QGX Ltd.
TSX : QGX

QGX Ltd.

September 30, 2005 14:14 ET

QGX Finds Tungsten and Molybdenum Grades at Undur Tsagaan Similar to Previous Russian/Mongolian Drill Holes

WATERDOWN, ONTARIO--(CCNMatthews - Sept. 30, 2005) -

Technical personnel relocated to the Baruun Naran coal deposit

QGX Ltd. (TSX:QGX) wishes to announce the completion of an eight drill-hole program at the Under Tsagaan tungsten-molybdenum deposit in NE Mongolia. The program was designed to test for a high-grade tungsten (WO3) and molybdenum (Mo) core within a large, low-grade, historical resource delineated by the Russians and Mongolians (see QGX press release dated April 18, 2005). The QGX drill holes yielded widths and grades of tungsten and molybdenum similar to the previous Russian/Mongolian drilling results.

David Anderson, CEO of QGX, commented as follows:

"While we are pleased to have intersected mineralization consistent with historical results, we did not meet our objective of identifying a high-grade core on the property. Drilling is currently halted at Undur Tsagaan while the company evaluates its options for the property. The staff from Undur Tsagaan has been relocated to the Baruun Naran coal project were drilling is ongoing."

Under Tsagaan is located approximately 300 km to the east of Ulaanbaatar. Molybdenite and tungsten mineralization occurs over a broad area measuring 1800-1900 m long by 600-800 m wide. Mineralization occurs as quartz-stockwork veins containing molybdenite, wolframite, scheelite, and coarse-grained muscovite hosted within Mesozoic granite and leuco-granite porphyry and Devonian schist and gabbro-diabase dikes and sills.

Table 1 below presents a summary of the drill-hole results for UT01-UT08, including a comparison between the Russian and QGX drill-hole results.



Table 1. Drill-hole results for UT-01 to UT08, Undur Tsagaan, Mongolia

-----------------------------------------------
Targets (from Russian data)
-----------------------------------------------
Hole Depth (m)
--------------- Interval
From To (m) %WO3 % Mo
-----------------------------------------------
UT-01 2 32 30 0.23 0.01
-----------------------------------------
80 140 60 0.13 0.03
-----------------------------------------------
UT-02 12 62 50 0.3 0.014
-----------------------------------------------
UT-03 12 24 12 0.18 0.040
-----------------------------------------
150 230 70 0.20 0.018
-----------------------------------------------
UT-03A 150 230 70 0.20 0.018
-----------------------------------------------
UT-04 30 100 70 0.15 0.01
-----------------------------------------
200 250 50 0.11 0.018
-----------------------------------------------
UT-05 45 135 90 0.15 0.02
-----------------------------------------------
UT-06 65 135 70 0.20 0.02
-----------------------------------------
220 270 50 0.16 0.03
-----------------------------------------------
UT-07 0 30 30 0.23 0.01
-----------------------------------------
90 140 50 0.21 0.02
-----------------------------------------------
UT-08 156 194 38 0.13 0.02
-----------------------------------------------
-----------------------------------------------


QGX drill-hole intersections
------------------------------------------------------------------------
Hole Depth (m) Depth (m)
--------------- Interval --------------- Interval
From To (m) %WO3 From To (m) % Mo
------------------------------------------------------------------------
UT-01 5.7 41 35.3 0.20 5.7 m 53 47.3 0.021
------------------------------------------------------------------
65 77 12 0.030
90 125 35 0.16 ---------------------------------
86 109 23 0.022
------------------------------------------------------------------
122 133 11 0.014
199 229 30 0.15 ---------------------------------
142 251.4 109.4 0.024
------------------------------------------------------------------------
UT-02 34 57 23 0.13 46 75 29 0.012
------------------------------------------------------------------------
UT-03 7 24 17 0.14 9.4 33 23.6 0.012
------------------------------------------------------------------
30 44 14 0.11
--------------------------------- 100 132 32 0.019
109 113 4 0.24
------------------------------------------------------------------
129 137 8 0.18
---------------------------------
152 171 19 0.16
--------------------------------- 137 220.3 83.3 0.053
198 203 5 0.37
---------------------------------
213 220.3 7.3 0.37
------------------------------------------------------------------------
UT-03A 165 177 12 0.17
---------------------------------
189 204 15 0.12
--------------------------------- 160.6 309 148.4 0.037
219 231 12 0.11
---------------------------------
273 279 6 0.17
------------------------------------------------------------------------
UT-04 29 44 15 0.13 14 44 30 0.016
------------------------------------------------------------------
66.2 74.2 8 0.19 108 123 15 0.019
------------------------------------------------------------------
85.8 111 25.2 0.13 136 190 54 0.026
------------------------------------------------------------------
151 157 6 0.13
--------------------------------- 199 326.1 127.1 0.038
299 305 6 0.13
------------------------------------------------------------------------
UT-05 11 38 27 0.015
56 97 41 0.15 ---------------------------------
50 167 117 0.017
------------------------------------------------------------------------
UT-06 50 56 6 0.11 4 95 91 0.020
------------------------------------------------------------------
145 151 6 0.12 107 136 29 0.019
------------------------------------------------------------------
178 190 12 0.18
---------------------------------
217 223 6 0.13 154 275.4 121.4 0.033
---------------------------------
232 264 32 0.11
------------------------------------------------------------------------
UT-07 18.5 24 5.5 0.30 6.8 33 26.2 0.028
------------------------------------------------------------------
78 84 6 0.018
135 146 11 0.17 ---------------------------------
135 154 19 0.016
------------------------------------------------------------------------
UT-08 2 14 12 0.16 32 42 10 0.020
------------------------------------------------------------------
69 77 8 0.14 51 60 9 0.033
------------------------------------------------------------------
98 131 33 0.15 69 89 20 0.016
------------------------------------------------------------------
149 173 24 0.11 98 155 57 0.017
------------------------------------------------------------------
197 209 12 0.16 167 227 60 0.023
------------------------------------------------------------------
263 269 6 0.13 245 263 18 0.012
------------------------------------------------------------------------
------------------------------------------------------------------------


(1) All holes are diamond (core) drill holes

Cavendish Analytical Laboratory Ltd. (Vancouver, British Columbia) performed all laboratory analyses of QGX drill-hole samples from the Undur Tsagaan exploration program.

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 9.5% 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