Categories: Precious Metals / Mining Stocks
Topics: Gold Stocks / Copper Stocks

Algo Grande Copper (TSX-V: ALGR)(OTCQB: ALGRF) CEO Enrico Gay on Advancing Flagship Adelita Copper-Silver-Gold Project in Sonora with Two Drill Rigs Turning and Assays Pending

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Algo Grande Copper (TSX-V: ALGR)(OTCQB: ALGRF) — Mr. Enrico Gay. Enrico, it’s great to have you on. How have you been, sir?

I know it’s the summertime. I know things tend to be quieter, but look, copper is sitting there flirting with $6.30/lb on the spot price again. Structural deficits continue. Gold is holding $4,000/oz beautifully, and you’re less than 10% into your Phase II drill program and already hitting visual copper mineralization. So I thought it’d be a great time to get an update out to everybody.

Enrico Gay: Thank you for having me, Gerardo. Yes, it’s summer, but we’ve been very busy. We put out this week an update on the drill program. 

We’re just completing Hole 2 in an over-15-drill-hole campaign in the Cerro Grande area. And then we have a couple additional holes in brand new targets. There’s a skarn that we’re pursuing three kilometers down called Cerro Potrero, and then the Las Trancas target. 

So far, it’s looking very good visually. The core is beautiful. We can see chalcocite. Very noticeable. High-grade copper mineralization is coming out of the core. So yes, we’re really happy, and we’re just getting started at less than 10% in.

Gerardo Del Real: Well, look, I know that the end of August and early September tends to really accelerate activity in our space. Can you tell me about that second drill rig being mobilized to site, where that’s going to be placed, and what the expectation is there for that? Because it looks like you’re setting yourself up great for a couple of months’ worth of pretty material news if the drill bit hits when it’s supposed to hit.

Enrico Gay: Yes, the drill program is about to speed up quite a bit. With the second drill rig running now, we’re going to be drilling around two holes every 10 days or so. So yes, it’s about to increase in pace. 

And I’d say that starting the third week of August, we’re going to have the first batch of assays, like one or probably two holes in that. And then basically every two weeks there’s going to be assays coming out all the way into the fall. 

I think the news flow is going to be really, really good. I’m targeting one news release per week. So in terms of getting into this, getting involved with the company, there is no better time. If you believe in what we’re doing, if you’ve seen the type of grades we’re going after, if you’re interested in copper, the current valuation we’re sitting at now, I think it makes a lot of sense to build a position for anybody that’s interested. 

But I’m not a wealth manager or investment advisor, so I’m just an operator here, but I think we’re looking very good.

Gerardo Del Real: Can you speak to the current market cap? You talked about valuation and where that’s at. What does that look like right now? Because I know you have lots of shareholders that are in at much higher prices in a pretty well-structured vehicle, right?

Enrico Gay: Yes, we did two financings so far in the life of this company. One was done at 37.5 cents (Canadian) at a post-money valuation of roughly C$12 million. All those folks have been up on those shares. We did a second financing at 65 cents (Canadian) at roughly a C$25 million valuation. 

And today we’re trading slightly below that, around C$20 million. So I think long term, this is still a momentum story. We’re still building, and we have a lot of value to build into. So good capital structure. We never issued any warrants. So we did the two financings, just regular private placements, four-month holds, no warrants. So I think we’re in a position of strength.

Gerardo Del Real: Excellent. How’s the infrastructure there? I know we’ve talked about it before, but for people that are new to the space, people that are looking for assets in stable jurisdictions and want that copper exposure, how’s the infrastructure?

Enrico Gay: The infrastructure is phenomenal. We’re right next door, and I mean like a kilometer and a half away from the Alamo Dorado mine, which was operated by Pan American Silver and produced between 2005 and 2017. Now a fully consumed silver mine. 

We access the project through roads built by the Mexican government for that mine that take us right into our project. We have access to a large water dam system. We have power lines coming into the communities that are surrounding the project. So it doesn’t get any better than this. Peter Megaw said it best: if the infrastructure was any better, you’d have to move it out of the way.

Gerardo Del Real: Well said. Well, listen, assays pending, you’re adding a second rig. Again, copper is performing beautifully despite the market volatility. And again, I think we’re going into a time here with September right around the corner where things are really going to pick up. Anything to add to that, Enrico?

Enrico Gay: No, I think that’s it. Just be on the lookout for a lot of news releases and hopefully some pretty exciting assays coming right around the corner. So yes, that’s it.

Gerardo Del Real: Excellent. Well, let’s chat again when we start getting those in. I appreciate the time as always.

Enrico Gay: Thank you, Gerardo.

Gerardo Del Real: Appreciate it. Thank you.

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