| Address: | Suite 21A - 35 Main Street Waterdown, Ontario Canada L0R 2H0 |
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| Tel No.: | (905) 689-9442 | ||||||
| Fax No.: | (905) 689-9443 | ||||||
| Web Site: | www.qgxgold.com | ||||||
| Corporate Email: | info@qgxgold.com | ||||||
| Contact Person: | Mark Wayne | ||||||
| Position: | CFO |
COMPANY DATA
| Traded Market: | TSX Venture Exchange |
| Traded Symbol: | QGX |
| Outstanding Shares: | 20.5 MM |
| Public Float: | 20 MM |
| 52 Week High: | CAD$ 3.90 |
| 52 Week Low: | CAD$ 0.70 |
| Present Price: | Click Here |
INTRODUCTION
QGX is a Canadian based mineral exploration company that has been exploring for mineral deposits in Mongolia since 1994. Mongolia may be considered one of the "last frontiers" for mineral exploration. The geology is highly prospective for large-scale mineral deposits but the country is vastly under-explored.
QGX was the first western company to acquire a mineral exploration license in Mongolia following the country's transition from Soviet control to a democracy in the early 1990's. The Company has an extensive knowledge base of the geology of Mongolia, having operated several large-scale as well as detailed exploration programs in the country since 1994. QGX is also very well known and respected in Mongolia, having maintained an active presence in the country since 1994 and having spent over $10 million on its Mongolian exploration programs to date.
QGX currently holds exploration licenses covering over 20,000 sq.km throughout Mongolia that are prospective for a wide variety of mineral targets. The Company's primary objectives is the discovery of one or more world-class gold deposits with attractive economics. QGX is currently conducting exploration programs on over a dozen separate exploration targets in Mongolia and also has a 10%-20% carried interest through to production in three advanced exploration prospects that are being actively explored with Ivanhoe Mines Ltd.
PROPERTIES IN HAND
QGX has acquired in excess of 20,000 sq.km of additional ground in Mongolia all of which is 100% owned by QGX. The selection process was based on specific criteria using QGX's extensive knowledge of, and experience in, Mongolia. New leases are now held in the immediate areas of Kharmagtai, Turquoise Ridges, Shuteen, Oyu Tolgoi and in other highly prospective areas throughout the South Gobi region. QGX has also identified other prospective areas beyond the South Gobi that it believes will become the future focus points for mineral exploration in Mongolia.
During the 2002 field season QGX has evaluated approximately 40% of the land held. Within the areas examined there are 14 advanced prospect areas. An advanced prospect area constituted an area where QGX geologists believe the target model exists, interesting mineralization has been encountered from sampling, and the property merits further work.
The Golden Hills Prospect was identified as having excellent potential to host economic gold mineralization.
(1) Golden Hills (Central Valley Zone)
On September 4, 2002, QGX announced that it had identified a new gold prospect (Central Valley Zone) on one of the new
leases called "Golden Hills". QGX crews outlined a zone containing
subcropping, quartz-chalcedony boulders over a strike length of 500
metres within an 8 kilometre by 2 kilometre alteration system. Initial
sampling by an independent consultant earlier this year returned gold
results as high as 73 g/t. Of the 121 chip samples collected by QGX to
date, 30% returned, greater than 0.5 g/t gold and 21 were greater than 1
g/t gold, with the highest being 145 g/t. A chip sample from a 3 metre
deep pit located above the axis of the zone returned 3.91 g/t gold over
2 metres.
These results define the axis of the 500 metre long zone. A subsequent Mag and IP geophysical program has extended the interpreted strike length of the target to at least 800 metres. Geologic studies and whole rock analysis suggest this is a low sulphidation epithermal system. Gold deposits associated with these types of systems represent one of the world's major sources of gold. Drilling is currently in progress.
