Japan Gold Announces Combined Results of Phase 1 Drilling, Surface Sampling and Geophysical Programs at the Kitano-o Gold Prospect
TSX-V: JG
OTCQB: JGLDF
Suite 650 – 669 Howe Street, Vancouver, BC V6C 0B4 Canada
Phone: +1 778-725-1491
www.japangold.com
NEWS RELEASE
Japan Gold Announces Combined Results of Phase 1 Drilling, Surface Sampling and
Geophysical Programs at the Kitano-o Gold Prospect
Vancouver, British Columbia, February 19, 2020 – Japan Gold Corp. (the “Company”) (TSXV:JG)
(OTCQB: JGLDF) announce s results for the 2019 exploration program at the Kitano -o Gold Prospect
(“Kitano Prospect”), including assays from six Phase 1 scout diamond drill holes, a controlled source
audio-frequency magnetotellurics (CSAMT) geophysical survey, a detailed ground- gravity survey and
extensive surface sampling ( also see Company news release 7/29/ 2019). The Kitano-o Prospect, which
includes the Kitano Mine, is located within a 7 by 4 kilometre gold district which hosts seven additional
gold prospects (Figure 1). The Kitano-o Mine produced more than 96,000 ounces of gold at a n average
grade of 5.9 g/t Au1 primarily from shallow open-pits along a 3 kilometre alteration corridor, prior to the
government-imposed closure in 1943.
Conclusions from Phase 1 Drilling, Surface Sampling and Geophysics
The surface geochemistry (Table 1), CSAMT and gravity geophysics collected over the Kitano-o Prospect,
along with the Phase 1 drill hole data (Table 2), have refined Japan Gold’s understanding of the geology
of the Kitano-o hydrothermal system and give strong vectors to the eastern side o f the prospect. It is now
interpreted that the western part of the Kitano- o Prospect represents the ‘lateral outflow’ of a large
epithermal system, developed at depth in the eastern part of the 3 kilometre long prospect (Figure 2).
Phase 1 drill testing of the western side of the Kitano-o Prospect was completed in late December 2019
with 6 diamond drill holes, totalling 2,837 metres. Drilling targeted depth extensions of the western end of
a well-defined vein-corridor exposed within extensive shallow open -pits and geophysical anomalies
(Figure 3). Significant zones of quartz veining were intersected corresponding to those mapped at surface,
however, the low tenor of gold reported from drill core assays does not adequately reflect the >96,000
ounces of gold mined from the exposed paleosurface sinter deposits in the open pits.
John Proust, Chairman and Chief Executive Officer commented: “The Phase 1 scout drilling at the Kitano-
o Prospect has provided us with a clearer understanding of this large epithermal system. In combination
with the newly acquired CSAMT and gravity geophysical data, and previously announced high-grade gold
and antimony results in surface sampling, we are now focussed on drilling targets in the eastern part of the
Kitano-o Prospect to discover the source of the Kitano-o Mine gold.”
Phase 2 Drilling Planned over the Eastern Side of the Kitano-o Gold Prospect
The eastern side of the Kitano-o Prospect has now been identified as a key target area for Phase 2 drilling.
Gold historically mined at surface at the Kitano-o Mine is interpreted to have been deposited at the
paleosurface during deposition of a silica-sinter apron through lateral outflow . Silica rich fluids which
formed the sinter, also carrying gold, flowed upwards then laterally out from hot spring vents connected to
a deep epithermal boiling zone. Rock samples collected in the eastern side of the Kitano-o Prospect show
high gold and antimony values potentially indicating higher temperatures of deposition and closer proximity
to the ‘upflow’ or ‘boiling zone’ where gold was precipitating. Figure 2 represents Japan Gold’s current
interpreted geological model for the Kitano-o Prospect.
The CSAMT geophysical survey (Figure 4) shows the presence of larger contiguous resistors at depth in
the eastern side of the Kitano-o Prospect, underlying and adjacent to historic workings. It is inferred that
these anomalies represent silicification and quartz veining at depth. Detailed gravity data collected over the
prospect has been processed to highlight rapid changes in gravity gradient, interpreted as off-sets or faults
in the underlying basement, and also marking the graben- margin faults ( Figure 5 ). Several east-west
oriented basement offsets are co-incident with mapped CSAMT resistive zones , potentially defining the
plumbing for a large epithermal system.
