CMQ Resources (http://www.cmqresources.com) TSX.V symbol CMQ. Size of Cortez land position: 26.8 sq. miles 1) Montezuma (100% working interest) 12.4 sq. miles. Located NE of Cortez Hills area in Crescent Valley. This is next to Placer Dome/Kennecott's large Dean Ranch tract. According to the Sept 10, 2004 Loewen, Ondaatje, McCutcheon analyst report (Speculative Buy), from Nov 2004 to March 2006 CMQ Resources will drill 10 exploratory holes looking for Carlin, horst-type gold targets. 2) Vasquir (100% working interest) 14.4 sq. miles. Located 15 km NE of Cortez Hills. From Nov 2004 to March 2005 CMQ Resources will drill 10 exploratory holes here as well. Same types of targets as the Montezuma property. Source: CMQ Resources Martin Lambert, the President of CMQ Resources, told me that if I use pictures such as the one above from his web site, I need to emphasize that this is simply one of many unproven theories that his company is investigating. I like this cutaway picture because it does a nice job of illustrating for the layman how the valleys are filled with alluvium, how upper and lower plate strata are layered, and how intrusives can originate from deep within the earth. CMQ Resources has drilled down around 1,500 feet and hit something in the middle of Crescent Valley, but it has not drilled enough holes to prove that this thing labeled "Montezuma" is in fact a horst block structure. CMQ Resources considers it a Jurassic-aged [150-205 million years old] intrusive. Also, while attending the January 2005 Vancouver Resource Investment Conference, I did not hear any geologists validate the theory that the Pipeline deposit drifted from somewhere up Crescent Valley. Despite all of this, I still like the illustration. Incidentally,"Alluvium" is "a general term for clay, silt, sand, gravel or similar unconsolidated detrital material, deposited during comparatively recent geologic time by a stream or other body of running water." An "allochthon" is "a body of rock that has been moved from its place of formation by tectonic processes, such as thrust faulting." An "autochthon" is a body "formed in the place where now found. Applied to a body of rock which has not moved from its original place of formation." Projects outside Cortez 3) Kuusamo, Finland, (100% working interest) Exploration for Ni, Cu, PGM targets. Active mines in Cortez: None Amount of proven reserves in Cortez. None Exposure to Cortez Trend: Currently the main focus of exploration efforts. Total gold reserves in company. None Total production None Total Company revenues: None Fully diluted shares: 65.4 million shares. Insider stake 46%. Institutions 19.9% According to Mineweb, Gold Fields acquired 11% (fully diluted) of the company's shares, significantly contributing towards the C$8 million working capital. Sprott Asset Management has 12.5%. Working capital: C$8 million Management/Strategy: Martin Lambert, the company's President, told me that you can drive by some people's homes in the Crescent Valley area and see bathing suits hanging out to dry from the enjoyment of hot springs literally in their backyards. (Nevada's answer to California hot tubs?) In addition to desirable hydrothermal characteristics, there are elevated mercury levels in the soil that can be a tell-tale sign. The Montezuma structure seems to have all the right conditions for hosting gold, except, of course, for sitting on top of the Cortez Trend fault system and already producing economic grades of gold in drill results. Mr. Lambert said Gold Fields has invested in his company, and one of its senior geologists is currently studying CMQ's properties. Placer Dome also has a large property nearby called "Dean Ranch." Obviously some staff professionals at two major firms think that there could be something worth exploring in the area. Loewen, Ondaatje, McCutcheon issued an 18 page report (Speculative Buy) dated 15 June 2004 that gives a good overview of CMQ Resources and the geology of its properties in addition to the already cited two page Sept 10, 2004 update report (Speculative Buy).
