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News 2006

CJGC Acquires Option on Guardsmen Resources Inc.

June 20, 2006

Christopher James Gold Corp. (“CJGC”) has acquired an exclusive option to purchase all of the shares of Guardsmen Resources Inc (“Guardsmen”), a private company that holds a portfolio of high-quality gold and base-metal projects in northern British Columbia.

Of these properties, the “Ranch” property (also known as “Alberts Hump”) in the Toodoggone area of northern B.C., hosts extensive high-sulfidation epithermal gold mineralization.  Shallow drilling on the property in the 1980s defined several zones of high-grade mineralization with typical intersections of 5 metres to 10 metres of more than 20 grams per tonne (“g/t”) gold.  To date, only the upper 70 metres of oxide ore have been systematically drill tested, and CJGC considers that the underlying sulphide mineralization has the potential to develop into a world-class, high-sulfidation epithermal system, similar in style to those at El Indio (Chile) or Perina (Peru).

Company President, Dr. Max Baker, commented: “The Guardsmen option provides CJGC with a rare opportunity to acquire a number of very prospective British Columbia exploration projects, some of which are relatively advanced with significant gold showings.  The Ranch project, in particular, is one of the most promising gold properties that I have had an opportunity to explore.

“The agreement will provide us with the experienced field support of the Guardsmen principals and is staged over an extended time so as to allow us to take a close look at the Guardsmen assets before deciding on each annual installment of the option price.”

Pursuant to a letter of intent (the “LOI”) between the parties, CJGC can exercise its option by making a cash payment of $300,000, initially, and issuing 15,000,000 CJGC shares, over four and one-half years, to the Guardsmen shareholders, and incurring exploration expenditures of $3,700,000 on Guardsmen’s projects over three years.  Additional details of the LOI are set out below.

The Guardsmen Properties

The Ranch Property

The 9,300 hectare (22,998 acre) Ranch property is located in north-central British Columbia, approximately 310 kilometres north of Smithers and 500 kilometres northwest of Prince George.


The property was originally explored in the1970s by Texasgulf Metals Inc., under joint venture with Energex Minerals Ltd., for porphyry copper-molybdenum mineralization.  In the 1980s, Energex explored the outcropping high-sulfidation epithermal-type mineralization, to a depth of 50 metres, for near surface oxide gold mineralization amenable to heap-leaching.  Approximately 400 shallow holes, totaling approximately 30,000 meters, were drilled.  Most holes were 20 metres to 80 metres deep, with very few holes deeper than 150 metres.

In the late 1980s, Energex published resources estimates for two separate zones on the property, the Bonanza and Thesis zones, but was unable to continue to fund its development.  The property was optioned to Cheni Gold Mines Inc. who mined 41,200 tonnes of ore from the Bonanza zone, at an average grade of greater than 9.2 g/t gold, and trucked it to the nearby Lawyer’s Mine for treatment.  Guardsmen acquired the claims comprising the project during 2001 and 2002, while the price of gold languished below US$300 per ounce.


To date, five north- to northwest-trending mineralized structures, each with a strike length of 1,000 to 2,000 metres, have been defined by shallow drilling.  Mineralization is typical, high-sulfidation epithermal-style, with vuggy silica, quartz-alunite and argillic alteration, associated with abundant barite veinlets and disseminations, indicating a relatively shallow level of erosion.

Zones of higher-grade mineralization vary, from relatively small, pipe-like, bodies with surface dimensions of 50 metres x 50 metres, to planar bodies, both steeply- and gently-dipping, with strike lengths of up to 400 metres and thicknesses of 5 metres to 20 metres.

Because of the shallow nature of historical drilling, no effort has been made to calculate a National Instrument 43-101 compliant resource from it.  However, the selected drill hole intercepts summarized below are representative of the high-grade mineralized zones.  These zones have not been systematically explored below a depth of 50 metres, indicating that potential exists to add substantially to the size of the historically-reported resources estimates.

