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05/27/2019
COMPANIES MENTIONED
Aben Resources Ltd.
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STREETWISE REPORTS
THE ENERGY REPORT
THE GOLD REPORT
THE LIFE SCIENCES REPORT
This explorer in the Yukon and British Columbia's Golden Triangle is readyto make news in upcoming drill season, says Rick Mills of Ahead of the Herd.
Source: Rick Mills for Streetwise Reports
May is the month when junior resource companies either spring out of hibernationfrom a winter spent poring over last year's results, secure in the knowledge theirtreasury is in good shape, or return from cash-raising junkets, hopefully withpockets jingling, to prepare for summer drill programs.
In the case of Aben Resources Ltd. (ABN:TSX.V; ABNAF:OTCQB), it's the former.The Vancouver-based company is dedicating $1 million toward an explorationprogram at its Justin project in the Yukon, which butts onto Golden Predator MiningCorp.'s (GPY:TSX.V) 3 Aces property.
There will also be a renewed focus this summer on Forrest Kerr, located in BritishColumbia's Golden Triangle between the past-producing Snip and Eskay Creekmines, where Aben is planning an initial 5,000 meters (5,000m) of drilling to followup on last year's expansion of the North Boundary Zone. The company has theopportunity to execute on a number of targets thanks to the authorization of 55 newdrill pad locations versus just nine in 2018, which limited the amount, and angle, ofdrilling.
Aben Drills Pointing at Justin for Start of 2019ExplorationStreetwise Reports
JustinAben Resources is planning on getting an extra month of drilling in at Justin bystarting in early June. The 2,000m drill program will involve 1,350m of diamonddrilling and 600m of rotary air blast drilling.
The 7,411-hectare land package is contiguous to Golden Predator's 3 Aces project,which includes six mineralized areas that extend over a 35-kilometer gold trend.
According to Aben, Justin has the potential for both high-grade and bulk tonnagemineralization—epithermal, skarn and sediment-hosted—throughout a 3.5-kilometer by half-a-kilometer trend encompassing the Confluence, Main, Kangasand POW zones. The latter was drilled in 2011–12.
"It's a classic intrusion-related gold system. You've got this younger intrusioncoming up into the area, and it's a massive area. Generally, you would get bulktonnage from those," CEO Jim Pettit said in a 2018 AOTH interview, comparing itto Kinross Gold Corp.'s (K:TSX; KGC:NYSE) 4.3 million-ounce Fort Knox operationin Alaska, Golden Predator's Brewery Creek mine, and the Coffee gold deposit inthe Yukon. The latter, owned by Kaminak Gold, was acquired by Goldcorp Inc. in2016 for CA$520 million.
In 2017 ABN discovered the Lost Ace Zone, which is just west of the POW Zone.The gold-bearing vein system occurs in a geological setting that is very similar tomineralization present on Golden Predator's 3 Aces project, located immediatelynorthwest of the Justin claim group.
A 3.8-kilogram bulk soil sample collected for gold grain count analysis andclassification from a location 115 meters upslope from Lost Ace returned 1,135
visible gold grains. Of the 1,135 gold grains recovered, 1,049 were classified aspristine—meaning the gold mineralization was likely carried to surface by themagma intrusion. As seen from the image below, the gold grains are jagged andflat versus smooth and round, indicating the gold has remained in place and notmoved anywhere.
Last summer Aben completed a trenching program at Lost Ace whose results wereposted in January 2019. The series of 250m-wide trenches delivered samples ofmineralization that are remarkably similar to 3 Aces.
Highlights included 88.2 g/t gold over a meter, within 20.8 g/t over 4.4m. "It isbegging for drilling," says Pettit.
According to the Aben news release: "The new discovery at Lost Ace highlights theexistence of a multi-phase hydrothermal system with the potential for overprintingmineralizing systems."
Overprinting occurs when rock of different ages is jumbled together, meaningyounger rock can end up on top of older rock.
That would explain the two distinctly different types of mineralization found at LostAce. Pettit explains: "I think these two systems could be associated, where whatwe're seeing at surface is more like an orogenic high-grade vein system, broughtup possibly from the uplifting of the older quartz veins by the younger magmaintrusion. It could be some sort of an enriching event."
To test that theory, Aben will bring in a rotary air blast (RAB) drill, a small, mobileunit that can explore the 250m area—likely punching in about 20 holes, 50m deep.A diamond drill will follow up on the property's best targets.
Up to 10 holes (1,350m) of drilling is planned for the POW Zone, to further test theintrusion-related gold system discovered in 2010.
Exploration work at Justin is expected to take three to four weeks. After that, Abenwill pivot west, to British Columbia's highly-prospective Golden Triangle.
Forrest KerrTwo years ago, continuous mineralization at Aben's Forrest Kerr project wasidentified in the first three holes of the then-new North Boundary Zone. Highlightsincluded 21.5 g/t gold, 28.5 g/t silver and 3.1% copper over 6m; 2.91 g/t gold, 5.2g/t silver and 0.6% copper over 14m.
Fast forward to last summer, when Aben hit a discovery hole early in the drillingseason, by positioning the drill 35m northwest of the three 2017 holes (the NorthBoundary Zone) to investigate the possibility of mineralization at depth.
