Further to its diversification strategy announced in December 2012, Southern Arc has been searching for resource exploration and investment opportunities in stable jurisdictions.
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.
Based on a desktop review of historical gold production and Japan’s extensive geoscientific database, Southern Arc has applied for exploration licenses through its newly formed subsidiary, Southern Arc Minerals Japan (SAMJ).
SAMJ has lodged 38 contiguous exploration applications in northern Hokkaido targeting high-grade epithermal gold deposits.
Southern Arc president and chief operating officer Mike Andrews said: "Japan has a strong history of gold production and an extensive, detailed geoscientific database that has allowed us to pinpoint areas that are very compelling from a geological perspective.
"We are working closely with mining consultants and the Japanese regulators and look forward to commencing exploration once the licenses are granted."
"Applying for exploration licenses in Japan is consistent with Southern Arc’s strategy of identifying underexplored and overlooked prospective areas and moving quickly to control large parcels of prospective land," said John Proust, Chairman and CEO of Southern Arc. "With a well-established regulatory framework and easy access to government officials, Japan provides a stable, mining-friendly jurisdiction that fits well with Southern Arc’s diversification strategy."
