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The Fujimi & Onne Projects

Vancouver, British Columbia--(Newsfile Corp. - September 12, 2018) - Japan Gold Corp. (TSXV: JG) (OTCQB: JGLDF) ("Japan Gold" or the "Company") is pleased to announce that its five prospecting rights applications over the Ohra-Takamine Project in the Southern Kyushu Epithermal Gold Province, Japan, have been granted as full Prospecting Rights by the Japanese Ministry of Economy, Trade and Industry (METI).

The Ohra-Takamine Project totals 1,681 hectares covering historic gold-silver mines in the highly gold endowed Hokusatsu-Kushikino mining district, in the Southern Kyushu Epithermal Gold Province.

In excess of 10 million ounces of gold has been produced from high-grade epithermal deposits of this province, refer to Figure 1 which shows the northern portion of the district, project locations and significant mines. Notable producers within the district include: the Hishikari mine with 7.4 million ounces of gold produced to date at average grades of 30-40 g/t Au1; Kushikino mine, 1.8 million ounces at 6.7 g/t Au; Yamagano mine, 910,000 ounces at 17.4 g/t Au; and the Ohkuchi mine with 714,000 ounces at 13.6 g/t Au2,3.

Granting of Prospecting Rights authorizes the Company to commence more advanced exploration methods such as drilling. The Company is in the process of preparing a scout drilling program to test extensions to the historically mined veins and plans to undertake the program in 2019.

The Project

The Ohra-Takamine Project covers the historic Ohra, Takamine and Urushi mines which lie along a 3.5 km northeast trending structure, refer to Figure 2 which shows the License area, mine workings, the Metal Mining Agency of Japan (the "MMAJ") work and simplified geology. The project is located 7.5 km south of the historic Yamagano mine, Figure 1.

Similar to all of the major gold mines in the Hokusatsu-Kushikino mining district, the Ohra-Takamine project is associated with a regional geophysical gravity-high inferred to indicate upward doming of the basement producing suitable fracture networks for fluid flow and quartz vein formation.

Initially discovered in 1885 and mined periodically to 1943, the Ohra mine produced in the order of 27,000 ounces of gold at grades reported to average 11 to 12 g/t Au and 32g/t Ag7. The northeast striking vein system is 1,200 m long, and composed of numerous veins. A single, steeply plunging ore-shoot (the Hon-pi vein) mapped over approximately140 m strike length, was mined over a vertical extent of 100 m from surface and averaged 20g/t Au, this shoot was hosted in a 3.5 to 4.0 m wide section of the vein4. Adjacent to this shoot Japan Gold geologists have located large boulders of parallel laminated chalcedony or sinter, previously not described in reports or literature and indicating the mineralised system is shallowly eroded.

The Takamine and Urushi mines were discovered in latter part of the nineteenth century and mined periodically up to 1943. Takamine produced 9,654 tonnes of ore with average grades of 5.1g/t Au and 28.3 g/t Ag. The vein strikes northeast, for at least 450 m, with an average width of 1 m5,6.

The Urushi mine was estimated to have produced 13,000 ounces of gold between 1896 and 1916. Three northeast striking gold-bearing quartz veins, with lengths up to 350 m were mined. The so-called Number 2 vein was reported to carry gold grades between 50 to 100 g/t Au5,6.

The MMAJ conducted regional and some detailed studies over the Ohra-Takamine area between 1983 and 1989, eight drill holes were completed as part of this work, Figure 2. Drill hole 60MAHT-2 located to the east of the Urushi mine intersected two, 10 cm wide quartz veins with respective gold grades of 12.3 and 13.3 g/t Au, 100 m below the deepest mine workings, and approximately 245 m vertically below surface7. Drill hole 61MAHT-4, drilled directly under the historic Urushi mine, intersected 1.4 m @ 5.8 g/t Au & 5.7 g/t Ag from less than 100 m below the lowest level in the mine (-140 m below surface)7.

Due to the high prospectivity of the district, limited historical production over shallow depth extents, and the limited amount of modern exploration completed on these prospects, Japan Gold believes the area warrants detailed exploration. The Company has conducted a rapid, first pass sampling program and alteration study across the project area. Widespread, high-level alteration mineralogy indicate the mineralised corridor extends under cover between the workings and along strike to the northeast and southwest of the mine workings. The Company is further defining the limits of the alteration around these vein systems and in the process of developing a scout drilling program.

