Japan Gold Reports High-Grade Gold in Grab Samples from the Kitano-o Gold District, Ikutahara Project, North Hokkaido, Japan
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 Reports High-Grade Gold in Grab Samples from the Kitano-o Gold District,
Ikutahara Project, North Hokkaido, Japan
May 07, 2018 – Vancouver, BC – Japan Gold Corp. (TSX-V: JG) (OTCQB: JGLDF) (“Japan Gold” or the
“Company”) is pleased to report results of surface prospecting and mapping over the historic Kitano-o Gold
District. The Kitano-o Gold District is located in the center of the Company’s 19,114 hectare Ikutahara Project in
North Hokkaido, Japan, Figure 1. Results highlight the presence of high-grade gold mineralization in grab samples
taken from historic mine dumps and workings.
The Kitano-o Gold District includes the historic Kitano-o, Ikutahara, Showa mines and the Sakinzawa workings.
Japan Gold work in the district has focused on geological and alteration mapping and geochemical sampling to
develop an understanding of the controls on epithermal gold-vein mineralization. The company has designed an
aggressive scout drilling program to test these targets in the 2018 field season.
Rock Sample Results Summary
Assay results were received for 270 selective grab and chip samples collected from mine dumps, workings and
outcrops over the Kitano-o Gold District. Sample locations and significant gold results (>1 g/t Au) are presented
in Figure 2 and Table 1.
Kitano-o Mine: One mine dump sample from the western area of the Kitano-o mine workings gave a high gold
result of 54.4 g/t Au. Eight other mine dump and outcrop samples returned gold results ranging from 1.01 to 8.59
g/t Au, (refer to Table 1). Corresponding silver results are generally low and range from 1.16 to 13.2 g/t Ag.
Ikutahara Mine: Two mine dump samples from the Ikutahara workings returned high gold results of 37.3 g/t Au
and 35.3 g/t Au. Seven other mine dump samples returned gold results ranging from 2.21 to 9.03 g/t Au.
Corresponding silver results are generally low and range from 2.71 to 35.5 g/t Ag.
Showa Mine: Five mine dump samples from the Showa workings returned high gold results of 93.3 g/t Au, 36.4
g/t Au, 19.35 g/t Au, 18.20 g/t Au and 17.6 g/t Au. These samples contain visible electrum/free gold disseminated
in thin comb quartz veins, (refer to Table 1 and Figures 3 and 4). Nine other samples returned gold results ranging
from 1.31 to 6.39 g/t Au. Corresponding silver results are generally low and range from 1.6 to 22.9 g/t Ag.
Sakinzawa Workings: Three outcrop samples of quartz stockworked rhyolite in the Sakinzawa creek returned gold
results ranging from 1.34 to 17.2 g/t Au, (refer to Figure 5), supporting a reconnaissance outcrop sample of 43.8
g/t collected in 2013. Corresponding silver results are generally low and range from 2.56 to 15.85 g/t Ag.
Geological mapping completed by the Company over the Kitano-o Gold District has confirmed the presence of a
significant gold-bearing epithermal system hosted in Late Miocene rhyolitic volcanics and associated intrusions.
The presence of widespread silica sinter boulders and bedded sinter outcrops at Kitano-o, (refer to Figures 2 and
6) define the paleo-surface during gold deposition and importantly the well preserved nature of the epithermal
mineralisation in the district.
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Rock chip results reflect gold and silver grades from historic mine records and confirm the presence of high-grade
mineralization in the district. The presence of high -grade material in mine dumps is also supportive of
mineralization being open at the time of mine closure.
John Proust, Chairman and CEO of Japan Gold, stated: “The significance of newly identified sinter outcrops at
Kitano-o underlain by historically mined eluvial gold deposits and sub-sinter quartz veins along with confirmatory
high-grade samples reported by us here underscore the compelling nature of these prospects and the potential to
discover additional mineralization beneath and surrounding these extensive historic workings. A drilling program
to test the Kitano-o Gold District has been prepared in anticipation of applications being granted and subsequent
approvals for drilling this year.”
