The Tobaru project is located within the highly gold endowed Hokusatsu-Kushikino mining district, in the northern part of the Southern Kyushu Epithermal Gold Province. In excess of 10 million ounces of gold has been produced from high grade epithermal deposits of the district. Notable gold producers within the district include: the Hishikari mine with 7.4 million ounces produced to date at average grades of 30-40 g/t⁶; Kushikino mine, 1.8 million ounces at 6.7 g/t; Yamagano mine, 910,000 ounces at 17.4 g/t; and the Ohkuchi mine with 714,000 ounces at 13.6 g/t^4,7 .

Due to the high prospectivity of the district, the potential for both low and high-sulphidation and porphyry mineralisation related to advanced argillic alteration the company believes this area is worthy of more detailed exploration. The Company will seek to define the limits of the alteration system by building on the existing data with detailed surface mapping, geochemical-sampling and geophysics to target scout drilling.