QGX Commences Drilling at the Copper Ridge Prospect, Golden Hills, Mongolia
Tuesday, September 4th, 2007
QGX Ltd. has announced that exploration drilling is now underway at the Copper Ridge massive sulphide prospect, located approximately 3 km from the Central Valley Zone (â€œCVZâ€) copper-gold-silver massive sulphide deposit at Golden Hills, western Mongolia.
In 2006, QGX conducted an airborne electromagnetic survey over Golden Hills which delineated several prospects, including Copper Ridge (see press releases of March 3 and December 5, 2006). This year a ground gravity survey at Copper Ridge measured a gravity high coincident with the airborne EM anomaly, providing additional support that the source of the airborne EM anomaly may be massive sulphide. Nearby, two holes drilled in 2004 cut narrow widths of sulphide lenses and stringers containing significant zinc and gold values (e.g., 5.25 m containing 2.67% Zn and 0.55 g/t Au and 7.50 m containing 0.31% Zn and 0.13 g/t Au). Based on the location of the interpreted source of the airborne EM and gravity anomalies relative to the drill-hole intercepts, QGX believes that the two holes drilled in the past cut the fringe of the system. The drill hole now underway is collared approximately 200 m to the southwest of the previous holes and is desi gned to test the core of the airborne EM and gravity anomalies at a vertical depth of approximately 270 m.
Paul Zweng, President and CEO of QGX Ltd., commented as follows:
â€œWe are excited to begin a new exploration campaign at Golden Hills where we have enjoyed considerable success in the past drilling for massive sulphide. The Copper Ridge prospect looks promising and holds the potential to deliver additional tonnes to the CVZ deposit located only three km away. If this potential is realized, then Copper Ridge could either increase the size of the CVZ project or extend its life. The potential for synergies between these two is clearly high.â€
QGX announced on April 26th the filing on SEDAR of the NI 43-101 compliant preliminary economic assessment regarding the development of the Companyâ€™s 80%-owned copper-gold-silver resource at the CVZ. 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).