Historic Kitano-o Gold District
The historic Kitano-o Gold District consists of four known historic eluvial and hard rock gold mines and workings;
Kitano-o, Ikutahara, Showa and Sakinzawa over an approximate 6 kilometre by 2.5 kilometre area. The district is
highlighted by an extensive co-incident gold-arsenic-antimony mercury anomaly in stream sediment samples over
the area.
Historic production from the Kitano-o mine (96,540 ounces at a grade of 5.9 g/t)7 was largely from rich residual
surface gold deposits (gold-bearing eluvium). Lesser gold production is reported from selective hard rock mining
of narrow sub -sinter quartz -adularia-clay veins and stockworks hosted in extensively altered rhyolitic
volcaniclastics, flow-domes, lake sediments and silica sinter deposits. Production records sourced for the Ikutahara
and Showa mines are include the following:
Historic Gold and Silver Production Records for the Ikutahara and Showa Mines1.
Mine Tonnes Gold
g/t
Silver
g/t
Operating
Years
Source
Ikutahara
96,812 5.2 40.6 1934-1943 MMAJ, 1990
216 35.6 Not
recorded
1960-1961 MMAJ, 1990
Showa 12,323 16.8 7.8 1934-1943 MMAJ, 1990
In the late 1980’s MMAJ (Metals Mining Agency of Japan) conducted exploration over the Kitano-o Gold District
and surrounding area as part of a metallogenic study of the region . Their work included geological mapping,
gravity and CSAMT geophysical surveys, a low -density regional soil geochemical survey, petrological studies,
age dating and culminated in the drilling of two vertical diamond holes testing geophysical targets.
The MMAJ work defined a large shallowly eroded epithermal system encompassing the Kitano-o Gold District,
documented a close relationship between gold mineralization and rhyolite intrusions and provided valuable
information on the depth to basement rocks (up to 700 m).
The hard rock mine workings at Ikutahara and Showa, at the southern end of the Kitano -o Gold District, are
defined by a series of collapsed tunnels and large mine dumps distributed along a north -northwest trending
ridgeline.
The mine workings at Kitano-o are represented by numerous shallow diggings, pits, sluicing benches, and
collapsed tunnels distributed over a 2.5 kilometre by 0.4 kilometre east-west alignment of altered conical hills and
curve-linear ridges.
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Historic reports and papers written on the Kitano-o mine workings1,2,3 indicate that free gold was won from rich
eluvial placer deposits described as a yellow -brown clay-sand-boulder soil overburden (“Dosha-ko” ore). The
auriferous eluvium averaged about 5 m thickness (max. 15 m thick) with a reported gold grade of about 5 g/t Au
(max. 40 g/t Au) in the most productive areas. The dosha-ko gold deposits were formed by the disintegration and
oxidation of the underlying hydrothermally altered mineralized bedrock under freezing-and-thawing cold-climate
conditions (“cryogenic weathering”)2.
Multiple narrow gold-quartz veins (>130) were reportedly worked beneath and surrounding the auriferous
eluvium, however, mine records on the depth of mining of the veins is sparse. The veins varied in width from <1
to 30 cm and thicker mineralised veins were only rarely encountered. Strike-lengths varied from several metres to
several 10’s of metres and veins longer than 100 metres were rarely encountered. Several types of mineralised
epithermal veins were reported in the district; banded quartz-chalcedony-adularia veins (Figure 7), fine-grained
crystalline quartz veins, clay-rich veins and a late-stage porcellaneous clay veins1, 2.
The Sakinzawa workings are located at the northern end of the Kitano-o Gold District. Alluvial and colluvial gold
was worked along Sakinzawa creek and its broad floodplain during the 1930’s, however, there are no production
records. Small hard rock gold workings on quartz breccia and stockworks have also been found along Sakinzawa
creek and on the western flank of Maruyama peak, which is a prominent rhyolite flow-dome landform.
