First Quantum Minerals (TSX: FM) has exited an earn-in agreement with Japan Gold (TSXV: JG; US-OTC: JGLDF) after completing an initial surface evaluation on its Eboshi, Kobui, Minamikayabe and Kamitsue lithocap projects in Japan.
After completing mapping and soil and rock sampling, First Quantum decided the four projects did not meet its criteria. Japan Gold says it believes that three of the projects-Eboshi, Kobui and Kamitsue-warrant further follow up.
Shares of Japan Gold tumbled 6 ? on the news and now sit at 20 ? a-piece after peaking at 38 ? in mid-March 2019.
The company plans to drill up to 11,400 metres across several projects in Japan this year. It will begin a 3,000 metre drill program at its Ikutahara gold project in May 2019, focused initially on the Kitano-o prospect and then on the Ryuo prospect.
It will also begin a 2,100 metre drill program at its Ohra-Takamine gold project in June 2019, testing 3.5 km of strike that hosts the historic Ohra, Takamine and Urushi gold mines.
The company will also perform mapping and sampling at its Aibetsu, Hakuryu and Sanru gold projects, as well as geophysical surveys on the lithocap projects tested by First Quantum.
Japan Gold has a $16 million market capitalization.
Shares of First Quantum are currently valued at $15.66 with a 52-week range of $9.45 to $23.05. The company has a $10 billion market capitalization.
(This article first appeared in The Northern Miner)