QGX Ltd.

QGX Ltd.

October 13, 2005 17:06 ET

QGX's Golden Hills Receives Positive Metallurgical Test Results for Cu-Au-Ag Massive Sulphide and Au-Ag High-Grade Quartz-Telluride Veins

WATERDOWN, ONTARIO--(CCNMatthews - Oct. 13, 2005) -

Cu-Au-Ag Massive Sulphide Yields High Copper Recoveries and Commercial Concentrate Grades of 31% and 25% from Supergene and Hypogene Zones, Respectively

QGX Ltd. (TSX:QGX) is pleased to announce that AMEC Americas Limited ("AMEC") has delivered metallurgical test results for massive sulphide (copper-gold-silver) and high-grade quartz-telluride vein (gold-silver) samples from the Central Valley Zone ("CVZ") at Golden Hills, western Mongolia.

Highlights of the preliminary batch test work include the following results:

- Supergene massive sulfide (Cu, Au, Ag):
-- High copper (94.3%) yielding a cleaner concentrate grade of 31.1% copper. Gold and silver recoveries are 58% and 77%.
- Hypogene massive sulfide (Cu, Au, Ag):
-- High copper (90.1%) recoveries yielding a cleaner concentrate grade of 25.3% copper. Gold and silver recoveries are 29% and 36%, respectively, and may reflect losses in depressed pyrite.
- HGQT vein (Au, Ag):
-- High gold (93-97%) and silver (80-97%) recoveries yielding a concentrate grade of 330 g/t gold and 247 g/t silver. The gross concentrate value for just gold is about US$4,800 per tonne (without silver credit) at a US$400/oz gold price.

As a result of this work, AMEC now believes that the technology for processing each of the three ore types is well constrained and that the project should be advanced to a pre-feasibility level.

David Anderson, CEO of QGX, commented as follows:

"These results, in conjunction with the positive metallurgical results from the oxide/gossan (see press release of Feb 10th 2004), represent a major step forward in the development of the Central Valley Zone. Since our initial discovery in 2002, we have identified and quantified a mineral resource, and now we are demonstrating the ability to process the ore into saleable products.

AMEC has presented QGX with a list of follow-up work for additional metallurgical testing related to the massive sulphide and high-grade quartz-telluride veins. In addition to this work, we are currently collecting samples to initiate column tests for the gold-silver oxide ores. We hope to begin this work during the fourth quarter."

About Golden Hills

The CVZ of the Golden Hills property in western Mongolia contains three ore types: gold-silver in oxide ("gossan"), copper-gold-silver in massive sulphide, and gold-silver in high-grade quartz-telluride veins. On February 28, 2005, QGX announced that it had completed an independent 43-101 resource estimate indicating that the contained metal aggregated in the three ore types summed to 408,501 oz gold, 3.6 million oz silver and 385 million lb copper on a measured and indicated basis and 693,000 oz gold, 3.3 million oz silver and 270 million lbs copper on an inferred basis. A copy of that report was filed on SEDAR on April 1, 2005.

Metallurgical Studies

In May of 2005, QGX collected three composite core samples (each 25-35 kg) for metallurgical testing from the two ore-types mentioned above. QGX sent these samples to Process Research Associates Ltd. (PRA) in Vancouver, British Columbia, where the laboratory studies were completed under the supervision of AMEC, Vancouver.

PRA used standard mineral processing techniques to determine mineralogy, 34-element ICP chemical analysis, Bond grinding index, bottle-roll cyanidation tests, gravity recovery testing, and flotation testing.

The copper-gold-silver massive sulphide was sampled as two separate and distinctive zones on the basis of mineralogy and grade: (1) a supergene massive sulphide sample containing both supergene and primary copper minerals and (2) a primary massive sulphide sample containing only primary copper minerals. The copper, gold and silver grades of the supergene sample are more than twice as high as those of the hypogene sample.

A copy of the AMEC report containing the description of the samples and their metallurgical test results can be obtained at QGX's website at www.qgxgold.com.

Mr. David Anderson, President/CEO of QGX Ltd., is the Qualified Person as defined by NI 43-101, and has reviewed and verified the results presented in this press release.

About QGX

QGX is a Canadian-based company that has been exploring for mineral deposits in Mongolia since 1994. The Company holds a large area of exploration licenses throughout Mongolia. The Company's most advanced property is the Golden Hills prospect in western Mongolia. QGX has filed an independent NI 43-101 report outlining a resource containing approximately 3.3 million gold-equivalent ounces at the Central Valley Zone of Golden Hills (measured, indicated and inferred). Barrick Gold Corp. holds a 9.4% equity interest in QGX as part of a strategic relationship between the companies.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • QGX Ltd.
    David Anderson
    (905) 689-9442
    QGX Ltd.
    Paul Zweng
    (925) 855-0505
    Website: www.qgxgold.com