Explorer Finds High-Grade Gold Potential at Japan Project

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Irving Resources Inc. (IRV:CSE; IRVRF:OTCQX) announced that diamond drill hole 25SY-001 at the East Yamagano Joint Venture (JV) in Japan has intersected multiple mineralized vein zones.

The hole encountered higher-grade gold values compared to its shallower counterpart, hole 24SY-001, Irving said in a release.

Distinct zones of gold-rich stockwork veining include:

• 5.0 meters grading 2.9 grams per tonne gold (g/t Au), with 1 meter grading 8.3 g/t Au, starting at a downhole depth of 444 meters.
• 1.2 meters grading 4.14 g/t Au, with 0.5 meters grading 8.38 g/t Au, starting at a downhole depth of 490.8 meters.
• 2 meters grading 2.48 g/t Au, with 1 meter grading 4.53 g/t Au, starting at a downhole depth of 678 meters.

Hole 25SY-001 was drilled in a southerly direction at a steep angle of 82 degrees, reaching a depth of 752 meters. This hole was drilled from the same pad as hole 24SY-001, which was a 702.1-meter hole oriented southward at a shallower angle of 65 degrees, the company said

"Hole 25SY-001 gives us confidence that we have a vein system emerging at depth in this area," said Irving Director and Technical Advisor Dr. Quinton Hennigh. "As hoped, gold grades are substantially higher in hole 25SY-001 than those observed in hole 24SY-001. We now see a vector pointing to potentially higher gold grades and wider vein zones associated with the deeper core of the AMT resistor."

Hennigh said the company was "eagerly" awaiting results from its newest hole, 25SY-002A, in which it observed silicification, silica breccias, and stockwork vein zones at depth.

"The veining in this hole coupled with results from holes further north indicates we may have found extensions of the Yamagano vein system tending through East Yamagano," Hennigh said.

Potential for Improved Gold Grades

Irving said the true widths of the structures cannot be determined at this time. In addition to higher gold values, the degree of silicification in hole 25SY-001 is notably greater than that observed in hole 24SY-001. Irving’s geological team currently believes there is potential for improved gold grades and structural widths of vein zones deeper within the AMT resistive zone in this area. Further drilling in this area is being considered.

The JV recently completed drilling a 951.8-meter-deep diamond drill hole, 25SY-002A, located approximately 1.07 kilometers south of 25SY-001, the company said. Hole 25SY-002A is oriented northward at 357 degrees with an inclination of 66 degrees. Although the targeted resistive zone here is distinct from that tested further north, the concept that this feature is related to hydrothermal silicification associated with gold mineralization remains the same.

Significant silicification, silica breccias, and stockwork vein zones were notably abundant over the deepest 300 meters of this hole, the company said. Given the horizontal distance between the end of hole 25SY-002A and holes further north is over 700 meters, this suggests the possibility of a corridor of prospectivity for vein mineralization extending through this area. Hole 25SY-002A is in the final stages of logging, splitting, and sampling, with assays expected back later this year.

Phase II drilling has commenced, utilizing Japan-based drilling contractor Mitsui Mineral Development Co. Ltd., the release said.

East Yamagano is a joint venture between Newmont Overseas Exploration Ltd., a wholly owned subsidiary of Newmont Corp., Sumitomo Corp., and Irving. The initial interests of the parties in the joint venture are Newmont, 60%, Sumitomo, 12.5%, and Irving, 27.5%. All samples discussed in this news release are 1/2-split sawn diamond core samples. Irving submitted samples to ALS Global, Brisbane, Australia, for analysis.

Expert Sees Stock as 'Opportunity'

The Canadian exploration company has the support of several major players pursuing gold and silver in Japan — including Newmont, which owns nearly 20% of the company. Japan is renowned for having some of the highest-grade gold mines globally, with numerous past-producing epithermal mines.

Brian Leni of Junior Stock Review expressed that he saw the stock as an "opportunity."

