Almadex Minerals AMZ.V; AXDDF.PK

While we hadn’t been tracking Almadex Minerals officially, many longtime readers are shareholders in the company thanks to our more-than-decadelong recommendation of Almaden Minerals.

Almaden Minerals elected to spin its exploration-stage assets in Mexico, Canada and the U.S. late last year so that it could pursue development of the Ixtaca deposit at its flagship Tuligtic property. I’ll have more on that project in a later brief note.

But for now, let’s focus on Almadex, which has taken up Almaden’s old mantle of prospect generator and which has been actively exploring its highly prospective El Cobre copper-gold project in Veracruz, Mexico.

I’ve had my eye on this intriguing porphyry target for a number of years. Then, earlier in August, Hole 10 from its current drilling program lit up the newswires with an uber-long, 163.5-meter intersection of 0.68 g/t gold and 0.29% copper that included a narrower interval of 1.61 g/t gold and 0.41% copper over 43.0 meters.

Recent results taken from Hole 10 at depth showed yet another long intersection of mineralization beginning at a depth of 317.0 meters. This lower section cut 150.9 meters of 0.55 g/t gold and 0.22% copper, including 62.0 meters of 0.86 g/t gold and 0.33% copper. A drill with more depth capability has been moved to the drill pad so that Hole 10 can be tested to still greater depths.

Drawn from El Cobre’s Norte zone, this one hole has managed to reorganize the company’s plans for the project. Apart from Hole 10, all holes drilled so far this year had focused on El Cobre’s southernmost Encinal target. Past exploration has already identified four porphyry centers with more than four kilometers of strike at El Cobre. In addition to Encinal and Norte, the other two zones are dubbed El Porvenir and Villa Rica, the latter of which remains undrilled.

Now, Almadex has mobilized a second drill at El Cobre to test these other targets while it leaves one drill to focus strictly on Norte and the area around Hole 10.

The company’s share price more than doubled upon the release of the initial results for Hole 10. If you’re a shareholder from the spinout, you’ve already seen this company’s share price multiply several times over.

We’ll officially add Almadex to our recommended list with this update and will continue to track the results at El Cobre closely. Even at current levels, the company’s tight share structure ensures that more good news will send the share price due north from here. It’s a buy at current levels and a hand-overfist buy on any significant weakness.

Almadex Minerals Ltd. 
Recent Share Price: ............C$0.75
Shares Outstanding:....44.1 million
Shares Fully Diluted: .............48.4 million
Market Cap Fully Diluted:.........C$36.3 million

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