Almadex Provides Update on Three Newly Identified High Sulphidation-Porphyry Cu-Au Prospects in the Western USA, and Confirms Filing of Arbitration Request with Mexico VANCOUVER, B.C.
NEWS RELEASE
June 17, 2024
Trading Symbols:
TSX-V: DEX
www.almadexminerals.com
Almadex Provides Update on Three Newly Identified
High Sulphidation-Porphyry Cu-Au Prospects in the Western USA, and Confirms Filing of
Arbitration Request with Mexico
VANCOUVER, B.C. Almadex Minerals Ltd. ("Almadex" or the "Company") (TSX-V: “DEX”) is pleased to
follow up its press release of April 16 th, 2024 with updates regarding three more of the fourteen prospects
it has staked since early 2023 in the U.S. These three prospects are located in central Nevada and
Colorado, USA, and are prospective for high sulphidation gold and porphyry copper -gold deposits. The
Company is planning initial work programs designed to rapidly provide the exploration dataset to evaluate
whether these targets merit drilling in the summer field season of 2024. The Company has only conducted
preliminary exploration mapping and sampling to date.
RR, Nevada
The RR Prospect covers an area of hydrothermal alteration developed in volcanic rocks adjacent to
carbonate rocks. Alteration mapping at RR has identified a large alteration zone interpreted to be a porphyry
lithocap extending 2.8 km NW-SE and by at least 1 km NE-SW. Mapping also defined a very strong surface
pyrophyllite footprint of 1 km (NW-SE) by 0.5 km (NE-SW). Preliminary rock sampling returned high values
for pathfinder trace elements typically associated with the lithocap alteration identified. The Company has
recently completed a soil sampling survey at the prospect for which analytical results are pending.
Pilot, Nevada
The Pilot prospect in central Nevada covers an ar ea of hydrothermal alteration developed in syn mineral
intrusive rocks and sedimentary country rock. Phyllic alteration has been mapped and is characterised by
white mica and pyrophyllite alteration. Recent field mapping has also identified several outcrops with
evidence of porphyry-style veining. This includes veining interpreted to represent early magnetite, A type,
syntaxial B veins and late stage D type quartz -sericite-pyrite veining. A large mapping, rock sampling and
grid-based soil sampling program is planned in order to define targets for drilling.
KT, Colorado
The KT Prospect located in Colorado covers an area of intense hydrothermal alteration developed in
volcanic rocks cropping out as windows through post mineral basaltic flows. Preliminary mapping has
identified silicification and quartz -alunite alteration over a roughly 3 by 3 km area. The Company plans
follow-up geologic and alteration mapping along with geochemical soil sampling to help direct any further
exploration programs.
J Duane Poliquin, Chairman of Almadex commented, “ We have acquired these projects by staking and it
surprising to continue to find such high quality targets available in the western USA.. We are fortunate to
have sufficient cash and internal resources to advance these prospects during the coming season, and are
optimistic that many of them will merit significant further work. We have a track record of discoveries under
lithocaps, and we feel the varied and exciting projects in our portfolio have the potential to add to that
record.”
About Lithocap Alteration Zones
Lithocaps are extensive areas of hydrothermally altered rocks that occur above or adjacent to intrusive
rocks and related porphyry deposits. The hydrothermal alteration forms when ascending high temperature
magmatic fluids are released from the source intrusion below and alter permeable and reactive rocks
occurring above. Lithocaps can be over 10 by 10 km in surface area and over 1 km thick. The alteration
mineral assemblages vary, usually with distance from the intrusive source. Often more neutral and higher
temperature stable alteration mineral assemblage s are seen at depth, closer to the source intrusion and
potential porphyry deposit. More acidic and lower temperature stable assemblages generally occur higher
and farther away. Mapping of alteration minerals and geochemical analysis using soil and rock samples
can map these changes in mineralogy. This mapping can then provide a vector towards potential underlying
porphyry systems. If large areas of lithocap alteration are well preserved, they can obscure deep unexposed
porphyries and other styles of mineralisation. If no mineralisation is present at surface, drilling based on
geochemical and alteration vectors and aided by geophysical data is the best way to explore for buried
deposits.
