QGX hits high-grade in Golden Hills

QGX (QGX-V) recently reported more impressive assays from 17 holes drilled on its Golden Hills project in western Mongolia.

The Central Valley zone contains three mineralization types, a gold-silver-bearing oxide, found overlying copper-gold-silver massive sulphides and sulphide-bearing gold-silver quartz-carbonate veins.

Highlights from the south massive sulphide zone include:

• one hole intersecting 11.8 metres of 2.2% copper and 0.5 gram gold per tonne and 10.4 metres of 1.8% copper and 0.6 gram gold; and other holes intersecting
• 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 31-159 metres. Four holes intersected this oxide zone; two of these intersected 25-metre intercepts grading 2.6 grams gold and 16 grams silver per tonne, in one, and 1.6 grams gold and 9 grams silver per tonne in another.

High-grade gold in quartz carbonate veins was intersected both above and below the massive sulphides in four holes. Highlighting these intersections was a 7.5-metre intercept grading 37.6 grams gold and 7 grams silver per tonne, including 3.3 metres that graded 80 grams gold and 13 grams silver per tonne. Another hole cut 16.1 grams gold and 39 grams silver over 7.3 m. This included a one-metre intercept grading 29.3 grams gold and 77 grams silver. The highest assay overall graded 127 grams gold and 234 grams silver over a 0.5-metre interval.

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 because of thrust 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 on the property before July 1, 2005. Subsequent to this the company also has the right to buy the remaining 20% interest for a pre-determined price.

As at December 31, 2003, QGX had 31.7 million shares outstanding, 35.4 million shares on a fully diluted basis.