(2) Golden Hills (Limestone Ridge)
A separate area of gold mineralization has also been encountered approximately 2 km to the north east of the original zone
at Limestone Ridge. Trenching at Limestone Ridge yielded 15 g/t gold
over 6 metres. The mineralization is hosted in a structurally
controlled quartz veins within a strongly altered diorite. The
interesting aspect of the trench results is that it clearly indicates
that the gold is running not only in the quartz veins but also in the
altered diorites. To further evaluate the prospect QGX initiated
detailed geological examinations and an IP survey over the area of
interest. Interpretation of the results suggests that the
structure/diorite has a significant down dip extent and an interpreted
strike length of 300 metres. It remains open to the east. At this
point plans are to drill test Limestone Ridge in the fall of 2002.
QGX can earn an 80% interest in the Golden Hills lease by expending US$450,000 on the property by 2005. QGX can also increase its interest to 100% by making a payment of US$1,000,000 after completion of the earn-in.
(3) Programs in Other Advanced Prospect Areas
Nine prospects are currently awaiting advanced programs that include additional sampling, mapping, geophysical and/or geochemical studies. In all of these cases initial sampling results have yielded anomalous gold results and specific target areas have been identified. Currently, QGX is preparing grids in advance of geophysical studies on the majority of the advanced prospect areas.
JOINT VENTURE PROJECT
QGX acquired several exploration licenses in Mongolia in the mid-90's. The principal ones being Harteeg and Shuteen, each of which covered 4,000 sq.km and were located in the South Central Gobi Desert. QGX operated several exploration programs on these properties from 1994-98, which included surveying, mapping, soil sampling, trenching, and diamond drilling. Three primary prospects were identified by these programs: Kharmagtai and Ovoot Hyar (Turquoise Ridges) and Shuteen.
QGX joint ventured all three properties with Ivanhoe Mines Ltd. (IVN.T) in March of 2002. Ivanhoe has been very active in Mongolia since 2000 following its significant copper-gold porphyry discovery at Turquoise Hill (Oyo Tolgoi), approximately 120 km south of Kharmagtai in the Gobi desert. QGX has a 20% carried interest through to production in Turquoise Ridges and Shuteen and a 10% carried interest through to production in Kharmagtai.
During 2002 IVN has continued to prospect and trench in the Main Alteration Zone. They have also completed extensive geophysics surveys. Drilling is planned for late 2002 or early 2003. QGX expects to receive results from these programs on a regular basis over the next several months.
MANAGEMENT
QGX Ltd. has well experienced management in different areas. They include:
David C. Anderson, B.Sc., Chief Executive Officer and Director
Mr. Anderson was one of the founding shareholders and has been the CEO of QGX since its inception. Mr. Anderson has worked in the mining and exploration industry since 1974. He has a Diploma in Geology and a B.Sc. in Geophysics. In 1986, after 12 years of contract geophysical work throughout the world, Mr. Anderson co-founded Quantec Geoscience Ltd. ("Quantec"). Quantec specializes in the development and application of advanced geoscience technologies and provides complete project management services.
In the early 90's Mr. Anderson and his associates recognized the mineral potential of Southern Mongolia, specifically in the Gobi Desert. This led to the acquisition in 1994 of the first mineral exploration license by a western company in Mongolia and the founding of QGX. Mr. Anderson assumed the position of CEO and during the next four years the Company successfully identified the three major porphyry systems that have been joint ventured with Ivanhoe Mines Ltd..
Mark Wayne, LL.B., CFA, Chief Financial Officer and Director
Mr. Wayne was also one of the founding shareholders and has been the CFO of QGX since its inception. Mr. Wayne has a law degree and is a Chartered Financial Analyst. He practiced law from 1980 - 1987 in Calgary, specializing in the fields of corporate and securities law. In 1987 he founded AltaFund Investment Corp., a public investment company that raised $110 million over three years from Alberta investors. In 1991 AltaFund joined the Altamira group of mutual funds and Mr. Wayne subsequently became an officer of Altamira Investment Services Inc., where he held the position of Vice-President, Western Canada until November 1998. From November 1998 to December 1999 he was an independent corporate finance consultant. In December of 1999 he became the CEO and Director, Corporate Finance of Lightyear Capital Inc., a Calgary-based investment dealer that he co-founded at that time.
