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August 8, 2025 – As global copper demand surges from data centers, electric vehicles, and renewable energy, Algo Grande Copper Corp. (TSX.V:ALGR) is advancing its wholly owned Adelita project in Sonora, Mexico. The company’s Phase II drill program at the Cerro Grande skarn target has already intersected visible copper mineralization at shallower depths than expected, with a second rig now on site to accelerate the 8,000-meter campaign.
Phase II Program Fully Funded and Running
Algo Grande acquired the 5,985-hectare Adelita property about a year ago through a share-based deal that included over CA$8 million in prior drilling and technical work. Since then, the company raised CA$3.8 million in September 2024 and CA$6.52 million in late February 2025, fully funding the Phase II program that began in June. The current drilling is focused on the 2,500-meter Cerro Grande exploration corridor, where two track-mounted rigs are now operating in tandem.
Drilling Results – Copper in Skarn and Porphyry
The first hole, AG_CG_PH2_001, reached 550 meters and intersected a granodiorite complex with quartz monzonite dikes, silicification, veining, and visible sulfides including chalcopyrite and molybdenite. Fugitive calcite near the bottom is considered a pathfinder for mineralizing intrusions. Hole AG_CG_PH2_002, collared on Cerro Grande and targeting 700 meters, encountered copper mineralization more than 100 meters shallower than modeled, including a 19.8-meter interval in garnet-dominant skarn and an 8.57-meter interval in andesitic porphyry.
Why Shallow Copper Matters
The early interception of mineralization at shallower depth reduces drill costs and accelerates the timeline for defining a resource. Equally important, the presence of copper in both skarn and porphyry lithologies supports the geological model that a larger porphyry feeder may lie beneath the skarn zone. Several world-class copper deposits, such as Cananea and Buenavista in Sonora, are porphyry-skarn systems. The deeper portion of hole AG_CG_PH2_002 (from 400 m to 700 m) will test previously undrilled ground for that potential porphyry source.
Industry Timing and Price Support
Copper prices have remained strong, buoyed by supply disruptions in Chile—the world’s top producer—after severe storms hit Lundin’s Caserones and Candelaria mines in late July. Meanwhile, Chinese import premiums have risen and inventories outside the U.S. continue to decline, according to analysts at Citi and RBC. They forecast copper reaching US$14,500 per tonne within three months and US$15,000 per tonne by year-end 2025. On August 8, LME copper traded near US$14,100 per tonne, within striking distance of those targets.
Exclusive Perspective: Sonora’s Favorable Mining Environment
Sonora produces roughly 80% of Mexico’s copper and hosts a well-established mining infrastructure. According to a recent report from the Mexican Mining Chamber (CAMIMEX), the state saw over US$1.2 billion in mining investment in 2024, with copper projects attracting the largest share. Algo Grande’s Adelita project benefits from this ecosystem, with nearby access to skilled labor, roads, and processing facilities. The company also holds a 40% insider and strategic ownership, aligning management with shareholders as drilling results flow.
Next Milestones
Assay results from the first two holes are expected within four to six weeks, and the second rig will enable faster news flow throughout the remainder of the Phase II program. The company’s market cap stands at CA$19.31 million (42.34 million shares outstanding), which many analysts consider undervalued given the visible mineralization already logged and the rising copper price environment.
Frequently Asked Questions
What has the company reported so far? Visible copper mineralization has been logged in skarn and andesitic porphyry in the second hole, with laboratory assays still pending.
Why is the porphyry intersection significant? Skarn deposits often overlie larger porphyry systems; testing for this deeper source is a key objective of the current drilling.
How does the market backdrop support the project? Record copper prices and supply disruptions in Chile coincide with rising demand from AI, data centers, and clean energy, creating favorable conditions for new discoveries.
**What are the next
