Aben Resources Ltd (CVE:ABN) (OTCMKTS:ABNAF) first 2018 drill results are out at the Forrest Kerr Project in BC’s Golden Triangle, and the results are material. The company posted significantly better mineralization at depth than in their previous go-around. A more favorable post-market reaction is sure to follow.
The money hole in this equation is Hole FK18-10, the first of eight holes that have been drilled thus far in 2018. Of the eight holes, four separate high-grade zones have been determined, with the best zone returning and interval of 38.7 g/t Au over 10.0m including 62.4 g/t Au over 6.0m starting at 114 meters downhole. Furthermore, these high-grade zones and precious metal values were intersected at shallow depths, which is always desirable over deeper and less accessible vein structures.
This new discovery is part of the Boundary North Zone and is 230m north of the historic high-grade drill hole drilled by Noranda Inc. in 1991.
Commenting further, company officials seem quite pleased with the results. President and CEO Jim Pettit stated, “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.”
Investors may recall that last year, the hype surrounding the Aben Resources’ drilling program at Forrest Kerr faded very quickly—crashed in fact. After embarking on a large run (trough-to-peak run of about ↑450%) sparked by news of the company’s upcoming 2100 meter summer drill program on July 26, 2017, the rally ended with a thud after the initial highlight hole “only” returned 6.7 g/t Au, 6.4 g/t Ag and 0.9% Cu over 10.0 meters (Hole FK17-04) on October 4th. Shares were cut down ↓33.33% following the announcement, and cratered ↓66.66% over a three week period.
The tables have certainly turned this time around. Currently, the stock is higher by $0.135 to $0.335/share (↑67.50%) in early trade. Whether Aben Resources goes on a multi-day tear akin to Sokoman Iron Corp. just days before it remains to be seen. Aben is starting from a higher base, and perhaps the news is less unexpected coming from this well-known gold mineralization region.
However, at over 6.4 million shares already trading hands by 10:17am, the market is clearly energized by these results. Volume is well on-pace to triple the stock’s record volume session of 6.67 million shares set back on September 12th, 2017. Such a phenomenon in generally conducive to significant price extension in the current session—and perhaps a few days thereafter.
Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.
Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.
Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.