QGX closes financing

With $3 million more in the till, QGX (QGX-V) is preparing to resume drilling at its Golden Valley property in Mongolia.

The Watterdown, Ontario-based junior sold 2.5 million shares at $1.20 apiece, slightly less than the 2.78 million shares issued last month, at $1.15 apiece. All of the shares are subject to a four-month holding period.

Proceeds from both financings are primarily earmarked for Golden Valley, where recent drilling cut upwards of 71.4 metres of oxides grading 2.1 grams gold per tonne. A second hole returned 48 metres grading 3.79 grams, and four others returned shorter intervals.

A second area some 2 km to the northeast yeilded less promissing results, though some holes returned altered and mineralized core. Also, earlier trenching had yielded up to 15.6 grams over 6 metres.

The targeted system is 3 km long, of which 500 metres has been tested. The system is characterized by a series of geological and geophysical anomalies thought to reflect a low-sulphidation mineralizing environment.

In all, QGX has 30,000 sq. km to explore.