Hole ID































































































Planned Exploration

The planned exploration program for 2006 will consist initially of a induced polarization (IP) survey along known mineralized structures to better define previously-established, high-grade gold mineralization below a depth of 50 meters (understood to be the limit of oxidation).  This will be followed by a drill program to test to depth known zones of high-grade gold mineralization.


The project comprises a number of claims, including the Al/Bonanza claims.  Guardsmen has a joint venture agreement with Bishop Gold Inc. (“Bishop”) to develop the Al/Bonanza claims on an 85%/15% ownership basis.  There are no royalties over the property, and Guardsmen has the right to purchase Bishop’s 15% interest in the Al/Bonanza claims for the term of the Al/Bonanza joint venture for $400,000.

Other Properties

The Deer Horn Mine property, 150 km south of Smithers, consists of seven one post (16 unit) claims, totaling 28 square kilometres, in the Tweedsmuir Recreation Area.  Previous exploration has determined that gold mineralization is hosted by a series of quartz veins and ledges that have been traced for 1,650 metres along the contact between Skeena Group sedimentary strata and underlying Pre-Jurassic quartz diorite.  The extent of the mineralization and reported high-grade float and grab samples indicates potential for a sizable bulk-tonnage target.

The Dome Mountain property covers 4,025 hectares surrounding the Boulder and Forks Gold Deposits on Dome Mountain, some 35 kilometres due east of Smithers, in north-central British Columbia.  Precious metal mineralization occurs within a series of subparallel, shear-hosted, quartz-sulphide veins, exposed over a minimum 4 km x 4.5 km area.  The number of veins and their interpreted strike lengths suggest that the Dome Mountain Property has the size potential to be a vein camp.  An initial estimate of gold resources was reported for the Boulder and Argillite zones.

The Yanks Peak property covers 730 hectares of mineral tenure and Crown-granted mineral claims in the historic Cariboo gold mining region, 27 kilometres south of Barkerville, in east-central British Columbia.  The property hosts a number of zones containing narrow, high-grade gold-bearing quartz veins with potential to develop a bulk-tonnage resource.

One of these zones, the Midas vein swarm, consists of a 60 metres by 570 metres zone of narrow quartz veins, from which a 45 tonne sample collected in 1949 reportedly produced 311 g/t gold and 62 g/t silver and a 1.5 metre chip sample taken across the vein assayed 131.56 g/t gold.  Earlier, historical sampling returned similar results, although the property has not been systematically explored using modern techniques.

The Gold Hill property covers 2,080 hectares surrounding (but not including) the historical Engineer Mine, and is located on the southeast shore of Tagish Lake, in northwest British Columbia.  The Engineer Mine was developed on a gold-bearing quartz vein, and it is thought Guardsmen’s property may host similar mineralization.  Mineralized shear zones containing a series of narrow gold-bearing quartz veins offer potential for a bulk tonnage deposit.

The Zinc Bay property covers 2,036 hectares on the south shore of Whitesail Lake, 29 kilometeres south of the Huckleberry Mine, in west central British Columbia.  Polymetallic zinc rich veins with widths of several metres and strike lengths of several hundred metres are reported from the property.  Indications of potential for porphyry copper-molybdenum type mineralization have also been reported.

The Letter of Intent

Under the LOI, CJGC has the exclusive right to acquire 100% of the shares of Guardsmen, in consideration of: (a) $300,000 payable at closing; and (b) 15,000,000 shares of CJGC (the “CJGC Shares”) issuable over a period of 54 months.  3,000,000 of the CJGC Shares are issuable during the first year of the agreement.  In addition, CJGC must incur exploration expenditures totaling $3,700,000 over three years on Guardsmen’s projects, $500,000 of which must be incurred during the first year of the agreement.

