Japan Gold Announces Strategic Alliance to Explore Four Prospective Lithocap Projects
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 Strategic Alliance to Explore Four Prospective Lithocap Projects
October 23, 2018 – VANCOUVER, British Columbia – Japan Gold Corp. (TSXV:JG)
(OTCQB:JGLDF) (“Japan Gold” or the “Company”) is pleased to announce that it has entered into a
binding letter agreement (“Letter Agreement ”) with First Quantum Minerals Ltd. (TSX:FM)
(“FQML”) to explore four of its prospective lithocap projects (collectively, the “Lithocap Projects” and
each a “Project”) located on the islands of Hokkaido, Honshu and Kyushu, Japan. The Lithocap Projects
represent exploration targets for shallow-level epithermal gold and deeper porphyry copper-gold deposits.
Pursuant to the terms of the Letter Agreement, FQML has committed to manage and oversee a systematic
surface exploration reconnaissance program on each Project prior to June 30, 2019.
John Proust, Chairman and CEO of Japan Gold, commented: “We are delighted to partner with a company
with First Quantum’s international reputation, exploration, deve lopment and production expertise and
financial capability to advance four of our highly prospective gold and copper -gold exploration targets in
Japan. We believe this to be a first of many validating events for our pioneering efforts to re-establish Japan
as a major mining jurisdiction. Separately, Japan Gold’s portfolio includes an additional twelve epithermal
gold projects focused on the islands of Hokkaido and Kyushu, all of which sit within historic mining
districts. Taken together, we believe that the Company is in an excellent strategic position in Japan, and we
heartily welcome First Quantum as a partner.”
The Projects included in the Letter Agreement are the Eboshi, Kobui, Minamikayabe and Kamitsue
projects, which collectively cover a land area of 11 ,830 hectares (“ha”), refer to Figure 1 which shows
Japan Golds lithocap projects on the islands of Hokkaido, Honshu and Kyushu.
FQML will immediately commence work on initial exploration programs at each of the Projects, which
will consist of reconnaissance field work, mapping, soil and rock sampling, and targeted geophysics.
FQML personnel will be working directly alongside Japan Gold, who will remain as operator during this
initial program at each of the Projects.
Option Summary
Upon completion of the initial exploration program, as defined by a specific scope of work on each of the
four Projects, FQML will have the option to enter into a formal earn-in agreement (“Option Agreement”)
on any Project individually, pursuant to which FQML may earn- in to 51% of a Project by completing a
minimum of US$5 million in total exploration expenditures prior to June 30, 2022. For any project that
FQML options it will endeavour to maintain minimum average annual expenditures of US$1 million per
year during the initial earn-in period.
Upon earning a 51% interest in a Project, FQML would have the right to earn an additional 29% interest in
a Pro ject by solely funding the Project until FQML makes a “Decision to Mine”, increasing FQML’s
ownership in a Project to 80%.
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Lithocap Project Summaries
The Eboshi project comprises nine contiguous prospecting rights totaling 3,080 ha, located near the coastal
town of Noheji in northern Honshu, Japan. The project area contains a large, exposed advanced- argillic
lithocap, one of several identified along the Northeast Japan Arc by government funded regional
metallogenic surveys conducted in the 1980’s and 1990’s.
The Kobui project comprises eight contiguous prospecting rights applications totaling 2,738 ha, located in
the Kameda Peninsula of southwestern Hokkaido. The project area contains two large advanced-argillic
lithocaps separated by a younger andesitic volcanic dome.
The Minamikayabe project comprises six contiguous prospecting rights applications totaling 1,943 ha also
on the Kameda Peninsula of southwestern Hokkaido. Targets include high level epithermal gold systems,
and deeper potential porphyry targets associated with two broad advanced-argillic lithocaps.
The Kamitsue project comprises twelve contiguous prospecting rights applications totaling 4,069 ha,
located near the town of Kikuchi in northern Ky ushu. A large area of advanced argillic alteration was
identified by the Company in 2018 during reconnaissance programs around historically prospected gold
bearing quartz veins.
Advisors
Haywood Securities Inc. is acting as financial adviser to Japan Gold in connection with the transaction.
Morton Law LLP is acting as legal counsel to Japan Gold.
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 proj ects. Forty-one 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 [email protected].
About First Quantum Minerals Ltd.
First Quantum Minerals Ltd. is a leading and fast -growing copper company founded more than 20 years
ago with a strong conviction in the long-term fundamentals for copper. Beginning with the 1996 purchase
of the Bwana Mkubwa Mining License in Zambia, to reprocess tailings from past mining activities, First
Quantum’s assets and operations now span nine countries and five continents. Today, First Quantum is one
of the world’s top ten copper producers. In 2017, First Quantum recorded the highest copper production in
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its history at 573,963 tonnes in addi tion to 199,736 ounces of gold and 17,837 tonnes of nickel. First
Quantum’s rapid growth is set to continue with the ramp-up of the massive Cobre Panama project beginning
in late 2018.
Japan Gold Contact
John Proust
Chairman & CEO
Phone: 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.
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, uncert ainties 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, Japan Gold Lithocap and Low-Sulphidation Epithermal Gold Projects