TSX - QGX
WATERDOWN, ON, Sept. 6 /CNW Telbec/ - QGX Ltd. (TSX: QGX) is pleased to
announce receipt of the NI 43-101 preliminary economic assessment ("PEA")
prepared independently by Minarco-MineConsult ("MMC") and McElroy Bryan
Geological Services Pty. Ltd. ("MBGS"), both headquartered in Sydney,
Australia. This report has been posted on SEDAR and is now available to read.
The PEA, first summarized in the July 19th press release, defines a
conventional, truck-and-shovel, open-cut mining operation starting in 2011
with coal processed on site using a wash plant to produce both coking and
thermal coal products. The PEA concludes that the Project is financially
robust with an estimated after-tax NPV @10% of US$481 million and a discounted
cash flow-internal rate of return (DCF-IRR) of 39%.
Paul Zweng, President and CEO of QGX Ltd., commented as follows:
"The PEA confirms that the Baruun Naran project has the potential to
deliver strong financial returns on a long-term basis through the extraction
and sale of premium coking and thermal coal products to the Asian market. It
also highlights the quality of the assets underlying the Company.
The on-going pre-feasibility is on track and expected to be completed in
December. Already we are seeing opportunities to improve upon various aspects
of the Project.
The fundamentals underpinning this project remain strong. The Chinese
government's National Development and Reform Commission reported that coal
consumption grew 12.2% year over year during the first half of 2007. This
rapid growth in coal demand was driven mainly by the power sector, the largest
coal-consuming sector in China, in which the generating capacity, thermal
power generating capacity, and hydropower generating capacity rose 16%, 18.3%
and 1.7%, respectively. China's coal supply shortfall may reach 100 Mt by the
end of 2010, according to the China Coal Transport and Distribution
Association. The timing for the development of this project looks favorable."
Mr. John Thompson, Vice President Operations of QGX Ltd. and a qualified
person as defined by NI 43-101, has reviewed and approved the information
contained in this release.
QGX is a Canadian-based company that has been exploring for mineral
deposits in Mongolia since 1994. QGX's two most advanced properties are the
Baruun Naran and the Golden Hills projects. In July 2007 QGX announced that an
independent 43-101 preliminary economic analysis for Baruun Naran showed a net
present value (discounted at 10%) of US$481 million on an after-tax basis. QGX
announced in August 2007 an independent NI 43-101 resource for coking and
thermal coal at Baruun Naran comprised of 93.3 Mt of measured and 159.6 Mt of
indicated (252.9 Mt contained in measured and indicated) and 11.1 Mt of
inferred resources. QGX filed in April 2007 an independent NI 43-101 report
outlining a positive preliminary economic assessment for its
copper-gold-silver project at Golden Hills. Barrick Gold Corp. holds an
approximate 9% equity interest in QGX as part of a strategic relationship
between the two companies.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.
This press release includes certain "forward-looking statements". All
statements, other than statements of historical fact, included herein,
including without limitation, statements regarding potential mineralization,
results and future plans and objectives of the Company are forward-looking
statements that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in such
For further information:
For further information: David Anderson, Executive Chairman, (905)
689-9442; Paul Zweng, President/CEO, (925) 855-0505; or visit our website at
www.qgxgold.com; Renmark Financial Communications Inc.: John Boidman,
firstname.lastname@example.org; Maurice Dagenais,
email@example.com; Media - Adam Ross: firstname.lastname@example.org;
(514) 939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com