In follow -up to its press release of June 11, 2024, to Company confirms that that it has commenced
international arbitration proceedings against the United Mexican States (“Mexico”) under the
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”).
The Company’s international arbitration claim against Mexico will be prosecuted pursuant to the established
and enforceable legal framework of the International Centre for Settlement of Investment Disputes (“ICSID”)
and relates to the 2.0% NSR royalty held by the Company’ s subsidiary on the mineral concessions
underlying the Ixtaca project. Almadex alleges that Mexico has breached its obligations under the CPTPP
through actions which blocked the development of the Ixtaca project and ultimately retroactively terminated
the Ixtaca project mineral concessions, causing the loss of the Company’s investment in Mexico.
Almadex initiated the six -month consultation period required under the CPTPP on December 13, 2023.
Mexico agreed to hold one consultation meeting, which took place on May 30, 2024, but it did not result in
an amicable resolution of the Company’s investment disput e. The Company filed notice of its intention to
submit a claim to arbitration against Mexico under the CPTPP on March 14, 2024, triggering a 90-day notice
period prior to filing. With this notice period now over, the Company has filed its Request for Arbitration with
ICSID.
As part of the CPTPP requirements, although still at an early stage in the arbitration process, the Company
must submit an initial and preliminary estimate of damages claimed. As noted in the Company’s press
release of March 14, 2024, Almadex is pursuing this arbitration together with Almade n Minerals Ltd., on
behalf of themselves and their Mexican subsidiaries, and based on a preliminary estimate will be seeking
damages of no less than US$200 million, in the aggregate. Almadex would be entitled to damages relating
to its 2.0% NSR royalty on the Ixtaca project, if such damages were to be awarded.
As the arbitration proceeds, the Company expects to appoint a quantum expert who will prepare a
professional damages assessment for review by the arbitration tribunal. The Company will update
shareholders as this process evolves.
The Company has engaged international arbitration counsel at Boies Schiller Flexner to act on its behalf.
Qualified Persons
Morgan J Poliquin, PhD, PEng, the President and CEO of Almadex and a Qualified Person as defined by
National Instrument 43-101 ("NI 43-101"), has reviewed and approved the scientific and technical contents
of this news release.
About Almadex
Almadex Minerals Ltd. is an exploration company that holds a large mineral portfolio consisting of projects
and NSR royalties in Canada, the U.S., and Mexico. This portfolio is the direct result of many years of
prospecting and deal -making by Almadex's management team. The Company owns several portable
diamond drill rigs, enabling it to conduct cost effective first pass exploration drilling in house.
On behalf of the Board of Directors,
“J. Duane Poliquin”
J. Duane Poliquin, Chairman
Almadex Minerals Ltd.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within it, other than
statements of historical fact, are to be considered forward looking. Forward -looking statements in this news release include, among
other things, any work to advance the RR, Pilot and KT projects to a drill decision , the Company’s ability to advance exploration
activities and the results of those activities on other properties in its portfolio, the appointment of a quantum expert, and the possible
result and damages arising from the Company’s request for arbitration. Although the Company believes the expectations expressed
in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance
and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual
results to differ materially from those in forward -looking statements include market prices, exploitation and exploration successes,
permitting, continued availability of capital and financing, equipment availability, stability and predictability in Mexico’s response to the
arbitration process under the CPTPP; stability and predictability in the application of the CPTPP and arbitral decisions ther eon; the
ability to finance the arbitration process, and continued respect for the rule of law in Mexico and general economic, market or business
conditions. The foregoing list of assumptions is not exhaustive. There can be no assurances that forward-looking statements will prove
accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. Th e Company does not assume
any obligation to update any forward-looking statements, other than as required pursuant to applicable securities laws.
Contact Information:
Almadex Minerals Ltd.
Tel. 604.689.7644
Email: [email protected]
http://www.almadexminerals.com/