Copper Explorer Finds Massive 41.6m Multi-Horizon Skarn Breakthrough in Mexico

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1. Disclosure for the quote from the Stewart Thomson article published on February 5, 2025:

1. For the quoted article (published on February 5, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,500.
2. Author Certification and Compensation: Stewart Thomson was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Thomson is a retired Canadian financial advisor who has passed the Canadian Securities Course as well as additional technical analysis courses that were mandated by his former employer and approved by Ontario regulatory bodies. For the past 15 years, he has been editing and writing numerous financial newsletters that have a strong focus on charts.  The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

2. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Algo Grande Copper Corp. (ALGR:TSX.V) announced initial drill results from its first drilling program at the Adelita Project in Sonora, Mexico, according to a release on February 5.

Drill hole AG_GC_002 intersected a total of 41.6 meters of cumulative skarn mineralization across five well-mineralized horizons, including three previously unidentified horizons, confirming a significant expansion of copper-gold-silver mineralization at depth at Cerro Grande, the company said.

"The results reinforce our conviction in the Adelita Project and strongly support continued deep and step-out drilling," Chief Executive Officer Enrico Gay said. "The identification of three new skarn horizons materially expands the scale potential of Cerro Grande and confirms that Adelita represents a larger, more robust mineralized system than previously recognized. This outcome validates our acquisition and technical approach and strengthens the investment case as we advance the project and work to build long-term shareholder value."

Drill hole AG_GC_002 was designed to test the Cerro Grande skarn system at depth, below the limits of historical drilling, Algo Grande said. The hole intersected two previously identified shallow skarn horizons and identified three new, well-mineralized skarn horizons at depth, representing a total of 41.59 meters of skarn-hosted mineralization.

These results significantly expand the known vertical extent of the mineralized system and confirm the presence of a vertically stacked skarn architecture with significant depth potential. The intersected skarns host high-grade copper, gold, and silver mineralization and are accompanied by broad halos of copper mineralization within the surrounding wall rocks. When considering all mineralized lithologies, including skarn and adjacent mineralized wall rock, the drill hole intersected a broader mineralized envelope totaling 70.6 meters above 0.6% Cu. These broader intervals include internal dilution and are not presented as discrete skarn intercepts.

A Strong Geological Foundation For Next Phase

Drilling at Cerro Grande is ongoing, with analytical results currently available only for drill hole AG_GC_002. Preliminary geological observations from core logging on the remaining drill holes provide additional context on the broader mineralized system. Drill hole AG_GC_001 did not intersect skarn horizons comparable to those encountered in AG_GC_002, however, visual logging identified traces of copper mineralization hosted within granodiorite.

Drill hole AG_GC_003 experienced significant deviation from the planned drill orientation, which limited effectiveness in testing the targeted skarn corridor, Algo Grande said. Despite the deviation, the hole intersected skarn mineralization at depth, confirming the model.

Drill hole AG_GC_004 is currently in progress and has successfully intersected skarn mineralization based on geological logging. Drilling and logging are ongoing, and the extent, continuity, and grade of this mineralization will be evaluated once drilling is completed and assay results are received.

Drill hole AG_GC_002 also intersected multiple andesitic porphyry dikes, and evidence of propylitic and potassic alteration, the company said. A package of intrusive rocks between 328.57 and 339.10 meters shows enrichment in molybdenum with values up to 2820 parts per million (ppm). This evidence is consistent with a porphyry-related system, supporting the interpretation that the Cerro Grande skarn mineralization may be genetically linked to a deeper intrusive source.

The results from AG_GC_002 confirm that the Cerro Grande skarn is a vertically extensive, multi-horizon skarn system rather than a shallow, single-level occurrence, the company said. The presence of multiple stacked skarn horizons, coupled with broad halos of copper mineralization in wall rocks, materially enhances the tonnage potential of the system.

The discovery of intrusive phases with copper mineralization and molybdenum values, along with potassic alteration at depth, supports the theory that the skarn mineralization may be genetically connected to a deeper porphyry-style intrusive source. This offers an additional exploration direction, both for further skarn development and for potential porphyry mineralization.

