QGX has initiated a drilling program and geotechnical studies at the Central Valley Zone of Golden Hills copper, gold and silver project in western Mongolia, as part of requirements to convert the exploration licence to a mining licence.

QGX has started a hydrological drilling program to determine the location, quantity, and quality of water present in the area. 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.

Other studies underway for the purpose of mining licence conversion include an environmental baseline study, a mining and milling progress design study, a preliminary feasibility study, and completion of a geologica l 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 licence.

An NI 43-101 compliant study defines a two-stage development plan with a mine life of 15 years. The operation begins 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.

QGX president and CEO Paul Zweng says: "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 licence to the government. 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 Mongolia."