Q-Gold Resources Ltd.

Q-Gold Resources Ltd.

March 26, 2008 09:00 ET

Q-Gold Options Crown King, Arizona Gold/ Silver Mines

FORT FRANCES, ONTARIO--(Marketwire - March 26, 2008) - Q-Gold Resources Ltd. (TSX VENTURE:QAU) (FRANKFURT:QX9) announced today that it has signed a 5-year purchase option agreement in an "arm's length" transaction with private parties effective March 24, 2008, to acquire six historic gold and silver mines in Crown King, Arizona. The Agreement enables the Company to acquire a 100% interest in mining and surface rights to nine (Federal) patented mining claims and three (Bureau of Land Management, U.S. Department of the Interior) mining claims (mining rights only) in the historic (1871) Tiger Mining District of Central Arizona. An additional patent was optioned for a 66 2/3% interest. The optioned properties are located in the Southern Bradshaw Mountains in Yavapai County, about 73 KM northwest of Phoenix and are all within an 8 kilometre radius of the small mountain town of Crown King. This District includes the historic Crown King gold and silver mining camp.

Q-Gold President and CEO, Bruce Carruthers, declared "I'm very pleased in this climate of high precious metals prices, to be able to have acquired a significant option position in this historic Arizona gold/ silver producing district at a very reasonable entry price. These properties fit in with our strategy of acquiring historic gold and silver mines with future production potential in politically stable areas such as Canada and the United States".

According to historical records contained in the archives of the Arizona Department of Mining and Minerals, at one time, as many as 2000 individual gold and silver mining operations were being conducted in the Bradshaw Mountains. Most of the gold and silver production took place in the periods 1870-1890 and 1903-1912. Some limited exploration was conducted on the company's optioned properties in the 1950's and 1990's. Sustained mineral production in the District was hampered by a fractured land position of small claims and by the dictates of two World Wars, where "non-essential (including gold and silver) mining was prohibited.

A series of north-easterly trending gold and silver-bearing quartz vein systems cross the Southern Bradshaw Mountain range. These shear-controlled quartz vein systems are contained in a tongue of pre-Cambrian Yavapai Schist, which is in contact with Mesozoic granitic rocks to the north and west. The vein systems are very continuous and can often be traced on surface for miles along strike and over 1,000 feet in vertical relief.

The properties contain six historic mines located on three of the District's principal gold and silver-bearing parallel vein systems, the Tiger, Gray Eagle and War Eagle/Gladiator veins. Included in the option package are the Tiger, Hammond-Riggs and Savoy (including the New Savoy) Mines. These three past-producing mines recorded sustained commercial production, the most important of which were the Tiger and the Savoy mines. The three other mines incurred development activities but no recorded production.

The Tiger and Hammond-Riggs Mines were primarily silver producers and are located on the Tiger vein. After a long production run, beginning in 1870, the Tiger mine was closed in 1917, as a result of World War I. The principal composit vein on this property is 20-feet wide. The ore shoots within this system had, according to a compilation of assays from underground sampling taken prior to 1938, an overall average width of 5-feet. The Savoy Mine, located on the gold-bearing Gray Eagle vein, incurred significant underground development but little recorded production since its discovery in the 1870's. The average width of ore mined at the Savoy Mine was reported to be 6-feet. Along with the Tiger and Hammond-Riggs Mines, the Savoy Mine remains a primary target for Q-Gold's future exploration efforts at Crown King.

Both the patents and mining claims are governed by the U.S. General Mining Act of 1872, as amended. The patents are "linear patents", whereby mining rights are extended to 100 feet on either side of the center "line" which directly overlies the veins. If ore veins or shoots are encountered underground in drifts (with the exception of "ends" of the drifts), rights can be automatically extended laterally from the drift sites until the ore body terminates, an advantage over conventional patents. No special permits are required for normal exploration activities on either the patents or the mining claims.

By their nature, the surface area of the patents is not large, but their linear makeup enables them to capture large portions of the vein systems, which can extend for miles on the surface. The optioned properties total approximately 64 acres (26 hectares), and include a total of almost 2 miles of strike length coverage on the three large vein systems.

Because of the fact that the bulk of the Crown King gold and silver production was effected from 1870-1912 (Arizona only became a state in 1912), historical data on ore production, grades, resources and reserves, is scarce and of unknown quality. It is not compliant with the requirements of NI 43-101 and is therefore unreliable. As a result, no verifiable ore reserve or mineral resource estimates can be provided for the properties at this time.

Terms of the Purchase Option Agreement are as follows:

Option Term 5 Years
Cash Payments
Upon Execution of Agreement US$ 56,000
Bi-Annually (during option term) US$ 25,000
Purchase Price (to execute Option) US$ 1,500,000 cash, and Q-Gold Shares
(value equal to US$ 1,500,000)

The Agreement is subject to the approval of the TSX Venture Exchange.

The Company has initiated geologic investigations on the Gray Eagle vein and one of its splays containing the "Rapid Transit Gold Mine", one of the three mines for which there is no recorded production. The program, will include mapping, sampling and assaying as a prelude to a spring and summer exploration program on the Crown King properties.

Richard C. Beard, P.Eng., Consulting Geologist, a Qualified Person as defined by NI 43-101, has reviewed and approved the technical disclosure contained in this press release.

About Q-Gold Resources Ltd.

Q-Gold is a Canadian-based mineral exploration company currently exploring for precious and base metals and platinum group elements on its extensive Ontario holdings in the historic Gold Camp at Mine Centre of 32,585 acres, including 5 historic gold mines, and 7,634 exploratory acres in the Rainy River Greenstone Belt.

For all future Q-Gold investor relations needs, investors are asked to visit the Q-Gold IR Hub at http://www.agoracom.com/IR/Q-Gold where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to email all questions and correspondence to QAU@agoracom.com where they can also request addition to the investor email list to receive all future press releases and updates in real time.

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially form the Company's expectations and projections.

The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.

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