QGX Ltd.
TSX : QGX

QGX Ltd.

September 28, 2005 11:05 ET

QGX Extends Metallurgical Grade Seams 'M' And 'T' Along Strike at Baruun Naran

WATERDOWN, ONTARIO--(CCNMatthews - Sept. 28, 2005) -



Multiple intercepts of Seam "M" range from 14.1 to 26.1 m
(estimated true thickness)

BN05033 intercepts 26.1 m seam
BN05037 intercepts 14.1 m seam
BN05039 intercepts 19.3 m seam
BN05042 intercepts 22.3 m seam
BN05044 intercepts 23.2 m seam

Multiple intercepts of Seam "T" range from 9.1 to 20.7 m
(estimated true thickness)

BN05034 intercepts 16.7 m seam
BN05035 intercepts 20.7 m seam
BN05038 intercepts 11.1 m seam
BN05041 intercepts 9.1 m seam


QGX Ltd. (TSX:QGX) is pleased to announce that nine holes drilled along strike have cut 9.1 to 26.1-m-thick intercepts of coal in Seams "M" and "T". Both of these seams have returned metallurgical grade coal in previous laboratory tests. These are the first holes of a delineation-drilling program designed to determine the "on-strike" extent of the coal seams along the southern limb of the Baruun Naran syncline. The holes confirm a minimum strike distance of 1,200 m for Seam "M" and 1,400 m for Seam "T". Both seams are open along strike to the east and the west where they are currently being drilled.

In addition to Seams "M" and "T", these same nine holes also drilled eleven 5 to less than 10-m-thick coal intercepts. Hole BN05045 cut a 5-m-thick seam and three 6-m-thick seams. Two holes (BN05036 and -40) drilled on the southern portion of Section 37,200E cut three 5-m-thick seams and two 7-m-thick seams.

A drill-hole location map is available on our website at www.qgxgold.com in the "Key Properties-Baruun Naran" section. Please see Table 1 below for a summary of the drill-hole results for BN05033-45.

David Anderson, CEO of QGX, commented as follows:

"The step-out drilling along the southern limb is yielding encouraging results. We are consistently cutting thick intercepts of Seams "M" and "T" as well as a number of other seams that range in thickness from 5 to just under 10 m. The continuity of the coal is a function of the well-behaved geology and gives us the confidence to drill these seams at a 300-m spacing along strike.

We are now concurrently drilling the northern limb of Seams "M" and "T" where we hope to find equally thick seams of coal. Our goal is to find a sufficient tonnage of coal to support a possible open-pit coal mine."

Note: No laboratory results for the coal intercepts presented in Table 1 have been completed to date. Therefore definitive statements regarding the coal rank or properties for these intercepts cannot be made at this time.



Table 1. Drill Results for BN05033 through BN05045,
Baruun Naran, Mongolia

Measured Estimated True
Interval Thickness Thickness (1,2)
---------------- --------------- ----------------
Net Net
Drill-Hole Drill Seam Coal Seam Coal
Number Type From To (m) (m) (m) (m)
---------------------------------------------------------------------
BN05033 RC 43.20 49.60 6.40 5.90 6.01 5.54
and RC 114.50 142.25 27.75 24.33 26.08 22.86

BN05034 PCD 67.70 72.80 5.10 2.60 5.02 2.56
and PCD 74.60 80.30 5.70 3.90 5.61 3.84
and PCD 104.00 120.80 16.80 14.70 16.74 14.64

BN05035 PCD 50.00 58.30 8.30 6.80 7.80 6.39
and PCD 68.40 92.30 23.90 20.50 20.70 17.75

BN05036 PCD 34.40 39.80 5.40 3.20 3.47 2.06
and " 42.80 54.00 11.20 6.20 7.20 3.99
and " 68.50 77.20 8.70 6.50 5.59 4.18
and " 82.30 94.40 12.10 9.50 7.78 6.11
and " 96.50 101.70 5.20 4.90 3.34 3.15
and " 107.30 115.20 7.90 6.80 5.08 4.37
and " 121.90 125.90 4.00 4.00 2.57 2.57
and " 128.50 132.80 4.30 4.30 2.76 2.76
and " 140.40 148.50 8.10 5.90 5.21 3.79

BN05037 PCD 87.40 103.70 16.30 15.40 14.12 13.34

BN05038 PCD 41.60 52.70 11.10 8.20 9.61 7.10
and " 56.80 64.00 7.20 5.00 6.24 4.33
and " 93.50 106.30 12.80 10.50 11.09 9.09
and " 135.00 139.40 4.40 3.80 3.81 3.29

BN05039 C 36.70 41.10 4.40 4.40 4.13 4.13
and " 95.90 116.40 20.50 18.40 19.26 17.29

BN05040 PCD/C 26.40 30.00 3.60 3.60 3.38 3.38
and " 38.40 42.40 4.00 2.80 3.76 2.63

