Almaden active at opposite ends of the continent

A first phase of exploration by joint venture partners Almaden Minerals (AMM-T) and Japan’s Sumitomo Metal Mining on Almaden’s 40% owned Tropico project on the west coast of Mexico, has drill-tested four anomalies mainly on the Maricela prospect.

Santoy Resources (SAN-V) owns the remaining 60% of the project. Almaden has an 18% stake in Santoy.

Eight holes for 1,632 metres were collared on the Maricela area. Seven were aimed under three trenches cut in May in a 300-by-600-metre portion of the Maricela anomaly, which measures 1,600 metres long by 500 metres wide in all. All of the holes cut feldspathic, massive pyroxenite, which has been extensively altered to secondary tremolite. Sulphide mineralization in the holes comprises chalcopyrite, cubanite, bornite, pyrrhotite, and minor pentlandite.

The holes returned between 0.04 and 0.53 grams platinum, 0.06 and 0.63 grams palladium, 0.04 and 0.95 gram gold per tonne and between 0.16 and 0.95 % copper. The intervals range between 11 and 128 metres. Almaden notes that the holes failed to test either of the pyroxenite’s contact zones.

Several surface copper-PGM occurrences near the hanging wall contact also remain untested. The footwall contact is not exposed on surface, but may have potential for contact-style Cu/PGM mineralization, similar to that at River Valley and East Bull Lake in Ontario.

About 7 km to the east, at the Santa Fe area, four holes for 728 metres tested two soil and rock geochemical anomalies about 100 metres apart.

The Santa Fe area is located 7.0 kilometres east of Maricela. A total of four diamond drill holes totalling 728 metres tested two soil and rock geochemical anomalies. The two areas were each tested with two holes spaced 100 metres apart. The holes returned up to 0.09 gram platinum, 0.15 gram palladium, 0.11 gram gold and 0.43% copper over intervals up to about 70 metres. One hole failed to cut any significant mineralization. Similarly, three holes for 485 metres aimed under recently completed trenches in the El Capule area, 10.5 km east of Maricela, failed to cut significant mineralization.

The recent program also included the completion of excavator trenches over four separate targets comprising coincident favourable geology and rock and soil geochemical anomalies; three of these are located on the eastern portion of the mafic complex, up to 13 km east of the Maricela area.

Three trenches on the El Capule target surrender between 0.29 and 0.61 gram combined platinum, palladium and gold (Pt+Pd+Au) over 9 to 136 metres. Four trenches at the Las Palmitas area yielded between 0.15 and 0.71 gram Pt+Pd+Au over 24 to 141 metres. Another six trenches over the Las Delicias area gave between 0.21 and 0.45 gram Pt+Pd+Au over 6 to 90 metres. All of the trenches gave copper values less than 0.5%. Four trenches were also cut in the Maricela Area and returned up to 1.43 gram Pt+Pd+Au, plus 0.88% copper over 54.5 metres in trench MT-02-13.

Almaden and Santoy recently acquired the San Pablo concession via a public auction by the Mexican government. The price tag was US$150,000. The concession is surrounded by the partner existing land position and immediately adjacent to the Maricela area. Work by the Mexican government shows the presence of anomalous copper and PGM values extending the Maricela anomaly to more than 3 km.

Sumitomo can earn a 51% interest in the Tropico property by spending US$3 million on exploration over three years. It can add another 19% in exchange for a bankable feasibility study and development financing. If half of this comes by way of debt, Sumitomo must begin construction within 18 months. Both Fairfield and Santoy are carried through to production. The former would be left with 12%, and the latter, with 18%, if Sumitomo acquires its full share.

Meanwhile, drilling is set to begin on two Almaden properties at opposite ends of North America.

Noranda (NRD-T) will shortly begin a minimum 2,100-metre diamond drill program on Almaden’s Caballo Blanco copper-gold porphyry project on the eastern edge of Mexico, near the coastal city of Veracruz. The bulk of the holes will be collared on the Central Grid area.

The 1150-sq.-km property hosts two known areas of porphyry-style alteration and mineralization associated with a large area of hydrothermal alteration. Noranda’s drilling efforts will focus on the Central Grid target and the Highway zone.

The Central Grid target, which was drill-tested in 1998, displays porphyry-style, copper-gold mineralization and related high-grade gold-silver veins. Noranda’s holes will test a chargeability anomaly outlined by a previous induced polarization (IP) survey.

At the Highway zone, a large area of hydrothermal alteration is spatially associated with porphyry-style stock work veining. The area also returned a chargeability anomaly during a separate IP survey.

Caballo Blanco is also host to the Northern target, a high-sulphidation gold system where a float sample returned up to 11 grams gold per tonne.

Noranda can earn a 75% interest in the project by completing a positive feasibility study by 2008, making cash payments to Almaden of US$2 million, subscribing to a private placement of US$1 million and fulfilling work obligations.

Meanwhile back in the Great White North, ATW Resources, held 40% by each of Almaden and Williams Creek Explorations (WCX-V) and 20% by Troymin Resources (TYR-V), has a geologic and drilling crew on its way to begin testing a series of geophysical anomalies on its 75%-held Mackay Lake property, south of the Lac de Gras area in the Northwest Territories.

The anomalies are spatially associated to a significant indicator mineral train, which ATW believes is related to a kimberlitic source on the property. Drilling, slated to gear up by Mar. 12, will test three high priority geophysical targets.

Kennecott, a subsidiary of Rio Tinto (RTP-N), will receive a 9.9% interest in ATW if a significant diamond discovery is made.

The Mackay Lake property is situated 50 km south of the Rio’s Diavik diamond mine project and 55 km north of De Beers’ Snap Lake underground diamond project. The remaining interest in MacKay Lake is divided between Aber Diamond (ABZ-T), with 15%, and SouthernEra Resources (SUF-T), with 10%.

Almaden Minerals was born of the recently completed amalgamation of Almaden Resources and Fairfield Minerals. Under that deal, one Almaden Resources shareholders received 0.77 of a share of the new amalgamated company in exchange for each share held, whereas Fairfield shareholders received a share in the new company on a 1-for-1 basis.

Also under the transaction, Almaden Resources’ 16.6% interest in the issued capital of Fairfield was cancelled. Almaden Minerals has about 17.1 million shares issued and $2 million in working capital with no debt.