Pat Donovan, Vice President, Exploration
Chris Johnstone, Manager, Mongolian Operations
Alexander "Sasha" Yakubchuk, P.Geol., Chief Geologist
The Board of Directors
David C. Anderson, B.Sc., Chief Executive Officer and Director
Mark Wayne, LL.B., CFA, Chief Financial Officer and Director
Barry D. Simmons, B.Sc., P.Eng., Director
Henry (Hank) Reimer, B.A. Sc., P.Eng., Director
Robert McCrae, B.Comm., MA, CFA, PhD (Honorary), Director
NEWS UPDATE
On September 22, 2003, QGX Ltd. reported the update progress relating to Golden Hills and prospects in SE Mongolia and Uhaa Hudag.
(1) Golden Gills
Assays from the last 8 holes (33-40) of their previous drill program are reported. More high grade gold (and silver) in oxides was encountered in several holes. Highlights include:
· CVZ-35 returns 26.9 m of 3.5 g/t gold in oxide
· CVZ-38 returns 16.0 m of 5.3 g/t gold and 17.9 g/t silver in oxide
· CVZ-39 returns 17.3 m of 3.1 g/t gold in oxide
(2) SE Mongolia
QGX announced the discovery of a porphyry-style, copper-bearing breccia pipe within QGX's Erdene Tolgoi exploration license in SE Mongolia. Chip samples collected from two, 1.5 - 2.0 metre deep exploration pits within the breccia pipe, contain up to 1.75% copper.
(3) Uhaa Hudag
The initial five-hole drill program has been completed but problems were detected in the reliability of the assay results. Steps are now being taken to prepare larger sample pulps and to conduct metallic gold assays in order to address this issue.
QGX is a Canadian based mineral exploration company that has been exploring for mineral deposits in Mongolia since 1994. Mongolia may be considered one of the "last frontiers" for mineral exploration. The geology is highly prospective for large-scale mineral deposits but the country is vastly under-explored.
QGX was the first western company to acquire a mineral exploration license in Mongolia following the country's transition from Soviet control to a democracy in the early 1990's. The Company has an extensive knowledge base of the geology of Mongolia, having operated several large-scale as well as detailed exploration programs in the country since 1994. QGX is also very well known and respected in Mongolia, having maintained an active presence in the country since 1994 and having spent over $10 million on its Mongolian exploration programs to date.
QGX currently holds exploration licenses covering over 20,000 sq.km throughout Mongolia that are prospective for a wide variety of mineral targets. The Company's primary objectives is the discovery of one or more world-class gold deposits with attractive economics. QGX is currently conducting exploration programs on over a dozen separate exploration targets in Mongolia and also has a 10%-20% carried interest through to production in three advanced exploration prospects that are being actively explored with Ivanhoe Mines Ltd.
PROPERTIES IN HAND
QGX has acquired in excess of 20,000 sq.km of additional ground in Mongolia all of which is 100% owned by QGX. The selection process was based on specific criteria using QGX's extensive knowledge of, and experience in, Mongolia. New leases are now held in the immediate areas of Kharmagtai, Turquoise Ridges, Shuteen, Oyu Tolgoi and in other highly prospective areas throughout the South Gobi region. QGX has also identified other prospective areas beyond the South Gobi that it believes will become the future focus points for mineral exploration in Mongolia.
During the 2002 field season QGX has evaluated approximately 40% of the land held. Within the areas examined there are 14 advanced prospect areas. An advanced prospect area constituted an area where QGX geologists believe the target model exists, interesting mineralization has been encountered from sampling, and the property merits further work.
The Golden Hills Prospect was identified as having excellent potential to host economic gold mineralization.
(1) Golden Hills (Central Valley Zone)
On September 4, 2002, QGX announced that it had identified a new gold prospect (Central Valley Zone) on one of the new
leases called "Golden Hills". QGX crews outlined a zone containing
subcropping, quartz-chalcedony boulders over a strike length of 500
metres within an 8 kilometre by 2 kilometre alteration system. Initial
sampling by an independent consultant earlier this year returned gold
results as high as 73 g/t. Of the 121 chip samples collected by QGX to
date, 30% returned, greater than 0.5 g/t gold and 21 were greater than 1
g/t gold, with the highest being 145 g/t. A chip sample from a 3 metre
deep pit located above the axis of the zone returned 3.91 g/t gold over
2 metres.These results define the axis of the 500 metre long zone. A subsequent Mag and IP geophysical program has extended the interpreted strike length of the target to at least 800 metres. Geologic studies and whole rock analysis suggest this is a low sulphidation epithermal system. Gold deposits associated with these types of systems represent one of the world's major sources of gold. Drilling is currently in progress.
