Adelita Drilling Expands Copper Footprint at Cerro Grande
Algo Grande Copper Corp. (TSXV: ALGR) reported on August 11 that Phase II drilling at its wholly owned Adelita Project in Sonora, Mexico, has significantly expanded the known copper mineralization. Hole AG_CG_PH2_002 (Hole 2) now shows 68.77 meters of visually identified copper minerals over a 154-meter span, more than double the previously reported extent. A second hole, AG_CG_PH2_003 (Hole 3), drilled by a new rig, encountered a broad copper sulfide zone within garnet skarn and retrograde exoskarn, with mineralization remaining open at depth.
Hole 2 Doubles Mineralized Interval, First Porphyry Hit
Hole 2 intersected two distinct mineralized zones. The first, located 100 meters above the anticipated target, spans 30.23 meters and includes copper minerals in massive garnet skarn and, for the first time in the current program, within an andesitic porphyry intrusion. The second, broader zone extends 108.2 meters and contains six separate copper-bearing intervals totaling 40.4 meters of visually mineralized core. Key minerals include chalcocite, chalcopyrite, bornite, covellite, and chrysocolla, with molybdenite occurring intermittently. The hole has reached 424 meters of its planned 700-meter depth.
Hole 3 Delivers 74 Meters of Copper, Open at Depth
Hole 3, targeting the Cerro Grande skarn, intersected copper mineralization over a combined 73.91-meter interval between 165.74 and 239.65 meters, including 37.42 meters of visually copper-bearing core. The intersection sits approximately 105 meters vertically above the Phase I discovery hole, suggesting strong vertical continuity. Drilling remains in copper mineralization at the bottom of the hole, indicating the system is open at depth. The company has not yet released assay results for Hole 3, and all figures are based on visual logging only.
Assays Pending: First Batch at ALS Lab
The first batch of core from Hole 2 arrived at the ALS laboratory in Hermosillo on August 7, with assay results expected in the coming weeks. CEO Enrico Gay noted, “We expect assays from this drill program to start coming out in the next few weeks, kicking off a steady flow of results from ALS as we move forward.” These assays will be critical to confirm the visual estimates and establish true widths, which have not yet been determined.
Copper Market Tightens as Smelter Outage Adds to Supply Squeeze
The news comes amid a tight copper market. London Metal Exchange benchmark prices have remained above US$14,000 per tonne for an unprecedented stretch, with September Comex copper reaching US$6.7005 per pound (US$14,772 per tonne) before retreating. An outage at Indonesia’s Gresik smelter, operated by PT Smelting (a joint venture of Mitsubishi Materials and PT Freeport Indonesia), has added to supply concerns. The smelter closed for inspections after a boiler leak on August 8, with no restart date set. Together, the Gresik and Manyar smelters are expected to produce nearly 400,000 tonnes of copper cathode this year, but the Grasberg mine, which feeds them, is still recovering from a fatal mudslide and won’t return to full production until the end of 2027.
Why This Drilling Program Matters for Copper Supply
Algo Grande’s Adelita project is located in Sonora, which accounts for roughly 80% of Mexico’s copper output. The company’s technical team includes Dr. Peter Megaw, co-founder of MAG Silver, who has been instrumental in major Mexican discoveries. Analyst Bob Moriarty noted, “The world needs more copper. A great deal more.” He added that Phase II could “outline a district-scale copper play.” The company’s market cap is CA$27.52 million, with 42.34 million shares outstanding, and insiders own 40% of shares.
Key Catalysts to Watch in Coming Weeks
Investors should watch for assay results from Hole 2, expected within weeks, and continued drilling progress at Hole 3. The next significant data point is whether the assays confirm the visual copper grades and whether Hole 3’s mineralization continues at depth. A positive result could support the thesis of a sizable copper system at Cerro Grande, while disappointing assays would temper the current optimism. Also monitor copper prices, particularly whether LME prices hold above US$14,000 per tonne, as supply disruptions and electrification demand continue to tighten the market.
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