QGX cuts more oxide gold in Mongolia

A 15-hole drill program aimed at testing for strike extensions of the Central Valley zone of the Golden Hill prospect in Mongolia has returned more encouraging values for QGX (QGX-V).

The latest holes were designed to test the eastern extension of the gold-bearing gossans on the western end of the zone.

Results include:

  • Hole 20 — 3.1 grams gold per tonne over 16.4 metres (beginning 64 metres below surface);
  • Hole 21 — 2 grams gold over 20.2 metres (from 30 m);
  • Hole 22 — 1.4 grams over 40 metres (from 22.5 m);
  • Hole 16 — 4.2 grams over 12 metres (from 8.1 m); and
  • Hole 15 — 7.9 grams over 7.7 metres (from 61.4 m).

The intercepts are considered close to true thickness.

The holes were collared on a 3-km-long portion of the CVZ, which comprises part of a 7-km-long, east-west trending geophysical anomaly that remains open at both ends.

QGX says the results confirm that the source of the resistivity low is massive sulphide. QGX believes the gold- and silver-bearing, oxide represents the near-surface, weathered portion of an underlying pyrite-rich volcanogenic massive sulphide.

The depth to the top of the massive sulphides ranges from 98 to 170 metres, and runs up to a thickness of 53 metres. Gold and silver values generally run 0.2 and 0.4 grams per tonne, respectively.

The zone remains open down-dip and in both directions.

Hole 8 returned the best gold grade with an 11.85-metre section of schist between the sulphides running 10.5 grams gold.

QGX plans an electromagnetic survey aimed at defining massive sulphide occurrences as soon as possible. Drilling on the up-dip extension of the massive sulphide zone into the near-surface, oxidizing environment will follow.

The company has also retained AMEC to complete an economic scoping study of the Central Valley zone.

QGX can earn an 80% interest in the property by spending US$450,000 by 2005. It can then acquire the property outright by forking over another US$1 million.

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