(2) Golden Hills (Limestone Ridge)
A separate area of gold mineralization has also been encountered approximately 2 km to the north east of the original zone
at Limestone Ridge. Trenching at Limestone Ridge yielded 15 g/t gold
over 6 metres. The mineralization is hosted in a structurally
controlled quartz veins within a strongly altered diorite. The
interesting aspect of the trench results is that it clearly indicates
that the gold is running not only in the quartz veins but also in the
altered diorites. To further evaluate the prospect QGX initiated
detailed geological examinations and an IP survey over the area of
interest. Interpretation of the results suggests that the
structure/diorite has a significant down dip extent and an interpreted
strike length of 300 metres. It remains open to the east. At this
point plans are to drill test Limestone Ridge in the fall of 2002.QGX can earn an 80% interest in the Golden Hills lease by expending US$450,000 on the property by 2005. QGX can also increase its interest to 100% by making a payment of US$1,000,000 after completion of the earn-in.
(3) Programs in Other Advanced Prospect Areas
Nine prospects are currently awaiting advanced programs that include additional sampling, mapping, geophysical and/or geochemical studies. In all of these cases initial sampling results have yielded anomalous gold results and specific target areas have been identified. Currently, QGX is preparing grids in advance of geophysical studies on the majority of the advanced prospect areas.
JOINT VENTURE PROJECT
QGX acquired several exploration licenses in Mongolia in the mid-90's. The principal ones being Harteeg and Shuteen, each of which covered 4,000 sq.km and were located in the South Central Gobi Desert. QGX operated several exploration programs on these properties from 1994-98, which included surveying, mapping, soil sampling, trenching, and diamond drilling. Three primary prospects were identified by these programs: Kharmagtai and Ovoot Hyar (Turquoise Ridges) and Shuteen.
QGX joint ventured all three properties with Ivanhoe Mines Ltd. (IVN.T) in March of 2002. Ivanhoe has been very active in Mongolia since 2000 following its significant copper-gold porphyry discovery at Turquoise Hill (Oyo Tolgoi), approximately 120 km south of Kharmagtai in the Gobi desert. QGX has a 20% carried interest through to production in Turquoise Ridges and Shuteen and a 10% carried interest through to production in Kharmagtai.
During 2002 IVN has continued to prospect and trench in the Main Alteration Zone. They have also completed extensive geophysics surveys. Drilling is planned for late 2002 or early 2003. QGX expects to receive results from these programs on a regular basis over the next several months.
MANAGEMENT
QGX Ltd. has well experienced management in different areas. They include:
David C. Anderson, B.Sc., Chief Executive Officer and Director
Mr. Anderson was one of the founding shareholders and has been the CEO of QGX since its inception. Mr. Anderson has worked in the mining and exploration industry since 1974. He has a Diploma in Geology and a B.Sc. in Geophysics. In 1986, after 12 years of contract geophysical work throughout the world, Mr. Anderson co-founded Quantec Geoscience Ltd. ("Quantec"). Quantec specializes in the development and application of advanced geoscience technologies and provides complete project management services.
In the early 90's Mr. Anderson and his associates recognized the mineral potential of Southern Mongolia, specifically in the Gobi Desert. This led to the acquisition in 1994 of the first mineral exploration license by a western company in Mongolia and the founding of QGX. Mr. Anderson assumed the position of CEO and during the next four years the Company successfully identified the three major porphyry systems that have been joint ventured with Ivanhoe Mines Ltd..