MMAJ and the NICAM Joint Venture (Nissho Iwai Corp/Austpac/MIM) carried out exploration work on
Sakinzawa creek and Maruyama ridge in the 1990’s. This work included geological mapping, ground geophysics
(CSAMT), trenching, RC drilling and one diamond drill hole by MMAJ.
Trenching in Sakinzawa creek exposed a 100m x 300m zone of silicified, brecciated and quartz veined mudstones
and rhyolitic volcanic rocks beneath shallow colluvium and returned highly encouraging channel -chip results
including 9 m at 24 g/t gold and individual 1 metre samples ranging from 15 to 109 g/t Au4.
The 300 m vertical diamond hole (2MAHB4) drilled by MMAJ on Maruyama ridge intersec ted silicified
mudstone-sandstone-volcanic breccia to 140 m depth containing minor narrow quartz veins assaying up to 2.3 g/t
Au1. This is a useful stratigraphic hole but a poor test of the gold target.
Ikutahara Project Overview
The Ikutahara Project comprises 56 prospecting rights a pplication blocks covering an area of 1 9,114 hectares
underlain by prospective Miocene-Pliocene age volcano-sedimentary rocks and older meta-sedimentary basement
rocks.
Multiple gold-silver and mercury prospects , including 17 documented historic mines and workings, are located
within the project area and the majority comprise epithermal veins, with other hot spring related features such as
hydrothermal breccias and silica sinters.
The prospects were discovered and intermittently mined between 1910 and 1943 . Gold mining in Japan was
suspended 1943 under a government regulation aimed at focusing resources to more strategic commodities during
World War II. Many of the historic workings that were active in the area stopped in ore and never reopened. The
project area has seen only minor exploration since that time.
References
1 Metal Mining Agency of Japan, March 1990, Geological Survey Report for Fiscal Year 1989, Northern
Hokkaido Area B - Metalliferous Deposits Overview.
2 Watanabe, M (1940). Showa – Kitano-oh type gold deposits, J. Japan, Assoc. Min. Petr. Econ. Geol. 23: pp.
28-39 (in Japanese).
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3 Maeda, H. (1996). Relationship between volcanic activity and epithermal gold-silver mineralization: Example
from Kitano-oh mine area and vicinity in Kitami metallogenic province, Hokkaido, Japan, Resource Geology 46
(5): pp. 279-285.
4 Austpac Gold NL company reports 1992-1993
5 Watanabe, Y (1996). Genesis of Vein-hosting Fractures in the Kitami Region, Hokkaido, Japan, Resource
Geology, 46(3), pp 151-166.
6 Gold Mines in Japan, The Mining & Materials Processing Institute of Japan, 1990.
7Garwin, 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.
Qualified Person
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.
Sampling
The samples reported herewith represent selected grab samples collected from historic mine dumps or selected
chip samples collected from rock exposures found in historic mine adits and rock outcrops found in creeks. The
selected grab samples reported in this announcement are believed to originate from the underlying bedrock. Grab
samples are selected samples and are not necessarily representative of the mineralization hosted on the property.
Rock sample preparation and assaying were done by ALS Chemex, Guangzhou, China. Gold was analyzed by 50-
charge Fire Assay and AAS finish. 48 multielement analysis including silver were done by four -acid digest and
ICP-AES/MS determination.
The laboratory inserts its own blank, standards & sub -split pulp duplicates for Quality Control and reports these
results accordingly. Results fall within acceptable levels of accuracy and precision.
Twelve pulps from a selection of high -grade and low-grade gold results were sent to ALS Chemex, Townsville,
Australia for external gold check analyses. The external gold results repeat well and show a strong correlation
(>0.9) with the original gold results.
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 holds 32 prospecting rights and 178 prospecting rights applications accepted in Japan for
a combined area of 69,505 hectares (695 square-kilometres) over 17 separate projects. These prospecting rights
and 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.
