Almadex Minerals (TSX-V: DEX)(OTC: AAMMF) CEO Morgan Poliquin on Acquisition of 100% Logan Zn/Ag project in Yukon Territory

Morgan Poliquin: I'm doing great. Thanks, how about you?

Morgan Poliquin: Sure, thank you for that. Well, the Logan Project is a pretty special project. It's been around for quite some time and it's been kind of locked up with a partner that was a majority partner that kind of went through a bankruptcy sort of situation. So it's been something we've been working at getting back into the fold and so we were able to do that and have 100% interest in it. So, as you say, it's got a significant historic zinc silver resource located in the Yukon, and we're really excited to bring it to the fore and get working on it again.

Of course, zinc today is a really important commodity and many countries consider it a strategic metal and important in greening of the economy. And so it's a great asset and it comes with silver as well as you noted. So just got it back and plan to push it forward this summer.

Morgan Poliquin: Yeah, it was discovered in the '80s and quite a bit of work was done. A predecessor company to our group, Almadex, had the project and it was joint ventured to an oil company, Getty Oil. And at the time they did quite extensive work, including the several stages of historic resource development work, drilling of course, and metallurgical work.

And then it was kind of in limbo for a period of time after a company called Yukon Zinc, that was our majority partner, was taken over by some Chinese based consortium and they put a different deposit, not this one, into production somewhere else in Yukon and ran into some financial issues there. So it's sort of been locked up for quite a while, as I said before.

So this historic resource has been updated, but there's been really no work since the discovery period in the '80s. And it's one of these what I would call kind of maybe hidden gems in our portfolio.

Morgan Poliquin: We've commenced drilling there, and it's a big project and there're multiple things we'd like to test there. We've got the Davis part of the property is the portion of the property that we've optioned to the north and it adjoins the claims that we staked initially to the south, which we call Paradise. And in this Davis area, there's exposed veins. There's the Davis Vein that we're starting on. There's something called the Butler Vein System that has had historic mining. And there's another zone that's parallel to it, that is an alteration zone, a very high level alteration zone, that looks really exciting that hasn't had significant historic work on it.

So there's been some past drilling and we're working in the area of the past drilling and the idea is to see if the historic results are, that they're real and then to expand out from there.

And so we're underway on the Davis Vein target, but to the south, we have what we think is a high sulfidation system, which is a style of mineralization similar to the Paradise Peak Deposit, which is just across the valley from us, which was a significant producer in the '80s and '90s in this part of Nevada. And we've got indications of a potential porphyry as well, a copper porphyry with copper minerals at surface and some old turquoise workings, of all things.

So we feel that there's multiple different types of targets. And this is a first pass drill program which will go probably into July. And then we'll probably step back, wait for assays and the intention would be to go back and do a round two, so excited to get drilling on this project.

Morgan Poliquin: Oh, well, I hate to even talk about that. What we got $17 million in cash and working capital and so we're trading at levels below that, typically. Despite the fact, we have a portfolio of royalties, exploration projects as we've discussed and assets like Logan. And we also have had quite fortunately in 2021, some revenue from our third party drilling services, which pay for a lot of the exploration we do.

Morgan Poliquin: That's the case at the moment.

Morgan Poliquin: Well, we basically the results, the fruits really in the form of these royalties, exploration projects of decades of regional exploration. And we like to think that what we have called prospect generator in the past, which is really going out in the field and using new concepts to create projects, and then through either joint venture or advancing them yourselves or discovery, essentially, moving them into tangible assets. And of course, that's what Almadex is going to continue doing.

And it's been a period of time in the last few years that everyone knows the challenges we've been through, but I think Almadex through the sale of a royalty last year is well set up to continue doing what we've done for decades now, which is, through discovery, through the drill bit, with partners and on our own accord, make discoveries and create assets. So it really is that's the main thrust of the company and I believe that's where the true value lies is certainly we've got great assets that people can try to figure out value for. But it's the drill bit, and it's the potential to make additional discoveries that really that's what we do and that's what excites us.

Morgan Poliquin: Yeah, thank you. Well, there's a historic resource. And I think the first step is always it's in the traditional territory of First Nations owners and our intention is to collaborate with them. But really the first step here is to look at the historic resource and get it into a current status. And that is always a first step to potentially doing what's called a preliminary economic analysis or PEA, which is capable of demonstrating the value, in some sense. It's preliminary, but it shows the potential economics of a project.

So those would be, first step is a resource, and then we'll decide on whether we're going to proceed with a PEA. But from my perspective, it's a great place to work with a great environment and metals that are really important to the economy right now and important with all the supply chain issues we have. So I think there well could be options out there for us to pursue, but I think the first two steps will kind of help our shareholders create a sense of the value of what we're dealing with. So we'll start with looking at doing a resource and go from there.

Morgan Poliquin: Well, thank you very much. As always, it's nice to talk to you and look forward to updating everyone when we have more news.

Morgan Poliquin: All right. Take care. Bye.