Heraldic achievement of Indomitus Industries

Almaden Minerals

Almaden AMM.TO

Almaden Minerals is a similar story, although we see the company trading at values close to the asset values we calculate for them. We show Almaden holding C$5,500,000 in cash, with 207,600 oz indicated and another 207,800 oz inferred gold. Their exploration projects are in Canada and Mexico. They have 60 million shares fully diluted, as we understand it. Based on these figures, we calculate a value of US$1.63 to US$3.18 per share for their assets. The company has C$487K in current liabilities, and some $353K in contingent liabilities involving a dispute over the deductibility of certain expenses in a matter currently being defended by the company against the "British" Columbia Ministry of Energy and Mines.

We met both members of the father and son team of J. Duane Poliquin and Morgan J. Poliquin on our recent excursion to New Orleans. Duane has an impressive track record of finding large gold mines. Both have excellent credentials and experience in mining.

We like the company's approach to finding gold projects and acquiring them mostly by staking. This approach means that holding costs are low. The company then tends to develop its properties through joint ventures with companies that specialize in mining operations. The exception to this rule is their Elk or Siwash property in Canada which they own, explore, and develop on their own.

Their Siwash gold deposit appeared to have as much as 141,962 ounces of gold in 123,142 tonnes as calculated at the completion of the drill program in 2000. A further drill program has been conducted in 2004, which produced a "calculated global resource" of 207,600 measured and indicated ounces of gold and a further 207,800 inferred ounces of gold.

Elsewhere in Canada, Almaden has optioned their PV Au-Ag project in Coast Salish Columbia to Consolidated Spire Ventures. Spire may earn 60% interest by issuing 1.1 million shares of Spire to Alamden and spending C$1.3 million on the property. Surface grab samples have returned values up to 43.3 grams per tonne Au.

Almaden has optioned their Mor, Caribou Creek, and Cabin Lake properties to Kobex Resources which may earn 60% interest by expending C$1 million in exploration and issuing 1.1 million shares of Kobex to Almaden. A news release of 29 October 2004 by Almaden indicates that the Mor prospect has significant copper, zinc, gold, silver, and lead. Intervals with over 1% copper, over 1% zinc, and up to 40.71 parts per million silver were identified in a two hole diamond drill program completed in August 2004.

In Mexico, Almaden has optioned its Fuego Au-Ag property to Horseshoe Mining which may earn 50% interest by spending US$2 million on exploration and issuing a million shares of Horseshoe to Almaden. An option to acquire a further 10% for an additional US$1 million on exploration would bring Horseshoe's interest to 60% whereupon Almaden would have 120 days to sell its remaining 40% to Horseshoe for 40% of the issued capital of Horseshoe. Horseshoe has already carried out surface geologic mapping and rock and soil sampling, revealing up to 13.6 grams per tonne Au and 643 g/t Ag.

Caballo Blanco Au-Ag-Cu in Mexico has been optioned to Comaplex Minerals, with a drill program to commence in October 2004. Galeana Au-Ag in Mexico has een optioned to Grid Capital. The El Pulpo Cu-Au-Ag project in Mexico has been optioned to Ross River Minerals. Best result on this last property intersected 1.02 meters showing 3.73 g/t Au, 157 g/t Ag, 0.94% Cu.

Almaden's Bufa Au-Ag project in Mexico is optioned to Grid. The property surrounds the town and mining camp of Gaudalupe y Calvo in Chihuahua. Gold was discovered there in 1835 and was sufficiently productive that a mint was built there in 1844. Historic production of 2 million ounces Au, 28 million oz Ag has been estimated. Chip sampling at 33 locations show values up to 13.95 g/t Au. Drilling was to commence October 2004.

Almaden has optioned their San Carlos Cu-Au-Ag project in Mexico to Hawkeye Gold and Diamond. The company's BHP Billiton joint venture is a regional exploration program to identify new Cu-Au deposits in Mexico. A recent company brochure indicates an "ATW diamond project" in Canada between the Diavik and Snap Lake deposits, of which Almaden seems to own 40% of the 75% stakeholder.

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This report first appeared in the 6 December 2004 issue of The Indomitus Report. It is copyright © 2005 Free West Trust. All rights reserved.

The price of Almaden was recently (5 July 2005) C$1.95.