QGX soars in Mongolia (September 03, 2003)

Shares in junior gold explorer QGX (QGX-V) rocketed to an all-time high following the latest batch of exploration results from its Golden Hills prospect in western Mongolia.

Hole CVZ-40, collared on the newly discovered North zone, returned 31.5 metres running 3.4% copper, 0.8 gram gold and 20.1 grams silver per tonne, including 11.5 metres of 6% copper, 1 gram gold and 32.9 grams silver. In all, the hole encountered 131 metres of massive sulphide mineralization, the thickest such intersection at Golden Hills so far.

Meanwhile, trenching along strike of the North zone returned up to 5 grams gold across 10.9 metres. Work to extend the trench in both directions continues. Some 500 metres to the east, assay results from two pits that exposed North zone gossan are pending.

So far, trenching and pitting on the North zone have outlined a strike length of 510 metres; the zone remains open to the west and east. Previous geophysical surveying inferred a strike length of 600 metres.

QGX believes the sulphides cut at the North zone represent the centre of a hydrothermal system feeding the Central, South and North zones. Drilling designed to test for gold-bearing gossan up-dip of hole 40 is ongoing.

Earlier this summer, drilling on the South zone encountered several gossans, yielding 31.5 metres grading 13.8 grams gold in hole 30, and 19.6 metres of 5.3 grams gold in hole 32. Assay results for eight of the other holes are pending. The South zone’s strike length is pegged at around 1 km, based on electromagnetic surveying.

Earlier this year, drilling on the Central Valley zone (CVZ) outlined a zone of gold-bearing gossan over a strike length of about 800 metres. Hole 1 intersecting 48 metres grading 3.79 grams gold per tonne and hole 2 cut 71.4 metres running 2.1 grams gold (T.N.M., Dec. 30-Jan 5/03).

QGX can earn an 80% interest in Golden Hills by spending US$450,000 by 2005. It can boost its stake to 100% by paying US$1 million after completing the earn-in.

QGX shares were 50, or around 23% of value, higher at a new 52-week high of $2.65 in late-afternoon trading following the news on Sept. 3.