The CJGC Shares will be issued to the Guardsmen shareholders pro rata to their holdings in Guardsmen and are not expected to create a new “control person” (a holder of shares to which are attached 20% or more of the issued voting rights) of CJGC.  During the option period, the shareholders will vote all CJGC Shares held by them in accordance with the direction of the CJGC directors on matters other than those requiring an extraordinary resolution and CJGC will have the prior right to attempt to place any CJGC Shares that a Guardsmen shareholder may wish to sell.

The Guardsmen shareholders will transfer their shares of Guardsmen to CJGC at the same times, and in the same proportions, as the CJGC Shares are issued.  The shareholders will continue to exercise voting rights attached to the Guardsmen shares until CJGC has exercised its option in full.

The LOI also provides for:

  • a royalty to be paid by CJGC to the shareholders equal to $10 for every proven or probable gold-equivalent ounce in excess of 2,000,000 established by a bankable feasibility study received by CJGC on a project during the 10-year period following the date of the LOI;
  • a guarantee that the aggregate value of all consideration received by the shareholders will not be less than $35,000,000 on the earlier of receipt of the bankable feasibility study and ten years;
  • the acceleration of share issuances under the agreement, in certain events; and
  • the appointment, during the option period, of one representative of the Guardsmen shareholders to the CJGC board of directors.

CJGC will act as the operator of the Guardsmen projects.  During the option period, the board of directors of Guardsmen will consist of one representative of the shareholders and one representative of CJGC.  The LOI requires the unanimous approval of the board of directors and, in some cases, the consent of a majority of the Guardsmen shareholders, for any significant decisions by Guardsmen.

In the event CJGC terminates the agreement prior to exercising its option in full, CJGC will return all of the shares of Guardsmen to the shareholders, in consideration of up to a 2.5% net smelter returns royalty on certain Guardsmen projects.

Although the LOI is binding, the parties intend to replace it with a definitive option agreement within the next 60 days.  The transaction is subject to a satisfactory due diligence review by CJGC and TSX Venture Exchange approval.

About Christopher James Gold Corp.

Christopher James Gold Corp. is a Canadian-based mineral exploration company trading on the TSX Venture Exchange under the trading symbol “CJG”.

The company recently announced its option to acquire up to a 65% interest in Chesapeake Gold’s Cucaracha Dorada gold project located in southern Durango State, Mexico.  It also owns 100% of the copper and gold rights to the historic Craigmont mine in southern British Columbia, and a portfolio of gold projects in British Columbia, including the Brassie Creek, Big Kidd, and Portage Lake properties.

CJGC is currently conducting first phase exploration under option on the Valle Grande polymetallic project in Catamarca Province, Argentina, and the Olympic-Sun and Cedar Mountain gold / silver projects in Nevada.

The company has assembled a strong management team with extensive experience in project generation and development, a proven track record of exploration capital fundraising, and extensive international alliances.  Plans for 2006 include the continued exploration of its British Columbia projects and an active program of project generation and assessment in North and South America.

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Quality Assurance and Control

This news release was prepared under the supervision of Dr. Max Baker, PhD, the company’s President and a “qualified person” as that term is defined in National Instrument 43-101 (“NI - 43-101”) of the Canadian Securities Administrators.  While the results of previous exploration reported herein are believed to be accurate, the data was not collected under the guidelines stipulated under National Instrument 43-101.  Therefore, the drill results, rock-chip sample grades, resource and bulk-sample grade estimates, should be treated as no more than indications of the exploration potential of the various projects.

Christopher James Gold Corp.

Max Baker, President

Christopher James Gold Corp.
Max Baker, President
John Glanville, Investor Relations
Tel: 604 408 8829

This news release contains forward-looking statements.  Forward-looking statements are statements which relate to future events. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.  Except as required by applicable law, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results. Readers are referred to the sections entitled “Risk Factors” in the Company's periodic filings with the British Columbia Securities Commission, which can be viewed at

The TSX Venture Exchange does not accept responsibility
for the adequacy or accuracy of this news release.