There was, and not just mineralization, but jewelry-box-style mineralization.
Featuring four high-grade zones all within 190 meters downhole, the highest-gradezone assayed at an impressive 331 g/t over 1.0m, within a broader zone of 38.7 g/tover 10m. Other results from the discovery hole included 22.0 g/t gold and 22.4 g/tsilver over 4.0m, 4.0 g/t silver over 13.0m, and 8.2 g/t gold with 1.4 g/t silver over6.0m.
Guided by chief geologist Cornell McDowell, Aben decided to test new ground 1.5kilometers south of the North Boundary Zone, going by soil geochemical anomaliesand "elevated gold in rock and soil values that are coincident with an historicelectromagnetic (EM) conductive geophysical anomaly," the company stated in anews release.
Watch an interview with Aben's VP Exploration Cornell McDowell.
Moving down the drainage, the drill crew tapped into mineralization that appearedsimilar to the three holes that defined the North Boundary Zone, i.e., containingample chalcopyrite—the copper mineral—and gold pathfinder minerals.
The three collared holes (i.e., drilled from the same pad in different directions) hitquartz-sulfide veins at various depths, with enough gold, silver and copper valuesto coin the new South Boundary Zone.
This year, Aben has three objectives for the 23,000-hectare Forrest Kerr propertyrunning along the Kerr fault, which acts as a major geological "engine" for thewhole region, giving Aben tremendous discovery upside due to the amount ofgeological activity in the area.
Heavy dotted line is the Kerr Fault
The first goal is to see whether the North Boundary Zone can be extended in anortherly direction. Aben's news release details the work plan: "Drill activities willbegin at the Boundary Zone in late June, where over 12,000 meters of drilling werecompleted in 2017 & 2018. North Boundary has previously returned high-graderesults such as 38.7 grams/tonne (g/t) (1.12 oz/t) gold over 10.0 m (from 114.0-124.0 m) including 331.0 g/t (9.65 oz/t) gold over 1.0 m in hole FK18-10. Drilling todate has shown that mineralization extends several meters outboard of the high-grade area within subordinate shear structures and vein arrays. Due to theavailability of new pad locations specific areas of interest will be revisited. Initiallydrill testing will focus on the potential for a northward extension of the high-grademineralized core at North Boundary originally defined by holes FK17-4, 5 and 6and confirmed with holes FK18-10 & 11."
Next, drill crews will follow up a high-grade hole 200m south of the North BoundaryZone. Encountered by Noranda way back in 1991, the highlight was an eye-popping 326.0 g/t gold.
Aben also wants to know more about the newly discovered South Boundary Zone,where broad intercepts of gold-copper-silver-zinc mineralization were found inquartz veins last summer. This is the third objective.
An airborne magnetic survey will be run across the entire Boundary Zone prior todrilling. The survey is aimed at gleaning more information about Forrest Kerr'slarge, complicated structures.
Finally, the company plans to drill-test a previously identified target in the ForrestZone, located 13 kilometers south of Boundary. According to Aben, "The area ofinterest at Forrest is defined by highly anomalous gold-in-soil and gold-in-rockvalues coincident with a strong geophysical conductive anomaly originally reportedin 2013."
For an overview of Aben's exploration program this summer, view an AOTH videofeaturing Aben's President and CEO, Jim Pettit.
ConclusionIn early 2018 my readers were given an opportunity to get into ABN at a very goodprice ($0.15/share). They had ample opportunity to ride the stock into the high$0.40s, to reap their rewards along the way up, and on the way down as the topwas recognized.
When Aben fell back to $0.115 in January of this year I said I liked it again. OnFriday the stock closed at $0.20. Now that we have a detailed plan for thissummer's exploration activities, I remain a strong ABN fan. But before I recap letme add a little context here.
Raising money for exploration in the junior resource market right now is difficult, toput it mildly. According to Oreinc, a Vancouver-based research and advisory firm,Canadian-listed mining companies are raising less money and inking fewer deals.
As reported by the Financial Post, Oreinc tracked around 1,400 Canadian miningcompanies between $100 million and $1.5 billion valuations. It found that in 2018,cannabis companies raised $4 billion versus $217 million by mining companies.
The situation is completely reversed comparing the top 10 Toronto Venture-listedcompanies in 2016 versus 2019. In 2016 there were nine mining companies andone pot company on the list; this year there are nine marijuana companies and onemining company.
What does this mean for gold exploration? Well, as financings dry up, so does theexploration pipeline. Companies that would normally be out there kicking rocks,sampling, drilling and drumming up shareholders are in a holding pattern, waitingfor the market to come back.
One company that is not waiting for the tide to change is Aben Resources.
Consider this: Aben has two excellent properties in areas that have seen a lot ofhistoric exploration. Justin is a sleeper play that holds great potential, in our view.Will the drills confirm the existence of an intrusion-related gold system yielding highgrades and tonnage? It certainly seems likely, if the results from the bulk soilsample and trenching are a guide.
