FORT FRANCES, ONTARIO-(June 18, 2008) - Q-Gold Resources Ltd. (TSX VENTURE:QAU)(FRANKFURT:QX9) announced today that it has begun de-watering the historic 100%-owned Foley Gold Mine near Mine Centre, Ontario to conduct underground exploration. The mine has been flooded since 1927.
The company recently announced (press release dated May 25, 2008) that it has applied to the Ontario Ministry of the Environment ("MOE") for two permits which will allow Q-Gold to pump water from the mine into a series of settling / polishing ponds at a high rate of a maximum of 400,000 liters per day for two periods of thirty days each.
In the interim, until the permits are received, the Corporation will begin "slow pumping" of the Foley Mine water at a rate not to exceed 50,000 liters per day as permitted by regulations. A mining crew from Paul Whelan Mining Contractors of Kirkland Lake, Ontario ("Whelan") has arrived in Mine Centre. Whelan has begun clearing remaining obstructions in the Foley Mine North Shaft and installing ladders and platforms to the 100 foot level. This will permit underground exploration of the estimated 180 feet of drifting which occurred on that level in the late 1890's. According to historic records, a stope on this level produced 5,267 ounces of gold, principally before 1900 (these reports are not compliant with the requirements of NI 43-101 and therefore cannot be relied upon).
Upon receipt of the permits from the MOE, an ALIMAK "raise climbing" system will be installed. This will permit underground exploration access to the 400 foot level and the approximately 320 feet of additional drifts on three other levels.
The Foley Mine North Shaft was the site of extensive renovation in 2007 as the old shaft collar was reconstructed. Pumping, hoisting and compressor equipment and ancillary buildings were also constructed to permit safe access to the mine for underground exploration. The mine road was widened to handle heavy trucks and mining equipment, and an existing mine camp comprised of nine Atco trailers, located approximately a mile from the Foley minesite, was purchased.
The 30-man camp is currently being renovated to house future mining crews and an area below the North Shaft of approximately 4.3 hectares is being cleared. This will permit construction of the settling / polishing pond facilities which will temporarily hold the mine water to ensure its purity prior to discharge into the environment.
Rainy River Update
Based upon the results of a recent geologic review, the Corporation decided not to renew options on 2,838 patented acres of the company's exploratory acreage in the Rainy River Greenstone Belt. Q-Gold has retained a 100% interest in a total of 4,796 prospective exploratory Rainy River acres, comprised of 2,480 acres of staked mining claims and 2,316 acres of leasehold patents. A review of potential locations for a future reverse circulation drilling program on the retained acreage is currently under way.
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.
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, 4,796 exploratory acres in the Rainy River Greenstone Belt and an option on six historic gold and silver mines near Crown King, Arizona. It also holds an option on two prospective copper porphyry and one copper / zinc prospects 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.
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: www.qgoldresources.com
or
Investor Relations
AGORACOM Investor Relations
Email: QAU@agoracom.com
Website: www.agoracom.com/IR/Q-Gold
