Aben Resources (TSX-V:ABN, OTC:ABNAF) has seized the attention of the entire junior mining sector this morning by releasing a blockbuster step-out hole at the Boundary North Zone of its Forrest Kerr Project in the Golden Triangle. This is the first notable assay of the 2018 exploration season in the Golden Triangle and this hole could have massive implications for Aben.
Aben President and CEO Jim Pettit confirmed the significance of hole FK18-10 (the first hole drilled in Aben’s 2018 exploration program): “The high-grade gold and base metal values in the first hole of the 2018 drill program have far exceeded our expectations and confirm the presence of a robust and strong mineralizing system at the recently discovered North Boundary Zone. We are now looking at an area that extends 230m south to the historic high-grade Noranda drill hole from 1991 and although the geology is complex we believe more drilling will delineate additional high-grade mineralization.”
Bob Moriarty of 321gold offered the following comments on this morning’s Aben drill news “Ron Netolitzky discovered Eskay Creek on his first hole there. He doesn’t like wasting drill money. This has Eskay potential easy. This will be a mine.” Mr. Moriarty is long ABN shares and very bullish, and admittedly biased.
Plans to expand the drill program are being put in place and assays are pending for seven more drill holes (all of which were drilled at the Boundary North Zone). It’s clear that Aben will be following up on this high-grade step-out hole as soon as possible, the prospect of filling in some of the 230 meters between the high-grade Noranda drill hole from 1991 and the FK18-10 step-out with more high-grade gold mineralization would be a game changer. The Aben NR goes on to add:
“Hole FK18-10 (140/-45) was drilled from a location 35 metres northwest and along section from the drill pad from which the discovery holes FK17-04, 05 and 06 were drilled late in the drill season last year in August/September. The new hole has further defined and significantly increased the zone of precious and base metal mineralization that the 2017 holes originally intersected. Of particular note, the high-grade interval of 331.0 g/t Au was encountered 230 metres north of a 326 g/t Au interval reported by Noranda in 1991 in drill hole RG91-16 (see attached plan map). High-grade intercepts are generally found in narrow and discrete zones of moderate mineralization within a broad envelope of lower grade mineralization. Mineralization at North Boundary reflects the poly-metallic nature of the core with widely variable values of Au, Ag, Cu, Pb and Zn throughout.”
To wit, Aben has delivered a significant discovery early in its drill program with many more meters still to be drilled between now and the end of October. From a technical chart vantage point ABN shares have held up well during the recent decline in the junior mining sector and the Money Flow Index has turned around and reversed above 50 in recent days, yesterday’s rally also broke-out from the recent downtrending channel:
This morning’s breakout from the downtrending channel in Daily-RSI(14) confirms that a bottom has indeed been put in place. Above C$.26 there is significant potential to see a gap fill all the way up at C$.39 (from the early October 2017 sell-off) and ABN’s 52-week high is C$.49. ABN shares have displayed relative strength and a higher low (compared to the March low) looks to have been put in place, a higher high (above C$.26) would be extremely significant and the promising news from the first hole reported from the summer 2018 exploration program may be just the catalyst needed to trigger a breakout in ABN shares.
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