Mark Wayne, LL.B., CFA, Chief Financial Officer and Director
Mr. Wayne was also one of the founding shareholders and has been the CFO of QGX since its inception. Mr. Wayne has a law degree and is a Chartered Financial Analyst. He practiced law from 1980 - 1987 in Calgary, specializing in the fields of corporate and securities law. In 1987 he founded AltaFund Investment Corp., a public investment company that raised $110 million over three years from Alberta investors. In 1991 AltaFund joined the Altamira group of mutual funds and Mr. Wayne subsequently became an officer of Altamira Investment Services Inc., where he held the position of Vice-President, Western Canada until November 1998. From November 1998 to December 1999 he was an independent corporate finance consultant. In December of 1999 he became the CEO and Director, Corporate Finance of Lightyear Capital Inc., a Calgary-based investment dealer that he co-founded at that time.
Pat Donovan, Vice President, Exploration
Chris Johnstone, Manager, Mongolian Operations
Alexander "Sasha" Yakubchuk, P.Geol., Chief Geologist
The Board of Directors
David C. Anderson, B.Sc., Chief Executive Officer and Director
Mark Wayne, LL.B., CFA, Chief Financial Officer and Director
Barry D. Simmons, B.Sc., P.Eng., Director
Henry (Hank) Reimer, B.A. Sc., P.Eng., Director
Robert McCrae, B.Comm., MA, CFA, PhD (Honorary), Director
NEWS UPDATE
On September 22, 2003, QGX Ltd. reported the update progress relating to Golden Hills and prospects in SE Mongolia and Uhaa Hudag.
(1) Golden Gills
Assays from the last 8 holes (33-40) of their previous drill program are reported. More high grade gold (and silver) in oxides was encountered in several holes. Highlights include:
· CVZ-35 returns 26.9 m of 3.5 g/t gold in oxide
· CVZ-38 returns 16.0 m of 5.3 g/t gold and 17.9 g/t silver in oxide
· CVZ-39 returns 17.3 m of 3.1 g/t gold in oxide
(2) SE Mongolia
QGX announced the discovery of a porphyry-style, copper-bearing breccia pipe within QGX's Erdene Tolgoi exploration license in SE Mongolia. Chip samples collected from two, 1.5 - 2.0 metre deep exploration pits within the breccia pipe, contain up to 1.75% copper.
(3) Uhaa Hudag
The initial five-hole drill program has been completed but problems were detected in the reliability of the assay results. Steps are now being taken to prepare larger sample pulps and to conduct metallic gold assays in order to address this issue.
On September 04, 2003, QGX Ltd.
announced that it has arranged a private placement financing of two
million common shares on a non-brokered basis at $2.40 per share. The
offering has been fully subscribed for and closing has been scheduled
for September 19, 2003. All common shares issued in connection with the
offering will be subject to a four (4) month hold period under
applicable securities legislation. "This will increase our working
capital to approximately $8 million which will allow us to accelerate
our various exploration programs in Mongolia", commented Mark Wayne, CFO
of QGX Ltd.
On September 03, 2003, QGX Ltd. released the assay results from the massive sulfide intersection in Hole 40 (North Zone) and trench results from the North Zone. Highlights are as follows:
On September 03, 2003, QGX Ltd. released the assay results from the massive sulfide intersection in Hole 40 (North Zone) and trench results from the North Zone. Highlights are as follows:
-
· The upper 31.5m of the massive sulfide body intersected in Hole CVZ-40 returned 3.4% Cu, 0.8 g/t Au and 20.1 g/t Ag (including 11.5m of 6.0% Cu, 1.0 g/t Au and 32.9 g/t Ag).
-
A trench in the North Zone returned 5.0 g/t gold across 10.9m with mineralization remaining open at both ends.
On June 04, 2003, QGX Ltd.
reported that a geophysics program is set to begin shortly with the
objective of identifying the extent and location of massive sulfides in
the Central Valley Zone. Previous drilling has indicated that this is
the source of the high grade, near surface gold that the Company has
previously encountered. Drilling will resume shortly thereafter with
four highly prospective holes already targeted. If all goes well the
Company will continue drilling at Golden Hills over the next several
months.
