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Algo Grande Copper Starts Drilling on Giant Mexican Copper ProjectBob Moriarty I’m not a giant fan of AI. The concept seems to have been vastly overblown with none of the major AI companies actually making a profit from AI. AI has faults only starting to show up. But the planned data centers for AI in the future demonstrate a glaring and growing shortage of copper. We need more copper. We need a lot more copper. Luckily Dr. Peter Megaw has been looking and finding monster copper deposits all over Northern Mexico with Sonora producing 80% of Mexico’s copper all by itself. About fifteen years ago I spent three days driving all over Northern Mexico with Peter. All I can say is that he is one of the most knowledgeable and experienced geologists in the world. Few people know this but Peter pretty much was responsible for most of the progress in Mexican mining in the last thirty years. He focused on Mexico when no one in the mining business wanted to even touch Mexico because of their foolish and destructive policies. The Adelita copper project is his baby. Now owned 100% by Algo Grande Copper (ALGR-V), a young company that only picked up Adelita a year ago. The terms they agreed to purchase the project were incredible. It was pretty much an all share deal to pick up 100% of the 5,985 ha project in Southern Sonora with only a tiny amount of cash required. Algo Grande has completed two financings since then, one for $3.8 million that closed in September and another for $6.52 million that closed in late February. The project came with over $8 million already spent on drilling and technical studies by the prior operator. CEO Enrico Gay has spent much of the last year broadening the management team with highly respected and experienced copper people. Dr Megaw and Gord Neal have joined the company, Peter as Senior Technical Advisor and Gord as a director. The pair were the founders of Mag Silver. The company has completed the Phase I drill program and reported the results from the four holes in early April. Drill results revealed the presence of a vertically stacked high-grade skarn system containing copper, silver, and gold. They knew they had two horizons but drilling revealed an additional three surprise horizons. Hole AG-GC 003 showed assays of 18.2 meters of 1.8% CuEq with 1.2% Cu, 28.2 g/t Ag and 0.7 g/t Au. Algo Grande began an 8,000 meter fully funded Phase II program last Friday, June 12th. The first hole is planned for 500 meters of core drilling to extend the Cerro Grande skarn discovery. Further holes along the 2,500-meter corridor testing already identified targets. Typically skarns are associated with nearby porphyry mineralization. While I really like what they have already found, I think the jewelry box will be when they poke a deep hole or two into what they believe is the porphyry. I love the story. I spent an hour on the phone with management a couple of months ago but wanted to wait to print something when they actually have started the all-important Phase II 8,000-meter program. Phase I gave great sniffs of a major deposit. Phase II has the potential for defining a district scale copper project. I suspect most resource investors focus on the price of gold and silver, both have been up and down lately like a bride’s nighty. But in the distant and ignored background copper has silently risen to the highest price in history. Copper futures went up 2.74% just on Friday last. It’s a great time to go find a major copper project in a mining friendly country. As of Friday, Algo Grande had a market cap of about $26 million CAD. It has young and aggressive management balanced with some of the best technical people in the business. The only reason the stock is so cheap given the extraordinary price of copper is a lack of visibility. Drill results coming in the next few months will expand their visibility and I believe their share price. At $.62 the stock is absurdly cheap in my view. Algo Grande Copper is an advertiser. I have not participated in any of their PPs, I didn’t know of the company but after my meeting with management I went out into the open market and picked up a position. Do your own due diligence. Algo Grande Copper Corp ### Bob Moriarty 321gold Ltd |
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