QGX Ltd.
TSX : QGX

QGX Ltd.

August 09, 2005 08:00 ET

QGX Intersects High-Grade Gold and Silver in Veins and Oxide at Golden Hills, Mongolia: Additional Drilling Confirms Tested Portions of the Ore Resource Model

WATERDOWN, ONTARIO--(CCNMatthews - Aug. 9, 2005) - QGX Ltd. (TSX:QGX) is pleased to announce the final results for all outstanding drill holes at the Central Valley Zone (CVZ) at Golden Hills, western Mongolia. The results from these holes (including 101.3 g/t gold and 154 g/t Ag over 7.5 m in CVZ-118), in conjunction with the results reported on May 12, 2005 (13.4 g/t gold over 44.5 m in CVZ-111 and 11.0 g/t gold over 18.5 m in CVZ-112), demonstrate that the High-Grade Quartz Telluride (HGQT) vein zones exhibit good grade continuity in a down-dip (south-north) direction. These results also corroborate the tested portions of the CVZ 43-101 resource model for the HGQT veins completed in February 2005.

In addition, two holes intersected oxides ("gossan") above their respective HGQT targets, returning high-grade gold (7.0g/t gold and 67 g/t Ag over 13.5 m in CVZ-114 and 329.7 g/t gold over 20.6 m in CVZ-115). Although the results in CVZ-115 represent the highest reported grades yet in oxide, the entire mineralized interval has less than 56 percent recovery. Consequently, the assays in this one hole may not accurately represent the true gold content of the interval, disqualifying their use in future resource calculations.

Highlights include:

- 7.0 g/t gold and 67 g/t Ag over 13.5 m in CVZ-114 (Oxide)

- 5.2 g/t gold over 13.8 m in CVZ-116, including 14.8 g/t gold over 4.9 m (HGQT)

- 101.3 g/t gold and 154 g/t Ag over 7.5 m in CVZ-118, including 684.0 g/t gold and 1051 g/t Ag over 1.0 m and 189.2 g/t gold and 285 g/t Ag over 4.0 m (HGQT)

The seven drill holes reported herein are the remaining holes in a late winter-early spring program designed to test the geometry and continuity of the HGQT vein zones in a down-dip (south-north) direction. During the program, the drillers experienced challenges in maintaining precise directional control of the drill holes. The drill holes were designed to stay within an estimated 5 m wide corridor over lengths that often exceeded 300 m. The difficulty of testing the area of interest was also complicated by unanticipated changes in the geometry of the massive sulphide contact where the HGQT vein zones typically occur. Given these difficulties, several of the holes skirted the edges of their targets, returning limited information (e.g., CVZ-113, -114, -115B). In some cases (CVZ-117), the hole missed the target completely.

Despite these challenges, results from CVZ-113, -114 and -115B indicate that where the holes intersected the edges of the HGQT vein zones, anomalous, and in some cases moderate, grades of gold were encountered. The results from CVZ-116 and -118 in the current release (and those from the May 12, 2005 press release) indicate that where holes did cut the area of interest, high grades of gold over considerable width were found. These holes established the down-dip (south-north) continuity of the HGQT zones, providing a successful test of the 43-101 ore resource announced Feb 28, 2005.

QGX drilled two short trial holes (CVZ-119 and -120) using PQ and triple tube to determine if these drilling techniques could improve core recovery in the oxide ("gossan"). The goal was to obtain samples with high core recoveries ( greater than 95 percent) and to compare the grade in these samples against the previous results. Recoveries in the trial holes were extremely poor. The recovered material was not assayed and the program was discontinued.

Assays for the most recent drill holes are outlined in Table 1. Table 2 outlines the location and orientation of the reported drill holes.



