CEO Morgan Poliquin: Almadex Minerals (TSX-V: AMZ) Finds a High-Grade Gold Porphyry at El Cobre
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me once again is President, CEO, and Director of Almadex Minerals (TSX-V: AMZ)(OTC: AXDDF), Dr. Morgan Poliquin. Morgan it's been a little bit, thank you so much for coming on.
Morgan Poliquin: Thank you for having me on, appreciate it.
Gerardo Del Real: You had a pretty interesting news release this afternoon. Let me read the headline and let you fill in the details. The headline reads, "Almadex provides El Cobre project update, first hole completed in the Norte Zone; high-grade gold porphyry mineralization found in outcrop within the undrilled Villa Rica's target area." A lot there, can you fill in the details for me Morgan?
Morgan Poliquin: Sure, delighted to. The Norte Zone is where we announced our existing drill results last year. I think it was August when we put out what we consider to be the discovery hole in that zone of higher grade copper and gold mineralization. The Norte Zone is one of we think four or perhaps more different discreet porphyry mineralization centers and in fact the largest area of interesting targeting results, geophysics and geochemistry. All the things we do to define targets was to the south of the Norte Zone. We've been focused on mapping and sampling to define those areas a bit better and hopefully find a little bit more direction before we start to drill them.
Lo and behold, we found some mineralization, very significant gold mineralization with copper outcropping at surface, which is a very unusual thing. It's defining this target a lot better obviously but moreover it's giving us these very significant grades right off the bat. Obviously we don't know how that represents the subsurface but it's a tremendous start, as opposed to just being a geophysical anomaly that Morgan likes, it's now a defined target.
Gerardo Del Real: Excellent. Now let me backtrack a bit and go back to the Norte area, because the news release outlines that you started drilling back in February. You now have a second drill rig which has been added to the Norte area. How is drilling there coming along Morgan?
Morgan Poliquin: Yeah, I think what we were able to show is that we have some significant intervals, both higher grade, plus one gram with 0.3% copper and then broader intervals, including those higher grade intervals of significant copper and gold mineralization. Really where we're at now is trying to define what controls the high-grade. We believe it to be open in many directions.
The first steps are to fill in the sections we have now that we think will define an orientation, and then to follow it up and start stepping out a long strike and up and down dip. I think over the course of this year, again we don't know, we're not clairvoyant, this deposit was formed many millions of years ago, but we think over the course of this year there's the potential to define this mineralization and hopefully if we're lucky come up with some kind of a resource. That's the aim. We think we're beyond wildcat expiration, we're now into defining the extent of the mineralization.
Gerardo Del Real: Excellent. I know when I had the pleasure of visiting the property you had just purchased a new drill rig, I think you own six rigs now, if I'm not mistaken. That new rig I believe was able to go down at depth about two kilometers. Was that correct?
Morgan Poliquin: That's correct. We don't know if we'll be drilling to those depths but we have that flexibility now. All our drills are, except for one that is larger, are very portable. They enable us to not only move them around with minimal impact, minimal road building, but also drill to significant depths if needed. Of course if you look at porphyry deposits that have been very significant in recent years, discoveries such as Reservoir's project in Europe and Northern Dynasty's Pebble project in Alaska, where some of the more significant portions of those deposits were found. In the case of Reservoir there was nothing found until say 500 meters depth, and they were bought out I believe for around $800 million. Being able to explore the depths of these systems can be very important and we have that flexibility. But what we're finding as this surface sampling indicates is right at the surface. We don't believe we have to look 500 meters down as those other two projects I mentioned where they were found.
Gerardo Del Real: Wonderful. Now Villa Rica as you mentioned, and the news release clearly outlines, has never been drilled. I imagine that there's a drill program plan for maybe later this year. Is that accurate?
Morgan Poliquin: That's right. At the moment we think it's prudent to do a lot of sampling and mapping around there to define the extents of it, but we have our drill permits in hand, we have access to the area and we anticipate drilling as soon as we have defined the extent and a proper drill program. It's evolving, when you find outcrop like this, this isn't exactly where we would have setup the first hole so there's some changes that will be made because of this, what we found here. We'll define the mineralization from surface as best we can before we drill, and then we anticipate drilling. It will certainly be this year. It will be as early as we can prudently do so.
Gerardo Del Real: It sounds like it's definitely an evolving story. Morgan, I encourage everybody to go to the website and get a bit more familiar with that Villa Rica target because I think it's really compelling. The website is almadexminerals.com. Morgan, anything else that you'd like to add?
Morgan Poliquin: No, I think that's everything. I think I just want to thank you again for giving me the opportunity and have people keep their eyes on us. It's going to be a very busy year. We're drilling at the Norte Zone but we'll soon be drilling in other areas of the property. We expect some channel sample results in this area, the Villa Rica zone, to come out soon as well.
Gerardo Del Real: Hopefully we can have you back on soon for an update on the Norte Zone once we start receiving assays there, and of course when we get some of those samples back at the Villa Rica target, we'd love to have you back on as well. Thank you again Morgan.
Morgan Poliquin: Thank you, look forward to it.