Almadex rallies on El Cobre copper-gold porphyry drill results

One of Almadex's company-owned diamond drills for exploring Mexican projects. Source: Almadex Minerals Ltd.

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One of Almadex’s company-owned diamond drills for exploring Mexican projects. Source: Almadex Minerals Ltd.

Almadex Minerals Ltd. [AMX-TSXV, AXDDF-OTCQX] said Friday February 9 that it has received the final results from 2017 drilling at the company’s El Cobre property, which is adjacent to the Gulf of Mexico, about 75 km northwest of the city of Veracruz, Mexico.

Holes EC-17-043 targeted the Raya Tembrillo area, the very northern part of the large Villa Rica Zone, which is located 2 km south of the Norte Zone where most of the previous drilling since 2016 has occurred.  Hole EC-17-044 targeted the Porvenir Zone, which is located roughly 3 km to the southeast of the Norte Zone and 1.8 km southeast of the Raya Tembrillo area of the Villa Rica Zone.

Highlights from Hole EC-17-043 include 20.07 metres of 0.31 g/t gold and 0.03% copper. Hole EC-17-044 returned 64.50 metres of 0.37 g/t gold and 0.21% copper.

Investors reacted by sending Almadex shares up 5.16% or $0.08 to $1.63 in morning trading Friday. The 52-week range is $1.75 and 89 cents.

“We are very excited to report these final assays from the very successful 2017 drill program,” said Almadex Chairman J. Duane Poliquin. “In 2017 we stepped out roughly two kilometres to the south of the Norte Zone and hit significant mineralization in first pass drilling in the northern part of the large Villa Rica Zone,” he said. “We believe that the results from Raya Tembrillo are proof of large scale porphyry potential in this part of the project.”

The company said drill results from 2016 and 2017 clearly show that drill crews are dealing with a cluster of porphyry systems all of which hold the potential to be important porphyry copper-gold deposits. “We are currently defining a large 2018 drill program and look forward to reporting that shortly,” Poliquin said.

Almadex Minerals, previously Almaden Minerals, has a large portfolio of projects and net smelter return royalties (NSR) in Canada, the United States and Mexico.  The company is currently focused on its 100%-owned El Cobre gold/copper porphyry project.

The 100% interest is subject to a sliding-scale net smelter return royalty equivalent to 0.5% in the event that production from the property exceeds 10,001 tonnes per day. The NSR can be reduced to 0.25% at this production rate through the payment of US $3 million.

The El Cobre Project covers a total area of 7,456 hectares and is situated 200 metres above sea level, and benefits from extensive road access. It is located less than 10 kilometres from the power plant, highway, gas line and other major infrastructure.

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