In 2007 Almadex’s predecessor, Almaden Minerals, initiated a regional exploration program in Nevada. This work resulted in the acquisition by staking of several new projects where high sulphidation epithermal gold-silver mineralization and alteration occur including the Willow Project located in Douglas and Lyon Counties.
These 100% owned projects range from alteration zones that require target definition through drill-ready projects.
Listed below are brief descriptions of several projects within Almadex’s Nevada portfolio.
Gold | Minerals County
The Monte Cristo Project is 100% owned by Almadex and was acquired by staking. The ~170 hectare claim covers an area of hydrothermal alteration and quartz veining interpreted to represent a low sulphidation gold-silver system. Past work includes limited surface mapping and sampling. Future plans include diamond drilling to test these targets.
Gold | Nye County
The Paradise Valley project is 100% owned by Almadex and was acquired by staking. The ~884 hectare project covers an area of intense hydrothermal alteration interpreted to represent a high sulphidation gold system similar to the nearby Paradise Peak gold deposit mined historically. Past work includes surface mapping, sampling and geophysics.
In 2019, the Company acquired an option to purchase 100% (subject to royalty provisions) of 34 claims covering the Davis project area of alteration and gold-silver veining located adjacent to the Paradise Valley claims to the north. Almadex subsequently acquired through staking an additional 79 claims which are subject to the Davis Agreement due to their proximity to the claims covered by such agreement. The total Davis/Paradise Valley property now covers ~ 2,400 Ha.
The Davis portion of this property covers an area of hydrothermal alteration hosting gold-silver zones and veins on which there has been historic mining and exploration drilling. The property has been explored historically with various targets drilled by several operators.
The property was held by USSRAM Exploration and from 1979 to around 2004 during which time various exploration and drilling programs were carried out on the property. One of the targets tested during this time was the Davis Mine area with a total of eleven drill holes to investigate mineralisation in the vicinity of the shaft of the historic Davis mine.
More recently another operator drilled additional holes in the same general area of the previous drilling. While this historic Davis Mine area drilling cannot be verified by the Company, was not completed in accordance with N.I. 43-101 and therefore should not be relied upon, it provides clear exploration focus.
One of the significant intercepts from this historic drilling program is reported to have returned 40 feet (12.2 metres) of 0.18 oz/t gold (6.2 g/t gold) and 0.62 oz/t silver (21 g/t silver). The strike and dip of the Davis vein was interpreted by the historic operators but cannot be verified by the Company at this time so true widths cannot be estimated or confirmed by the Company.
Previous operators have identified numerous areas for target follow-up from the historic work programs and describe high level epithermal alteration zones. Almadex plans to review the existing project information and to undertake a program of surface mapping, sampling and geophysics in order to confirm the alteration described and increase our confidence in targets for a future drilling program.
Gold | Nye County
The Veta project is 100% owned by Almadex and was acquired by staking. The project covers 33 hectares of an area of intense hydrothermal alteration interpreted to represent a high sulphidation gold system similar to the nearby Sante Fe gold deposit mined historically. Past work includes surface mapping and sampling. Future plans include diamond drilling to test these targets.
Gold / Copper | Douglas and Lyon Counties
Almadex acquired the Willow Project through staking. The project covers roughly 1,025 hectares of intense hydrothermal alteration interpreted to represent a porphyry “lithocap”, the hydrothermal alteration overlying a large porphyry system with significant copper, gold and molybdenum potential.
In 2017, Almadex’s predecessor company optioned the Willow project to Abacus Mining and Exploration Corp. (ASXV: “AME”)
Abacus can earn an initial 60% interest in the Willow project by incurring work expenditures on the project totaling US$3,000,000 and issuing a total of 416,668 shares to the Company over a five-year period.
Upon having earned its initial interest, Abacus will be required to incur minimum annual exploration expenditures of US$500,000 on the property and, by February 22, 2027, deliver a Feasibility Study in respect of the Willow project to Almadex, subject to certain rights of extension. Should Abacus fail to incur the minimum annual expenditures for two consecutive years, Almadex may elect to become operator of the project, and the parties will enter into a 60%/40% joint venture agreement with standard dilution provisions.
Abacus will earn an additional 15% interest in the project upon delivery of a Feasibility Study to Almadex, at which point a 75%/25% joint venture will be formed, with pro-rata funding of ongoing work in proportion to the respective interests held at that time. Until such time as a joint venture is formed pursuant to the agreement, Almadex’s interest is a carried interest.