Copper Junior Hits High-Grade Copper Skarn in Mexico

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1. 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) provided an update on its ongoing Phase II drilling campaign at its wholly owned Adelita Project in Sonora, Mexico, according to a July 28 release.

The company said a second track-mounted drill rig has arrived at the site and is being positioned to operate alongside the first rig at the Cerro Grande skarn target. Drilling has progressed beyond the completion of the first hole and into the second, which has already intersected visible copper mineralization within both skarn and andesitic porphyry. Assay results remain pending.

"Less than 10% into our Phase II drill program, we are intersecting visual copper mineralization within the Cerro Grande skarn," Chief Executive Officer Enrico Gay said. "With a second drill rig expected to commence operations shortly, we are entering what we believe will be the most active and potentially transformational period in the company's history. We look forward to reporting our first assay results as they become available."

Algo Grande said it selected a tracked drill rig because it can move more efficiently across the rugged terrain surrounding the Cerro Grande target. With two rigs operating simultaneously, the company expects to tighten drill spacing, accelerate testing across the target corridor, and increase the pace of drilling and the release of exploration results throughout the remainder of the Phase II program.

Details of Drilled Holes

The company completed Hole AG_CG_PH2_001 at a depth of 550 meters after drilling into the Cerro Grande zone. The hole intersected a granodiorite intrusive complex cut by quartz monzonite dikes and displayed pervasive to moderate silicification, quartz-K-feldspar veining, disseminated magnetite, and visible pyrite, chalcopyrite, molybdenite, along with calcite veinlets exhibiting tungsten-mineral fluorescence under ultraviolet light. Near the bottom of the hole, between 472 and 476 meters, geologists identified fugitive calcite, which the company said is commonly regarded as a pathfinder for mineralizing intrusions in skarn systems. Management believes its presence near the end of the hole further supports the possibility of a mineralized intrusive source extending below the depth reached by Hole AG_CG_PH2_001.

Hole AG_CG_PH2_002 was collared on top of Cerro Grande and is advancing toward its planned total depth of 700 meters. The company said drilling has progressed beyond 200 meters and encountered copper mineralization more than 100 meters shallower than anticipated. Rather than reaching the expected mineralized zone at around 250 meters, the drill hole intersected a 19.8-meter mineralized interval between 146.7 and 166.5 meters within massive brown garnet-dominant skarn. A second copper-bearing interval measuring 8.57 meters was logged from 168.36 to 176.93 meters. Together, the two zones total 28.37 meters of copper mineralization separated by an unmineralized interval of 1.86 meters, according to the company.

Algo Grande said the mineralization has been identified in both skarn and, for the first time during the Phase II program, within an andesitic porphyry intrusion containing chalcopyrite. The company interprets the garnet-dominant skarn as representing a high-temperature prograde skarn that was later overprinted by a copper-rich mineralizing event. It added that the association of garnet-rich skarn with bornite, chalcopyrite, and abundant chalcocite may indicate the drill hole is approaching either the core of the mineralizing system or a significant hydrothermal fluid conduit, with geological contacts expected to become less distinct as drilling advances toward the source.

The company also said the portion of Hole AG_CG_PH2_002 extending from 400 meters to its planned 700-meter depth will test ground that has never been drilled. This section of the program is intended to evaluate whether the Cerro Grande skarn continues at depth and to investigate the presence of a potential feeder intrusion beneath the known mineralized system.

Expert: A Growing Need for Copper

In a review of the stock on June 16, 321gold.com's Bob Moriarty noted that while he's "never been much of a believer in AI," the expansion of AI data centers highlights a growing need for copper.

He noted that Dr. Peter Megaw's work has identified major copper deposits in Northern Mexico, particularly in Sonora, that account for approximately 80% of Mexico's copper production. After spending time with Megaw during an earlier trip through the region, the author said he is one of the most experienced geologists in the industry and credits him with playing a major role in the advancement of Mexican mining over the past 30 years.

"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," Moriarty noted.

The article highlighted the Adelita copper project in southern Sonora, fully owned by Algo Grande Copper Corp., as Megaw's primary venture. ALGR acquired the 5,985-hectare project about a year ago through a largely share-based transaction with a limited cash payment. Since acquiring Adelita, Algo Grande has raised CA$3.8 million in September and another CA$6.52 million in late February. The project also included more than CA$8 million in previous drilling and technical investments from its former owner.

The author noted that CEO Enrico Gay has strengthened Algo Grande's leadership team by bringing in experienced copper industry professionals. Megaw joined as senior technical advisor, while Gord Neal became a director. The two previously founded Mag Silver.

Algo Grande completed its Phase I drilling program and released results from four holes in early April, with drilling identifying a vertically oriented, high-grade skarn system containing copper, silver, and gold. The company initially expected to encounter two mineralized horizons but discovered three additional zones. One highlight came from Hole AG-GC 003, which returned 18.2 meters grading 1.8% copper equivalent, including 1.2% copper, 28.2 grams per tonne silver, and 0.7 grams per tonne gold.

The company launched its fully funded 8,000-meter Phase II drilling campaign on June 12. The first hole is designed to extend the Cerro Grande skarn discovery through approximately 500 meters of core drilling, while additional holes will test targets along a 2,500-meter exploration corridor.