John Proust, Chairman and CEO of Japan Gold, commented, "We are pleased to see the granting of these prospecting licenses in this world class gold district of southern Japan, and consider this another major advancement to the Company's portfolio. We plan to add Ohra-Takamine to our list of targets for drilling in 2019."

On behalf of the Board of Japan Gold Corp.

"John Proust"

Chairman & CEO

About Japan Gold Corp.

Japan Gold Corp. is a Canadian mineral exploration company focused solely on gold and copper-gold exploration in Japan. The Company has applied for 210 prospecting rights licenses in Japan for a combined area of 69,505 hectares over seventeen separate projects. Thirty-seven of the applications have been granted as Prospecting Rights. The applications cover areas with known gold occurrences and a history of mining, and are prospective for both high-grade epithermal gold mineralization and gold-bearing lithocaps, which could indicate the presence of porphyry mineralization. Japan Gold's leadership team has decades of resource industry and business experience, and the Company has recruited geologists and technical advisors with experience exploring and operating in Japan. More information is available at www.japangold.com or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..

Japan Gold Contact

John Proust
Chairman & CEO
Phone: 778-725-1491
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

References

1 Sumitomo Metal Mining Co., LTD. website, production as of end of March 2017.
2 Watanabe, 2005. Late Cenozoic evolution of epithermal gold metallogenic provinces in Kyushu, Japan. Mineralium Deposita (2005) 40: pp 307-323
3 Garwin et al. 2005. Tectonic setting, Geology, and gold and copper mineralization in the Cenozoic magmatic arcs of Southeast Asia and the West Pacific. Economic Geology 100th Anniversary Vol. pp 891-930
4 Kim, 1938. The Geology and Deposits of the Ohra Mine. The Mining Magazine, Vol. 15, no. 3, pp 15-19
5 Michitoshi Miyahisa, 1967: Report of gold deposits survey in Takamine/Ohra district, Kagoshima prefecture, Association of Kagoshima Prefecture mineral resources development promotion.
6 Gold Mines of Japan, 1989. The Mining & Materials Processing Institute of Japan.
7 MITI (1984- 1989): Report on the regional survey of the Hokusatsu-Kushikino region, Showa 58 (FY) to 63(FY). Ministry of International Trade and Industry.

Cautionary Note

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The technical information in this news release has been reviewed by Japan Gold's President & Chief Operating Officer, Dr. Mike Andrews, PhD, FAusIMM, who is a Qualified Person as defined by National Instrument 43-101. As the Qualified Person, he has supervised the preparation and approved the scientific and technical disclosure in the news release.

This news release contains forward-looking statements relating to expected or anticipated future events and anticipated results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, competition for qualified staff, the regulatory process and actions, technical issues, new legislation, uncertainties resulting from potential delays or changes in plans, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the results of exploration, uncertainties regarding the timing and granting of prospecting rights, uncertainties regarding the Company's ability to execute and implement future plans, and the occurrence of unexpected events. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors.

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Figure 1: The Northern Hokusatsu-Kushikino Mining District, southern Kyushu, Japan Gold projects on simplified geology with historic and recent gold mines.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5665/38602_a1536700423607_60.jpg

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Figure 2: Ohra Takamine Project, Simplified Geology with Historic Workings, MMAJ Soil Anomalies and Drill holes.

To view an enhanced version of Figure 2, please visit:
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Commodity: Gold
Target: Low Sulphidation Epithermal Gold
Location: Northern Hokkaido, Japan
Size: 2,201 Ha (Fujimi) 2,998 Ha (Onne)
Permitting Status: All prospecting rights applications have been accepted and the land is reserved for Japan Gold

