November 27th, 2003
A 6570 metre drill program was recently completed on our Siwash Gold Property. Assay results are awaited. These and the 2002 results will be used with previous data for a new resource estimate. The mill purchased by the Company is now in a storage yard near the property. Water sampling was carried out in anticipation of dewatering the underground workings on the Siwash B zone.
Expatriate Resources Ltd. have announced an economic evaluation of production from our Logan zinc-silver property by blending this material with material from their Wolverine property. Almaden is carried for a 40 % interest in the Logan property until a positive production decision is made.
The Company is planning a ground geophysical program to include gravity, magnetic and electromagnetic survey method, on our ATW diamond project in the NWT. This program should help in identifying targets for a drill program planned for early 2004.
Our ongoing exploration for gold in British Columbia resulted in the discovery of several highly anomalous gold bearing quartz vein occurrences found both as float and in bedrock. Two new blocks of claims were acquired by staking to cover the areas identified. The results of this program are being evaluated in anticipation of a spring work program in 2004.
There was considerable exploration activity in Mexico over the past quarter, both by the Company's joint venture partners and in the form of regional exploration. The regional exploration has been focused on identifying new gold and copper-gold projects both within an area of mutual interest as a part of a joint venture with BHP Billiton, and wholly by Almaden outside of this area.
Grid Capital Corp. has optioned the Galeana gold-silver project in Chihuahua State from Almaden. Grid completed a program of geologic mapping, sampling and geophysics which identified several mineralized epithermal quartz adularia vein systems. Grid has informed the Company that a diamond drill program designed to test targets identified by this program will commence in January 2004.
The Caballo Blanco project, located in Veracruz State, has been optioned to Comaplex Minerals Ltd. (Comaplex) who have completed two phases of exploration work which included geologic and alteration mapping, sampling and induced polarization geophysics. This work has resulted in the identification of two separate areas of alteration typical of that found in high-sulphidation epithermal gold systems. Comaplex has informed Almaden that it is planning a drill program to test both areas in early 2004. Almaden has received reports from Comaplex describing the results of their 2003 work program to date.
The El Pulpo Project, located in Sinaloa State, has been optioned to Ross River Minerals Inc. (Ross River) and covers several areas of gold-copper-silver mineralisation. Ross River has completed a program of geologic mapping and sampling which was successful in defining two areas of porphyry-style copper gold mineralization and two extensive gold-copper-silver vein systems. Over the past quarter Ross River acquired permits to trench and drill these areas and a program of trenching is presently underway. Ross River has informed Almaden that it has planned a program of induced polarization geophysics for January 2004 to be followed by a drill program to test the targets identified by the cumulative work. Ross River recently completed a financing to complete this work.
The BHP Billiton regional joint venture
program, designed to identify copper-gold
systems in a broad area of Mexico, will continue in 2004 with
further work planned for the months ahead. During the past quarter
two gold projects were identified, staked and offered to BHP
Billiton for exploration.
During October 2003, the Company had a booth at the New Orleans Investment Conference. The Company engaged Roth Investor Relations Inc. on a temporary basis at a cost of US$6,500 to raise the Company's profile with fund managers in the United States which included organizing a series of meetings with fund managers in New York City.
In November 2003, the Company appointed Mr. Donald M. Lorimer to the Board of Directors of the Company.
For the nine months ended September 30, 2003, the Company incurred a loss of $759,090. The Company had no revenue from mineral properties and mineral tax credits received decreased. General and administrative expenses decreased mainly in professional fees due to the reduction of costs in Mexico, stock exchange fees with most fees being a cost of financing and reduced promotional activity. General exploration increased mainly due to the exploration undertaken in Mexico by the Company and by the joint venture with BHP. Mineral property write-downs and loss on marketable securities decreased with most properties and securities having been previously written down. The loss on foreign exchange increased due to the rising Canadian dollar. There was no sale of fixed assets during the period.
Cash used in operations was $465,914 in the nine months. Cash of $1,816,235 was provided by the issuance of shares and cash used in investing activities totalled $555,836. The Company incurred $223,733 of expenditures on the drill program on the Elk property during the period. Fixed asset expenditures increased mostly due to transporting the mill to storage.
At September 30, 2003, cash and cash equivalents totaled $1,759,452 and working capital was $1,832,684. Included in working capital is the Company's inventory of gold recorded at the cost of production, not market value, and a contingent liability in the event the Company is unsuccessful in its appeal of assessed additional mineral tax for prior years. Also included in working capital are excess funds received from BHP to be spent on further exploration in eastern Mexico. In the subsequent period, the Company completed a private placement financing for gross proceeds of $188,738.
ON BEHALF OF THE BOARD OF DIRECTORS
The Toronto Stock Exchange has not reviewed nor accepted responsibility for the adequacy or accuracy of the contents of this news release which has been prepared by management. Statements contained in this news release that are not historical facts are forward looking statements as that term is defined in the private securities litigation reform act of 1995. Such forward -looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filing with the Securities and Exchange Commission.