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The Company completed an initial scout diamond drilling program on a high-grade epithermal gold vein target at
Akebono Prospect in late November 2017. More information is available at www.japangold.com or by email at
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 re lating 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, uncertainties resulting from working in a new political jurisdiction, uncertainties regarding the
results of e xploration, 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 infor mation provided herein as a result of numerous known and
unknown risks and uncertainties and other factors.
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Figure 1: Ikutahara Project: Prospecting Rights and Applications and Historic Mines and Workings on Regional
Geology
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Figure
2: Kitano-o Gold District, Significant Gold Results from Surface Rock Sampling on Simplified Geology
Table 1: Ikutahara Project: Kitano-o Gold District Significant Rock Chip Results (>1 g/t Au)
Prospect Sample No. Sample Type Au g/t Ag g/t Hg ppm As ppm Sb ppm Se ppm Te ppm Tl ppm Cu ppm Pb ppm Zn ppm Mo ppm
Ikutahara SAM01893 Dump 37.3 35.5 2.82 28.9 16.6 2 0.26 2.99 3.6 7.2 4 3.11
Ikutahara SAM02216 Dump 35.3 26.3 4.37 74.2 23.9 2 0.41 3.3 6.5 6.5 6 1.4
Ikutahara SAM01889 Dump 9.03 24.4 8.41 30 40.1 4 0.11 0.44 2.5 5.7 3 4.83
Ikutahara SAM01888 Dump 7.47 3.87 2.76 60.2 37.3 1 0.19 0.32 3 7.5 4 2.87
Ikutahara JG0011 Outcrop/Adit 6.08 6.67 tba 48.7 13.75 <1 0.12 0.41 4 14.5 7 4.68
Ikutahara SAM01897 Dump 3.99 7.41 8.39 855 27.4 5 <0.05 0.31 23.4 56.9 35 5.07
Ikutahara SAM01886 Dump 2.59 2.71 2.04 24.5 7 1 0.12 0.88 3 8.6 7 1.62
Ikutahara SAM01891 Float 2.46 7.24 3.4 71.3 20.4 2 0.07 0.31 2.9 4.6 5 4.1
Ikutahara SAM02006 Float 2.45 5.52 0.584 14.6 13.9 <1 <0.05 0.29 0.7 0.7 2 3.73
Ikutahara SAM01892 Float 2.21 5.97 4.77 40.6 14.5 <1 <0.05 2.97 7.5 8.6 8 2.28
Ikutahara JG0017 Outcrop 1.04 2.61 4.16 593 21 2 <0.05 0.08 17.2 25.1 20 3.7
Showa SAM01867 Dump 93.3 17.4 5.74 2 21.4 <1 <0.05 <0.02 0.5 9.7 <2 2.75
Showa SAM01866 Dump 36.4 11.6 4.75 1.2 12.45 1 <0.05 <0.02 0.5 18.4 <2 2.35
Showa SAM01894 Dump 19.35 8.49 3.57 1.7 11.05 1 <0.05 <0.02 0.9 10.9 2 2.12
Showa SAM01858 Dump 18.2 19.3 7.14 1.1 21.4 <1 <0.05 0.02 0.5 5.4 <2 1.7
Showa SAM01842 Dump 17.6 22.9 15.43 <0.2 16.35 1 <0.05 0.02 0.9 3.2 <2 4.04
