QGX Ltd.

QGX Ltd.

September 07, 2005 06:00 ET

QGX's Golden Hills Part of Large VMS District with Excellent Potential for Additional Discoveries

WATERDOWN, ONTARIO--(CCNMatthews - Sept. 7, 2005) - QGX Ltd. (TSX:QGX) wishes to announce that Dr. Jim Franklin, a widely recognized expert in volcanogenic massive sulphide (VMS) deposits, recently conducted a review the of the company's Golden Hills deposit and surrounding exploration licenses. Dr. Franklin concluded that excellent potential exists for additional VMS discoveries within QGX's large land holdings in western Mongolia. Golden Hills was discovered by QGX in 2002. A little over two years later, QGX completed an independent 43-101 compliant resource estimate in early 2005, indicating that the first deposit discovered at Golden Hills, the Central Valley Zone (CVZ), contains 3.3 million equivalent gold oz (measured, indicated and inferred). See press release of February 28, 2005.

Summing up his findings, Dr. Franklin commented that "Overall, I'm optimistic that QGX has discovered a new VMS district, or perhaps a series of districts, in western Mongolia. At a minimum, such districts usually contain 3-10 deposits of more modest size (2-10 Mt) but with much higher grade. Much work remains and the potential for success is excellent."

Dr. Franklin's review supports QGX's long-held belief that Golden Hills is part of a larger VMS belt or district that has the potential to host many Cu-Au-Ag deposits. The geologic setting is analogous to Canada's Abitibi greenstone belt, which extends for over 1400 km and contains 89 deposits clustered in about 8 districts. QGX has staked over 5,500 sq. km of exploration licenses around Golden Hills in the past three years and now controls most of the belt. To date QGX's has focused exploration efforts in the Central Valley Zone of Golden Hills. The majority of the regional licenses remain unexplored.

Dr. Franklin is a consulting geologist and recognized massive sulphide specialist with over 30 years of experience in the study of mineral deposits and regional metallogeny. From 1983 until 1993 Franklin was director of the Geological Survey of Canada's Seafloor Minerals Program, researching and evaluating present day VMS systems currently forming on the ocean floor. Dr. Franklin has published more than 115 papers on mineral deposits and is currently senior author of a summary paper on VMS deposits for the Society of Economic Geologists' 100th Anniversary Volume.

Dr. Franklin's visited Golden Hills in June 2005 and his one-week examination of Golden Hills included an extensive examination of diamond drill core, geochemical and assay data and local and regional geology. Exceptional access and exposure of the ore-hosting stratigraphy around Golden Hills enabled several key traverses from the footwall of the VMS system through the deposit and into the hanging wall rocks.

QGX has initiated a review of the regional geology to determine the most prospective areas of the Shuvuun formation, the host for the Golden Hills deposit. In addition the company is examining options for the regional exploration of the Golden Hills district.

Metallurgical test work on CVZ ore samples that began earlier this year (see press release of April 26, 2005) has now been completed and QGX expects to report results in the coming weeks.

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
    (905) 689-9442
    QGX Ltd.
    Paul Zweng
    (925) 855-0505
    Website: www.qgxgold.com