Co. Begins Drilling Giant Copper Project in Mexico
Contributed Opinion

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.
2. As of the date of this article, officers, contractors, shareholders, and/or employees of Streetwise Reports LLC (including members of their household) own securities of Algo Grande Copper Corp.
3. Bob Moriarty: I, or members of my immediate household or family, own securities of: Algo Grande Copper Corp. My company has a financial relationship with: Algo Grande Copper Corp. My company has purchased stocks mentioned in this article for my management clients: None.  I determined which companies would be included in this article based on my research and understanding of the sector.
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I've never been much of a believer in AI. To me, the whole thing feels overhyped, and so far, not one of the big AI outfits is actually turning a profit on it. Its cracks are only beginning to surface. Still, all those data centers being mapped out for AI's future point to one undeniable thing: a copper shortage that keeps widening.

The world needs more copper. A great deal more. Fortunately, Dr. Peter Megaw has been turning up enormous copper deposits across Northern Mexico, with Sonora alone accounting for 80% of the country's copper output. Roughly fifteen years back, I spent three days crisscrossing Northern Mexico in a truck with Peter. What I took away is that he ranks among the most knowledgeable, seasoned geologists anywhere. Not many realize it, but Peter is largely behind most of what's advanced in Mexican mining over the past three decades. He committed to Mexico back when the rest of the industry steered clear of it, put off by the country's shortsighted and damaging policies.

The Adelita copper project is his pet venture. It's now wholly held by Algo Grande Copper Corp. (ALGR:TSX.V), a fledgling company that only acquired Adelita about a year ago. The deal they struck was remarkable — essentially an all-stock arrangement to take 100% of the 5,985-hectare property in Southern Sonora, with only a modest cash component.

Since then, Algo Grande has closed two rounds: CA$3.8 million in September and another CA$6.52 million in late February. The project also arrived with more than CA$8 million already poured into drilling and technical work by the previous owner.

Over the past year, CEO Enrico Gay has built out the management roster with well-regarded, experienced copper hands. Dr. Megaw and Gord Neal have signed on, Peter as Senior Technical Advisor, and Gord as a director — the two of them founded Mag Silver.

The company wrapped up its Phase I drilling and put out results from four holes in early April. The drilling turned up a vertically stacked, high-grade skarn system carrying copper, silver, and gold. They went in expecting two horizons, but the drilling exposed three more they hadn't anticipated. Hole AG-GC 003 returned 18.2 meters of 1.8% CuEq, including 1.2% Cu, 28.2 g/t Ag, and 0.7 g/t Au.

On Friday, June 12, Algo Grande kicked off a fully funded 8,000-meter Phase II campaign. The opening hole is slated for 500 meters of core drilling to push out the Cerro Grande skarn find, with later holes spread along the 2,500-meter corridor to probe targets already pinpointed.

Skarns usually sit near porphyry mineralization. I'm pleased with what they've located so far, but the real prize may come if they sink a deep hole or two into what they suspect is the porphyry.

I'm in love with the story. I had an hour-long call with management a couple of months ago, but held off writing anything until they'd actually launched the pivotal 8,000-meter Phase II work. Phase I offered strong hints of a sizable deposit; Phase II could outline a district-scale copper play. My sense is that most resource investors keep their eyes on gold and silver, both of which have bounced around lately, while copper has quietly climbed to the steepest price ever recorded. Copper futures alone jumped 2.74% this past Friday. It's a fine moment to be chasing a major copper project in a mining-friendly jurisdiction.

As of Friday, Algo Grande carried a market cap of CA$26 million. The team pairs youthful, hard-charging management with some of the strongest technical minds around. As I see it, the only thing keeping the stock this low, given copper's price, is that hardly anyone knows the company exists. Drill results over the coming months should raise its profile and, in my view, its share price. At CA$0.62, I consider the stock remarkably underpriced.