In
2002 QGX established significant land holdings along 2000 km of
strike length within the copper-gold porphyry belt located in
the South Gobi. QGX initially acquired properties in the current
area of interest (Oyu Tolgoi, Kharmagtai, Shuteen) and on strike
to the west. In October of 2002 QGX acquired a large property
position in southeast Mongolia on ground that QGX believes is
the east extension of the copper-gold porphyry belt (see map below).
These licences, representing nearly 10,000 sq km, are referred
to as the Erdene Tolgoi (Precious Hill) exploration licences.
QGX Licence Block
(Click to view larger image)
Erdene
Tolgoi
The
Erdene Tolgoi licences were selected on the basis of regional
tectonic and metallogenic analysis. They are considered to represent
the faulted and offset continuation of the Cu-Au porphyry belt
of southern Mongolia hosting Cu-Au porphyry deposits such as Oyu
Tolgoi, Tsagaan Suvargaa, Kharmagtai, and Shuteen. QGX believes
that the southeastern belt, which has had very little prior exploration,
holds similar potential to the southern Mongolia Cu-Au porphyry
belt.
Exploration
in 2003 has identified a second area of interest within the Erdene
Tolgoi licences. The discovery of a porphyry-style, copper-bearing
breccia pipe located approximately 5.5 km NNW of the Erdene Tolgoi
copper-gold prospect (see
May 16, 2003 release) provides supporting evidence
that the Erdene Tolgoi licences are prospective for Cu-Au deposits
(see
September 22, 2003 release).
The
Erdene Tolgoi licences contain less than 15 percent rock outcrop,
explaining in part why the area has been overlooked in the past.
In October 2003 geophysical surveys covering a 25 sq. km area
around Chuluut were completed to better understand the significance
of the identified occurrences. At Chuluut, the porphyry breccia
pipe is coincident with both an IP chargeability anomaly and a
magnetic high (see
October 28, 2003 release). Figure 1 shows a plan view
of the IP chargeability response at a depth of 100 meters below
the Chuluut pipe. This target will be drill tested in the fall
of 2003. The proposed drill holes are shown on Figure 1. The strong
co-relation between the surface expression of the porphyry breccia
pipe and the IP anomaly, supports the interpretation that there
exists an underlying, associated, mineralizing event. This is
also demonstrated in Figure 2 which is a cross section through
the interpreted, 3D IP model. It shows clearly that the IP anomaly
is co-incident with the breccia pipe, well developed at depth
and strongly suggests that sulphides occur within the porphyry
drill target.
Figure
1
(Click to view larger image)
Figure 2
(Click to view larger image)
A separate, stronger IP chargeability anomaly was also defined
approximately 2.5 km SSW of Chuluut and 3 km north of Erdene Tolgoi.
Figure 3, a plan view of the interpreted 3D IP model at a depth
of 180 meters, highlights how well developed the anomalies are
within the Chuluut South target. The IP response suggests that
sulphides occur within the porphyry target and they are expected
to extend to considerable depth. Drill testing of Chuluut South
will follow the completion of the drill program at Chuluut.
Figure 3
(Click to view larger image)
Magnetic
surveys were also conducted within a 5 km grid surrounding the
Chuluut area. Measuring the magnetic field can help the geologist
better understand the nature and location of magnetic minerals
that might be associated with a porphyry system. The attached
video clip shows the magnetic data from the Chuluut area including
the response associated with the Chuluut, porphyry breccia pipe.
The data supports the interpretation that the Chuluut area has
been exposed to several intrusive events hosting magnetite that
may also have carried mineralization of interest. In some cases
the magnetic and IP anomalies are coincident as is the case at
the Chuluut pipe.
Click
here to play Video Clip (avi file)
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