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Francis Parkman mentions this derivation in his account of Cartier's explorations, in Pioneers of France in the New World. I mention this because Parkman's histories are quite readable, if overwritten.

I find that Samuel Eliot Morison's The European Discovery of America: The Northern Voyages, instead derives it from caignedatze, an Iroquoian word for red copper, or any metal other than gold.