Preliminary Economic Assessment for the Copper-Gold-Silver Project at the Central Valley Zone (CVZ), Golden Hills, Mongolia, Now Posted on SEDAR

    TSX - QGX

    WATERDOWN, ON, April 26 /CNW Telbec/ - QGX Ltd. (TSX: QGX) is pleased to
announce that the NI 43-101 compliant Preliminary Economic Assessment (the
"Study") regarding the Company's 80%-owned copper-gold-silver project at the
Central Valley Zone (CVZ) at Golden Hills, Mongolia, is now posted on SEDAR.
On March 8, 2007, QGX announced the highlights of that Study, conducted by
Chlumsky, Armbrust, & Meyer, LLC ("CAM"), a professional mining engineering
firm in Denver Colorado.
    The Study defines a two-stage development plan, commencing with open-pit
mining of the gold-silver oxide resource followed by underground mining of the
copper-gold-silver sulphide and high-grade quartz-telluride veins at CVZ. Key
financial highlights are as follows:

                     Highlights for Golden Hills Project
    Preliminary Economic Assessment       Oxide Phase     Sulphide/Telluride
    Project Highlights                       Open Pit            Underground
                                            Years 1-4             Years 5-15
    Average Annual Production
      Copper                                               56.6 million lbs.
      Gold                                  79,900 oz              53,900 oz
      Silver                               521,000 oz             235,300 oz

    Total Cash Cost(*)                  US$ 149/oz Au         US$ 0.78/lb Cu
    Average Annual Revenues               $47 million           $106 million
    Average Annual Net Earnings         $13.8 million          $19.8 million

                                                   Total Project
    Capital Cost
      Development Capital                         US$146 million
      Sustaining Capital                           US$18 million

    NPV @ 10% (100% of Project)                 US$83 million
    IRR (100% of Project)                               27%

    (*)  Total cash costs defined as C(1) (Brook Hunt), net of by-product
         credits, reflect life-of-mine costs, and include TCRC's and
         transport costs, exclude royalties
    (xx) Revenues shown net of government royalties

    This Study builds on the October 2005 NI 43-101 compliant report defining
mineral resources at Golden Hills completed by CAM. This Study, now available
on SEDAR as of April 25th, uses those resources to establish economic
parameters for possible mine development. As a Preliminary Economic
Assessment, this Study considers and includes all resources (measured,
indicated, and inferred) to estimate financial results for the project.
    Interested parties are invited to read the full details of this Study on
SEDAR to understand further the results of the Study and the status of QGX's
Golden Hills copper-gold-silver project in western Mongolia.

    Qualified Person

    Mr. John Thompson, VP Project Development of QGX Ltd. and a Qualified
Person as defined by NI 43-101, has reviewed and approved the information
contained in this release.

    Cautionary and Forward Looking Statement Information

    All information contained in this press release relating to the contents
of the Study, including but not limited to statements of the project's
potential and information under the heading "Key Assumptions and Highlights of
the Study" are "forward looking statements" within the definition of the
United States Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities legislation. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate",
or "believes", or variations of such words and phrases or state that certain
actions, events or results "may", "can", "could", "would", "might" or "will be
taken", "occur" or "be achieved".
    The Study was prepared to broadly quantify the project's capital and
operating cost parameters and to provide guidance on the type and scale of
future project engineering and development work that will be needed to
ultimately define the project's likelihood of feasibility and optimal
production rate. It was not prepared to be used as a valuation of the project
nor should it be considered to be a pre-feasibility study. The capital and
operating cost estimates which were used have been developed only to an
approximate order of magnitude based on generally understood capital cost to
production level relationships and they are not based on any systematic
engineering studies, so the ultimate costs may vary widely from the amounts
set out in the Study. This could materially and adversely impact the projected
economics of the project. As is normal at this stage of a project, data are
incomplete and estimates were developed based solely on the expertise of the
individuals involved as well as the assessments of other persons who were
involved with previous operators of the project. At this level of engineering,
the criteria, methods and estimates are very preliminary and result in a high
level of subjective judgment being employed.
    The following are the principal risk factors and uncertainties which, in
management's opinion, are likely to most directly affect the conclusions of
the Study and the ultimate feasibility of the project. The mineralized
material at the project is currently classified as resources and it is not
reserves. The mineralized material in the Study is based only on the resource
model developed by Chlumsky, Armbrust, & Meyer, LLC ("CAM"), a professional
mining engineering firm in Denver Colorado in October 2005. Considerable
additional work, including in-fill drilling, additional process tests, and
other engineering and geologic work will be required to determine if the
mineralized material is an economically exploitable reserve. There can be no
assurance that this mineralized material can become a reserve or that the
amount may be converted to a reserve or the grade thereof. Final feasibility
work has not been done to confirm the mine design, mining methods, and
processing methods assumed in the Preliminary Economic Assessment. Final
feasibility could determine that the assumed mine design, mining methods, and
processing methods are not correct. Construction and operation of the mine and
processing facilities depends on securing environmental and other permits on a
timely basis. No permits have been applied for and there can be no assurance
that required permits can be secured or secured on a timely basis. Data are
incomplete and cost estimates have been developed in part based on the
expertise of the individuals participating in the preparation of the
Preliminary Economic Assessment and on costs at projects believed to be
comparable, and not based on firm price quotes. Costs, including design,
procurement, construction, and on-going operating costs and metal recoveries
could be materially different from those contained in the Preliminary Economic
Assessment. There can be no assurance that mining can be conducted at the
rates and grades assumed in the Preliminary Economic Assessment. The
Preliminary Economic Assessment assumes specified, long-term prices levels for
copper, gold and silver. Prices for these commodities are historically
volatile, and QGX Ltd. has no control of or influence on those prices, all of
which are determined in international markets. There can be no assurance that
the prices of these commodities will continue at current levels or that they
will not decline below the prices assumed in the Preliminary Economic
Assessment. Prices for gold and silver have been below the price ranges
assumed in Preliminary Economic Assessment at times during the past ten years,
and for extended periods of time. The project will require major financing,
probably a combination of debt and equity financing. Interest rates are at
historically low levels. There can be no assurance that debt and/or equity
financing will be available on acceptable terms. A significant increase in
costs of capital could materially and adversely affect the value and
feasibility of constructing the project. Other general risks include those
ordinary to large construction projects including the general uncertainties
inherent in engineering and construction cost, the need to comply with
generally increasing environmental obligations, and accommodation of local and
community concerns.

    About QGX

    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. QGX announced on June 7th an
independent NI 43-101 resource for metallurgical and thermal coal at Baruun
Naran comprised of 47.5 Mt of measured, 60.0 Mt of indicated (107.5 Mt
contained in measured and indicated) and an additional 48 Mt of inferred
resources. QGX filed in October, 2005 an independent NI 43-101 report
outlining a polymetallic resource at the Central Valley Zone of 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
    %SEDAR: 00013803E

For further information:

For further information: David Anderson, Executive Chairman, (905)
689-9442 or Paul Zweng, President/CEO, (925) 855-0505 or visit our website at; Renmark Financial Communications Inc.: John Boidman:; Maurice Dagenais:; Media: Eva Jura:,
(514) 939-3989, Fax: (514) 939-3717,

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890