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News Release - |
HARVEST GOLD OPTIONS ITS NEVADA GARCIA
FLATS PROJECT TO CHRISTOPHER JAMES GOLD CORP.
May 17, 2007
Harvest Gold Corporation (HVG – TSX.V) May 17, 2007
(the “Company”) is pleased to announce that it has agreed to option up to 70% of
its Garcia Flats Project, which is located at the southern extension of the
Carlin Trend in north-central Nevada, to Christopher James Gold Corp. (CJG-TSX.V).
The option agreement is set out in a Memorandum of Understanding (“MOU”) and
covers an area comprised of 250 unpatented lode claims in two blocks covering
approximately 20 square km of highly prospective covered pediment located at the
intersection of the southern extension of the Carlin Trend and the
Independence-Eureka Trend.
Greg Hill, President of Harvest Gold Corp. (US), states:
“We are pleased to have a partner with the experience that Christopher James
Gold Corp, and specifically Max Baker brings to our project. We are ready to
drill Garcia Flats and this agreement gives us the chance to execute a
significant program knowing we have up to $2,500,000 to test these large, now
well defined target areas. Our expectations are high as the structural trends
that intersect beneath the Garcia Flats gold anomalies host multi-million ounce
deposits such as the Rain, Archimedes, and Bald Mountain mines to the north,
south, and southeast of the property.“
Dr. Max Baker, President of Christopher James Gold Corp. states:
“The size of the Garcia Flats opportunity is compelling and is one of the
factors that attracted our interest immediately. The Eastern anomaly measures
approximately 1000 m wide and at least 3500 m long. A second zone, the Central
anomaly, is 600 m wide and at least 1800 m long. The Eastern anomaly is adjacent
to an interpreted buried intrusion, and the Central anomaly is closely spatially
associated with the interpreted buried intrusion.
Specifically, 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. Using Enzyme Leach, a significant geochemical anomaly in gold and
pathfinder elements such as arsenic, antimony, barium, and thallium has been
delineated over the structural target area, indicating the possible presence of
buried Carlin-type mineralization below. The validity of this geochemical
anomaly is even further advanced by the fact that it is situated on the northern
extremity of a coincident gravity low and magnetic high, which is more than
likely a buried intrusive body.
With the target area already having been defined, what is required now is to
drill several holes into the underlying basement beneath the anomalous zones
with the goal of intersecting significant evidence of a Carlin-type deposit”
The Harvest Gold Corp. - Christopher James Gold Corp. MOU
The MOU provides Christopher James with the exclusive right to earn a 70%
interest in the Garcia Flats project on the following terms:
The Definitive Agreement will grant CJGC the sole and exclusive right and option
to earn an undivided 70% interest in and to the Project, free and clear of all
liens, charges and encumbrances, subject to the underlying 3% NSR, by issuing a
total of 225,000 shares of CJGC to Harvest and incurring an aggregate $2,500,000
in exploration expenditures as follows:
• Upon the satisfactory completion of its due diligence, CJGC will issue 50,000
shares of CJGC to Harvest. The date upon which the last Condition Precedent is
satisfied or waived by CJGC is the “Effective Date”.
• Year 1: During Year 1, CJGC will incur exploration expenditures of not less
than $500,000 on the Project.
• Year 2: On or before the first anniversary of the Effective Date, CJGC will
issue an additional 75,000 shares of CJGC to Harvest. During Year 2, CJGC will
incur additional exploration expenditures of not less than $750,000 on the
Project.
• Year 3: On or before the second anniversary of the Effective Date, CJGC will
issue an additional 100,000 shares of CJGC to Harvest. During Year 3, CJGC will
incur additional exploration expenditures on the Project of $1,250,000.
Christopher James will have the right to increase the rate of project
expenditures and of associated option payments, thus shortening the time
required to earn its interest.
• Once CJGC has earned its 70% interest in the Project, Harvest will be required
to either contribute on a pro-rata basis or be diluted to a 12.5% free carried
interest through completion of a bankable feasibility study. Should CJGC and
Harvest take the Project to the development stage CJGC will be responsible for
raising Harvest’s share of the financing under the same conditions as for CJGC.
The MOU is subject to a definitive agreement between the parties and to approval
by the TSX Venture Exchange.
About Christopher James:
Christopher James Gold Corp. is a Canadian mineral exploration company trading
on the TSX Venture Exchange, under the symbol “CJG”.
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.
About Harvest Gold:
Harvest Gold Corporation is a gold focused exploration company working in
Nevada, USA and Manitoba, Canada. In Nevada, the Company is exploring a large
generative gold property at Garcia Flats in the South Carlin Trend, an advanced
property with a gold-silver resource at the Longstreet Mine, in Northern Nye
County, and the Rosebud Mine Project, a past producing mine in northwest Nevada.
Harvest is also exploring claims in Manitoba, Canada at the Rice Lake Gold Belt,
the Rocky Ridge Gold property in the Lac du Bonnet mining district, and is Joint
Ventured with Canadian Gold Hunter Corp (CGH.TSX) at the Assean Lake Gold
Project.
A Finder’s Fee of 245,000 shares of Harvest Gold has been agreed to regarding
this transaction and has been calculated in accordance with the policies of the
TSX Venture exchange.
All technical information in this release has been reviewed by Dr. George Gale,
P.Eng, Vice President of Exploration, Harvest Gold Corp.
For further information contact Keith Patey, Director of Communications of
Harvest Gold Corp. at 604-986-2020 or visit the Company's website at
www.harvestgoldcorp.com
ON BEHALF OF THE BOARD
Rick Mark
CEO & Chairman
For more information about Harvest Gold
Corporation, please review the Company’s website www.harvestgoldcorp.com or
speak with a Company representative at 1-866-816-0118 or 604-986-2020.
The TSX Venture Exchange has not reviewed
this press release and does not
accept responsibility for the adequacy or
accuracy of this release.
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