Showa SAM01857 Dump 6.39 11.1 13.07 <0.2 16.65 4 <0.05 0.02 0.6 12.9 <2 2.94
Showa JG0081 Outcrop/Adit 5.26 3.32 tba 7.7 18 3 0.12 0.04 0.6 21.4 2 2.03
Showa SAM02210 Outcrop/Adit 4.43 1.99 2.11 1.7 11.95 0.5 0.05 0.03 0.3 19.3 1 2.1
Showa SAM02211 Outcrop/Adit 3.05 1.6 2.17 1.9 12.4 0.5 0.05 0.03 0.7 15.7 1 0.98
Showa SAM01856 Dump 2.74 6.13 14.24 <0.2 9.58 1 <0.05 0.03 0.7 13.4 <2 2.92
Showa SAM01865 Outcrop 2.7 7.11 12.41 2.1 14.8 1 <0.05 <0.02 0.7 14 <2 3.47
Showa SAM01861 Float 1.76 2.37 0.883 0.5 7.79 <1 <0.05 0.02 0.5 6.8 <2 0.76
Showa SAM01860 Float 1.63 11.4 61.2 <0.2 12.35 17 <0.05 0.02 0.6 5.3 <2 1.51
Showa SAM02209 Outcrop/Adit 1.47 1.73 22.7 8.6 24.4 3 0.2 0.04 3.8 33.2 2 3.56
Showa JG0080 Outcrop 1.39 0.41 2.31 0.8 8.51 <1 <0.05 <0.02 0.2 54.2 <2 1.4
Showa SAM02189 Dump 1.31 13.8 11.1 73.1 27.6 2 0.23 0.17 8.7 6.8 2 9.45
Showa JG0079 Outcrop 1.21 3.09 2.76 2 14.8 1 <0.05 0.02 0.4 15.6 3 0.96
Kitano-o JG0069 Dump 54.4 6.99 tba 694 52 3 10.3 0.02 15 26.4 7 5.33
Kitano-o SAM02155 Dump 8.59 3.45 0.393 314 14.35 1 0.05 1.21 8.4 2.8 4 2.67
Kitano-o SAM02115 Outcrop/Bench 5.78 13.2 0.096 78.5 9.12 1 <0.05 1.29 2.3 19.8 3 1.69
Kitano-o JG0077 Dump 3.09 28.7 0.992 51.9 15.95 1 0.08 1.63 5.8 12.5 7 2.6
Kitano-o SAM02175 Dump 3.02 3.13 2.91 890 60.5 5 5.06 0.04 12.4 24 7 4.56
Kitano-o JG0078 Outcrop 1.74 4.15 2.05 47.2 20.3 <1 3.26 3.45 1.8 5.2 4 1.37
Kitano-o SAM02117 Dump 1.6 4.78 10.5 3 15.5 1 <0.05 0.07 0.9 12.1 7 1.52
Kitano-o SAM02120 Dump 1.29 1.16 2.57 29.7 35 <1 <0.05 0.04 1.3 4.9 3 1.92
Kitano-o SAM02156 Dump 1.27 0.62 0.292 97.6 8.91 1 0.05 0.55 2.5 2.2 2 2.54
Kitano-o SAM02171 Outcrop/Adit 1.22 1.96 0.574 88.7 15.55 2 <0.05 1.79 3.3 11.4 6 2.86
Kitano-o JG0018 Outcrop 1.17 1.27 0.191 60.4 17.15 1 0.1 2.57 4.7 12.9 3 1.9
Kitano-o JG0064 Outcrop 1.03 8.21 5.19 347 36.3 2 <0.05 1.7 6.5 34.4 23 6.51
Kitano-o SAM02149 Dump 1.01 7.86 2.89 139.5 43.2 2 3.33 0.16 4.9 17 11 6.47
Sakinzawa 50004 Outcrop 43.8 27.2 0 282 19 0 0 10 3 7 6 6
Sakinzawa SAM02069 Outcrop/Creek 17.2 15.9 0.231 452 20 3 <0.05 7.84 7.4 9.5 5 5.77
Sakinzawa SAM02058 Outcrop/Creek 4.34 2.56 0.067 43.7 136 1 <0.05 2.72 2.8 7.4 20 2.99
Sakinzawa 50001 Outcrop 1.53 6.7 0 356 35 0 0 10 3 4 5 7
Sakinzawa SAM02071 Outcrop/Creek 1.34 3.24 0.049 116.5 17 2 <0.05 7.82 2 3.7 2 3.91
Sakinzawa 50007 Outcrop 1.22 2.8 0 258 24 0 0 10 3 7 4 8
Sakinzawa 50003 Outcrop 1.095 3.1 0 278 17 0 0 10 3 7 3 6