QGX Ltd.
TSX : QGX

QGX Ltd.

August 25, 2005 13:57 ET

QGX Ltd.: Shuteen Update

WATERDOWN, ONTARIO--(CCNMatthews - Aug. 25, 2005) - QGX LTD. (TSX:QGX) reports that the initial drill program conducted on the Shuteen copper-gold prospect in south-central Mongolia did not encounter any significant mineralization. Eight holes were drilled in the Black Hills prospect and one hole was drilled in the Southwest Breccias prospect (see press releases dated October 26, 2004 and November 23, 2004).

David Anderson, CEO of QGX Ltd., commented as follows:

"While we are disappointed in the results from our initial drill program at Shuteen, we believe that the property continues to hold potential for significant porphyry copper-gold and epithermal gold mineralization. There are still many prospective targets that remain untested on this large 220 sq. km license. We are currently assessing a number of alternatives to continue exploring the property. In the meantime, our primary focus is on our more advanced projects at Baruun Naran (coal), Golden Hills (gold/copper) and Undur Tsaagan (tungsten/molybdenum)."

About Shuteen

QGX holds an 80% interest in the Shuteen property. Genghis Holding Company Ltd., owned jointly by Ivanhoe Mines Ltd. and Jinshan Gold Mines Inc., retains a 20% carried interest in the property. The Shuteen prospect is located approximately 120 km north-northeast of Oyu Tolgoi and occurs within the Southern Mongolian mineralized belt hosting Oyu Tolgoi and the Kharmagtai/Ovoot Hyar properties. The Kharmagtai/Ovoot Hyar properties are subject to a separate joint venture between QGX and Ivanhoe Mines. The three licenses that form the Shuteen property cover approximately 220 sq. km.

David Anderson, CEO of QGX Ltd., is the Qualified Person, as defined by NI 43-101, responsible for the design and conduct of the exploration program at Shuteen.

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