Miranda Gold Corp. (TSX-V: MAD) announces the signing of an exploration and option to form a joint venture agreement with Taz Gold LLC, a Nevada limited liability company controlled by Navaho Gold Ltd. a public company incorporated in Australia on Miranda's TAZ project in Eureka County, Nevada.
Under the terms of the Agreement, Navaho will have to make initial exploration expenditures of US$3,000,000 over a four-year period, with the first year's commitment of $400,000 an obligation. Navaho will then have the option and right to earn a 75% interest by either producing a feasibility study in four years or by spending an additional $10,000,000 over 10 years at a rate of no less than $1,000,000 per year.
Mid-year, Navaho will initiate the first-year $400,000 exploration program, forecast to include approximately 2,500 m of drilling in eight holes.
Miranda's TAZ project is located within the Battle Mountain-Eureka gold trend, approximately 42 km northwest of Eureka, Nevada. The project consists of 142 unpatented lode claims, covering 11.9 sq. km. The property lies along the margin of a north-south-trending carbonate window where Devonian-age limestone of the Denay and Devils Gate Formations are exposed through the Roberts Mountains Thrust. Devonian-age limestone is a favorable host for sediment-hosted gold systems such as the Cortez Hills, Pipeline and Gold Bar deposits in Nevada. The thrust and west-northwest and east-northeast-trending fault zones are locally bleached, brecciated and silicified.
Previous exploration at TAZ focused on shallow oxide, disseminated gold mineralization. Rock chip assays returned values from below detection up to 0.892 g Au/t and elevated Carlin-style geochemistry (1600 ppm arsenic, 185 ppm antimony and 9.6 ppm mercury).
Historic drill results from hole VC96-8, which is within the current claim block, include 21.3m of 1.44 g Au/t from 65.5to 86.9 m, within 41.2 m of 0.86 g Au/t from 65.5 - 106.7 m. The drill-hole ended at a depth of 106.7m and the last 1.5 m sample returned 0.175 g Au/t.
An initial target at TAZ is to offset VC96-08, which ended in anomalous mineralization, and drill deeper to test other favorable host units for more robust gold mineralization lower in the carbonate section.
Source: Miranda Gold Corp.