TSX - QGX
WATERDOWN, ON, Dec. 20 /CNW Telbec/ - QGX Ltd. (TSX: QGX) is pleased to
announce that reserve estimates and supporting documents for the Golden Hills
(Cu-Au-Ag) and the Undur Tsagaan (W-Mo) projects, independently prepared by
third-party Mongolian experts to a Mongolian government (non-NI 43-101)
standard, have been submitted to the Minerals Resource Council of the
Mongolian government for registration. The Mongolia Minerals Law of 2006
states that a reserve must be registered with the government before an
exploration license can be converted to a mining license.
In April 2007 QGX filed an independent NI 43-101 report outlining a
positive preliminary economic assessment for Golden Hills. Based on long-term
copper, gold, and silver prices of $1.50/lb, $529/oz, and $9.08/oz,
respectively, the project generates estimated after-tax financial returns of
US$83 million NPV (10% discount rate) and 27% IRR.
Known mineralization at Undur Tsagaan occurs near the surface as quartz
veinlets containing molybdenite, wolframite, and scheelite hosted within
Mesozoic granitic porphyry and Devonian schist and gabbro-diabase intrusions.
A resource of 141 million metric tonnes @ 0.124% WO3, 0.019% Mo, 0.03% Be,
0.08% Bi (C1 + C2 category) and an additional 60 million tonnes @ 0.11% WO3,
0.03% Mo, 0.03% Be, 0.01% Bi (P1 category) was defined in 1982. These figures
are not NI 43-101 compliant and constitute a historical resource.
The historic resource estimates above for Undur Tsagaan were completed
prior to implementation of NI 43-101. These historic resource figures have not
been re-defined to conform to CIM approved standards as defined by NI 43-101.
The resource estimates have been obtained from sources believed to be reliable
and are relevant. The Company is not treating these historical estimates as
NI 43-101 defined resources or reserves verified by a Qualified Person. Until
such time as the Company is able to verify and classify these historic
resources according to CIM standards, they should not be relied upon.
Paul Zweng, President and CEO of QGX Ltd., commented as follows:
"The submission of the two resource statements to the government
represents a significant milestone for QGX. We have focused much of our effort
during the second half of 2007 to completing this process for both Golden
Hills and Undur Tsagaan. The requirements for each project include, among
other things, submitting a detailed geological report, resource estimate,
environmental baseline study, hydrology report, geotechnical report, and a
pre-feasibility study prepared independently by Mongolian experts. These
documents will form the basis for registering the mineral reserves with the
State as well as converting the exploration licenses to mining licenses. Once
a mining license has been issued, a project is legally authorized by the
government to go forward for development and production."
Mr. David Anderson, Executive Chairman 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