  • The Onne Project covers the historic Onne gold-silver and Niko mercury mines. At Onne the epithermal quartz veins are developed along east-northeast to east-west orientated structures. Minor production in the years of 1936 and 1928 reported average gold grades of 5 g/t gold and 15 g/t gold respectively. 
  • The Fujimi Project covers the historic Fujimi and No.2 Tateushi gold-silver mines and surrounds.
  • At Fujimi, five quartz veins hosted in rhyolite were mined in the 1930’s minor production records noted an average grade of 15 g/t gold and 20 g/t silver1.
  • The No.2 Tateushi mine had exploration development carried out in the late 1930’s, however this work was probably curtailed by the government moratorium and closure of gold mines in Japan in 1943. 
  • Proven high-grade mineralization in the form of quartz-chalcedony-adularia-sericite±calcite quartz vein swarms, with underground sampling results including 2 m @ 31.7 g/t Au & 70 g/t Ag, and 3 m @ 11.3 g/t Au & 36 g/t Ag at Fujimi1.
  • A genetic relationship exists between epithermal gold mineralization and high-level mercury present in several mercury mines located within and immediately around the project area, suggesting post-mineral erosion of the system is limited.
  • No modern systematic exploration or exploration drilling to test for lateral and vertical extensions to the known, historically mined veins has been completed.
  • Japan Gold proposes to explore the potential link between mercury and epithermal gold mineralization in both license application areas.
  • Exploration to date is limited to the area of known veins and no exploration drilling has been completed to test the deeper extensions to the veins historically mined to a shallow level.
  • Japan Gold will seek to define the limits of the hydrothermal alteration cells around the historic mines and use surface mapping and geochemistry to target new zones and extensions to previously exploited vein systems for testing by scout drilling.

northHokkaido

The Fujimi Project comprises seven contiguous Prospecting Rights Application blocks (2,201 Ha) and the Onne Project comprises nine contiguous Prospecting Rights Application blocks (2,998 Ha). The blocks contain historical gold-silver and mercury occurrences, and are located about 10 km apart in the Okhotsk district of northeastern Hokkaido.

The project lies within the Kitami mining region along the southern portion of the N-S trending Monbetsu-Rubeshibe graben zone, which hosts numerous epithermal mineral occurrences, historical mines and workings dating from the early 1900’s.

The Fujimi mine produced small amounts of gold and silver from 50 tonnes of ore mined at 15 g/t Au and 20 g/t Au from underground lodes during 1935-39 and 30 tonnes of ore mined at 1-2 g/t Au from open-pits in 19801. As part of a regional metallogenic study, the MMAJ and Geological Survey of Japan (GSJ) undertook regional gravity surveys in the area.

Exploration and small-scale underground development was conducted by local people from 1949 within the Fujimi mine area in the western part of the project. Historical maps of geology and this development contain limited information but indicate the veins host significant intervals of mineralization, including 2 m @ 31.7 g/t Au & 70 g/t Ag, and 3 m @ 11.3 g/t Au & 36 g/t Ag1. A total of 724 m of drift development and 718 m of cross-cuts were completed in an underground adit at 780 m RL, advanced by local miners on a vein zone at the No. 2 Tateushi mine in the northeastern part of the project. In this zone, more than six sub-parallel quartz veins were located with vein thicknesses ranging from 0.15 to 0.70 m wide. Twenty samples collected from these veins returned trace gold values, except for one sample, that yield 12 g/t gold and 10.6 g/t Ag across a 0.3 m vein width1. The Fujimi mercury mine lies about one kilometre to the west of the tenement.

The Onne Project contains the historic Onne gold-silver mine and the Niko mercury mine. Production from Onne is not well documented but includes 75 tonnes of ore at 5 g/t Au and 40 g/t Ag in 1936 and 40 tonnes of ore at 15 g/t Au in 19381. At Niko, disseminated cinnabar was mined from an acid altered rhyolite intrusion. Diamond drilling by the MMAJ in 1989-91 beneath the Oketo mercury mine, located two kilometres south of the Onne Project, intersected narrow, weakly mineralized quartz veins containing fine-grained quartz fill including chalcedony and adularia.

The gold mineralization styles at the Fujimi and Onne Projects are classified as rift-related, low-sulfidation epithermal. Mineralization is typically associated with quartz-chalcedony-adularia-sericite±calcite in silicified and veined- or brecciated-structures, including dark sulfidic material, termed ginguro bands. The veins are characterized by massive to banded quartz-chalcedony and vein breccia. Lattice-blade, ‘bosa’ textures are also described. The veins are associated with zones of silicification and a spatial relationship between gold-silver veins, mercury occurrences and possible intrusions (e.g., rhyolite stocks and domes) is suspected, based on MMAJ report descriptions.

