Red Hill is located in the northern Simpson Park Mountains approximately 80 road miles (128 km) southwest of Elko, Nevada. The property is along the Cortez Gold Trend, a west-northwest alignment of bulk-mineable, sediment-hosted gold deposits including Pipeline, Cortez Hills, Gold Acres, Cortez and Horse Canyon (Figure 1). Red Hill is 15 miles (24 km) southeast of the Cortez Hills gold deposit, a +12 million ounce sediment-hosted gold deposit owned by Barrick.

Red Hill is a sediment-hosted gold project within Nevada's Cortez Gold Trend. The project covers an extensive area of hydrothermal alteration developed in favorable lower plate carbonate rocks, which are age equivalent to rocks hosting the Cortez Hills gold deposit 15 miles (24km) northwest of Red Hill. BRH-013, a 2006 RC drill hole completed in the West Pediment area, intersected 80 feet of 0.146 oz Au/t (24.4m of 4.987g Au/t) from 1,920 to 2,000 feet (585.4 to 609.8m). The intercept includes 45 feet of 0.237 oz Au/t 913.7m of 8.105g Au/t) from 1,920 to 1,965 feet (585.4 to 599.1m). This intercept confirms the presence of a sediment-hosted gold system beneath post-mineral pediment gravels. Gold mineralization is hosted in lower plate carbonate rocks in association with altered lamprophyre dikes, and elevated levels of arsenic/antimony/ mercury/thallium. In plan, the mineralized intercept correlates with a west-northwest striking CSAMT resistivity anomaly, a west-northwest to north-south striking bedrock high, and a gravity gradient low. Mineralization remains open to the west-northwest and east-southeast. Miranda geologists have identified a high quality exploration opportunity on the projection of the CSAMT anomaly, southeast of BRH-013. This 2,300 foot by 4,600 foot (700m by 1,400m) area is defined by hydrothermally- altered bedrock, a gold/mercury soil anomaly, a gravity low, and a mapped syncline. Bedrock exposures indicate a shallower target zone than in BRH-013. This target area has not been drill tested by previous operators. On the east side of the property, drill targets occur proximal to (previously mined) antimony mineralization developed in lower plate rocks. The BRH-013 high-grade gold / lamprophyre dike association may reflect a structurally-controlled Carlin-type gold system versus a stratigraphically-controlled system. Miranda geologists believe the current drill spacing is too wide to define the geometry, structural controls and size of this gold system. Additional reverse-circulation and core drilling are recommended to systematically-evaluate this Cortez Trend opportunity.

Two distinct sedimentary rock packages occur on the property. They include:

• Upper plate, siliceous sedimentary rocks of the Vinini and Valmy Formations. Chert, mudstone and greenstone are typical rock types. These rocks are covered by pediment gravels in the northern and eastern portions of the property. Siliceous rocks are generally poor hosts for large, sediment-hosted gold deposits.
• Lower-plate, Silurian to Devonian age carbonate rocks dominated by silty to muddy limestone, fossiliferous limestone, siltstone and lesser chert. These rocks are included in the Devils Gate, Denay and McColley Canyon Formations. At Red Hill, lower plate carbonate rocks crop out in the mountains and beneath pediment gravel/upper plate rocks to the north and east. Carbonate rocks are the preferred host for multi-million ounce gold deposits along the Cortez and Carlin Gold Trends.

The upper and lower plate rock packages are separated by a low angle, regional fault known as the Roberts Mountains thrust. Erosion of the upper plate rocks created "windows" that expose favorable lower plate carbonate rocks. At Red Hill, the JD Window is one of five unique carbonate windows along a 35 mile (56km), west northwest-striking corridor through the Shoshone, Cortez and Simpson Park mountain ranges. The alignment of carbonate windows coincides with the Cortez Gold Trend (Figure 1). Within this corridor are the +12 million ounce Cortez Hills deposit and the +20 million ounce Pipeline deposit. They are located in the Cortez and Gold Acres windows, respectively.

Lower and upper plate rocks are complicated by numerous high-angle east-northeast, northwest, northeast and north-south striking faults and northwest-striking folds. These structural features provide pathways for hydrothermal alteration and metals. For example, the east northeast-striking Long fault contains hydrothermal alteration and anomalous gold along 7,000 ft (2,134m) of strike length. This fault cuts through a 3,200 by 4,000 ft (975 by 1,219m) area of pervasive red to yellow iron oxidation, decalcification and localized silicification in lower-plate carbonate rocks. Drilling in this area has not systematically tested favorable rocks of the Denay/Red Hills member and McColley Canyon Formation.

Initial work focused on economic evaluation of outcropping antimony mineralization on the east side of the property. Beginning in the 1960's, Cordero, Homestake, Kennecott, Pathfinder, Uranerz and Romarco completed gold exploration programs on portions of the Red Hill property. Exploration concentrated on silicified and brecciated carbonate rocks exposed along the east-northeast striking Long fault. Four dozen shallow rotary holes tested these altered rocks for near-surface, oxide gold mineralization (Figure 3). Drill results confirmed anomalous gold and pathfinder elements, but economic gold intercepts were thin and low grade. Other widely-spaced, shallow drill holes targeted geochemical and geophysical anomalies within the mountain range.

Figure 3 illustrates drill hole locations and grade thickness (GT) values. Grade thickness values are calculated by multiplying a mineralized interval by the corresponding gold grade. These intervals are summed for the length of a drill hole. The GT value indicates strength of gold mineralization in a drill hole where cooler colors (blue, green) represent lower GT's and warmer colors (orange, red) represent higher GT's. GT values are not tied to economic criteria.

The north and east portions of the project are covered by a thin veneer of unconsolidated pediment (alluvial) gravels. The pediment is a gently-sloping surface away from the mountain range where the gravels cover bedrock and potential exploration opportunities. Multi-million ounce, economic gold deposits have been discovered under pediment cover in Nevada including: Pipeline, Cortez Hills, Gold Quarry and Twin Creeks. Historic drilling at Red Hill did not test for large, sediment-hosted gold deposits beneath pediment gravels. This exploration opportunity was recognized by Miranda and Barrick and it led to the stellar results in BRH-013: 45 ft of 0.237 oz Au/t (13.7m of 8.105g Au/t) from 1,920 to 1,965 ft (585.4 to 599.1m).