Miranda acquired control of the underlying lease on the Red Canyon property in November 2003. The 19.5-sq.-km property adjoins the southeastern property boundary of
Red Canyon was extensively explored in the past by Meridian Minerals, Tenneco Minerals, Great Basin Mining & Exploration, Hemlo Gold Mines, and Kennecott Exploration. Work programs included geochemical surveys, geological mapping, ground magnetics, and geophysical surveys. As well, past operators carried out drilling, including 25,891 metres of reverse-circulation in 203 holes, 893 metres of air track in 45 holes, and 221 metres of core drilling in two holes.
As a result, four zones of surface mineralization were outlined: Ice, Gexa Knob, Sage and Red (all in the Devonian Nevada Formation). The best results were obtained from the Ice zone, where drilling cut 29 metres grading 4 grams gold per tonne starting at a depth of 6 metres.
Mineralization is controlled by a series of northwest- and northeast-striking, high-angle faults.
Most of the historic holes were less than 160 metres deep, though Kennecott drilled three deeper holes to depths of 762, 350 and 463 metres.
The property has widespread alteration and at least four zones of gold mineralization. Favourable lower-plate carbonate rocks are exposed in the property’s east-central flank. After examining reconnaissance mapping, Miranda believes the eastern quarter of the project area was incorrectly labelled “upper-plate facies.” Instead, they are believed to be representative of the promising Devonian chert-carbonate units.
Newmont can earn an initial 60% interest of Red Canyon by spending US$2.5 million on exploration before 2010, and can boost its stake to 70% by completing a bankable feasibility study. The major will pay US$30,000 to Miranda and assume the underlying lease payment on signing a joint-venture agreement.
Red Canyon is one of eight properties held by Miranda, covering 61 sq. km on the Battle Mountain-Cortez trend.
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