QGX Ltd.

QGX Ltd.

March 28, 2008 08:30 ET

QGX Intersects Massive Sulphides 40 km Northwest of the Central Valley Zone at Golden Hills, Mongolia

Reconnaissance Drilling Confirms the Presence of Massive Sulphides in Two Localities

WATERDOWN, ONTARIO--(Marketwire - March 28, 2008) - QGX Ltd. (TSX:QGX) is pleased to announce the results of its 2007 reconnaissance three-hole drill program in which significant grades of gold, silver, copper, and zinc contained in massive sulphide were encountered in two airborne electromagnetic anomalies. These results provide evidence supporting Dr. Jim Franklin's prediction that the Golden Hills area may represent a new district spanning several tens of km and containing multiple massive sulphide deposits (see press release of September 7, 2005).

Highlights include:

Airborne Anomaly 67 (Drill-hole 67DH001):

- 0.89% Cu, 0.49% Pb, 0.19% Zn, 1.03 g/t Au, and 44.6 g/t Ag over 0.45m

Copper Ridge (Drill-hole CRDH003):

- Zone 1: 0.83% Cu, 7.21% Zn, 0.12 g/t Au, and 4.6 g/t Ag over 0.27 m

- Zone 2: 0.37% Cu, 3.56% Zn, 0.07 g/t Au, and 2.9 g/t Ag over 1.57 m

- Zone 3: 0.46% Cu, and 0.15 g/t Au over 2.50 m

- Zone 4: 0.74% Cu, 0.06 g/t Au, and 2.52 g/t Ag over 7.15 m

A third hole intersected barren karsted limestone at Airborne Anomaly 87.

Paul Zweng, President/Chief Executive Officer of QGX Ltd., commented as follows:

"We are pleased that two of the three electromagnetic, airborne anomalies drilled contain mineralization of interest associated with them. The results merit follow up drilling to determine if the massive sulphides tested increase in thickness off-hole. These targets are hosted in a geologic setting similar to the Central Valley Zone in the Golden Hills area. These early results reinforce Dr. Franklin's thesis of a district-wide occurrence of massive sulphide deposits, which potentially could be exciting for our Central Valley Zone Project. The Central Valley Zone contains approximately 20 million mt of copper-bearing massive sulphide. It is a significant deposit and would rank in the top ten Canadian deposits if it were located in Canada."

Drill-hole 67DH001 was collared at Airborne Anomaly 67, 40 km northwest of the Central Valley Zone (CVZ). A second drill hole, CRDH003, was collared 3.5 km southeast of the CVZ at the Copper Ridge prospect, where it cut four massive sulphide horizons ranging up to 7.15 m in core length.

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

Table 1. Drill Results for 67DH001, 87DH001, and CRDH003
Interval (m)
Drill-Hole ----------------------- Cu Pb Zn Au Ag
Number Prospect From To Length (%) (%) (%) (g/t) (g/t)
67DH001 Anomaly 67 184.20 184.65 0.45 0.89 0.4 0.19 1.03 44.6
CRDH003 Copper Ridge 207.73 208.00 0.27 0.83 Tr 7.21 0.12 4.6
CRDH003 Copper Ridge 256.20 257.77 1.57 0.37 Tr 3.56 0.07 2.9
CRDH003 Copper Ridge 288.20 290.70 2.50 0.46 Tr Tr 0.15 2.1
CRDH003 Copper Ridge 389.85 397.00 7.15 0.74 Tr 0.07 0.06 2.5
87DH001 Anomaly 87 No significant mineralization
Tr = trace

Table 2. Location & Orientation of Drill Holes 67DH001, 87DH001, and CRDH003
Section Northing Azimuth Inclination Length Elevation
Drill-Hole Number (UTM E) (UTM N) (degrees) (degrees) (m) (masl)
67DH001 629400 5332770 075 -60 277.4 1925
CRDH003 651296 5296385 030 -70 488.0 1800
87DH001 627925 5324250 060 -60 280.8 1865

Mr. Thomas J. Drown, project geologist for QGX Ltd., is the qualified person as defined by NI 43-101, and has verified the results presented in this press release. Activation Labs (Actlabs) in Ulaanbaatar, Mongolia, prepared the samples and 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 Golden Hills

QGX announced on April 26, 2007, the filing on SEDAR of the NI 43-101-compliant preliminary economic assessment regarding the development of the Company's 80%-owned copper-gold-silver resource at the Central Valley Zone at Golden Hills. The Study defines a two-stage development plan with a mine life of 15 years. The operation commences with open-pit mining of the gold-silver oxide resource followed by underground mining of the copper-gold-silver sulphide and high-grade quartz-telluride vein resource. The project is financially robust with an after-tax NPV (at 10% discount rate) of US$83 million and an IRR of 27% (100% equity basis) using long-term prices of $1.50/lb copper, $529/oz gold, and $9.08/oz silver.

About QGX

QGX is a Canadian-based company that has been exploring for mineral deposits in Mongolia since 1994. QGX's two most advanced properties are the Baruun Naran and the Golden Hills projects. In March 2008 QGX filed an independent 43-101 pre-feasibility study for Baruun Naran showed a net present value (discounted at 10%) of US$499 million on an after-tax basis. QGX announced in August 2007 an independent NI 43-101 resource for coking and thermal coal at Baruun Naran comprised of 93.3 Mt of measured and 159.6 Mt of indicated (252.9 Mt contained in measured and indicated) and 11.1 Mt of inferred resources. QGX filed in April 2007 an independent NI 43-101 report outlining a positive preliminary economic assessment for its copper-gold-silver project at Golden Hills. Barrick Gold Corp. holds an approximate 9% equity interest in QGX as part of a strategic relationship between the two companies.

This press release includes certain "forward-looking statements". All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization, results and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statement.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • QGX Ltd.
    David Anderson
    Executive Chairman
    (905) 689-9442
    QGX Ltd.
    Paul Zweng
    (925) 855-0505
    Website: www.qgxgold.com