"In my view, Irving is selling for less than it's worth, considering the potential upside of discovery at its Yamagano project. Not only that, but this junior company is exploring Yamagano" with Newmont Corp. and Sumitomo Corp. (8053:TKY; SSUMF:OTCPK), Leni wrote for Streetwise Reports in November.

"When it comes to Irving, I have long seen the potential of their project portfolio," Leni wrote. "Visiting Yamagano and Omu in person and meeting the technical team that is executing the exploration work has only further solidified that potential in my mind. To me, Yamagano holds the key to garnering frothy market attention once again . . . I clearly see that there will be a steady stream of project development across Japan moving out into the future."

On July 14, Chen Lin, author of the What Is Chen Buying? What Is Chen Selling? newsletter, noted that "Hennigh just visited Irving Resources Inc., and he came back quite excited. We will watch the drilling results in the coming weeks."

In a post on his website in March, Analyst Jayant Bhandari mentioned that he and his clients have been long-term investors in the company. "The designated areas within this agreement are progressing toward becoming mines, primarily for silica with gold credits," he said of Omu. "High-grade silica from Omu is expected to be in strong demand." Bhandari continued, "IRV has stagnated for several months while similar companies have moved up," he said. "I prefer to invest when others aren't paying attention."

The Catalyst: Gold Heads Steady

Gold prices held steady early Wednesday after pulling back slightly from a record high of US$3,674.70 in the previous session, reported James Hyerczyk for FX Empire on September 10.

The precious metal has been supported by increasing expectations of a U.S. interest rate cut in September, with markets pricing in a 92% chance of a 25-basis-point reduction, according to CME Group’s FedWatch Tool, Hyerczyk wrote.

Weaker U.S. labor market data last week, including disappointing nonfarm payrolls and downward revisions to previous job growth estimates, have intensified pressure on the Fed to ease policy. The U.S. Labor Department disclosed on Tuesday that job growth from March 2023 to March 2024 was overestimated by 911,000 positions.

"Despite Tuesday’s technical pullback, the broader outlook remains bullish," Hyerczyk said. "Gold’s strength is underpinned by dovish Fed expectations, a weakening labor market, and safe-haven flows. As long as support holds near US$3,500 and the Fed stays on course for easing, gold remains poised to retest and possibly breach recent highs. With ANZ projecting a year-end target of US$3,800 and a peak near US$4,000 by next June, dips continue to present opportunities for upside reentry.

Goldman Sachs said the price of gold could rise significantly if the Trump administration's efforts to undermine the independence of the U.S. Federal Reserve succeed, Peter Gratton wrote for Investopedia on September 8.

The statement comes amid President Donald Trump's significant attempts to influence the Fed, including efforts to remove Fed Governor Lisa Cook, which are currently facing legal challenges. These actions have Wall Street preparing for what JPMorgan analysts have termed a "Fed independence trade" — strategies to adapt to a world where the dollar and U.S. Treasurys may no longer be perceived as the safest investments.

Investors are concerned that a politicized Fed might cut rates to boost the economy for short-term benefits, raising fears of increased inflation in the future, Gratton wrote.

Goldman's analysts were clear about the potential consequences: "A scenario where Fed independence is damaged would likely lead to higher inflation, lower stock and long-dated bond prices, and an erosion of the dollar's reserve currency status. In contrast, gold is a store of value that doesn't rely on institutional trust."

For these reasons, Goldman concluded that "gold remains our highest-conviction long recommendation" — indicating it is the best long-term investment option at present, Gratton reported.

Ownership and Share Structure

The company said management and directors own about 9.3%, and strategic investors Newmont and Sumitomo own 19.2% and 5.2%, respectively.

Yahoo! Finance said about 1% is owned by institutions. The rest is retail.

According to Refinitiv, top insiders include President and Chief Executive Officer Akiko Levinson with 4.88% and Hennigh with 3.1%.

Irving Resources has a market cap of CA$20.07 million with 83.36 million shares outstanding. It trades in a 52-week range of CA$0.14 and CA$0.42.