On April 28, 2003, QGX Ltd.
reported the further results from diamond drilling being carried out on
its Golden Hills prospect in western Mongolia. The drilling was
confined to a three km portion of the Central Valley Zone (CVZ), part of
a seven km, east-west trending geophysical anomaly that remains open at
both ends. The program consisted of fifteen diamond core holes (ending
at Hole CVZ-022) to test the on-strike, eastern extension of the
gold-bearing gossans drilled in the western end of the CVZ last October.
Drill results in October included 48 m @ 3.8 g/t Au (CVZ-01) and 71.4 m
@ 2.1 g/t Au (CVZ-02). (see map at www.qgxgold.com).
On April 03, 2003, QGX Ltd. reported the update on the Central Valley Zone (CVZ) drilling program at Golden Hills in western Mongolia. The objective of the drill program was to test the on strike, east extension of the gold-bearing gossans drilled in the west end of the CVZ last October. Drill results in October included 48 m of 3.79 g/t Au (GHD-01) and 71.4 m of 2.10 g/t Au (GHD-02).
On April 03, 2003, QGX Ltd. reported the update on the Central Valley Zone (CVZ) drilling program at Golden Hills in western Mongolia. The objective of the drill program was to test the on strike, east extension of the gold-bearing gossans drilled in the west end of the CVZ last October. Drill results in October included 48 m of 3.79 g/t Au (GHD-01) and 71.4 m of 2.10 g/t Au (GHD-02).
On April 3, 2003, QGX Ltd.
announced the update on the Central Valley Zone (CVZ) drilling program
at Golden Hills in western Mongolia. The objective of the drill program
was to test the on strike, east extension of the gold-bearing gossans
drilled in the west end of the CVZ last October. Drill results in
October included 48 m of 3.79 g/t Au (GHD-01) and 71.4 m of 2.10 g/t Au
(GHD-02). The current drill program was initiated on Feb. 24, 2003.
Eleven holes have been drilled to date, with the twelfth hole currently
in progress. Drilling will be temporarily suspended after completion of
this hole until QGX receives assays results and other pertinent
geological and geophysical data.
On November 25, 2002, QGX Ltd.
announced that it has intersected significant gold in the first two
holes drilled at the Central Valley Zone of its Golden Hills prospect in
Mongolia. Assay results from holes 1 and 2 confirm the presence of
gold mineralization within oxides in the upper 100 metres of both holes.
Drill hole 1 intersected 48 metres of 3.79 g/t gold. Drill hole 2
intersected 71.4 metres of 2.10 g/t gold.
On November 04, 2002, QGX Ltd. announced that it has signed an agreement to acquire the Uhaa Hudaag Prospect located in the South Central Gobi Desert in Mongolia, approximately 40 km NE of the Kharmagtai prospect. This property was previously held by QGX within the original Harteeg License that QGX acquired in December, 1994.
On October 15, 2002, QGX Ltd. announced that it has commenced a diamond drill program on its Golden Hills Prospect in Mongolia. The first phase of the program will test the Central Valley Zone where significant gold mineralization has previously been reported from sampling and trenching. A recent geophysical program has extended the interpreted strike length of the Central zone to 800 metres. The target is interpreted to be a low sulphidation epithermal system. Up to 10 holes with an average depth of 150 metres will be drilled on this zone as an initial test before moving to a second target area 2 km to the North East called Limestone Ridge.
DisclaimerOn November 04, 2002, QGX Ltd. announced that it has signed an agreement to acquire the Uhaa Hudaag Prospect located in the South Central Gobi Desert in Mongolia, approximately 40 km NE of the Kharmagtai prospect. This property was previously held by QGX within the original Harteeg License that QGX acquired in December, 1994.
On October 15, 2002, QGX Ltd. announced that it has commenced a diamond drill program on its Golden Hills Prospect in Mongolia. The first phase of the program will test the Central Valley Zone where significant gold mineralization has previously been reported from sampling and trenching. A recent geophysical program has extended the interpreted strike length of the Central zone to 800 metres. The target is interpreted to be a low sulphidation epithermal system. Up to 10 holes with an average depth of 150 metres will be drilled on this zone as an initial test before moving to a second target area 2 km to the North East called Limestone Ridge.
Copyright (c) 2000 - 2002 Chinese Investment Club Inc.
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