The company still has a number of projects ventured out, but it is drilling Ixtaca and will be drilling El Cobre. With the prospect generator model, a company generates ideas and vends them out when they get to be too high risk and costly. Therefore, the company doesn't dilute the shareholders to drill every low probability target it turns up. Most prospect generator companies are run by geologists who are good enough to recognize something above average when they stumble across it, at which time they have the money and tight share structure that benefits long-time shareholders. It takes a long time to work through projects and find something worthwhile and this model addresses that problem. A number of companies have morphed out of that business model to the benefit of shareholders, including Almaden."
Almaden has 15 exploration royalties right now, a few of them nearing production. Lately Almaden has focused on the relatively unexplored region of eastern Mexico, where its Ixtaca project is located. Ixtaca has been returning impressive intercepts this year, most recently 134m of 4.1 g/t gold. Almaden expects to issue its NI 43-101 resource on Ixtaca this December. Two years and more than 70,000m of drilling will go into that NI 43-101, including lots of long intercepts over high grade. If the drill results we have already seen are any indication, it could be an absolute game changer for the company. Producing companies have already shown a lot of interest in Ixtaca, so I think Almaden will be able to sell it rather easily and get an exceptional return on its investment. The best part of this project is that most of the property is still relatively unexplored. There are multiple blind targets and blue-sky potential for Almaden."
Almaden is a classic example of the project generation model. After 26 years in the exploration business, Almaden still has only 59.2M shares outstanding. Almaden has shown that it can fund the company through joint ventures and by monetizing assets and projects that have been developed and sold to other companies."