The company acquired the Kanehana project through the acceptance of 40 new prospecting rights applications by the Japanese Ministry of Economy, Trade and Industry. The new 12 431 ha project adjoins the west side of Japan Gold`s Ikutahara project and covers seven historic gold mines and workings.

The 40 new applications cover seven historic gold mines and workings with limited development and production prior to 1942, locally high-grades reported in these mines indicate further investigation is warranted, said Japan Gold on Wednesday.

The Kitami metallogenic province of northeast Hokkaido is host to numerous historic gold mines, including the Konomai mine, Japan`s third largest gold mine, which produced 2.35-million ounces at 6.4 g/t gold and 40-million ounces of silver prior to its closure in 1974.