The alliance between Japan Gold and Barrick Gold will be focused on multiple gold assets spread over 152,152 hectares across the Hokkaido, Honshu, and Kyushu islands
Canada-based Japan Gold and Barrick Gold have joined forces for exploration, development, and mining of certain gold mineral properties and mining projects across Japan.
Japan Gold has agreed to contribute 28 out of its 30 projects to the alliance that are spread across 152,152 hectares in the islands of Hokkaido, Honshu, and Kyushu.
The alliance does not include the Ikutahara gold project in Hokkaido and the Ohra-Takamine gold project in Kyushu. Both the gold projects will be continued to be advanced independently by Japan Gold.
In connection with the partnership, the Canadian mineral exploration company has acquired six new projects located in the northern part of the Southern Kyushu Epithermal Gold Province.
Japan Gold has acquired six gold projects in conjunction with the alliance
Spread over 47,853 hectares, the acquired gold projects are Kushikino-Iriki, OT-Yaeyama Extension, Mizobe-Onoyama, Mizobe 1st Extension, Onoyama-Yamagano Extension, and the Tobaru-Fuke Extension.
Japan Gold chairman and CEO John Proust said: “Japan is an ideal, underexplored, setting to make new large low sulphidation epithermal gold discoveries, building on the great success of the Sumitomo Metal Mining Co. Ltd.’s Hishikari Gold Mine.
“Barrick’s global experience of operating 15 mines on 4 continents combined with Japan Gold’s in country knowledge and operational expertise make an ideal partnership to advance the gold mining industry in Japan.”
As per the terms of the alliance, Barrick Gold will solely take care of all the expenditures incurred by a two-year initial evaluation phase of each of the Japanese gold projects.
A subsequent three-year second evaluation phase on projects that meet its criteria will also be solely funded by Barrick Gold.
For each of the projects, Japan Gold will be the manager, subject to its partner’s right at any time to take over the same role.
If Barrick Gold marks any asset under the alliance as a designated project, then it can, at any time during the two evaluation phases, can opt to solely fund to complete a pre-feasibility study (PFS). Following the completion of a PFS, the company will earn a 51% interest in the designated gold project.
Furthermore, the company can choose to continue to solely finance such projects post-completion of a PFS to a bankable feasibility study (BFS). Following the completion of a BFS, Barrick Gold’s interest in such a gold project will move up to 75%.
Barrick Gold CEO Mark Bristow said: “We are pleased to partner with Japan Gold, who have assembled an impressive portfolio of exploration tenements within the renowned epithermal gold provinces of Japan.
“We look forward to advancing our partnership by combining Barrick’s technical and financial resources with Japan Gold’s first mover advantage, to deliver new world class gold discoveries.”