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Gold/Mining/Energy : ABER RESOURCES -- Ignore unavailable to you. Want to Upgrade?

To: teevee who wrote (866)	12/2/1998 11:17:00 AM
From: Andras	Respond to of 2006

Aber STRONG BUY says Cannacord Aber Resources (ABZ : TSE : $6.95) STRONG BUY 52-week price range: $19.50-6.80 Shares O/S: fully diluted 48M Long-term debt: nil Market capitalization: $333.6M Yesterday, Aber released its third quarter report. There was not much in the report that we didn't know about, and the release basically reaffirms the Diavik start-up target as Q2/2002. Caustic fusion results were included for the A-180 kimberlite pipe, which is located about 25 km NE of the Diavik camp. Samples from two diamond drill holes with an aggregate weight of 294.8 kg yielded 192 diamonds, including 29 macrodiamonds (+0.5 mm in one dimension) for a count of about 1 macro per 10 kg. This falls into the category of interesting", and we suspect this pipe may be mini-bulk sampled in the 3M-1999 exploration budget. Aber also notes that almost 600 till samples and dike and boulder samples were taken in West Greenland this year, and a drill program is being considered for next year. On Victoria Island, some 320 indicator mineral samples were taken this summer, and results are being evaluated as received. The one project the market has completely overlooked in the Aber picture is Snap Lake in the southern NWT. Aber holds a 32.2% participating interest in this project, and taking the market capitalization (f.d.) of its JV partner yesterday, Aber's interest should be equivalent to about $1.15/share. Snap Lake will be one of the most exciting NWT diamond exploration plays in 1999, and may well represent the third or fourth diamond mine in the Territories. A scoping study prepared this past summer by MRDI-H.A. Simons (the firm which managed construction of the BHP/Dia Met Ekati mine), suggested that a 1,000-tpd operation at Snap Lake over 10 years could produce a 55.6% after-tax rate of return with payback within 12 months. An aggressive bulk sampling and grid drill program is planned for next winter. Aber's recent sell-off was triggered by the Nov. 23/98 announcement that feasibility details would be delayed until Q2/99. The project is not delayed: federal cabinet approval is expected in May-June next year, and production is still projected to begin in Q2/2002. Our numbers have not changed: NPV (5% discount) is in the mid-teens per share, and annual earnings of $2/share after-tax begin in just over three years. We understand that at the neighboring Ekati mine, production is gearing up nicely. Aber remains a STRONG BUY. Happy investing, Andras