PRECIOUS METALS

Barrick alliance exploration begins in Japan

Newmont-backed Japan Gold (TSXV: JG) says it’s instituted strict prevention measures to enable its large Barrick Alliance regional exploration programme to kick off in Japan during the evolving COVID-19 pandemic.

Staff reporter
 Japan Gold has put strict COVID-19 measures in place to begin its Barrick alliance exploration in Japan

Japan Gold has put strict COVID-19 measures in place to begin its Barrick alliance exploration in Japan

Under the alliance struck in February, major Barrick Gold (TSX: ABX) will fund an initial two-year evaluation of 28 of Japan Gold's 30 projects in the country.

Japan Gold said the alliance had formed an executive and a technical committee with representatives from both companies to lead the evaluation.

The junior said the regional program, which would include stream sediment sampling and gravity surveys, was expected to be completed within a year with it as operator.

"The regional exploration program will assist the Barrick Alliance in evaluating the Japan Gold portfolio of projects to determine areas with anomalous gold showings and potentially fertile large structures," Japan Gold chairman and CEO John Proust said.

"We are very pleased to be able to commence this important initiative with Barrick during the evolving COVID-19 pandemic."

He said exploration geologists and field assistants had been mobilising to Kyushu and undergoing 14-day self-isolation prior to starting work.

Japan Gold last week issued C$3.5 million in units priced at 25c - including a lead order of $250,000 and converting a $1 million loan from major shareholder Southern Arc Minerals - and said based on strong demand it had increased the offering by up to $2.5 million.

Southern Arc and management held 26% of the company, followed by Newmont with 16%, according to a presentation last month.

Japan Gold's shares have ranged from 19-45c over the past year and closed unchanged at 30c yesterday, to capitalise it at $42 million (US$30 million).

Barrick closed down 1% to $39.16 but remains near a one-year high and is valued at $69.6 billion (US$50 billion).

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