A new resource estimate reveals that QGX"s Baruun Naran coking-thermal coal project is the largest privately-held bituminous coal resource in Mongolia.

The NI 43-101 resource estimate delineates 93.3 million tonnes of measured, 159.6 million tonnes of indicated and 11.1 million tonnes of inferred resources.

QGX has commissioned Minarco-MineConsult (MMC) of Sydney, to complete a pre-feasibility study on Baruun Naran.

A recently completed preliminary economic assessment by MMC indicated the project is financially robust with a US$481 million net present value on an after-tax basis.

QGX president and CEO Paul Zweng says: "We are pleased that Minarco-MineConsult is undertaking the pre-feasibility study for Baruun Naran. They have assigned a first-class team to work on this project, and we have full confidence that they will produce a comprehensive and sound study.

"The fundamentals for this project remain strong. The Chinese are now net importers of coal for the first time in their history based on statistics issued by General Administration of Customs of China for the first six months of 2007. Demand is high and supply is problematic. These trends bode well for our coking and thermal coal project, especially given its close location to China."