QGX Ltd.

QGX Ltd.

March 26, 2008 08:30 ET

QGX Receives Notification of Mining License for Golden Hills; QGX Files Pre-Feasibility Study for Baruun Naran on SEDAR

WATERDOWN, ONTARIO--(Marketwire - March 26, 2008) - QGX Ltd. (TSX:QGX) is pleased to announce that it has received confirmation that a mining license will be granted by the Government of Mongolia for the development of a mining operation at is copper-gold-silver project at Golden Hills, western Mongolia. The initial term of a mining license is 30 years. A mining license holder has the right to extend the term of the mining license two times for a period of 20 years each. QGX is in the process of concluding a pre-mining agreement with Minerals Resource Petroleum Authority to allow for the development of the mine.

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.

Pre-Feasibility Study for Baruun Naran Coking-Thermal Coal Project Filed on SEDAR

QGX posted today on SEDAR the NI 43-101 compliant pre-feasibility study ("PFS") prepared by Minarco-MineConsult (Sydney, Australia) for its coking-thermal coal project located at Baruun Naran in southern Mongolia (see press release of January 23rd). The PFS defines a conventional, truck-and-shovel, open-cut mining operation with coal processed on site using a wash plant to produce both coking and thermal coal products. The coal products are assumed to be delivered to markets by rail starting in 2011. The PFS concludes that the Project is financially robust with an estimated after-tax NPV @ 10% of US$499 million and a discounted cash flow-internal rate of return (DCF-IRR) of 33%.

Qualified Person

Mr. Tom Drown, Project Geologist of QGX Ltd. and a qualified person as defined by NI 43-101, has reviewed and approved the information contained in this release.

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 January 2008 QGX announced that 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