Copper Explorer Discovers Multiple High-Grade Zones in Mexico

1. Algo Grande Copper Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
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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 a non-brokered private placement of up to 7,692,308 common shares at a price of CA$0.65 per share, aiming to raise up to CA$5 million, according to a February 11 release.

Canaccord Genuity Corp. as the financial advisor. Upon completion, Algo Grande will pay Canaccord a corporate finance fee of US$50,000, which may be settled by issuing shares at a deemed price of US$0.65 per share.

The net proceeds from the offering are intended to fund exploration activities at the Adelita Project, including a Phase II drilling program, and for general working capital. Phase I drilling at the Cerro Grande skarn revealed multiple stacked copper-gold-silver skarn horizons at depth, including zones not identified in previous drilling. The upcoming program will focus on expansion drilling at Cerro Grande and along a roughly 6-kilometer limestone corridor with multiple undrilled, outcropping skarn targets, the company said.

In connection with the offering, the company may pay eligible finders a cash commission equal to 7% of the gross proceeds from purchasers introduced by them and issue common share purchase warrants equal to 7% of the shares purchased by those buyers. Each Finder Warrant allows the holder to acquire a share at an exercise price of CA$0.65 for 36 months from issuance.

Securities issued in the offering will be subject to a four-month hold period as per applicable securities laws. The offering does not require a minimum number of subscriptions and is subject to necessary approvals, including from the TSX Venture Exchange, ALGR said.

'A Larger, More Robust Mineralized System'

Earlier this month, the company announced initial drill results from its first drilling program at Adelita, which is in Sonora, Mexico. 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 stated.

"The results reinforce our conviction in the Adelita Project and strongly support continued deep and step-out drilling," said Chief Executive Officer Enrico Gay. "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, beyond the limits of historical drilling, according to Algo Grande. 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, ALGR noted. 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.

Drilling at Cerro Grande is ongoing, with analytical results currently available only for drill hole AG_GC_002. However, preliminary geological observations from core logging on the remaining drill holes provide additional context on the broader mineralized system.

"These results provide a strong geological foundation to advance the next phase of work at Cerro Grande," said Vice President of Exploration João Rocha. "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."

Stock Balances Risk With Potential Gains, Technical Analyst Says

¹It's uncommon for a junior mining stock to effectively balance real risk while enhancing potential gains. However, Algo Grande Copper Corp. seems to meet many of these criteria, according to a February 5 technical review by Stewart Thomson, president of Graceland Investment Management Inc. and 13476171 Canada Inc.

Strategic Advisor Dr. Peter Megaw, a globally recognized expert in Carbonate Replacement Deposits (CRD) and co-founder of MAG Silver Corp., brings decades of successful discoveries. He has a proven track record of transforming early-stage projects into billion-dollar assets. Megaw's firm, Megaw Exploration Associates (MXA), serves as the company's operational "on-the-ground" partner, offering comprehensive support from geological modeling and target generation to drill planning and project evaluation, Thomson noted.

The technical analyst highlighted that data centers for artificial intelligence require vast amounts of copper. Amazon is purchasing copper mine production, and Elon Musk has predicted that robots will outnumber humans, with plans to manufacture millions in his factories, which will demand a significant amount of copper. Anticipated supply bottlenecks may lead investors, both retail and institutional, to take more risks on juniors like Algo Grande as these bottlenecks arise.

Thomson suggested that investors consider buying ALGR now, ahead of the annual meeting expected on February 25. Junior miners often generate excitement before such meetings, similar to when drills are active. 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 appears to be "calling" Algo to trade there, making it another point to book profits. A move above the key round number of CA$1.00 would be a very positive development. Aggressive investors might use a partial stop-loss (preferably a mental one that doesn't disrupt the market with a large sell order) below one of the recent lows.

Thomson rated the stock as a Speculative Buy for aggressive investors, with a short-term target of CA$1.20 and a long-term target of CA$6.00.

The Catalyst: Rally Loses Momentum, But Expected to Persist

Copper and aluminum prices declined as a rally, previously supported by Chinese purchasing, lost momentum with the country approaching a major holiday, according to a February 10 report by Bloomberg published on Mining.com. Benchmark copper futures fell toward US$13,000 per ton in London and were near US$5.90 per pound in New York, after gaining more than 2% over the previous two sessions. Chinese copper buyers are expected to extend their pause during the Lunar New Year holiday, starting next week, as high prices continue to limit industrial demand for the metal.

Exchange inventories have been increasing in China and the broader Asian market ahead of the holiday, helping to replenish reserves after significant volumes were drawn into the U.S. in anticipation of tariffs. Total stockpiles in warehouses tracked by the London Metal Exchange, Shanghai Futures Exchange, and Comex now exceed 970,000 tons, the highest level since 2003, with more than half held in the US.

"We are seeing some consolidation around US$6 a pound and some reluctance from end users to buy at elevated prices," noted Sam Crittenden, an analyst at RBC Capital Markets. "However, we expect the momentum in prices to continue in the coming years as demand continues to push higher and supply struggles to keep up."

Copper prices had been rising, reaching a record high in late January, as investors moved into commodities amid concerns over the U.S. dollar, part of a broader shift away from currencies and government bonds. The rally received an additional boost from a surge of buying by Chinese investors, who are now easing off. Copper dropped 0.5% to settle at US$13,108 per ton on the LME, after hitting an all-time high above US$14,500 on January 29.

Copper is set to experience its largest annual price increase in over 10 years, fueled by supply disruptions, a declining U.S. dollar, optimistic forecasts for China's economic growth, and significant investments in artificial intelligence, according to a December 30, 2025, report by Sam Meredith for CNBC. Analysts suggest that the rally in copper prices could persist this year, especially given concerns about supply and the rapid expansion of global data centers.

Copper demand is often seen as an indicator of economic health, Meredith noted. 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. In fact, electrification, grid expansion, and the construction of data centers all require substantial amounts of copper for wiring, power transmission, and cooling infrastructure.

Ownership and Share Structure²

Algo Grande Copper has 31.95 million shares outstanding. The company has a market cap of CA$22.36 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.