QGX Undertakes Steps to Convert the Central Valley Zone (Golden Hills) Exploration License to a Mining License

    TSX - QGX

    WATERDOWN, ON, Aug. 22 /CNW Telbec/ - QGX Ltd. (TSX: QGX) is pleased to
announce that a drilling program and geotechnical studies have been initiated
at the Central Valley Zone ("CVZ") of Golden Hills, western Mongolia, as part
of the requirements to convert the exploration license to a mining license. As
part of the process to obtain a mining license for the CVZ, QGX has commenced
a hydrological drilling program to determine the location, quantity, and
quality of water present in the area. The drill core from the program will
also be used for geotechnical and rock mechanical test work to guide the
design of the oxide gold-silver open pit. The program entails the drilling of
five holes for a total of 750 m. Other studies underway for the purpose of
mining license conversion include an environmental baseline study, a mining
and milling progress design study, a preliminary feasibility study, and
completion of a geological resource report. QGX must file a geological reserve
report for the Central Valley Zone to register the resource with the
government. Upon receipt of government approval of the reserve, QGX will
submit an official application for a mining license.
    QGX announced on April 26th the filing on SEDAR of the NI 43-101
compliant preliminary economic assessment regarding the development of the
Company's 80%-owned copper-gold-silver resource at the CVZ. 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 of the copper-gold-silver sulphide and high-grade
quartz-telluride vein resource. The project is financially robust with an
after-tax NPV (at 10% discount rate) of US$83 million and an IRR of 27% (100%
equity basis).

    Paul Zweng, President and CEO of QGX Ltd., commented as follows:

    "We have placed a high priority on completing this work at the Central
Valley Zone so that we can submit an official application for a mining license
to the government later this year. This is the first step in securing an
investment agreement that builds the foundation for a successful commercial
operation providing mutual benefits both to QGX and to the people of

    Qualified Person

    Mr. Tom Drown, Project Geologist of QGX Ltd. and a Qualified Person as
defined by NI 43-101, has reviewed and approved the information contained in
this release.

    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.  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
    %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
www.qgxgold.com; Renmark Financial Communications Inc.: John Boidman,
jboidman@renmarkfinancial.com; Maurice Dagenais: mdagenais@
renmarkfinancial.com; Media: Adam Ross, aross@renmarkfinancial.com,   (514)
939-3989, Fax: (514) 939-3717, www.renmarkfinancial.com

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