An induced polarization (IP) survey at QGX"s Khotgor prospect in southern Mongolia has confirmed a large hydrothermal molybdenum system with the potential for a significant discovery.

The IP survey indicates a multiple-phase rhyolite-syenite-latite porphyry intrusive centre with zoned alteration typically associated with molybdenum deposits. Disseminated fluorite associated with coarse-grained white mica is widespread throughout the central zone of alteration.

The survey shows a classic doughnut-shaped chargeability response centred on the intrusive which forms a resistivity low. This is a classic geophysical response that is typically associated with porphyry deposits.

QGX believes the chargeability high is reflecting a pyrite-rich fringe surrounding the hydrothermal system.

QGX president and CEO Paul Zweng says: "We are excited by the results of the IP survey at Khotgor. We are looking forward to starting a drilling campaign as soon as possible."