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The Buho Project is located within a productive mining district with known high-grade gold and silver occurrences. The limited amount of scout drilling completed by the NICA JV demonstrated the occurrence of high-grade gold veins located beneath the historic shallow Buho workings that were developed over a preserved, high-level epithermal system with intact sinter. Japan Gold believes that the previous exploration has been insufficient and that potential remains to discover high-grade gold-silver vein lodes beneath, and surrounding, the historic Buho workings.

An initial program of 1) data compilation, review of MMAJ airborne magnetics and reprocessing of Austpac CSAMT data; 2) collection of an additional 10 line-km of CSAMT; 3) geological mapping and geochemical rock sampling; and 4) a scout-drill program, using a diamond rig to complete 3-4 drill-holes (1000 m) near the Buho workings is recommended.