The financing follows assays released earlier this month from the first drill hole of the year, which returned four high-grade intervals within 190 metres downhole, including 62.4 grams gold over 6 metres within 38.7 grams gold over 10 metres from 114 metres downhole.
The highest-grade zone in hole 18-10 cut 331 grams gold per tonne over 1 metre from 118 metres downhole.
Sprott is subscribing for 2.75 million units at 30¢ apiece (each unit consists of one share and one warrant to buy another share at 45¢ per share within two years).
In addition to Sprott, Palisade Global Investments is subscribing for 2.75 million units and Venture Ad Network for 600,000 units.
“This new infusion of capital will now allow us to expand our 2018 program and stay in the field longer this year,” Jim Pettit, Aben’s president and CEO, tells The Northern Miner.
The 230 sq. km project is in northwestern B.C. and situated along the Forrest Kerr Fault, which consists of a 40 km long, north–south belt overlying rocks of the Hazelton and Stuhini Groups — a complex assemblage of volcanic accumulations, with intervening sedimentary sequences that host significant gold deposits in the Golden Triangle region.
Hole 18-10 was collared in the project’s North Boundary zone, where drilling late in the season last year found precious and base metal mineralization. The hole is 230 metres north of the historic high-grade drill hole Noranda drilled in 1991 that cut 326 grams gold over 0.5 metre.
“We are now looking at an area that extends 230 metres 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,” Pettit says. “The target areas in and around the Boundary Zone are relatively shallow and continue to provide strong discovery potential, as we look to value-add the project using a systematic exploration methodology.”
The North Boundary zone — located near the centre of the property — is open in multiple directions, with numerous soil geochemical anomalies yet to be drill-tested. The zone displays continuity for gold, silver and copper mineralization and is open to the east, west, north and down-dip.
Last year, fieldwork and drilling in the North Boundary zone yielded intervals including 6.7 grams gold, 6.4 grams silver and 0.9% copper over 10 metres, including 18.9 grams gold, 16.6 grams silver and 2.2% copper over 3 metres in hole 17-4. Hole 17-5 cut 21.5 grams gold, 28.5 grams silver and 3.1% copper over 6 metres.
The Boundary Zone lies between the Forrest Kerr Fault to the west, a major deep-seated crustal feature, and the unconformable contact between the Jurassic Hazelton Group and the Triassic Stuhini Group to the east. The rock reflects a history of hydrothermal activity and brittle deformation.
“The Boundary Zone is shaping up to be much bigger than we had originally hoped, and with more drilling and fieldwork, we can begin to realize its true nature and size,” Pettit says. “The geology is complex, and more drilling will help our understanding. We are expanding the North Boundary Zone and this is just the beginning.”
Aben has agreements to earn a 100% interest in the total land package by June 2020, with $3-million in exploration.
Historic exploration on the property included 130 drill holes (20,000 metres), as well as 19,400 soil samples, 2,200 rock samples and 500 silt samples.
The junior has a strong management team. Before joining Aben in November 2002, Pettit was chairman and CEO of Bayfield Ventures, which was acquired by New Gold (TSX: NGD; NYSE-AM: NGD) in 2014.
The company’s chairman, Ronald Netolitzky, was inducted into the Canadian Mining Hall of Fame in 2015. Over more than 40 years in the industry, Netolitzky has been directly associated with three major gold discoveries in Canada that went into production: Eskay Creek, Snip and Brewery Creek.
Netolitzky describes Forrest Kerr’s multiple mineralized zones associated with mesothermal veining and next to major structural breaks as “very encouraging.”
At press time, Aben’s shares were trading at 37.5¢ within a 52-week range of 11¢ (December 2017) to 49.5¢ (September 2017).
The junior has 81.5 million common shares outstanding for a $30.6-million market capitalization.
- Source, Northernminer
