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. This portion of the graben contains several small gold, silver and mercury mines. Gold-bearing quartz vein boulders were discovered in the Harutomi area during 1939. In 1945, Sumitomo Metal Mining Company acquired the property and conducted detailed surface mapping and sampling, geophysical surveys, and underground exploration and development work in the Harutomi vein-lodes. The Harutomi mine¹ produced 2.5 Koz of gold and 98 Koz of silver at average grades of 4.7 g/t Au and 186 g/t Ag from underground lodes during 1960-70. A total of 7,810 meters of underground development was completed over several veins, known as the No. 2, 3, 5 and 7 Veins in the northwest, and Shikami No. 1, 2, 3 and 5, in the southeast¹.

A resistivity survey conducted by Sumitomo over the Shikami No. 2, 3, and 5 vein areas identified anomalous resistivity targets. There has been no follow up of these anomalies to date. Historical sampling of quartz vein boulders in the western part of the No. 3 vein yielded assays up to 8.3 g/t Au and 1,458 g/t Ag, which are coincident with one of the resistivity anomalies (note raw analytical data upon which published gold-silver values are based are not published) ¹

Historic exploration activities during 1960-70 were limited to the area of known veins. There are no records of systematic exploration drilling to test for vertical and lateral extensions of veins partially mined or developed underground, or other sub-parallel veins that were identified on surface.