BN05041 PCD 175.70 181.60 5.90 4.80 4.83 3.93
and " 184.80 190.70 5.90 5.50 4.83 4.51
and " 200.40 211.50 11.10 10.80 9.09 8.85

BN05042 PCD 37.51 46.61 9.10 8.24 8.55 7.74
and " 101.39 125.13 23.74 21.81 22.31 20.49
and " 145.20 148.00 2.80 2.80 2.63 2.63
and " 218.10 225.30 7.20 7.20 6.77 6.77

BN05043 No significant coal seam intercept

BN05044 PCD 40.40 43.20 2.80 2.80 2.63 2.63
and " 79.70 85.10 5.40 4.90 5.07 4.60
and " 121.90 128.20 6.30 5.90 5.92 5.54
and " 202.80 227.50 24.70 24.08 23.21 22.63
and " 243.30 248.70 5.40 4.10 5.07 3.85
and " 287.60 291.70 4.10 3.60 3.85 3.38
and " 295.20 298.80 3.60 3.10 3.38 2.91
BN05045 PCD/C 44.92 47.84 2.92 2.92 2.74 2.74
and " 141.60 151.10 9.50 4.30 8.93 4.04
and " 164.30 168.00 3.70 3.70 3.48 3.48
and " 206.10 209.70 3.60 2.90 3.38 2.73
and " 214.90 221.00 6.10 5.00 5.73 4.70
and " 223.00 230.10 7.10 5.50 6.67 5.17
and " 234.80 237.80 3.00 3.00 2.82 2.82
and " 240.00 242.40 2.40 2.40 2.26 2.26
and " 245.70 252.50 6.80 6.20 6.39 5.83
and " 255.30 259.00 3.70 3.70 3.48 3.48
and " 263.70 270.60 6.90 5.30 6.48 4.98
and " 272.00 276.30 4.30 2.90 4.04 2.73

Footnote 1: Calculated from measured (apparent) seam thickness and
measured (apparent) net-coal thickness using estimated
seam attitude (dip) and angle of bore hole. Seam attitude
values are estimates based on current understanding of
sub-surface geology and structure.
Footnote 2: Coal seams listed in Table 1 are based on a 2-m cutoff,
estimated true thickness.
Hole-Type Abbreviations: C= Core; PCD = Poly-crystalline diamond;
RC = Reverse circulation;

Table 2. Location and Orientation of BN05033 through BN05045

Local Grid UTM Coordinates
---------------------- --------------------
Drill-Hole
Number Easting Northing Easting Northing
-------------------------------------------------------

BN05033 36900 30524 519482 4828471
BN05034 33450 30298 516450 4826808
BN05035 33300 30250 516337 4826697
BN05036 37200 30098 519934 4828211
BN05037 36600 30399 519263 4828231
BN05038 32999 30223 516074 4826550
BN05039 36300 30320 519024 4828032
BN05040 37197 30098 519931 4828210
BN05041 33300 30340 516297 4826783
BN05042 36000 30234 518789 4827828
BN05043 35700 30090 518578 4827570
BN05044 36596 30531 519204 4828349
BN05045 35400 30140 518285 4827489

Local Grid UTM
---------------------- --------------------
Drill-Hole Elevation Azimuth Azimuth Plunge
Number (masl) (degrees) (degrees) (degrees)
-------------------------------------------------------

BN05033 1589 180 155 -60
BN05034 1568 180 155 -55
BN05035 1566 180 155 -55
BN05036 1584 180 0 -90
BN05037 1587 180 155 -60
BN05038 1563 180 155 -55
BN05039 1584 180 155 -55
BN05040 1584 180 155 -60
BN05041 1568 180 155 -70
BN05042 1581 180 155 -55
BN05043 1575 180 155 -60
BN05044 1589 180 155 -60
BN05045 1576 180 155 -55


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. Norwest Corporation (Salt Lake City) has reviewed and approved the two "measured thickness" columns contained in Table 1. QGX has calculated the two "estimated true thickness" columns contained in Table 1. QGX has engaged Norwest to provide consulting services regarding the exploration and evaluation of the Baruun Naran coal deposit. Norwest has extensive coal experience in Mongolia including completing a feasibility study of the Tavan Tolgoi coal deposit for the Mongolian Ministry of Infrastructure and Development, providing advisory services to the operating coal mines at Shivee Ovoo and Bagaa Nuur, and overseeing coal exploration programs in Mongolia for other multi-national mining and exploration companies.

QGX has retained the Mineral Services Division of SGS North America, Inc. (Denver, Colorado) to perform laboratory analyses of coal samples from the Baruun Naran exploration program.

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 9.5% 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
    CEO
    (905) 689-9442
    or
    QGX Ltd.
    Paul Zweng
    COO
    (925) 855-0505
    Website: www.qgxgold.com