QGX drills 0.45 m of 44.6 g/t Ag at Central Valley

2008-03-28 09:04 ET - News Release

Mr. Paul Zweng reports

QGX INTERSECTS MASSIVE SULPHIDES 40 KM NORTHWEST OF THE CENTRAL VALLEY ZONE AT GOLDEN HILLS, MONGOLIA

QGX Ltd. has provided the results of its 2007 reconnaissance three-hole drill program in which significant grades of gold, silver, copper and zinc contained in massive sulphide were encountered in two airborne electromagnetic anomalies. These results provide evidence supporting Dr. Jim Franklin's prediction that the Golden Hills area may represent a new district spanning several tens of kilometres and containing multiple massive sulphide deposits (see news in Stockwatch on Sept. 7, 2005).

Highlights include the following.

Airborne anomaly 67 (drill hole 67DH001):

• 0.89 per cent Cu, 0.49 per cent Pb, 0.19 per cent Zn, 1.03 grams per tonne (g/t) Au and 44.6 g/t Ag over 0.45 metre.

Copper Ridge (drill hole CRDH003):

• Zone 1: 0.83 per cent Cu, 7.21 per cent Zn, 0.12 gram per tonne (g/t) Au and 4.6 g/t Ag over 0.27 m;
• Zone 2: 0.37 per cent Cu, 3.56 per cent Zn, 0.07 g/t Au and 2.9 g/t Ag over 1.57 m;
• Zone 3: 0.46 per cent Cu and 0.15 g/t Au over 2.50 m;
• Zone 4: 0.74 per cent Cu, 0.06 g/t Au and 2.52 g/t Ag over 7.15 m.

A third hole intersected barren karsted limestone at airborne anomaly 87.

Paul Zweng, president/chief executive officer of QGX, commented as follows:

"We are pleased that two of the three electromagnetic, airborne anomalies drilled contain mineralization of interest associated with them. The results merit follow-up drilling to determine if the massive sulphides tested increase in thickness off-hole. These targets are hosted in a geologic setting similar to the Central Valley zone in the Golden Hills area. These early results reinforce Dr. Franklin's thesis of a district-wide occurrence of massive sulphide deposits, which potentially could be exciting for our Central Valley zone project. The Central Valley zone contains approximately 20 million tonnes of copper-bearing massive sulphide. It is a significant deposit and would rank in the top 10 Canadian deposits if it were located in Canada."

Drill hole 67DH001 was collared at airborne anomaly 67, 40 kilometres northwest of the Central Valley zone (CVZ). A second drill hole, CRDH003, was collared 3.5 km southeast of the CVZ at the Copper Ridge prospect, where it cut four massive sulphide horizons ranging up to 7.15 m in core length.

Assays for these drill holes are outlined in the attached table.

         DRILL RESULTS FOR 67DH001, 87DH001, AND CRDH003                 Interval (m)      Drill hole                        Cu   Pb     Zn    Au     Ag No.        From    To   Length    (%)  (%)    (%) (g/t)  (g/t)  67DH001  184.20  184.65   0.45  0.89  0.49  0.19  1.03   44.6 CRDH003  207.73  208.00   0.27  0.83   Tr   7.21  0.12    4.6 CRDH003  256.20  257.77   1.57  0.37   Tr   3.56  0.07    2.9 CRDH003  288.20  290.70   2.50  0.46   Tr     Tr  0.15    2.1 CRDH003  389.85  397.00   7.15  0.74   Tr   0.07  0.06    2.5 87DH001             No significant mineralization  Tr: trace

Thomas J. Drown, project geologist for QGX, is the qualified person as defined by National Instrument 43-101, and has verified the results presented in this press release. Activation Labs (Actlabs) in Ulan Bator, Mongolia, prepared the samples and performed all gold, silver and copper assays shown in the table. The company maintains a quality assurance-quality control (QA-QC) program designed by AMEC in the preparation, shipping and checking of all samples from the property.

About Golden Hills

QGX announced in Stockwatch on April 26, 2007, the filing on SEDAR of the NI 43-101-compliant preliminary economic assessment regarding the development of the company's 80-per-cent-owned copper-gold-silver resource at the Central Valley zone at Golden Hills. The study defines a two-stage development plan with a mine life of 15 years. The operation commences with open-pit mining of the gold-silver oxide resource followed by underground mining