Large structural movements required for robust vein development and repeated, focussed fluid flow are
more likely to be found on or near major structural intersections. A combination of strong gold and
antimony geochemistry at surface with coincident resistive features at depth, close to the graben margin ,
provide compelling drill targets. The basement unconformity shallows towards the graben -margin faults
and provides an excellent structural environment for gold deposition, as is seen at the Hishikari M ine in
Kyushu. High-priority drill targets now defined in the eastern part of the Kitano-o Prospect are currently
being permitted with the aim of drilling them in the second half 2020.
Surface Sampling Results from the Eastern Side of Kitano-o Prospect
Work to refine drill targets in the eastern part of the Kitano -o Prospect has included detailed geological
mapping of the historic workings and the majority of samples taken were sourced from mine dumps and
vein sorting areas located around these workings. Samples of quartz vein dump, sub-crop and float material
were collected along an 800-metre east-west section. Quartz vein samples show well-developed colloform-
crustiform textures containing bands of disseminated fine -grained black sulphide mineralization, termed
'ginguro'.
Of the 75 rock chips collected from east Kit ano-o, 16 mine dump samples gave gold assay results greater
than ≥2.5 g/t with a peak assay of 60.8 g/t. Noteworthy results include:
Table 1: Selected surface sample results from the east side of the Kitano-o Prospect
Sample_No Gold g/t Silver g/t
Antimony
g/t
Ag:Au
Ratio
SAMJ10594 60.8 89.6 51.7 1.5
SAMJ10598 33.3 78.4 48.8 2.4
SAMJ12139 23.2 8.6 35.7 0.4
SAMJ10616 21.9 7.6 35.3 0.3
SAMJ10585 20.0 40.8 44.9 2.0
SAMJ10592 11.9 8.4 35.2 0.7
SAMJ10614 9.9 11.2 142.1 1.1
SAMJ10621 8.2 16.4 36.0 2.0
SAMJ10596 8.1 14.2 47.5 1.7
SAMJ10597 5.7 5.2 52.4 0.9
SAMJ10617 4.8 2.1 30.3 0.4
SAMJ10588 4.2 6.8 46.3 1.6
SAMJ10605 4.0 79.1 143.4 19.8
SAMJ10589 3.8 39.0 239.0 10.2
SAMJ10604 2.5 32.2 103.7 12.8
Previously reported – Japan Gold News Release dated 7/29/2019
Details of the Phase 1 Drilling at West Kitano-o Prospect
The Phase 1 drilling consisted of six inclined drill holes located at the western side of the 3 kilometre long
Kitano-o P rospect, on approximately 300 metre spaced fences, over a 750 metre strike length. The
shallowly inclined holes targeted extensions of a well-defined vein system below extensive shallow open-
pits, and geophysical anomalies.
Drill intersections include the following intervals:
Table 2: Anomalous drill hole intercepts.
Hole ID From (m) To (m) Interval (m) Au (g/t) Ag (g/t)
KTD001 109.60 110.60 1.00 1.2 1.3
KTD002 No significant result
KTD003 45.40 45.75 0.35 1.5 1.7
KTD004 85.83 89.10 3.27 1.1 1.2
incl. 85.83 86.40 0.57 4.6 2.1
KTD005 99.35 101.50 2.15 1.0 6.4
incl. 101.30 101.50 0.20 6.2 5.1
KTD006 No significant result
Geological Summary
Drilling at the western end of the Kitano-o Prospect confirmed the presence of a large, up to 200 metre
thick rhyolite flow-dome complex high in the stratigraphy. The flow-dome is coherent and flow-banded in
its core, with complex brecciated margins. The rhyolite dome thickens to the east and north towards the
outcropping Maruyama dome, a prominent circular hill located NE of the drilled area. A sedimentary
marker horizon underlying the rhyolite has been intersected at a similar elevation in all drill holes.
