The Central Valley zone contains three types of mineralization: a gold-silver-bearing oxide overlying; copper-gold-silver massive sulphides; and sulphide-bearing gold-silver quartz-carbonate veins.
Highlights from the south massive sulphide zone include:
— 11.8 metres grading 2.2% copper and 0.5 gram gold per tonne, plus 10.4 metres of 1.8% copper and 0.6 gram gold;
— 21.9 metres of 2.2% copper and 0.5 gram gold; and
— 21.2 metres of 1.8% copper and 0.1 gram gold.
The central gossan zone was intersected up-hole from the massive sulphide lenses at depths ranging from 31 to 159 metres. Highlights from two holes include: two 25-metre intervals grading 2.6 grams gold and 16 grams silver per tonne; and 1.6 grams gold and 9 grams silver.
High-grade gold in quartz carbonate veins was intersected both above and below the massive sulphides in four holes. One hole intersected 7.5 metres grading 37.6 grams gold and 7 grams silver, including 3.3 metres of 80 grams gold and 13 grams silver. Another cut 16.1 grams gold and 39 grams silver over 7.3 metres, including 1 metre of 29.3 grams gold and 77 grams silver. The highest assay overall was 127 grams gold and 234 grams silver over half a metre.
Within the gossan, the highest gold and silver grades are found adjacent to the massive-sulphide lenses. These lenses are generally intersected at least 100 metres below surface. Between lenses, gold is contained in limonite-coated fractures in schist. The geometry of the massive sulphide is complicated by faulting and folding.
Five holes failed to intersect significant mineralization.
Based on weak-to-moderate transient electromagnetic conductors that stem from the drilled area, the south zone has a possible strike length of 700 metres.
The Golden Hills project is held under an option agreement with Mongolian companies Quincunx BVI and Gurvan Gol Holdings, whereby QGX can earn an 80% interest in the property by spending US$450,000 before July 1, 2005. Subsequent to this, the company has the right to buy the remaining 20% interest for a predetermined price.
At the end of 2003, QGX had 31.7 million shares outstanding, or 35.4 million shares on a fully diluted basis.
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