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.