Aben Resources option accepted to acquire 80% interest in Chico Gold Project

8 January 2017 (Last Updated January 8th, 2017 18:30)

Aben Resources has announced that TSX Venture Exchange has accepted filing its option agreement to acquire up to an 80% interest in Chico Gold Project, 125km from La Ronge, Saskatchewan.

Aben Resources option accepted to acquire 80% interest in Chico Gold Project

Aben Resources has announced that TSX Venture Exchange has accepted filing its option agreement to acquire up to an 80% interest in Chico Gold Project, 125km from La Ronge, Saskatchewan.

Chico Gold project covers an area of 2,915ha and is located 40km south of Silver Standard Resources' Seabee / Santoy mine complex.

Optionor of the Chico Project, Eagle Plains Resources has recently completed fieldwork on the property.

Completed development work includes 661km line airborne geophysical survey, mapping, trenching and soil geochemical surveys that would define high-grade gold targets to facilitate following drilling activity at the site.

Aben Resources president Jim Pettit said: “The company is pleased to add the Chico Gold Project to its portfolio of high-value properties. Based on past and recent exploration results, this region of Saskatchewan appears to be on the verge of a renaissance of significant new exploration in the coming years.

“On top of that, Saskatchewan is considered one of the best mining jurisdictions in the world as ranked by the Fraser Institute. This exciting new project allows the company to potentially drill through the winter while it is compiling data and permitting for summer work and drilling programs on its BC based Forrest Kerr Project and Yukon based Justin Project.”

Chico property includes a 1.5km mineralised structural corridor, which is confirmed by geophysical surveys, geological mapping and recent soil sample coverage that included numerous highly anomalous samples ranging up to 4.5g/t gold.

Sporadic drilling in the area recovered high-grade intercepts.

Eagle Plains collected some rock samples along the structural corridor last year that ranged from trace qualities to 20.2g/t gold. Recent work identified numerous high-priority drill targets at the site.

"This region of Saskatchewan appears to be on the verge of a renaissance of significant new exploration in the coming years."

The Chico structural zone consists a north/northeast-trending 20m to 150m-wide multi-episodic shear system comprising both ductile and brittle gold-bearing quartz vein systems.

Trenching and drilling activities perfomed by Corona Corporation and Cameco from 1988 to 1993 defined a mineralised strike length of more than 1,400m.

Trenching by Corona at the Royex showing returned five chip samples greater than 1000 ppb gold with a best (chip) sample of 14.3g/t gold over 1m (AR 63M06-0034).

Follow-up diamond drilling by Cameco near the Royex trench returned five significant intercepts ranging from 0.51g/t gold over 1.5m, to 36g/t gold over 0.3m (AR 63M06-0041).

Despite there having been substantial surface discoveries of gold along the structural trends, mineralisation at depth and across the strike extensions are largely unexplored. Eagle Plains has initiated permitting for future drilling within the property area.


Image: Chico Gold Project location. Photo: courtesy of Aben Resources.