Mineralization within the Fujimi Project is hosted in multiple sub-parallel quartz veins that trend N25° - 80° E and dip moderately to steeply towards the northwest. These veins occur in two locations, each about 150 m by 100 m, known as the Fujimi mine and No. 2 Tateushi mine. MMAJ, 19901 compiled historical geochemical maps of old workings in the Fujimi mine indicate vein thicknesses that range from 0.2 to 4.0 m, with gold values up to 32 g/t Au and 70 g/t Ag. An 11 m long zone in one of the workings returned an average of 6.3 g/t Au and 25 g/t Ag across an average vein width of 2.9 m at approximately 1,090 m RL (note raw analytical data upon which published gold-silver values and associated maps are based are not published).

The quartz veins in both mine areas are hosted in Lower to Middle Miocene tuff, propylite and rhyolite volcanic rocks. Pliocene andesite and basalt unconformably overlie these Miocene lithologies. The Mesozoic Hidaka Formation, consisting of sandstone, slate and hornfels, form the basement.

  • fujimi1Simplified geology, historical workings and veins in the Fujimi application license area.
  • fujimi2Significant assay results1 from underground development in the Fujimi mine (plan view).

Mineralization in the Onne Project area is hosted in Lower Miocene rhyolitic rocks consisting of tuff, tuffaceous siltstone, flow-banded rhyolite and plagioclase-hornblende-phyric rhyolite flows. The rhyolites are covered by andesitic rocks locally. Six quartz veins, trending N60° W to E-W and dipping 55° to 80° S, are reported over an east-elongate area that is 200 m by 150 m.  The known veins range up to 0.8 m wide (widths range from 0.07 - 0.8m) with historical mine grades of 5-15 g/t Au and 40 g/t Ag. The Onne veins consist of white, transparent, massive, banded, and locally lattice-bladed ‘bosa’ quartz and are associated with zones of silicification.

The Company has completed a compilation of published exploration data and historical mining data for the Fujimi and Onne Projects. No field work has yet been undertaken on the project by Japan Gold.

  • onne1Simplified geology, historical workings and veins in the Onne application license area.
  • onne2Location of outcropping quartz veins and underground workings within the Onne project.

Previous studies in the Fujimi and Onne areas indicate that gold and mercury mineralization are genetically-related. In many epithermal systems, mercury typically occurs at the highest paleo-levels, above banded and bladed epithermal quartz veins, and acts as a pathfinder element in precious metal exploration.  The multiple, sub-parallel sets of epithermal quartz-chalcedony veins in the Fujimi and Onne Projects are associated with adjacent mercury mineralization (e.g., Fujimi, Niko and Oketo mercury mines). This relationship suggests that post-mineral erosion of the system is limited and that the highest levels of the epithermal field(s) are likely preserved. The limited, historic underground development of the veins in the licenses have yet to adequately test the potential for bonanza-grade gold-silver veins at depth. 

The results of the MMAJ drilling beneath the Oketo mercury mine, located south of the Onne Project, indicate that weakly mineralized, quartz-chalcedony-adularia veins occur at depth. The underground workings within the Fujimi and Onne mine areas have exploited similar, weakly mineralized veins but higher gold-silver mineralization is present locally, as indicated by the high-grade intervals reported from the Fujimi mine.

A genetic relationship between mercury and epithermal gold mineralization exists in the Sulphur Creek-Knoxville mercury mining districts of California, which were mined in the late 19th century. In the latter part of the 1970’s, Homestake Mining Company recognized this relationship, and subsequently discovered the McLaughlin epithermal gold deposit by drilling beneath a cinnabar- bearing sinter2.  The McLaughlin deposit produced about 3.5 million ounces of gold3.

Japan Gold proposes to explore the potential link between mercury and epithermal gold mineralization in both license application areas. Exploration to date is limited to the area of known veins and no exploration drilling has been completed to test the deeper extensions to the veins historically mined to a shallow level. Japan Gold will seek to define the limits of the hydrothermal alteration cells around the historic mines and use surface mapping and geochemistry to target new zones and extensions to previously exploited vein systems for testing by scout drilling.

1 Metals Mining Agency Japan (MMAJ), 1990. Nippon Mining Corp (NMC) Survey Report 3, p. 241-253.

2 Peters, 1991. Gold-Bearing Hot Spring Systems of the Northern Coast Ranges, California. Economic Geology, v86, 1991, pp 1519-1528.

3 Sherlock, 1995. Origin of the McLaughlin Mine Sheeted Vein Complex: Metal Zoning, Fluid Inclusion, and Isotope Evidence. Economic Geology, v90, 1995, pp 2156-2191.