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News 2007

Christopher James Acquires Option on Carlin-Style Pediment Play in Nevada

May 17, 2007

Vancouver, B.C. - Christopher James Gold Corp (CJG - TSX.V) (the “Companyâ€) has signed a memorandum of understanding with Harvest Gold Corporation (HVG - TSX.V) (“Harvestâ€) to secure an option to acquire up to 70% of the Garcia Flats Project, located on the southern extension of the Carlin Trend, in north-central Nevada.

The project comprises 250 unpatented lode claims in two blocks, covering approximately 20 square km of highly-prospective covered pediment ground.  It is located on the southern extension of the Carlin Trend, at the intersection of two structural trends, each of which host multi-million ounce deposits: the Rain mine, to the north, and the Bald Mountain mine, to the southeast.

Company President, Dr. E. Max Baker, commented “Garcia Flats is precisely the type of opportunity we have been looking for in Nevada - a drill ready, conceptual play, supported by good exploration data, with the potential to lead to the discovery of a multi-million ounce Carlin-style deposit.

“Because the target area has been defined already, the concept can be tested quickly with several drill holes into the underlying basement, beneath the anomalous zone.  We will commence drilling as soon as a suitable drilling rig is obtained.

“With drilling underway at the Cucaracha Dorada project in Mexico, and the first of two drill rigs being mobilized to the Ranch project in Northern BC, this will be an exciting year for us, with a steady flow of drill results through to the yearend.â€

The Garcia Flats Target Anomaly

Using enzyme leach analysis, a significant geochemical anomaly in gold and pathfinder elements, including arsenic, antimony, barium, and thallium, has been delineated over the structural target area, indicating the possible presence of buried, Carlin-style mineralization below.  The significance of the geochemical anomaly is supported by its location at the northern end of a coincident gravity low and magnetic high - suggestive of a buried intrusive body.

The eastern anomaly measures approximately 1000 metres wide and at least 3500 metres long.  A second zone, the central anomaly, is 600 metres wide and at least 1800 metres long.  The eastern anomaly is adjacent to an interpreted buried intrusion, and the central anomaly is closely associated spatially with the interpreted intrusion.  More particularly, the structural target area is located within a graben, which in the target area itself is interpreted as being covered with recent gravels and sediments.

The Garcia Flats Option

The Company’s memorandum of understanding (“MOUâ€) with Harvest provides it with the exclusive right to earn a 70% interest in the Garcia Flats project, subject to an underlying 3% net smelter returns royalty, over three years, by issuing a total of 225,000 shares to Harvest and incurring an aggregate $2,500,000 in exploration expenditures as follows:

  • 50,000 shares upon the satisfactory completion of the Company’s due diligence
     
  • 75,000 shares and $500,000 in exploration expenditures in year one
     
  • 100,000 shares and $750,000 in additional exploration expenditures in year two
     
  • $1,250,000 in additional exploration expenditures in year three.

The Company has the right to terminate the option without further obligation at any time, and to shorten the earn-in period by accelerating the rate of project expenditures.

Once the Company has earned its 70% interest, Harvest will be required to either contribute pro-rata to future expenditures or be diluted to a 12.5% carried interest through completion of a bankable feasibility study.  Should the Company take the project to the development stage, it will be responsible for raising Harvest’s share of any required financing.

The Company’s obligations under the MOU are subject, inter alia, to a definitive agreement and approval of the TSX Venture Exchange.

Olympic-Sun Project, Nevada 

Separately, the Company has terminated its participation in the Olympic-Sun Project, in Nevada, following an analysis of the results from a recently-completed reverse-circulation drill program.

Quality Assurance and Control

This news release was prepared under the supervision of E. Max Baker, PhD, the Company’s President and a “qualified personâ€, as that term is defined in National Instrument 43-101 of the Canadian Securities Administrators.

This news release contains geological concepts which should be considered speculative in nature.  While the Company feels there is adequate justification to warrant the expenditure required to explore for Carlin-style mineralization at the Garcia Flats project, there is no guarantee of success.

About Christopher James Gold

Christopher James Gold Corp. is a Canadian mineral exploration company trading on the TSX Venture Exchange, under the symbol “CJGâ€.

The Company has over $12 million in treasury and is well-funded to explore its large portfolio of gold projects in British Columbia, Nevada and Mexico:

  • Most notably, it has the exclusive option to acquire 100% of Guardsmen Resources Inc., a private company that owns a number of highly-prospective properties in northern British Columbia, including the high-grade Ranch gold and copper project.
     
  • In Durango State, Mexico, the Company has an option to acquire up to a 65% interest in Chesapeake Gold Corp.’s Cucaracha Dorada gold project.
     
  • In southern British Columbia, the Company owns 100% of the copper and gold rights to the historic Craigmont mine, as well as the Brassie Creek, Big Kidd, and Portage Lake gold properties.

Christopher James Gold Corp.
Dr. E. Max Baker, President and CEO

FURTHER INFORMATION
Christopher James Gold Corp.
Dr. E. Max Baker, President and CEO
John Glanville, Investor Relations
Tel: 604 408 8829

Visit the Company’s website at www.christopherjamesgold.com. 

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