Aben Resources: The Next ‘Golden Triangle’ Play with Tremendous Value

Palisade Research August 27, 2018
Category: Research

Share Price: C$0.43

Shares Outstanding: 100.0M*

Market Capitalization: C$43.0M*

Cash: C$6.5M*

Total Liabilities: C$0.1M

*Post-financing

 

We finally hit the trifecta.

It’s been an incredible month for our portfolio and metal discoveries – even with declining commodity prices.

First was Sokoman Iron (TSX-V:SIC, FRA:3PJ1, OTCMKTS:GDNDF) announcing 11.9 metres of 44.96 g/t Au.

This sent Sokoman shares through the roof – from just five cents to a high of 58 cents – which is a 1,060% gain!

Second was Golden Ridge Resources (TSX-V:GLDN, FRA:44G) announcing 327 meters of 0.31% Cu, 0.35 g/t Au, and 1.94 g/t Ag.

This news sent Golden Ridge shares up over 130%!

And now Aben Resources Ltd (TSX-V:ABN, FRA:E2L2, OTCMKTS:ABNAF) is announcing results from their first drill hole of 2018. . .

The 2018 discovery hole – FK18-10 – was the first of eight holes that have been drilled so far, and has four separate high-grade zones, including:

22.0 g/t Au and 22.4 g/t Ag over 4.0 meters. . .

3.9 g/t Au and 4.0 g/t Ag over 13.0 meters. . .

And 8.2 g/t Au, 1.4 g/t Ag over 6.0 meters. . .

 

FK18-10 was collared in the North Boundary zone where drilling late in the season during 2017 discovered both strong precious and base metal mineralization.

 

Not surprisingly, the stock responded by more than doubling. . .

The grade also caught the attention of billionaire financier, Eric Sprott, and after some brief back-and-forth, he’s now in another ‘Golden Triangle’ play for $2 million – and that’s just a start.

The most recent being – of course – Garibaldi Resources Corp., the potential second-coming of the Voisey’s Bay Mine.

For those of you who aren’t familiar with this – Voisey’s Bay was the nickel mine that re-propelled Robert Friedland into the spotlight after a Hollywood-esque bidding war that eventually ended with Inco putting up $4.3 billion.

It was so thrilling that there’s even a book about Friedland and the Voisey’s Bay discovery (part of our Palisade Reading List) – The Big Score: Robert Friedland, INCO, and the Voisey Bay Hustle by Jacquie McNish

But back to Aben Resources and why their project matters. . .

 

Aben’s Big Hit – Forrest Kerr & the People Behind It

 

Aben’s project’s called the Forrest Kerr gold project and it’s located in British Columbia.

Forrest Kerr is the consolidation of three historic claim groups with additional staking – all put together in July 2016.

The area was on the radar of Aben’s management team for a long time.

The Chairman of Aben, Ronald Netolitzky, is already directly associated with two major gold discoveries in the Golden Triangle that became producing mines – Eskay Creek and Snip.

Mr. Netolitzky is a mining hall of famer and was honored with the Prospector of the Year award from the Prospectors & Developers Association of Canada (PDAC). . .

Mr. Netolitzky was also the Chairman and President of Viceroy Exploration, which advanced the Gualcaymayo gold project in Argentina before being sold to Yamana Gold in 2006 for $577 million.

Director, Tim Termuende, was personally involved in the exploration at-and-around Forrest Kerr since the early 1990’s. In fact, he first walked the ground while at Cominco, exploring the early Snip deposit.

Tim worked on exploration projects throughout the world, and before was the President and CEO of Copper Canyon – a copper exploration company that made a high-grade copper discovery in the Golden Triangle before being sold to NovaGold in 2011.

Aben’s CEO and President, Jim Pettit, is also no stranger to high-profile success. He led the Bayfield team that made a high-grade gold discovery on Bayfield Ventures Burns Block project in Ontario. The company was eventually acquired by New Gold in 2014.

So, what makes Aben’s property exciting?

Forest Kerr encompasses 23,397 hectares and is located right in the heart of BC’s Golden Triangle.

The project lies within 2 kilometers of the Stuhini-Hazelton Contact – this is important because according to the BC Geological Survey, all major deposits within this region occur within 2 kilometers of this regional stratigraphic contact.

Since the property package was assembled over two years ago, Aben’s technical team has methodically analyzed and reinterpreted historical data get a better understanding of the existing targets and high-grade gold mineralization at the project.

The data compilation involved incorporating all historical data, which included 130 drill holes for 20,057 metres, 19,358 soil samples, 2175 rock samples, and 500 silt samples. . .

 

The Best is Yet to Come

There are 12 more drill holes yet to be releasedseven more from the Northern Boundary Zone, and another three from the Southern Boundary Zone.

Recent drilling from the South Boundary Zone is on the tip of a very large soil survey is massively open to the south – this can be the start of something truly special.

In fact, the South Boundary target, located 1.5 kilometers south of the mineralization intersected at the North Boundary Zone, have intersected numerous broad horizons of quartz-sulfide veins containing abundant pyrite and chalcopyrite mineralization.

The mineralized veins are hosted within a package of Hazelton Group volcanic rock that display moderate-to-strong silica-sericite alteration with a variable chlorite and potassic alteration component.

But in non-geologist speak, this means all the ingredients are there for precious metals. . .

With the closing of the recent financing – Aben Resources plans on drilling another 4,000-5,000 meters – with potential to upsize depending on rig availability.

Another free call option comes in Aben’s Chico Gold Project, located 125 kilometers east of La Ronge, Saskatchewan and just 40 kilometers south of SSR Mining‘s Seabee/Santoy mine complex. The project complements Forest Kerr as it is workable all year round.

SSR acquired Seabee/Santoy through its $337 million acquisition of Claude Resources in May 2016. Aben’s Chico project has the same structural features as Seabee/Santoy deposits – with the Chico trend extending over 1.5 kilometers.

SSR Mining plans on drilling 38,000 meters this year, with 18,000 meters in close proximity to Chico. Intuitively, if SSR gets any meaningful hits – Aben will directly benefit.

 

Aben Resources is a great bet on just the people running it alone – but throw in a world-class asset and you have a must-own for your resource portfolio. . .

Just to recap: so far this year, we’ve had great success investing in the Golden Triangle – as showed above.

And even with weakening gold prices – the markets still greatly rewarding the exploration companies that make quality discoveries.

We believe Aben Resources is still a great asymmetric opportunity (low risk – high reward) going forward.

 

Palisade Global Investments Limited holds shares of Aben Resources Corp. We receive either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate. The information contained in such write-ups is not intended as individual investment advice and is not designed to meet your personal financial situation. Information contained in this report’s from sources we believe to be reliable, but its accuracy cannot be guaranteed. The opinions expressed in this report are those of Palisade Global Investments and are subject to change without notice. The information in this report may become outdated and there is no obligation to update any such information. Do your own due diligence.

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