At Forrest Kerr the mineralogy is complicated, but Aben is gradually filling in theblanks. How big is the North Boundary Zone? Is it connected to South Boundary?These are puzzles that Aben hopes to solve. The answers are sure to provideplenty of news flow for Aben investors to realize some nice share price gains.
Aben is one of the few junior companies that is already fully cashed up (+CA$4million in the treasury) and ready to commence two major exploration programs.The company will be on its Yukon project, Justin, in very early June, possibly just aweek away. And from there, roughly the start of July, will be drilling on its GoldenTriangle project Forrest Kerr.
I expect total meters drilled between the two projects will exceed 10,000m, likelymuch closer to 15,000m than 10,000m.
Both programs are capable of delivering high-grade to jewelry-box-grade goldassays. Being cashed up and ready to get to drilling means first out of the gateadvantage in the race for investors dollars. And because of a sector-wide cashcrunch not many juniors are going to be able to deliver as much news as Aben,that makes Aben a top pick AOTH pick in the gold sector.
Aben Resources Ltd.: TSX-V:ABN; CA$0.20 (May 23)Shares Outstanding: 111.6MMarket cap: CA$22.3MAben website.
Richard (Rick) Mills, AheadoftheHerd.com, lives on a 160-acre farm in northernBritish Columbia. Richard's articles have been published on over 400 websites,including: Wall Street Journal, USA Today, National Post, Lewrockwell, MontrealGazette, Vancouver Sun, CBSnews, Huffington Post, Beforeitsnews,Londonthenews, Wealthwire, Calgary Herald, Forbes, Dallas News, SGT report,Vantagewire, India Times, Ninemsn, Ib times, Businessweek, Hong Kong Herald,Moneytalks, SeekingAlpha, BusinessInsider, Investing.com, MSN.com and theAssociation of Mining Analysts.
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Disclosures:1) Rick Mills: I, or members of my immediate household or family, own shares ofthe following companies mentioned in this article: Aben Resources. I personallyam, or members of my immediate household or family are, paid by the followingcompanies mentioned in this article: None. My company currently has a financialrelationship with the following companies mentioned in this article: AbenResources is an advertiser on Ahead of the Herd. I determined which companieswould be included in this article based on my research and understanding of thesector. Additional disclosures/disclaimer below.2) The following companies mentioned in this article are sponsors of StreetwiseReports: Aben Resources. Click here for important disclosures about sponsor fees.As of the date of this article, an affiliate of Streetwise Reports has a consultingrelationship with Aben Resources. Please click here for more information.3) Comments and opinions expressed are those of the specific experts and not ofStreetwise Reports or its officers. The author is wholly responsible for the validity ofthe statements. The author was not paid by Streetwise Reports for this article.Streetwise Reports was not paid by the author to publish or syndicate this article.The information provided above is for informational purposes only and is not arecommendation to buy or sell any security. Streetwise Reports requirescontributing authors to disclose any shareholdings in, or economic relationships
with, companies that they write about. Streetwise Reports relies upon the authorsto accurately provide this information and Streetwise Reports has no means ofverifying its accuracy.4) The article does not constitute investment advice. Each reader is encouraged toconsult with his or her individual financial professional and any action a readertakes as a result of information presented here is his or her own responsibility. Byopening this page, each reader accepts and agrees to Streetwise Reports' terms ofuse and full legal disclaimer. This article is not a solicitation for investment.Streetwise Reports does not render general or specific investment advice and theinformation on Streetwise Reports should not be considered a recommendation tobuy or sell any security. Streetwise Reports does not endorse or recommend thebusiness, products, services or securities of any company mentioned on StreetwiseReports. 5) From time to time, Streetwise Reports LLC and its directors, officers, employeesor members of their families, as well as persons interviewed for articles andinterviews on the site, may have a long or short position in securities mentioned.Directors, officers, employees or members of their immediate families areprohibited from making purchases and/or sales of those securities in the openmarket or otherwise from the time of the interview or the decision to write an articleuntil three business days after the publication of the interview or article. Theforegoing prohibition does not apply to articles that in substance only restatepreviously published company releases. As of the date of this interview, officersand/or employees of Streetwise Reports LLC (including members of theirhousehold) own securities of Aben Resources, a company mentioned in this article.
Ahead of the Herd Legal Notice / DisclaimerThis document is not and should not be construed as an offer to sell or thesolicitation of an offer to purchase or subscribe for any investment. Richard Millshas based this document on information obtained from sources he believes to bereliable but which has not been independently verified. Richard Mills makes noguarantee, representation or warranty and accepts no responsibility or liability asto its accuracy or completeness. Expressions of opinion are those of Richard Millsonly and are subject to change without notice. Richard Mills assumes no warranty,liability or guarantee for the current relevance, correctness or completeness of anyinformation provided within this Report and will not be held liable for theconsequence of reliance upon any opinion or statement contained herein or anyomission. Furthermore, I, Richard Mills, assume no liability for any direct or indirectloss or damage or, in particular, for lost profit, which you may incur as a result ofthe use and existence of the information provided within this Report.Aben Resources (TSX.V:ABN) is an advertiser on Richard's siteaheadoftheherd.com. Richard owns shares of ABN.
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