/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
CALGARY, Aug. 28 /CNW/ - CMQ Resources Inc. (TSXV: NV) ("CMQ") announces
that the Exploration Agreement with Option to Form a Joint Venture ("the
Agreement") has been finalized between Montezuma Mines Inc. ("Montezuma"), a
subsidiary of CMQ Resources Inc., and Miranda Gold Corp. (TSXV: MAD)
("Miranda") on Miranda's Red Canyon project. This exploration agreement
replaces the letter of intent dated June 2, 2008.
Under the terms of the Agreement, Montezuma must spend $500,000 exclusive
of underlying lease payments on or before August 1, 2009. Montezuma may earn a
60% interest in the Red Canyon project by funding US$4,000,000 in qualified
expenditures over a five year period. Montezuma may then elect to earn an
additional 10% interest by completing a bankable feasibility study or funding
US$10,000,000 in additional exploration. Montezuma and Miranda geologists are
designing an aggressive exploration program that will begin in September 2008.
Details of the program are currently being finalized. The initial plan
includes drill testing near-surface targets at the Ice prospect and deeper
targets at the Gexa prospect, along with target development in the northern
and central portions of the property.
Red Canyon is a sediment-hosted gold project located 12 miles (19 km)
southeast of the 8.5 million ounce Cortez Hills gold deposit. The 7.7 sq. mi.
(20 sq. km.) property consists of 237 unpatented lode mining claims that cover
a two square mile (5.2 sq. km.) alteration cell developed in carbonate rocks
that are age-equivalent to host rocks at the Cortez Hills and Gold Bar
deposits. Previous drilling at the Ice prospect identified a near-surface zone
of oxidized gold mineralization hosted in the McColley Canyon Formation,
immediately above the Lone Mountain dolomite. 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 (18.3 m of 1.132 g Au/t from
61-79.3 m) in M-9.
At Ice, fences of inclined reverse-circulation drill holes are proposed
to systematically test for gold mineralization beneath post-mineral volcanic
rocks, northeast of holes KR-001 , ROM07-01 and M-9. One core hole is
anticipated to help resolve the geometry and ore controls of gold
mineralization at Ice. At the Gexa target, deep drilling will test a
structural / stratigraphic target in the McColley Canyon Formation, beneath a
2,600 ft by 980 ft (800m by 300m) anomaly of gold in soils. Drilling is
anticipated to begin in the fall of 2008, but is dependent on BLM permit and
bonding approval in addition to drill rig availability.
Target development activities will include additional soil sampling,
geologic mapping and drill hole re-logging in the central portion of the
property, and an oxygen/carbon dioxide soil gas survey in pediment covered
areas to the north. Much of this work will follow-up on unique geologic and
geochemical patterns identified by previous operators as well as field
examinations conducted by Harry Cook, an authority on sequence stratigraphy
and predictive gold host models in northern Nevada.
John Hogg, Vice President Exploration, CMQ Resources Inc., is the
qualified person, as defined by National Instrument 43-101, who has reviewed
and verified the data disclosed in this press release.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
%SEDAR: 00008560E
