Almadex Targets the Next Generation of Porphyry Copper Deposits in Nevada

• Almadex Minerals is a TSX Venture-listed prospect generator focused on discovering porphyry copper-gold and epithermal gold deposits through early-stage exploration
• The company owns six diamond drill rigs, enabling cost-effective first-pass drilling and faster decision-making compared to commercial drilling contractors
• CEO Morgan Poliquin has developed a continental-scale geological approach to identify underexplored porphyry lithocaps in the western United States
• Almadex has made three major discoveries over 15 years, including high-sulfidation epithermal gold and porphyry copper-gold systems in Mexico
• The company is well-capitalized with $12-13 million cash plus an expected $8 million settlement, funding systematic drilling across multiple Nevada properties

In an industry where over half of exploration companies have never made a discovery, Almadex Minerals (TSXV:DEX) stands out as a prospect generator with a proven track record. Led by CEO Morgan Poliquin, a geological engineer with deep expertise in magmatic hydrothermal systems, the company has made three major discoveries over the past 15 years. With strong capitalization and a systematic approach to early-stage exploration, Almadex represents an interesting opportunity for investors seeking exposure to the discovery potential of tier-one copper-gold deposits.

The Prospect Generation Model

Almadex operates as what the industry terms a "prospect generator," though CEO Poliquin prefers to describe the company's approach differently. 

"We look for brand new projects through geologic interpretations. And so we start at the earliest stages, stake them and generally advance them to the drill stage."

The company's model centers on identifying and staking early-stage properties with discovery potential, then conducting initial drilling to prove or disprove the geological concept. This approach allows Almadex to maintain multiple irons in the fire while avoiding the trap of becoming overly committed to individual projects. As Poliquin notes, 

"One of the best things you can do in exploration is actually negate a project and move on from it."

Targeting the Right Geological Environment

Almadex focuses specifically on magmatic hydrothermal systems, which encompass porphyry copper-gold deposits that "produce I think 80% of the world's copper and a quarter of the world's gold." These large-tonnage, relatively low-grade deposits are typically associated with extensive alteration zones or "lithocaps" - altered rock formations that can extend for kilometers around the mineralized core.

The company's geological thesis centers on the observation that many of the world's largest porphyry deposits discovered in the 1960s and 1970s are now reaching end-of-life. 

"What you have to do is look under cover. We've chosen to look under this pile of clay, which is often barren, that is known to overlay these copper deposits, and drill deep within that to look for hidden and buried copper deposits."

Technological & Operational Advantages

A key differentiator for Almadex is its ownership of six diamond drill rigs, providing significant operational flexibility and cost advantages. 

"What's different about us is that we own our own drills.”

This capability allows the company to conduct preliminary drilling more efficiently than competitors relying on commercial contractors.

The in-house drilling capability also enables more entrepreneurial decision-making in the field. Rather than committing to large drilling programs upfront, Almadex can drill initial holes and quickly pivot based on results. This approach reduces both costs and time to decision, allowing the company to systematically test multiple targets across its portfolio.

Interview with CEO, Morgan Poliquin

Scientific Approach to Target Generation

Poliquin's background includes a PhD from the University of Exeter's Camborne School of Mines, where he studied the tectonic processes that create porphyry deposits. This academic foundation informs Almadex's continental-scale approach to target generation. 

"Mineral deposits, especially tier 1 mineral deposits are sort of like singularities in space and time. They're unique events that you can trace on a continental scale."

The company employs sophisticated filtering techniques to rapidly assess prospects. These include proximal sensing instruments that can identify specific clay minerals associated with porphyry environments, allowing the team to quickly determine whether a prospect warrants further investigation. 

"Once you start to identify these minerals... you typecast this environment of the porphyry whereas clay can form under a broad range of conditions that might be entirely unrelated to anything mineralizing."

Proven Discovery Track Record

Almadex's exploration philosophy has yielded three significant discoveries over the past 15 years. The Caballo Blanco discovery was developed in partnership with a London-based company, driving Almadex's stock price to over $2. The Ixtaca discovery in 2010 resulted from a successful one-hole program, while the El Cobre discovery in 2016 identified a copper-gold porphyry beneath a lithocap environment in Mexico.

These successes demonstrate the effectiveness of Almadex's systematic approach, though Poliquin acknowledges that market timing and geopolitical factors can significantly impact outcomes. 

"The key to me is crystallizing that capital gain when you have it, because things change, geopolitics, metal prices, the windows you have you think they're going to last forever they don't."

Current Focus on Nevada Properties

The company has shifted its exploration focus from Mexico to the western United States, where Poliquin believes similar tectonic processes have created underexplored porphyry systems. 

"We've identified areas that are underexplored, where there are porphyry lithocaps that relate to the same kind of tectonic processes that elsewhere in the world are associated with big deposits."

Almadex is currently drilling properties in Nevada, with plans for systematic first-pass drilling across multiple targets over the next 18 months. The company has also optioned additional properties from a sister company, expanding its Nevada portfolio. 

"Expect the next year and a half to be entirely focused on first pass drilling."

Financial Positioning

With approximately $12-13 million in cash and an expected $8 million settlement from a gold loan, Almadex is well-positioned to execute its exploration strategy without near-term financing pressure. This strong balance sheet reflects both careful money management and the company's ability to monetize legacy assets accumulated over three decades of operation.

The company's financial flexibility is enhanced by its ownership of drilling equipment and technical expertise, reducing reliance on external contractors. This self-sufficiency allows Almadex to maintain exploration momentum regardless of service industry availability or pricing cycles.

The Investment Thesis for Almadex Minerals

• Proven Discovery Track Record: Three major discoveries over 15 years demonstrate management's ability to identify and develop significant mineral deposits in challenging geological environments
• Unique Operational Capabilities: Ownership of six diamond drill rigs provides cost advantages, operational flexibility, and faster decision-making compared to contractor-dependent competitors
• Strong Technical Foundation: CEO's PhD-level expertise in porphyry systems and systematic geological approach enables identification of underexplored targets with tier-one discovery potential
• Robust Financial Position: $20+ million total capitalization provides multi-year exploration runway without dilutive financing pressure, enabling patient capital deployment
• Portfolio Diversification: Multiple Nevada properties under systematic exploration reduces single-project risk while maximizing discovery probability
• Strategic Focus on High-Value Targets: Concentration on porphyry copper-gold systems that produce 80% of world's copper and 25% of gold offers exposure to globally significant deposit types
• Efficient Risk Management: "Drill to kill" philosophy and rapid project evaluation prevents capital waste on low-probability targets
• Market Timing Opportunity: Focus on underexplored US porphyry systems positions company to benefit from domestic mineral security trends and copper demand growth

The global transition to renewable energy and electric vehicles is driving unprecedented demand for copper, with supply constraints emerging as many tier-one deposits reach end-of-life. Almadex's focus on discovering new porphyry copper-gold systems directly addresses this supply gap, particularly in politically stable jurisdictions like Nevada. The company's systematic approach to exploring buried porphyry systems represents a modern solution to the industry's discovery challenge, where traditional surface exploration has largely exhausted obvious targets. Poliquin's observes: 

"The deposits that were known and discovered are slowly being mined out [while] this idea of drilling porphyry lithocaps to depth to find that driving source [remains] relatively new to North America." 

The convergence of strong copper fundamentals, technological advances in deep exploration, and Almadex's proven discovery methodology creates a compelling macro backdrop for investment.