QGX Ltd.

QGX Ltd.

October 21, 2005 06:00 ET

QGX Files Updated 43-101 Report for Golden Hills

WATERDOWN, ONTARIO--(CCNMatthews - Oct. 21, 2005) - QGX Ltd. (TSX:QGX) is pleased to announce that it has received an updated independent NI 43-101 report (the "Updated Technical Report") for its Golden Hills copper-gold-silver deposit in southern Mongolia. The Updated Technical Report is dated October 17, 2005 and was prepared by Chlumsky Armbrust & Meyer L.L.C. ("CAM"), of Denver, Colorado. CAM had also prepared a 43-101 report for the Golden Hills project in March of 2005 (the "Initial Technical Report") which contained a mineral resource estimate for the Central Valley Zone ("CVZ") on the Golden Hills property - see press release dated February 28, 2005.

The Updated Technical Report incorporates new data from the following sources: 1) eleven drill holes that were completed after the data close-off date for the Initial Technical Report; 2) metallurgical test work on sulphide samples completed in August 2005; and 3) an independent review of the CVZ and Golden Hills district.

The following statements are excerpts from the "Summary" section of the Updated Technical Report. A full copy of the Updated Technical Report has been filed on SEDAR.

"CAM has reviewed the available data on the Golden Hills project and the surrounding license block including geological reports by QGX and external consultants, drilling and analytical data, metallurgical reports and geophysical data. In addition CAM has built a resource model of the deposit incorporating the three ore types found in the CVZ, as outlined in the CAM report dated March 28, 2005. All of the data provided to CAM indicate that Golden Hills is a property of merit and that further evaluation and exploration is warranted.

CAM believes that the CVZ evaluation plan, the regional exploration plan and the unaudited cost figures provided to CAM by QGX are reasonable. However the exploration program must be carried out in a stepwise manner and must be continuously reevaluated as geophysics and drilling generates additional data."

David Anderson, CEO of QGX, commented as follows:

"I am pleased with CAM's independent designation of the Central Valley Zone as a "property of merit" and their recommendations in the report that chart the path forward to a prefeasibility decision. Metallurgical test work is ongoing at the Central Valley Zone and we are formulating an exploration plan to identify other potential deposits on our large land block at Golden Hills, as recommended by our independent consultants".

Patrick Redmond, Chief Geologist of QGX Ltd. and the Qualified Person for QGX as defined by NI 43-101, has reviewed the information contained 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