FORT FRANCES, ONTARIO - (Aug. 26, 2008) -
Q-Gold Resources Ltd. (TSX VENTURE:QAU) (FRANKFURT:QX9) (
http://www.qgoldresources.com) announced today that the de-watering of the historic Foley Gold Mine in Mine Centre, Ontario has reached the 170 foot level, with steel ladders and platforms installed every 20 feet to the 160 foot level by Whelan Mining Contractors. Drifts in the mine have been exposed on the 100 foot and 150 foot levels, both of which are being scaled and washed with muck being removed in preparation for underground exploration.
This will include surveying, mapping, sampling, assaying of existing drifts and core drilling to attempt to locate gold resources and reserves in old and new ore veins and shoots. "Stopes", which were incurred on both levels, represent the only areas mined out during the period from 1898 to 1900, prior to all surface mining structures in the area being destroyed by a forest fire. De-watering and rehabilitation of the Mine's North Shaft will continue in this phase of the operation until the 400 foot level is reached where an extensive network of drifts, which connect the five principal veins known to exist in the Foley System, will then be extensively explored.
The Corporation also is pleased to announce the appointment of geologist Kevin Leonard as Manager of Exploration for Q-Gold's 100 percent-owned subsidiary, Q-Gold (Ontario) Ltd. Mr. Leonard brings 30 years of gold and base metals experience to the Corporation and has worked for both senior and junior resource companies. These include LAC Minerals, Barrick Gold Corporation and most recently, Blackstone Ventures Inc. Mr. Leonard is registered to practice with the Association of Professional Geologists of both Ontario and Quebec. He is also a "Qualified Person" under the requirements of NI 43-101.
Q-Gold also announced that it has exercised a Due Diligence Option and has entered into a Purchase Option Agreement to acquire a 100% interest in a package of three Arizona copper prospects as described in a press release dated May 27, 2008. The package includes two Southeastern Arizona copper porphyry and one volcanogenic massive sulfide (VMS) prospect, the latter being prospective for both copper and zinc. The Ray Prospect is located on the Eastern slopes of the Ray Open Pit Mine, a copper porphyry operated by ASARCO at a rate of 225,000 tons of copper ore per day. The Troy copper porphyry prospect is located approximately 4 miles to the southeast of the Ray Mine on Haley Mountain. The Pinafore Mine (located in Western Arizona on the flanks of the Bagdad Mine, Arizona's third largest copper producer, operated by Freeport McMoran) is a copper/zinc VMS prospect. The Pinafore was discovered in 1992 through drilling by a syndicate led by Placer Dome and later dropped because of a restricted land position, which has now been remedied by Q-Gold. The three Arizona properties are more-fully described in the press release denoted above.
Terms of the Purchase Option Agreement are as follows:
- Option Term: 5 years
- Cash Payment (paid): US$ 66,000
- Semi-Annual Cash Payment: US$ 25,000
- To Purchase 100% Interest: US$ 1,500,000 in cash plus Issuance of Q-Gold
common shares equal to US$ 1,500,000 in value
The Purchase Option Agreement is subject to the approval of the TSX Venture Exchange.
President and CEO, Bruce Carruthers, remarked, "Q-Gold is pleased to be able to obtain these attractive copper prospects at a relatively low entry cost. Upon approval, we look forward to exploring and drilling these Arizona properties in the near future."
Mr. Carruthers continued, "The price outlook for copper remains high. Chinese copper demand, equal to one quarter of total world demand, is continuing to be strong, based on China's sizable requirements for large infrastructure projects now underway and in the future. The worldwide quest to reduce dependence on oil will also inevitably increase the demand for copper for electric cars, motors and electricity storage and transmission components in conjunction with renewable energy development. Thus, a bright future exists for the copper industry."
Kevin Leonard, P.Geo., Consulting Geologist, a Qualified Person as defined by NI 43-101, has reviewed and approved the technical disclosure contained in this press release.
About Q-Gold Resources Ltd.Q-Gold is a Canadian-based mineral exploration company currently exploring for precious and base metals and platinum group elements on its extensive Ontario holdings in the historic Gold Camp at Mine Centre of 32,585 acres, including 5 historic gold mines. It also has options on 4,796 exploratory acres in the Rainy River Greenstone Belt. In addition, the Corporation holds options on six historic gold and silver mines near Crown King, Arizona and two prospective copper porphyries and one copper / zinc prospect in Arizona.
For all future Q-Gold investor relations needs, investors are asked to visit the Q-Gold IR Hub at
http://www.agoracom.com/IR/Q-Gold where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to email all questions and correspondence to QAU@agoracom.com where they can also request addition to the investor email list to receive all future press releases and updates in real time.
The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially form the Company's expectations and projections.
SEC 12g 3-2(b) Exemption # 82-4931
The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.For more information, please contact
Corporate Inquiries
Q-Gold Resources Ltd.
J. Bruce Carruthers II, President
1-888-779-0166
Website:
http://www.qgoldresources.comor
Investor Relations
AGORACOM Investor Relations
Email: QAU@Agoracom.com
Website:
http://www.agoracom.com/IR/Q-Gold