Japan Gold Corp (CVE:JG) (OTCMKTS:JGLDF) reported Friday that First Quantum Minerals Ltd (FQML) has decided not to enter into a formal earn-in agreement with Japan Gold after it completed an initial evaluation of four lithocap projects: Eboshi, Kobui, Minamikayabe, and Kamitsue.
"We thank FQML for the work completed on the lithocap projects and appreciate their positive endorsement of the technical and logistical skills of the Japan Gold team as operators of their program," said CEO John Proust in a statement. "Despite the fact that their initial exploration findings did not fit their target criteria, Japan Gold believes in the potential of the projects and will promptly explore alternate partnerships to advance the Eboshi, Kobui, and Kamitsue lithocap projects.
Japan Gold is a Canadian mineral exploration company, that holds 17 projects in Japan, for a combined area of 715.29 sq km across the three largest islands of Japan: Hokkaido, Honshu and Kyushu. Japan Gold is currently gearing up for its 2019 drilling program, which is kicking off in May.
According to the company, FQML indicated that the projects did not fit their target criteria, which, in the case of Kamitsue, identified a higher weighting towards gold rather than copper.
Japan Gold said it was encouraged by the data generated by FQML and says it believes that three of the projects (Eboshi, Kobui and Kamitsue) warrant further investigation, including geophysics and drilling.
"As a nation-wide project generator, Japan Gold's portfolio includes both early stage and intermediate stage projects, such as our twelve low-sulfidation epithermal gold projects, which all sit within historic mining districts. Our objective is to evaluate existing and future early stage prospects with non-dilutive partnerships, where strategically advantageous," added Proust. "Separately, our 2019 gold exploration program is proceeding with drill programs to commence in May at the Ikutahara Project and in June at the Ohra-Takamine Project."
Shares of Japan Gold were at C$0.19 on Friday.
Contact Katie Lewis at [email protected]