QGX hits hot hole at Golden Hills

Results from the year’s first batch of eight holes on the Central Valley zone include the highest ever grades from QGX‘s (QGX-V) Golden Hills project in western Mongolia.

Hole no. 65, the first to test South zone’s massive sulphides, returned 7.4% copper, 0.7 gram gold and 9 grams silver per tonne over 33.5 metres, beginning at a downhole depth of 161.3 metres. A 24.6-metre interval beginning at 112 metres below surface yielded 9.7 grams gold and 88 grams silver from the upper Central Zone gossan.

QGX says the massive sulphide intersection in hole 65 confirms the presence of a second copper zone originally identified in mid-February after re-sampling of some holes sunk in late 2002 and early 2003. Those holes returned between 1.2% and 2.9% copper over widths of 9-26 metres. Hole no. 65 was collared about 100 metres east of the discovery holes.

Meanwhile, 300 metres to the north, drilling has extended the strike length of the North zone by 200 metres to the west. The zone remains open along strike and down dip, and now totals 400 metres in length.

Results form the North zone drilling include:

• Hole 61 — 25 metres (from 220 metres below surface) running 1.4% copper, 0.4 gram gold and 7 grams silver;
• Hole 62 — 27 metres (from 306 m) grading 1.1% copper, 0.2 gram gold and 5.2 grams silver;
• Hole 63 — 33.6 metres (from 164.5 m) averaging 1.1% copper, 0.4 gram gold and 4.5 grams silver;
• Hole 64 — 25.7 grams gold (from 303.4 m) of 1.3% copper, 0.21 gram gold, and 6.9 grams silver;
• Hole 66 – 6 metres (from 368.3 m) containing 1.9% copper and 0.3 gram gold.

Holes 59, 60, 63, and 66 also cut some high-grade gold-silver veins above and below the massive sulphide intersections, including a 1-metre section (from 229.5 m) of 43.3 grams gold and 89 grams silver in hole no. 63. The company says the veins are similar to those previously encountered on the eastern end of the North zone, which yielded up to 2 metres of 20.6 grams gold.

Core drilling continues to target the property’s massive sulphides, and the company has already sunk 10 holes of a planned 80-hole reverse-circulation drilling program aimed at the gossanous material.

QGX can earn an 80% interest in the Golden Hill lease by spending US$450,000 on the property by 2005. The company can acquire the project outright by paying US$1 million thereafter.

The news sent shares in QGX 16, or 3.5%, higher to $4.80 in afternoon trading in Toronto on April 6.