Investing In The New Resource Bull Market

  1. The materialization of Gold Mountain Mining Corp.'s (GUM:TSX.V) (GDDLF) Elk Gold project into a legitimate British Columbia development play, on which Almadex owns a 2% NSR royalty
  2. The revitalization of the Ixtaca project, on which Almadex owns a 2% NSR royalty
  3. The sale of El Encuentroto to McEwen Mining Inc. (MUX:TSX; MUX:NYSE) for CA$250,000 (Almadex retained a 2% NSR royalty on the property)

However, just within the past two weeks, the company has demonstrated why the prospect generation business can be so exciting. On Aug. 8, the company announced an intersection of 163.5m at 0.68 g/t gold and 0.29% copper at its fully owned El Cobre project. These results were only for the top half of the hole and, sure enough, the company announced earlier this week that another 150.9m at 0.55 g/t gold and 0.22% copper was intersected below the initial zone of mineralization. Assays ended at 540m, with the news release stating that "Porphyry style alteration continues to the end of the hole, currently at ~890 meters depth and advancing."

While the full results from hole EC-16-010 have yet to be received, this already looks to be a legitimate discovery of a large copper-gold deposit. Over the coming months, Almadex will bring additional drill rigs to the property to both (a) conduct stepout drilling around hole EC-16-101 and (b) test several anomalous areas on the property that have yet to be drilled. These next six months hold the potential for immense value creation at El Cobre.

Nevsun Resources Ltd. (NSU:TSX; NSU:NYSE.MKT) remains my favorite mid-tier base metal play. While Nevsun's share price has lagged many of its peers, the company has had a sensational 2016 from a business perspective. The market will soon catch on.

There have been multiple positive developments thus far this year, but Nevsun's most significant was the acquisition of Reservoir Minerals and its world-class Timok copper-gold project in Serbia. Timok has become one of the most significant undeveloped base metal deposits in the world due to its high grade, massive size and proximity to existing mining infrastructure.

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