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News 2009

Christopher James Gold Corp and Fortune River Resource Corp. Sign LOI for Highland Epithermal Gold-Silver Project, Nevada.

July 14, 2009

Christopher James Gold Corp. is pleased to announce that it has signed a Letter-of-Intent with Fortune River Resource Corp. on the Highland gold and silver project, a low-sulphidation gold/silver property in the Walker Lane gold trend of western Nevada. 

Christopher James can earn a 51% interest in the property by spending $ 4,000,000  (USD) on exploration over a six-year period, including paying underlying annual minimum royalties and claim-holding fees. The schedule for exploration expenditures for Christopher James Gold is as follows;

  1. $ 100,000 (USD) to be incurred within 12 months of the Effective Date,
     
  2. an additional $ 250,000 (USD) to be incurred within 24 months of the Effective Date,
     
  3. an additional $ 250,000 (USD) to be incurred within 36 months of the Effective Date,
     
  4. an additional $ 1,000,000 (USD) to be incurred within 48 months of the Effective Date,
     
  5. an additional $ 1,200,000 (USD) to be incurred within 60 months of the Effective Date,
     
  6. an additional $ 1,200,000 (USD) to be incurred within 72 months of the Effective Date
     
  7. Christopher James can earn a further 19% interest, for a total of 70%, upon production of a bankable feasibility study by the end of year six.  This option can be extended for up to two years by paying Fortune River US$100,000 and spending a minimum of US$1,000,000 per year.  The project is subject to an underlying royalty of 3% NSR, of which 1% can be purchased for US$1,000,000.   Fortune River will be project manager initially, the arrangement continuing as long as mutually agreed.

The Highland project consists of 120 lode mining claims covering approximately 970 hectares on land managed by the Bureau of Land Management.  Highland is situated immediately south of a large Tertiary-age caldera of a roughly similar age to the mineralization and host volcanics.  The mineralization is typical low-sulphidation style, with veins consisting of white massive to banded recrystallized fine-grained amorphous silica and massive to thinly bladed calcite often replaced by silica to form typical bladed carbonate replacement textures, indicating that only the upper level of the mineralized system is exposed.  Drilling to depths of over 200m has encountered similar vein material and textures.   The veins are best developed within a coarsely porphyritic massive andesite, which is overlain by less porphyritic andesite, volcanoclastics, and sediments which contain sinters with anomalous (up to 300 ppb) gold values.  The veins outcrop over an area of 1800 meters by 360 meters in a northwest trending zone, which the regional aeromagnetics show is situated along the western portion of a much more extensive alteration zone, covered by shallow alluvium and post-mineralization cover.  The two principal vein zones, Zone A and Zone B, trend northwest and are spaced approximately 150 meters apart, with individual vein zones varying along strike from one or two discrete veins/breccia zones up to 5 meters wide, to a series of narrower veinlets dispersed over widths of up to 60 meters.  Drilling to date has focused on a central 500 by 300 m portion of the vein system, around the old Highland shaft, and has not systematically explored more than 200 meters below surface. 

Past production during the 1930’s from shallow workings (less than 80m) is believed to have produced approximately 10,000 ounces of gold, with presumably very selective high-grade samples from a 2 meter wide vein reportedly running up to 79.8 opt (2,735.5 grams per tonne) gold with 133.2 opt (4556 grams per tonne) silver and 9.0 opt (308 grams per tonne) gold with 56.4 opt (1993 grams per tonne) silver.  Fortune Minerals have reported that a 5 meter chip/channel sample across one of the strands of the Highland vein system assayed 0.16 opt (5.58 grams per tonne) gold with individual quartz veins assaying over 0.3 opt (10.28 grams per tonne) gold.  Drilling within the central 500 meters by 300 meters area, has generally intersected mineralized intervals of 1 to 2 meters averaging between 0.5 and 2.0 g/t gold.  However, in localized areas, particularly in proximity to northeast trending cross-structures, higher grades have been encountered.  These include;

H03013 1.5m @ 66.9g/t Au and 397.7g/t Ag within 12.2m @ 9.5g/t Au and 109.4g/t Ag H03015 1.5m @ 6.1g/t Au and 8.2g/t Ag

H02010 3.05m @ 20.26g/t Au and 24.1g/t Ag within 15.7m @ 5.42g/t Au

MHH-02 0.3M @ 9.46g/t Au and 414g/t Ag within 2.1m @ 2.04g/t Au and 182.6g/t Ag

The scattered high-grade gold/silver intercepts within a wide zone of high-level low-sulphidation veining indicates that the system is interpreted as fingers of high-grade mineralization which may coalesce into a more coherent body at depth.  Part of the initial exploration program will be to refine our understanding of the geological and structural controls on the vein mineralization and design a limited program of deeper drilling to test the deeper part of the system for a bonanza-grade epithermal gold deposit.  The initial work will consist of re-logging all previous drill-holes, in order to further refine the 3D geologic and structural model.  In addition, the 2006/7 drilling intersected a blind splay of the A Vein which assayed 0.24m of 15.98 g/t gold, the significance of this and other possible splays will also be investigated. 

The Highland project area, outside the central zone of historic drilling, has not been systematically explored. This underexplored area, much of which is covered by relatively thin alluvium, holds other targets that have received little or no drilling.  District scale geological and structural mapping will also be undertaken during the first year of the program to provide a better exploration framework for ongoing work. 

About Christopher James Gold

Christopher James Gold Corp continues to actively pursue exploration opportunities in Canada, the USA, and Mexico and presently has the following exploration-stage gold properties in British Columbia, Big Kidd, Brassie, Worldstock, Portage Lake, Copper Creek and Craigmont projects.  This agreement with Fortune River Resource Corp. is part of CJGC’s strategy to become more active in both Nevada and Mexico.    

About Fortune River

Fortune River Resource Corp. is exploring for high-grade gold deposits within two prolific gold producing geologic provinces, Nevada and Ontario. The Wind Mountain, East Manhattan, Highland, Baxter, Mud Springs, and Buz projects are located in Nevada and the Drayton project is located in Ontario.  The Company’s Wind Mountain project, a past-producing open-pit/heap-leach operation, contains an estimated 406,000 ounces of gold in the Measured plus Indicated Resource categories (33.7 million tons averaging 0.411g/t Au, using a cutoff grade of 0.257g/t Au), plus an additional 92,000 ounces of gold in the Inferred category (9.8 million tons averaging 0.308g/t Au, using the same cut-off).  Ore Reserves Engineering (“O.R.E.â€) and Donald E. Ranta, consulting geologist, prepared the resource model and compiled the technical report, which is available on SEDAR. Alan C. Noble, P.E. is the Principal Engineer of O.R.E. and is the Qualified Person for the technical report for the purpose of Canadian NI 43-101, Standards of Disclosure for Mineral Projects.

Christopher James Gold Corp.is a reporting issuer in British Columbia and Alberta, and trades on the TSX Venture Exchange under the ticker symbol CJG. 

Please visit www.christopherjamesgold.com  

E. Max Baker B.Sc(Hons) PhD, Member AustIMM is the Qualified Person as defined by National Instrument 43-101,  is responsible for the preparation of this News Release, which is based on information obtained from the Joint Venture Partner.

On behalf of the Board,

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

FURTHER INFORMATION

Christopher James Gold Corp.
Investor Relations
Tel: 604 408 8829
Email: info@christopherjamesgold.com

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 “mayâ€, “shouldâ€, “expectsâ€, “plansâ€, “anticipatesâ€, “believesâ€, “estimatesâ€, “predictsâ€, “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 www.SEDAR.com.

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