Shares in QGX (QGX-T) were off 18, or 5.5%, at $3.12 in afternoon trading in Toronto on Aug. 25, after the company’s initial drill program on the Shuteen copper-gold prospect in Mongolia came up dry.
In all, eight holes tested the Black Hills prospect, with a single hole collared on the Southwest Breccias prospect.
The 5-sq.-km Black Hills prospect contains at least five areas of hydrothermal alteration and mineralization characterized by gradient-array chargeability and resistivity highs. Previous drilling by Czech and Mongolian workers returned up to 0.6% copper; none of the holes tested the chargeability and resistivity anomalies.
Previous trenching by Ivanhoe in the Southwest Breccia area yielded anomalous copper, gold, arsenic, zinc, and molybdenum. The mineralization is hosted within hydrothermal tourmaline breccia and tourmaline-replaced andesite and volcaniclastic sedimentary rocks.
“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,” said QGX CEO David Anderson in a prepared statement.
Anderson said a number of prospective targets remain untested on the 220-sq.-km license, and the company is assessing continued exploration on the property.
Shuteen is centred on a large, high-sulphidation lithocap and breccia pipe complex. The property’s alteration zone is characterized by its size, intensity of leaching, secondary enrichment possibilities and a strong molybdenum geochemical signature in leached hydrothermal breccias suggesting underlying porphyry mineralization.
QGX has an 80% stake in Shuteen, with Genghis Holding Co. owing the a 20% carried interest. Genghis Holding is jointly owned by Ivanhoe Mines (IVN-T) and Jinshan Gold Mines (JIN-V). Shuteen is situiated around 120 km north-northeast of Ivanhoe’s Oyu Tolgoi project.
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