The upper brecciated margin of the rhyolite flow-dome and thin veneer of overlying breccia and volcanic
sediments, host an up to 100 metre thick zone of horizontal, water-table controlled silicification which was
intersected immediately below the sinter in all drill holes. CSAMT has also mapped this horizontal-tabular
silicified zone at western end of the Kitano-o Prospect. Like the dome itself, this alteration zone thins to the
west and south, and appears to map outflow of the hydrothermal system in these directions. The bulk of the
mineralised structures intersected in the drill holes occur within this rigid body of silica alteration.
Drill Holes: KTD001-KTD004-KTD006
Drill hole KTD001, inclined at 50º to the south-southwest (200º) tested the down-dip extension of a vein
zone mined from surface within a large, shallow, open-pit originally excavated on gold-bearing eluvium,
located in the central west of the Kitano-o Prospect (refer to Figure 2 for drill hole locations). Quartz veins
and multiple phases of stockwork quartz veinlets and hydrothermal brecciation were intersected between
115 and 160 metre s down hole , or 85 to 125 metres below surface. Individual veins up to 1.05 metres
(down-hole intervals) were intersected. A one metre interval of stockwork veining returned a peak assay of
1.2g/t gold and 1.25g/t silver from 109.60 metres down hole. The vein zone was consistently anomalous in
arsenic and antimony (pathfinder) geochemistry.
Drill hole KTD004 , drilled to the north (000 º) inclined at 40º from the same pad as KTD001, targeted
coincident CSAMT and gravity anomalies located below, and north of surficial gold workings . An
extensive network of stockwork veins were intersected between 70 and 145 metres down hole, or 60 to 95
metres below surface. A 3.27 metre zone of stockwork vein and hydrothermal breccia -hosted
mineralisation intersected from 85.83 metres down hole assayed 1.1g/t gold and 1.2g/t silver.
Drill hole KTD006, inclined at 55º to the north-northwest (020º), targeted the inferred western extension of
the vein zone intersected in hole KTD001, 75 to 125 metre s further down-dip of the level tested in hole
KTD001. The targeted extension located below the central Kitano-o Mine open-pit coincides with a subtle
gravity anomaly. Hole KTD006 intersected further quartz veining and stockwork veinlets between 125 and
180 metres down hole. These structures contain a similar tenor of precious metal mineralisation and trace
element geochemistry to those intersected in hole KTD001 and KTD004.
Drill Hole: KTD003
Drill hole KTD003, inclined at 40º to the north-northeast and collared 350 to 400 metre s west of section
KTD001-004-006 and 300 metre s east of section KTD002- 005, targeted the down- dip extension of
structures mined from surface between the western and central Kitano -o Mine open-pits. Numerous, 10’s
of centimetre wide, banded crystalline quartz veins and surrounding stockwork veinlets intersected between
29 and 47 metres down hole in hole KTD003 returned a low tenor of precious metal mineralisation, with a
peak assay of 35cm @ 1.47g/t gold and 1.7g/t silver from an oxidised quartz-sulphide vein zone.
Drill Holes: KTD002-KTD005
Hole KTD002, inclined at 45º to the north- northwest (340º), targeted the down- dip extension of veins
inferred to have been mined from surface in a second series of adits located to the south of the workings
targeted in hole KTD005. This hole intersected near surface silicification but no significant precious metal
results.
Hole KTD005, inclined at 42.5 º to the north (355 º), targeted the down- dip extension of mineralised
structures historically mined from surface along multiple, sub -parallel adits developed down the western
side of the Kitano -o Mine. A composite vein zone intersected in hole KTD005 between 72.2 and 75.6
metres down hole comprising multiple phases of crystalline quartz veining gave a peak assay of 0.35 metre
@ 0.92g/t gold and 7.4g/t silver. Weakly deformed rhyolite cut by milli metre scale oxidised, quartz -
sulphide stockwork veinlets between 99.35 and 101.5 metres downhole assayed 2.15 metres @ 1.0g/t gold
and 1.6g/t silver and 20cm @ 6.2g/t gold and 5.1g/t silver.