"These results provide a strong geological foundation to advance the next phase of work at Cerro Grande," Vice President of Exploration João Rocha said. "Planned surface soil geochemistry, detailed magnetic surveying, and high-resolution LiDAR will be used to refine the skarn corridor, improve structural interpretation, and more precisely target follow-up drilling along strike and at depth."

Technical Analyst: Stock Manages Risk, Enhances Potential Rewards

¹It's rare for a junior mining stock to effectively manage real risk while enhancing potential rewards. Fortunately, Algo Grande Copper Corp. meets most of these criteria, according to a February 5 technical review of the stock by Stewart Thomson, president of Graceland Investment Management Inc. and 13476171 Canada Inc.

Strategic Advisor Dr. Peter Megaw, a world-renowned CRD expert and co-founder of MAG Silver Corp., brings decades of discovery success. He also has a proven track record of turning early-stage projects into billion-dollar assets. Megaw's firm, Megaw Exploration Associates, MXA, acts as the company's operational "on-the-ground" partner, providing comprehensive support, from geological modeling and target generation to drill planning and project evaluation, Thomson said.

Data centers for artificial intelligence require enormous amounts of copper, the technical analyst said. Amazon is purchasing copper mine production, and Elon Musk has predicted that the global population of robots will surpass that of humans, with plans to manufacture millions in his factories. This will require a substantial amount of copper. Supply bottlenecks are anticipated, and investors (both retail and institutional) may take more risks on juniors like Algo Grande as these bottlenecks occur.

Investors could consider buying ALGR now, ahead of the annual meeting, which is expected to occur on February 25, Thomson wrote. Junior miners often generate excitement ahead of such meetings, similar to when drills are in operation. If there's a "price pop" leading up to the meeting, partial profits could be taken.

In the longer term, the CA$6.00 resistance zone seems to be "calling" Algo to trade there, and it's certainly another spot to book profits. A move above the key round number of CA$1.00 would be a very positive event. Aggressive investors could use a partial stop-loss (preferably a mental one that doesn't disturb the market with a large sell order) under one of the recent lows.

Thomson rated the stock an aggressive investor Speculative Buy with a short-term target of CA$1.20 and a long-term target of CA$6.00

The Catalyst: Metal Essential for the AI Revolution

It's not just silver and gold reaching new heights — copper is also hitting unprecedented levels as the metals market continues to dominate trading in 2026, according to a report by Jake Conley for Yahoo! Finance on January 29. Copper futures surged by up to 10%, surpassing US$13,000 per ton due to supply chain disruptions, trade policies, and rapidly growing demand. Currently priced at around US$5.79 per pound, copper has risen significantly from about US$4.25 a year ago.

Copper is essential for data centers and other technologies driving the AI revolution, as well as for global electrification efforts, including electric vehicles and power-grid expansion, the article noted. Global demand for copper is expected to increase from 28 million tons in 2025 to 42 million tons by 2040. However, without significant supply increases, the market could face a 10 million-ton shortfall, according to S&P Global.

Despite copper's record-high prices, analysts suggest these may not reflect the actual market conditions, Conley wrote. Instead, speculation and preemptive trading might have driven the intense price movements beyond reality. "We see speculative positioning as overdone and unrelated to the realities in the market," wrote StoneX senior metals demand analyst Natalie Scott-Gray, according to Conley. The metal appears "unsustainable with downward pressure likely to come."

Copper is on course for its largest annual price increase in over a decade, fueled by supply disruptions, a weakening U.S. dollar, optimistic forecasts for Chinese economic growth, and significant investments in artificial intelligence, according to a piece by Sam Meredith for CNBC on December 30, 2025.

Copper demand is often seen as an indicator of economic health. The base metal is crucial to the energy transition ecosystem and plays a vital role in the production of electric vehicles, power grids, and wind turbines. Indeed, electrification, grid expansion, and data center development all require substantial amounts of copper for wiring, power transmission, and cooling infrastructure.

Ownership and Share Structure²

Algo Grande Copper has 32 million shares outstanding. The company has a market cap of CA$28.75 million and a 52-week range of CA$0.08 - CA$1.

Its estimated capital structure is this: 52% insiders and strategic backers, 38% financing, and 10% acquisition consideration.