JAPAN GOLD CORP.
Investment in Japan Gold
Southern Arc's leadership team has long recognized Japan's prospectivity for gold, silver and copper. Further to its diversification strategy announced in December 2012, when Japan's mining laws were changed in 2012 to re-activate the mining industry, Southern Arc moved quickly to review historical data and identify key exploration targets. Southern Arc was the first foreign exploration company to apply for prospecting licenses. Southern Arc applied for the prospecting licenses through its subsidiary, Southern Arc Minerals Japan KK ("SAMJ").
Japan hosts one of the world’s highest grade gold mines, the Hishikari Mine, which has produced since 1985 with grades averaging 40 g/t gold. Despite a history of significant production, with many million-plus-ounce deposits with good gold and silver grades, the region is regarded as largely underexplored.
Southern Arc was the first foreign exploration company to apply for prospecting licenses in Japan. Based on a desktop review of historical gold production and Japan's extensive geoscientific database, Southern Arc was able to pinpoint areas that are very compelling from a geological perspective. In 2015 and early 2016 SAMJ lodged 80 prospecting rights applications comprising 27,153 hectares over eight projects targeting high-grade epithermal gold and areas of gold-bearing advanced argillic alteration, which could indicate the presence of a porphyry mineral environment.
In July 2016 Southern Arc signed a letter of intent to sell its Japanese subsidiary Southern Arc Minerals Japan KK ("SAMJ"), which held the prospecting license applications, to Sky Ridge Resources.
In September 2016, Southern Arc Minerals Inc. vended SAMJ to Sky Ridge Resources Ltd. As part of the transaction, Sky Ridge Resources completed a private placement financing at C$0.20 per share for gross proceeds of C$7,000,000. Upon closing of the transaction, Sky Ridge Resources consolidated its shares on a one-for-two basis, changed its name to Japan Gold Corp., and commenced trading on the TSX Venture Exchange under the symbol "JG”.
Southern Arc became the largest shareholder (42.9% interest) in Japan Gold Corp., the first mineral exploration company to focus solely on Japan.
Southern Arc holds a 53.08% interest in Japan Gold.
To date, Japan Gold has expanded the project portfolio in Japan to 12 projects comprising of 180 prospecting rights applications over 59,606 hectares. To date, 32 applications have been granted as Prospecting Rights. The Company’s portfolio now has projects on three main islands of Japan, Hokkaido, Honshu and Kyushu. Seven projects cover areas with known gold occurrences and a history of mining, and are prospective for high-grade epithermal gold mineralization. Four of the projects, in southern Hokkaido and northern Honshu, are located over gold-bearing lithocaps, which may 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.
Low-impact surface exploration is underway, with the expectation of applying for drilling permits on priority targets this year.
Latest News Releases
September 5, 2017
Southern Arc Agrees to Sell West Lombok Property
August 9, 2017
Southern Arc Acquires Common Shares of Japan Gold Corp read more
August 9, 2017
Southern Arc Invests $5 million in Japan Gold Corp. read more
July 17, 2017
Southern Arc Announces Results from Special Meeting: Shareholders Approve $5 million Investment in Japan Gold read more