Recently formed
Almaden was formed earlier this year through the merger of Almaden Resources and Fairfield Minerals. The amalgamation was strictly an exercise in financial prudence, as both predecessor companies shared the same management, who remain in place.
“We’re a technical group here and we’re focused on developing things at a very early stage,” says director Morgan Poliquin. “So our business model is to joint-venture properties once we have the ability to do so.”
Toward that end, Almaden is off to a good start, having begun life with four Mexican projects under option to other companies. More recently, the company staked the El Pulpo property, also in Mexico, but it’s currently tackling that one alone.
Situated near the western coastal city of Mazatlan, El Pulpo was briefly explored in the early 1970s before falling under the yoke of Mexico’s nationalization program. There it remained until recently, when Almaden scooped it up.
“My father was on the property in the seventies, and we’ve been following this thing ever since,” says Poliquin. “Some large, unrelated claims recently opened up, so we acquired them.”
Poliquin will not divulge details of the past work, nor the company involved, but he does say it resulted in the discovery of a large copper-porphyry system that is oxidized and exposed at surface. Nevertheless, initial exploration will entail mapping and geochemical sampling, which suggests that the property may be far from the drill stage.
Meanwhile, exploration at the optioned properties continue apace. These include Tropico, Caballo Blanco and San Carlos, all of which are considered prospective for copper-gold porphyries as well.
Tropico is also near Mazatlan and is similarly prospective. It was recently assessed by trenching and drilling. A total of 15 holes were sunk and 17 trenches dug to test seven soil anomalies. Results are pending.
Sumitomo Metal Mining is financing the project as part of its requirements to earn a 51% interest. The Japanese miner must spend US$3 million over three years and then carry Almaden and majority partner
If Sumitomo vests its interest, Almaden and Santoy are left with 12% and 18% interests, respectively.
At San Carlos, about 250 km southeast of the industrial city of Monterrey, partner
Geophysics also detected magnetic highs in places, indicating the presence of sulphide mineralization in bedrock. Outcroppings of altered and veined intrusive rocks occur in the area.
“We feel we have a new porphyry system by the tail,” says Poliquin.
Geologically, San Carlos overlies folded limestones that are intruded by alkalic complexes. This geology makes it prosective for skarn mineralization as well.
Aurcana can earn a 60% interest in the project by spending US$4 million on exploration and issuing 300,000 shares. The shares have been issued.
Meanwhile,
About 3,000 metres are planned. Drilling will focus on two areas of alteration and mineralization. Both were discovered by Almaden.
Gita
Of Almaden’s remaining Mexican projects, Gita is the only one being financed by another company.
Gita is considered prospective for epithermal gold-silver deposits, as are the Galeana and Yago properties, which round out Almaden’s Mexican portfolio. The former is in Chihuahua state, west of the city of Monterrey, whereas the latter is in the state of Nayarit, southeast of Tropico.
Outside of Mexico, Almaden’s main properties are ATW and Siwash. The former is considered prospective for diamonds, being near McKay Lake in the Northwest Territories.
Until last year, the project was under option to Kennecott Canada, which had placed it on the back burner several years back to focus on the now-developing Diavik diamond project to the north. Ownership has since reverted back to the original partnership, in which Almaden stands to gain a net 30% interest.
Kennecott’s work led to the discovery of a barren kimberlite body, as well as a promising mineral indicator train. More recently, three prominent electromagnetic anomalies (two circulars and one linear) were highlighted during an airborne geophysical survey.
“All are associated with the mineral train spatially,” notes Poloquin.
Drilling is under way.
Siwash
Meanwhile, at the Siwash project, in British Columbia, Almaden is reviewing the possibility of developing an underground gold mine below a surface deposit it had been mining until 1996. The mine churned out 47,000 oz. before it closed.
“We didn’t go underground for obvious reasons, but we think capital costs have changed significantly,” says Poliquin. “So we are doing a little economic study to evaluate its potential to be put into production.”
Indicated resources are pegged at 29,838 tonnes grading 28.6 grams gold per tonne, with another 71,311 tonnes grading 43 grams classified as inferred. There are also 10,566 tonnes grading 47.05 grams left on surface.
Mineralization is hosted by a single quartz vein that remains open in all directions. Several parallel veins have been discovered since.
“Given our business model, . . . [Siwash] may provide a mechanism whereby we can fund our activities without needing to go into the market and dilute our shareholders.”
Drilling is planned for 2002.
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