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CALGARY, June 19 /CNW/ - CMQ Resources Inc. (TSXV: CMQ) ("CMQ") ispleased to announce Letter Agreements to explore two Nevada gold explorationproperties and to call an Annual and Special Meeting of Shareholders toapprove a funding agreement, share consolidation and future private placement.
Brief Description of Exploration Opportunities
Red Canyon
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Red Canyon is a sediment-hosted gold project located 12 miles (19 km)southeast of the 8.5 million ounce Cortez Hills gold discovery. The 7.7 sq.mi. (20 sq. km.) property consists of 237 unpatented lode mining claims thatcover a 2 sq. mi. (5.2 sq. km.) alteration cell developed in carbonate rocksthat are age-equivalent to host rocks at the Cortez Hills and Gold Bardeposits. Previous drilling at the Ice prospect identified a near-surface zoneof oxidized gold mineralization hosted in the McColley Canyon Formation,immediately above the Lone Mountain dolomite. Exploration potential remainsopen along strike to the northeast and south in areas covered by post-mineralvolcanic rocks and alluvium. The exploration potential to the northeast isdefined by a) five drill holes that intersected gold mineralization, b)structural contouring, c) a 3D geochemical evaluation, and d) gravity data.Select drill-hole intercepts include:
- 95 ft of 0.117 oz Au/t from 20 to 115 ft (29.0m of 4.007 g Au/t from 6.1 to 35.1m) in KR-001;- 85 ft of 0.046 oz Au/t from 15 to 100 ft (25.9m of 1.568 g Au/t from 4.5 to 30.5m) in ROM07-01; and- 60 ft of 0.033 oz Au/t from 200-260 ft (18.3m of 1.132 g Au/t from 61 to 79.3m) in M-9.
Previous deep drilling also identified a 3,500 ft by 4,600 ft (1.1 by1.4km) hydrothermal cell at the Gexa prospect, immediately south of the Iceprospect. Two holes encountered deep oxidation, moderate to strongsilicification, select intervals of fluidized breccias and elevated pathfinderelements. Both holes ended prematurely prior to testing their intended targetsin favorable limestone of the Denay and McColley Canyon Formations. Thesealteration features combined with elevated gold confirm the presence of adeeper, previously unrecognized Carlin-style gold system.
South Sleeper
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The South Sleeper property is located 1.5 miles (2.4 km) south-southwestof the Sleeper Deposit in Humboldt County, Nevada, on the north end of theBattle Mountain-Eureka trend. The project consists of 60 lode mining claimscovering 1.8 square miles (4.53 sq. km.).
The target at the South Sleeper property is a low sulfidation, bonanzagold-silver vein target enveloped by bulk-tonnage, low-grade disseminated orecovered by pediment gravels.
The Sleeper deposit produced 1,685,500 ounces of gold and2,334,400 ounces of silver from high-grade veins and lower grade stockwork andbreccia ores. Ninety percent of the ore mined was hosted by the SleeperRhyolite, a volcanic unit that is covered by alluvial gravels. At the presenttime XCal Resources Ltd. is evaluating a renewed geological interpretation.Published geological maps and publicly available data strongly suggests thatthe favorable mine stratigraphy and structure trends southwestward from theSleeper pit onto the South Sleeper property. Specifically, the gold-silverveins of the original Sleeper mine, a prominent magnetic low, and Landsat TMlineaments all trend towards the South Sleeper, which is covered by alluvialgravels along the western range front.
Letter Agreements
CMQ has signed a Letter Agreement with Miranda Gold Corp.
