Aben Resources Ltd. and Eagle Plains Resources Ltd. have executed a formal Option Agreement whereby Aben has the exclusive right to earn an undivided 80% interest in the Chico Gold Project, located 125 km east of La Ronge, Saskatchewan and 40 km south of SSR Mining's (formerly Silver Standard Resources) Seabee / Santoy mine complex.
Eagle Plains recently completed fieldwork on the 4,657 hectare property, which consisted of a 661 line-km airborne geophysical survey, mapping, trenching and soil geochemical surveys designed to define high-grade gold targets for upcoming drilling activity. Results of this work were summarized in an Eagle Plains news release dated December 6th, 2016.
Chico Property highlights include the presence of a 1.5 km mineralized structural corridor which is confirmed by geophysical surveys, geological mapping and recent soil sample coverage which included numerous highly anomalous samples ranging up to 4.5 g/t gold. Sporadic historical drilling has been completed in the area and has returned high-grade intercepts. Rock samples collected in 2016 by Eagle Plains along this structural corridor ranged from trace quantities to 20.2 g/t gold. Recent work resulted in numerous high-priority drill targets being identified.
Chico Gold Project 2016 Soil Results Map, Saskatchewan
The overall objective of the 2016 program was to identify mineralization similar to that at the nearby Seabee and Santoy deposits. The Seabee gold operation has been in continuous production since 1991 and has produced 1.2M ounces of gold from the Seabee and the Santoy deposits. Ore geology at Seabee/Santoy consists of high-grade vein mineralization associated with volcanic and mafic intrusive rocks which have been structurally disrupted by splays of the deep crustal Tabbernor Fault system. The Tabbernor Fault is a 1500 km long regional structure which has been traced from as far north as the Rabbit Lake uranium mine in northern Saskatchewan to as far south as the Black Hills of South Dakota, the latter of which hosts the 40M oz Homestake gold deposit. The shared proximity to the Tabbernor fault and similarities in terms of age and tectonic history to the Homestake and Seabee deposits was the main driving force behind both Eagle Plains' and Aben's interest in the Chico property. Management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the subject properties.
Chico Project 3D Chargeability (MX) Video
3D model depicts areas of higher chargeability in subsurface rocks through the use of warm colours (purple, red and yellow). Higher chargeability often corresponds to the presence of abundant sulfide minerals such as pyrite, pyrrhotite and chalcopyrite, which are commonly associated with gold mineralization. Note large high chargeability root zone under middle of Chico Structural Zone (red lined area on surface) with yellow chutes extending to surface.
Chico Project 3D Plan Section Video
Yellow zone at surface near middle corresponds to area of higher chargeability that increases in intensity as the upper layers are stripped away to reveal rocks at depth. High-grade gold mineralization in surface rocks and drill core has been discovered immediately above and adjacent to this distinct chargeability anomaly, but no drill hole has pierced the root zone.
Chico Project Summary and History
The Chico structural zone comprises 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 carried out by Corona Corporation and Cameco from 1988 to 1993 defined a mineralized strike length of over 1400m. Trenching by Corona at the Royex showing returned five chip samples greater than 1000 ppb gold with a best (chip) sample of 14.3 g/t gold over 1m (AR 63M06-0034). Follow-up diamond drilling by Cameco near the Royex trench returned five significant intercepts ranging from 0.51 g/t gold over 1.5m, to 36.0 g/t gold over 0.3m (AR 63M06-0041).
Mineralized shear zones and quartz veining that define the Chico zone are hosted in diorite and granite and especially along the sheared contact between these two units. The Chico and the adjacent parallel Ed and Western structural zones are related splay structures off the larger Tabbernor fault system. Despite the significant surface discoveries of gold along these structural trends, mineralization remains largely untested at depth and along strike extensions. Eagle Plains has initiated permitting for future drilling within the property area.
President of Aben Resources Ltd, Jim Pettit commented, "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".
Cornell McDowell, P.Geo., VP of Exploration and a Qualified Person for Aben Resources, as defined by National Instrument 43-101, has reviewed and approved the technical information in this project section.