CMQ announces core drilling results on Red Canyon Project
Canada NewsWire
CALGARY, Jan. 26 /CNW/ - CMQ Resources Inc. (TSXV: NV) ("CMQ") is pleased to report drill results for the three hole, 1,137 ft (346.6 m) diamond core drilling program for the Red Canyon sediment-hosted gold project in Eureka County, Nevada.
Drill holes MR09-05C and MR09-06C were designed to follow-up on known gold mineralization in reverse-circulation hole KR-001 containing 95 ft of 0.117 oz Au/t from 20 to 115 ft (29.0 m of 4.012 g Au/t from 6.1 to 35.1 m). Assays and geologic logs are available for KR-001, but no drill cuttings were preserved. Both holes are immediately adjacent to KR-001 and are not new discovery holes. These holes were designed to verify historic drill assays of KR-001 and provide direct observation of alteration, structure and lithologic patterns in the gold-bearing host rocks.
A third hole, MR09-04C, was drilled 1,445 ft (440 m) east of KR-001 to test the McColley Canyon Formation below surface alteration and a gold/arsenic soil anomaly. These are the first core holes completed on the project in over two decades of exploration.
All drill results are summarized below and are based on a 0.010 oz Au/t (0.343 g Au/t) cutoff with "no significant assays" reported as anything less than 0.010 oz Au/t. Lengths of intersections reported are down hole intervals.
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MR09-04C (Vertical)
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Interval (ft) Length (ft) Grade (oz Au/t) Length (m) Grade (g Au/t)
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No significant assays
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MR09-05C (Vertical)
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Interval (ft) Length (ft) Grade (oz Au/t) Length (m) Grade (g Au/t)
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0-130* 119 0.152 36.28 5.25
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including
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0-42 42 0.102 12.81 3.50
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42-49 No sample
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49-52 3 0.101 0.91 3.46
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52-56 No sample
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56-95 39 0.281 11.89 9.64
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95-130 35 0.074 10.67 2.54
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*11 feet (3.35 m) of no core recovery
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MR09-06C (Azimuth 315 degrees, angle -70 degrees)
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Interval (ft) Length (ft) Grade (oz Au/t) Length (m) Grade (g Au/t)
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0-60 60 0.100 18.29 3.43
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including
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0-28.5 28.5 0.126 8.70 4.32
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45-55 10 0.192 3.05 6.58
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MR09-05C verified the results in KR-001 and upgraded the original gold assays by 30 percent and upgraded the thickness by 25%. Core samples from MR09-05C and MR09-06C now indicate strongly decalcified and clay-altered limestone, with little to no silica, a more favorable style of alteration for gold mineralization. Previous rock sampling and drilling had been strongly biased towards bold exposures of strongly silicified limestone. Exploration potential at Ice remains open to the northeast along 3,600 ft (1,100 m) of strike, and to the southeast for 7,600 ft (2,320 m) along a plunging syncline.
Drill samples were collected with a diamond core drill. Sample intervals of half core were typically collected on five-foot (1.5 m) intervals, but in some instances samples were based on geologic contacts. All samples were sent to ALS Chemex Laboratories, Inc. of Reno, Nevada for sample preparation and analysis. Gold results were determined using standard fire assay techniques on a 30-gram sample pulp with an atomic absorption finish. Montezuma QC/QA included the insertion of standards and blanks on a regular basis, and check assays on select samples. Check assays were performed by SGS Mineral Services in Toronto, Ontario.
Permitting Update
To date, Montezuma's drilling has been permitted through a Notice of Intent ("NOI") with the Bureau of Land Management. The NOI limits surface disturbance to a maximum of 5 acres (2 hectares). Currently, Montezuma and Miranda geologists recognize eight unique target areas that require multiple phases of drilling. To test these targets, Montezuma has initiated the permitting process for an Exploration Plan of Operations ("POO"). When complete, the POO will allow for more than 5 acres (2 hectares) of surface disturbance and increased flexibility in drill testing a variety of targets across the property.
The Red Canyon project includes 237 unpatented lode mining claims (7.7 square miles/19.8 square kilometers) on the Battle Mountain-Eureka Trend and adjoins U.S. Gold's Tonkin Springs property to the west. The project covers an erosional "window" that exposes oxidized, decalcified and silicified lower-plate carbonate rocks that are age equivalent to the rocks hosting the Cortez Hills gold deposit.
Risk of Continued Operations
At CMQ's Annual and Special Meeting of Shareholders held January 19th, 2010, shareholders failed to approve the proposed Amended Funding Agreement, as further described in CMQ's Information Circular dated December 21, 2009 on a "majority of the minority" basis, as required by the TSX Venture Exchange and applicable securities regulations. As a result of the failure of this proposal, CMQ is in default under its existing funding agreement with Matco Capital Ltd. ("Matco") and does not have any source of capital to continue its operations. CMQ is currently indebted to Matco for approximately $1,570,000, including unpaid interest. Matco has the contractual right, as at the date hereof, to enforce its security over all of CMQ's assets, including all of CMQ's exploration properties. Presently, CMQ is attempting to negotiate a forbearance agreement with Matco and is exploring other financing alternatives. There can be no assurances that any such forbearance agreement will be concluded. If a forbearance agreement is reached, the terms may be punitive to CMQ and its shareholders.
CMQ's directors have not made a filing under the Companies' Creditors Arrangement Act ("CCAA") because obtaining financing to fund a CCAA process is remote given the exploratory nature of CMQ business and the uncertain value of its assets.
CMQ currently has 6,534,670 Common Shares issued and outstanding. CMQ's website is located at www.cmqresources.com
John Hogg, CEO, 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.
Forward-Looking Statements
This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of Canadian securities laws regarding the drilling and potential of the Red Canyon project as well as the ability of CMQ to negotiate a forbearance agreement, arrange alternative financing or continue operations. Undue reliance should not be placed on forward-looking statements, which are inherently uncertain. There can be no assurance that the plans, intentions or expectations upon which forward-looking statements are based will in fact be realized. Forward-looking statements are based on management's current beliefs as well as assumptions made by, and information currently available to, management. Though management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. The forward-looking statements contained in this press release are made as of the date hereof and CMQ does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, except as required by applicable law.
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For further information: John Hogg, Chief Executive Officer, CMQ Resources Inc., Tel: (775) 778-3693, E-mail montezuma@frontiernet.net