References:
1 Garwin, Hall, Watanabe, (2005). Tectonic Setting, Geology, and Gold and Copper Mineralization in
Cenozoic Magmatic Arcs of Southeast Asia and the West Pacific. Economic Geology 100th Anniversary
Volume, pp. 891-930.
Sampling Techniques and Assaying
The drilling results discussed in this news release are from drill core samples obtained by PQ, HQ and
NQ-size triple-tube diamond core drilling using a PMC700 and PMC400 man-portable drill rigs owned
and operated by the Company. The drilling program was fully supervised by Company senior geologists
at the drilling site.
Drill core was collected in plastic core-trays at the drill site and transported by road in Company vehicles
to its core shed storage facility in Ikutahara Township, located next to the project area. The drill core was
carefully logged, photographed and sample intervals marked-up along predicted mineralized and selected
unmineralized intervals by Japan Gold KK senior project geologists.
Sample lengths varied from 0.2 to 1.0 m; depending on the positions of geological contacts and variations
in vein texture and composition. The core was split by diamond rock saw by project geologists. Half-core
sample was collected from the entire length of each designated sample interval and placed into individual-
labelled, self -sealing calico bags for secure packaging and transport to the laboratory. The hal f-core
samples weighed between 1 to 8 kg depending on the sample length and core size. A Chain-of-Custody was
established between the Company and receiving laboratory to ensure the integrity of the samples during
transportation from site to the lab. The samples were sent in batches to Intertek Testing Services (Manila)
for sample preparation and assaying.
Samples were crushed, completely pulverised and assayed for gold 50 g charge Fire Assay/ AAS Finish
(FA50/AA; 0.005 ppm lower detection limit) and silver by 4 -acid digest with ICP -OES determination
(4A/OMS-MS; 0.05 ppm lower detection limit).
Certified Reference Materials (CRMs) were inserted by Japan Gold KK at every 20th sample to assess
repeatability and assaying precision of the laboratory. In addition, the laboratory applied its own internal
Quality Control procedure that includes sample duplicates, blanks & geochemical standards. They report
these results with the certified Assay Report. Laboratory procedures and QAQC protocols adopted are
considered appropriate. The CRMs and internal QC -QA results fall within acceptable levels of accuracy
& precision and are considered to lack any bias. External assay checks from 214 of the core samples in
this drill program, including both sample residue and coarse r eject splits were sent to ALS Global in
Vancouver to test for repeatability of the Intertek results. All results fell within acceptable repeatability
ranges.
Qualified Person
The technical information in this news release has been reviewed and approved by Japan Gold's President
& Chief Operating Officer, Dr. Mike Andrews, PhD, FAusIMM, FSEG, who is a Qualified Person as
defined by National Instrument 43-101.
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 exploration across the
three largest islands of Japan: Hokkaido, Honshu and Kyushu. The Company holds a portfolio of 24 Gold
Projects which cover areas with known gold occurrences, a history of mining and are prospective for high-
grade epithermal gold mineralization. Japan Gold's leadership team represent decades of resource industry
and business experience, and the Company has a strong operational team consisting of geologists, drillers
and technical advisors with experience exploring and operating in Japan. More information is available at
www.japangold.com or by email at [email protected].
Japan Gold Contacts
John Proust
Chairman & CEO
Phone: +1 778 725-1491
Email: [email protected]
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.
This news release contains forward-looking statements relating to the Private Placement. These statements
are forward-looking in nature and, as a result, are subject to certain risks and uncertainties that include,
but are not limited to, general economic, market and business conditions; receipt and timing of regulatory
approvals; new legislation; potential delays or changes in plans; and the Company’s ability to execute and
implement future plans. These forward- looking statements include completion of the Private Placement
and the use of proceeds from that financing. Actual results achieved may differ from the information
provided herein and, consequently, readers are advised not to place undue reliance on forward -looking
information. The forward- looking information contained herein speaks only as of the date of this news
release. The Company disclaims any intention or obligation to update or revise forward -looking
information or to explain any material difference between such and subsequent actual events, except as
required by applicable law.
Figure 1: Ikutahara Project, simplified geology and historic mines & workings, highlighting the Kitano Gold Prospect.
Figure 2: Conceptual model of the Kitano-o Gold Prospect.