en.Wedoany.com Reported - Aben Gold Corp. (TSXV: ABM; OTCQB: ABNAF) plans to commence a 1,500-meter drilling program this month at its Justin Tungsten/Gold Project in the Yukon. At the time of writing, the company has a market capitalization of C$5 million, with C$3.5 million in cash in the bank, an additional C$420,000 in Kingfisher shares, and is set to receive C$500,000 worth of Kingfisher shares in December, bringing total actual assets and cash to C$4.4 million, with the stock price only slightly above its cash and liquid assets.
Historically, gold and silver stocks have often traded below the cash held by companies. In 2000, when gold and silver prices were less than 8% of current levels, hundreds of companies could be purchased for less than their book cash. At the end of 2015, the cash held by a large number of junior companies also exceeded their total market capitalization, while gold and silver prices were similarly far below today's levels.
This drilling involves six diamond drill holes across three drill platforms. Approximately 500 meters will target the POW Tungsten/Gold Zone, where early drilling has shown favorable gold and tungsten mineralization, indicating potential for both tungsten and RIRGS gold systems. Over the years, despite strong gold results in the area, tungsten prices made drilling uneconomical, but with WO3 (tungsten trioxide) prices surging 700% to 900%, cost-effectiveness is now viable.
In terms of historical drilling data, hole JN11009 returned 1.25 g/t gold over 60 meters. Hole JN11010 assayed 2.52 g/t gold and 29.53 g/t silver over 12 meters, with later tungsten assays showing 0.25% WO3 in the same interval, valued at approximately US$750 per ton at current prices of around US$300 per kilogram. Hole JN12016 returned 4.12 g/t gold over 5.5 meters and 0.39% WO3 over 8.5 meters, with a value of nearly US$1,200 per ton.
The remainder of the drilling program will focus on the Lost Ace area, targeting structurally controlled high-grade gold. Early trenching in this area identified mineralization of 20.8 g/t gold over 4.4 meters and 88.2 g/t gold over 1 meter. Mobilization is imminent, with drilling expected to take place around August 9, and assay results anticipated in approximately two months.