Moriarty said skarn deposits are commonly associated with porphyry systems and suggests that deeper drilling into a potential porphyry source could represent the most significant opportunity for the project.

Moriarty also emphasized the favorable market backdrop for copper, noting that many investors remain focused on gold and silver despite copper reaching record price levels. He points out that copper futures increased 2.74% on the referenced Friday and suggest the timing could be favorable for advancing a major copper project in a supportive mining jurisdiction.

At the time of the article, Algo Grande had a market capitalization of approximately CA$26 million. Moriarty said the company combines an ambitious management team with highly regarded technical experts and believes the stock's limited valuation is largely due to low market awareness. He expects upcoming drill results to increase investor attention and potentially support a higher share price, stating that he views the stock as significantly undervalued.

The Catalyst: Storms Disrupt Already Challenged Market

Severe storms in Chile have disrupted copper production in the world's largest copper-producing country, creating additional challenges for a market already facing growing demand from artificial intelligence, electrification, and the shift toward renewable energy, according to a report by Cecilia Jamasmie for Mining.com on July 28.

The extreme weather brought widespread flooding and heavy snowfall to northern Chile, a region that hosts many of the world's biggest copper mines. Government officials said the storms have resulted in at least 13 fatalities and impacted thousands of residents across several areas.

Canada's Lundin Mining halted operations at its Caserones copper-molybdenum mine in the Atacama region after heavy snow disrupted electricity supplies. The company also reported temporary effects at its Candelaria mine following intense rainfall, although the processing facility continued operating by using previously stockpiled ore. Lundin said it expects normal operations at Caserones to restart within approximately two to three weeks after discovering damage to two power transmission towers.

The impact of the extreme weather spread beyond Chile into neighboring Argentina, where snowfall affected mining activities and transportation networks. Andrés González, head of mining industry analysis at Plusmining, said the disruptions reached Barrick's Veladero mine, the Fénix lithium project in the Salar del Hombre Muerto, and the Vicuña copper project near the Chilean border.

González told Mining.com, “This should be viewed as a short-term disruption rather than evidence of a new operating norm.”

He added, “The exceptional severity of the rainfall and snowfall was partly favored by El Niño conditions, which recur irregularly every two to seven years. Nevertheless, the event reinforces the importance of operational preparedness and climate resilience, particularly for high-altitude mining operations in the Andes.”

González said the unusual intensity of the storms highlights the need for mining companies to strengthen emergency planning and improve their ability to manage climate-related risks, particularly at high-elevation operations across the Andes.

Copper prices could also receive additional support from tightening market conditions in China, according to Citi analysts, who have maintained a bullish outlook for the metal, Jamie Ashcroft wrote for Proactive on July 28. The bank is forecasting copper to reach US$14,500 per tonne over the next three months and rise further to US$15,000 per tonne by the end of the year.

Citi said China's physical copper market is becoming increasingly constrained while pressure builds across global supply chains. Analyst Tom Mulqueen noted that copper prices have shown strength despite weakness across broader commodity markets and a decline in speculative market positions.

Although overall demand growth remains limited, Citi said declining inventories outside the United States, particularly in China, combined with stronger Chinese import demand, indicate growing physical market tightness. The firm also pointed to ongoing challenges in global mine production and said the supply response from recycled copper has been weaker than anticipated despite elevated prices.

RBC Capital Markets provided a similar assessment of the copper market, noting that copper prices climbed 1.3% during the previous week while copper-related equities advanced 6%, Ashcroft noted. The firm highlighted a sharp increase in China's Yangshan import premium, which rose from US$45 per tonne at the beginning of 2026 to approximately US$115-US$119 per tonne, signaling stronger competition among Chinese buyers seeking overseas copper supplies.

Ownership and Share Information¹

Algo Grande Copper Corp. has a market cap of CA$19.31 million, with 42.34 million shares outstanding. The company's 52-week range is CA$0.35-CA$1.00.

About 40% is held by insiders and strategic backers, about 8% by institutions, and about 52% by retail.

Common Investor Questions

What did Algo Grande announce? On July 28, the company gave a progress update on its Phase II drilling at the wholly owned Adelita copper project in Sonora, Mexico. A second drill rig has arrived, and the second hole has already intersected visible copper in both skarn and andesitic porphyry at the Cerro Grande target. Lab assays are still pending.

What is the Adelita project? A 5,985-hectare copper property in southern Sonora, Mexico, that Algo Grande acquired about a year ago through a largely share-based deal. It came with more than CA$8 million of prior drilling and technical work from its former owner.

Why does the porphyry matter? Skarn deposits typically sit near porphyry systems, which can be much larger. Moriarty argued the biggest opportunity could come from drilling deeper into a suspected porphyry source, and part of Hole 002 (400–700 m) will test never-before-drilled ground for exactly that.

Why the focus on copper now? The article points to rising demand from AI data centers, electrification, and renewables, colliding with supply stress — including storm disruptions to Lundin's Chilean mines. Citi is forecasting US$14,500/tonne within three months and US$15,000/tonne by year-end, and RBC noted a jump in China's Yangshan import premium.