource. The project is financially robust with an after-tax NPV (at 10% discount rate) of US$83 million and an IRR of 27% (100% equity basis).
Qualified Person
Mr. Tom Drown, Project Geologist of QGX Ltd. and a Qualified Person as defined by NI 43-101, has reviewed and approved the information contained in this release.
About QGX
QGX is a Canadian-based company that has been exploring for mineral deposits in Mongolia since 1994. QGX's two most advanced properties are the Baruun Naran and the Golden Hills projects. In July 2007 QGX announced that an independent 43-101 preliminary economic analysis for Baruun Naran showed a net present value (discounted at 10%) of US$481 million on an after-tax basis. QGX announced in August 2007 an independent NI 43-101 resource for coking and thermal coal at Baruun Naran comprised of 93.3 Mt of measured and 159.6 Mt of indicated (252.9 Mt contained in measured and indicated) and 11.1 Mt of inferred resources. QGX filed in April 2007 an independent NI 43-101 report outlining a positive preliminary economic assessment for its copper-gold-silver project at Golden Hills. Barrick Gold Corp. holds an approximate 9% equity interest in QGX as part of a strategic relationship between the two companies.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
This press release includes certain "forward-looking statements". All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization, results and future plans and objectives of the Company 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 statement.
Contacts
David Anderson
Executive Chairman
(905) 689-9442
Paul Zweng
President/CEO
(925) 855-0505 or visit our website at www.qgxgold.com
Renmark Financial Communications Inc.: John Boidman
jboidman@renmarkfinancial.com
Maurice Dagenais
mdagenais@renmarkfinancial.com
Media: Adam Ross
aross@renmarkfinancial.com
(514) 939-3989
Fax: (514) 939-3717
www.renmarkfinancial.com |