Table 1. Drill Results for CVZ-113 through CVZ-120, Golden Hills,
Mongolia
------------------------------------------------------------------------
Interval
------------------------
Drill-Hole From To Length Au Ag Resource Type
Number (m) (m) (m) (g/t) (g/t)
------------------------------------------------------------------------
CVZ-113 207.20 213.20 6.00 0.71 7.0 Upper HGQT
------------------------------------------------------------------------
and 253.00 257.00 4.00 2.06 43.4 Upper HGQT
------------------------------------------------------------------------
CVZ-114 4.80 18.30 13.50 7.04 66.6 Oxide
------------------------------------------------------------------------
and 114.70 115.70 1.00 4.73 4.4 Lower HGQT
------------------------------------------------------------------------
and 176.00 176.90 0.90 5.55 13.9 Lower HGQT
------------------------------------------------------------------------
CVZ-115 Results considered unreliable given poor recovery Oxide
------------------------------------------------------------------------
CVZ-115B 143.50 148.50 5.00 0.81 1.9 Lower HGQT
------------------------------------------------------------------------
and 176.00 180.50 4.50 2.60 3.3 Lower HGQT
------------------------------------------------------------------------
including 179.50 180.50 1.00 9.26 11.7 Lower HGQT
------------------------------------------------------------------------
and 196.00 200.00 4.00 2.33 4.3 Lower HGQT
------------------------------------------------------------------------
and 233.50 235.50 2.00 5.35 8.7 Lower HGQT
------------------------------------------------------------------------
and 248.00 252.30 4.30 1.59 3.7 Lower HGQT
------------------------------------------------------------------------
CVZ-116 81.75 83.75 2.00 3.09 1.7 Upper HGQT
------------------------------------------------------------------------
and 88.20 102.00 13.80 5.16 3.5 Upper HGQT
------------------------------------------------------------------------
including 88.20 93.05 4.85 14.77 7.8 Upper HGQT
------------------------------------------------------------------------
including 94.05 98.00 3.95 1.04 2.4 Upper HGQT
------------------------------------------------------------------------
including 94.05 102.00 7.95 0.64 1.4 Upper HGQT
------------------------------------------------------------------------
and 138.40 140.30 1.90 0.74 2.7 Upper HGQT
------------------------------------------------------------------------
CVZ-117 No significant values - under shot target zone
------------------------------------------------------------------------
CVZ-118 133.00 140.50 7.50 101.33 153.7 Upper HGQT
------------------------------------------------------------------------
including 134.00 135.00 1.00 684.00 1051.0 Upper HGQT
------------------------------------------------------------------------
including 134.00 138.00 4.00 189.21 285.2 Upper HGQT
------------------------------------------------------------------------
and 144.50 148.50 4.00 0.62 4.4 Upper HGQT
------------------------------------------------------------------------
and 225.00 228.50 3.50 1.40 11.4 Massive Sulphide(1)
------------------------------------------------------------------------
and 233.50 248.80 15.30 0.74 6.5 Massive Sulphide(2)
------------------------------------------------------------------------
CVZ-119 Oxide samples not assayed Oxide
------------------------------------------------------------------------
CVZ-120 Oxide samples not assayed Oxide
------------------------------------------------------------------------
The thickness of the HGQT vein zones varies from 0.5 to greater than
10 m (see press release of December 12, 2004)
Footnote 1: Massive sulphide also contains 1.65% Cu
Footnote 2: Massive sulphide also contains 1.40% Cu


Table 2. Location & Orientation of Drill Holes CVZ-113 through CVZ-120
------------------------------------------------------------------------
Drill-Hole Section Northing Azimuth Inclination Length Elevation
Number (E) (N) (degrees) (degrees) (m) (masl)
------------------------------------------------------------------------
CVZ-113 10,194.19 5,373.03 359 -70.0 83.9 1865.30
------------------------------------------------------------------------
CVZ-114 10,189.99 5,321.54 359 -68.5 183.2 1858.44
------------------------------------------------------------------------
CVZ-115 10,190.09 5,326.95 358 -68.5 122.0 1859.16
------------------------------------------------------------------------
CVZ-115B 10,190.09 5,326.95 358 -68.5 309.4 1859.16
------------------------------------------------------------------------
CVZ-116 10,290.56 5,328.01 360 -56.5 205.2 1853.54
------------------------------------------------------------------------
CVZ-117 10,399.80 5,313.91 359 -68.0 146.3 1847.04
------------------------------------------------------------------------
CVZ-118 10,399.54 5,318.99 358 -68.0 257.2 1847.40
------------------------------------------------------------------------
CVZ-119 10,250.61 5,205.33 180 -50.0 37.5 1848.95
------------------------------------------------------------------------
CVZ-120 10,299.83 5,211.62 180 -60.0 35.0 1846.02
------------------------------------------------------------------------


David Anderson, President/CEO of QGX Ltd., is the Qualified Person as defined by NI 43-101, and has verified the results presented in this press release. SGS Mongolia in Ulaanbaatar, Mongolia, prepared the samples. Activation Labs (Actlabs) in Tucson, Arizona, performed all gold, silver and copper assays shown in Table 1. The Company maintains a QA-QC program designed by AMEC in the preparation, shipping and checking of all samples from the property.

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