Reserve estimates and supporting documents for QGX’s Golden Hills copper-gold-silver and Undur Tsagaan tungsten-molybdenum projects have been submitted to the Minerals Resource Council of the Mongolian government for registration.

The estimates have been independently prepared by third-party Mongolian experts to a Mongolian government (non-NI 43-101) standard. The Mongolia Minerals Law of 2006 states that a reserve must be registered with the government before an exploration licence can be converted to a mining licence.

QGX has 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 per pound, $529 per ounce and $9.08 per ounce 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.

QGX president and CEO Paul Zweng says: “The submission of the two resource statements to the government represents a significant milestone. We have focused much of our recent effort to completing this process.

“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 licence has been issued, a project is legally authorized by the government to go forward for development and production.”

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