QGX proves up Golden Hills project

Results from eight holes drilled on QGX‘s (QGX-T) Golden Hills project in western Mongolia include the highest grades yet reported for the gold-silver-copper project.

Hole 65, the first to test the South zone’s massive sulphides, returned 7.4% copper, 0.7 gram gold per tonne, and 9 grams silver per tonne over 33.5 metres starting at a down-hole 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 gossan of the Central zone.

QGX says the massive sulphide intersection in hole 65 confirms the presence of a second copper zone. Drilling in late 2002 and early 2003 returned 1.2-2.9% copper over widths of 9-26 metres, and hole 65 was collared about 100 metres east of where those discovery holes were drilled.

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 downdip, and now totals 400 metres in length.

Results form the North zone drilling include the following:

— hole 61 — 25 metres (from 220 metres below surface) grading 1.4% copper, 0.4 gram gold and 7 grams silver.

— hole 62 — 27 metres (from 306 metres) grading 1.1% copper, 0.2 gram gold and 5.2 grams silver.

— hole 63 — 33.6 metres (from 164.5 metres) averaging 1.1% copper, 0.4 gram gold and 4.5 grams silver.

— hole 64 — 25.7 grams gold (from 303.4 metres) of 1.3% copper, 0.21 gram gold and 6.9 grams silver.

— hole 66 — 6 metres (from 368.3 metres) 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 metres) 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 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.