March 8, 2007 - Q-Gold Resources Ltd. (TSXV: QAU; Frankfurt: QX9) announced today that it has obtained a two-year option to purchase 5 claim blocks comprising thirty-eight 40-acre units totaling 1,520 acres on the western shore of Bad Vermilion Lake, near Mine Centre, Ontario. The blocks are contiguous to Q-Gold’s existing holdings and are part of a 10+ km linear magnetic anomaly containing pockets of conductivity. Q-Gold now effectively controls both large cross-cutting faults and their attendant mineralized shear zones bracketing Bad Vermilion Lake. This anomaly hosted in gabbroic rocks is known, as a result of 24 diamond drill holes by Titan Titanium International Inc. in 1985, to contain magnetite (iron oxide) and ilmenite (titanium oxide) underlain by zones of massive sulfides, including chalcopyrite.
The acquisition is the latest of four property acquisitions by Q-Gold since November 2006, targeting high priority drilling targets not already owned by the Company that were indicated in its 2006 DIGHEM/ EM Airborne Survey.
The claim blocks were optioned from a private party for cash and 100,000 shares of Q-Gold common stock at a deemed price of $0.25/ share. The owner will also receive a cash payment of $7,500 and Q-Gold stock valued at $50,000 on the first anniversary of the Option Agreement and $10,000 cash and $75,000 in Q-Gold stock on the second anniversary. The Company also agreed to work commitments of $30,000 and $60,000 in years one and two of the Option Agreement. Upon exercise of the Option, the owner will receive an NSR of 2% on all mineral production from the blocks. This transaction is subject to the approval of the TSX Venture Exchange.
Q-Gold now holds over 32,000 acres of prospective precious and base metal claims in the historic (1890s) Gold Camp at Mine Centre.
Q-Gold also announced that drilling has commenced on the gold-bearing Jolly Roger vein located on its recently acquired property from Nipigon Gold Resources Ltd. A second drill rig is scheduled to arrive at Mine Centre by this weekend as part of the Company’s 5,000 metre diamond drill program targeting anomalous zones delineated in the 2006 airborne survey and the recently completed ground geophysical survey.
Richard C. Beard, P.Eng., Consulting Geologist, a Qualified Person as defined by NI 43-101, has reviewed and approved the technical disclosure contained in this press release.
For more information, please contact:
J. Bruce Carruthers II, President at 888-779-0166.
This release may contain forward looking statements implying an assessment that the resources described can be produced profitably in the future. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
