Projects

Draco VMS

On October 21, 2019, ALX announced the acquisition of mineral claims prospective for copper-zinc-gold-silver mineralization at its 100%-owned Draco VMS Project located in the Grong district of central Norway. The Company staked 10 claims totaling approximately 5,959 hectares in May 2019 following its study of surface mineral showings integrated with historical airborne survey data, which identified trends that could represent zones of volcanogenic massive sulfide (“VMS”) style mineralization.

About Norway and the Draco VMS Projects

Norway’s mineral endowment lies within the Fennoscandian Shield, which shares a similar geology and metallogeny with ancient shields in Canada, Australia, Brazil and South Africa. Mining from massive sulphide deposits in Norway dates back to the 17th century – examples include the giant, world-class Løkken deposit (Cyprus-type VMS, 24 million tonnes mined producing 552,000 tonnes of copper and 432,000 tonnes of zinc with up to 0.2 g/t gold and 16 g/t silver), and the Røros district (mining of twelve deposits produced 175,000 tonnes copper and 275,000 tonnes of zinc with significant silver from 6.5 million tonnes) and Folldal district (mining of four deposits produced 60,900 tonnes copper and 115,200 tonnes of zinc from 4.45 million tonnes) over more than 300 years (Geological Survey of Finland, Special Paper 53, 2012). The closure of the Joma Mine in 1998, located near ALX’s Valkyrie property, ended an era of more than 350 years of base metals mining in the Scandinavian Caledonides.

The Grong-Stekenjokk area of central Norway and west-central Sweden is one of the most important areas for copper-zinc VMS deposits in the Caledonides. Four mines have operated in the area (Stekebjokk, Skorovas, Joma and Gjersvik) with a total production of 24.5 million tonnes in the period 1952 to 1998. In the last four decades, there has been a decided lack of exploration for minerals in Norway, due to a greater focus on oil and gas exploration. ALX recognized this opportunity and applied its “first pass” geoscientific techniques to select prospective areas within underexplored open ground. The Company has engaged a geophysical consultant to perform detailed modeling on the electromagnetic trends within the three Draco sub-projects, and plans “ground truthing” of anomalies and follow-up ground geophysical surveys at the Project.

The Draco VMS Project (“Draco”, or the “Project”) consists of three sub-projects:

Valkyrie – six claims totaling 4,350 hectares, with target areas located approximately 9.0 kilometres WSW of the past-producing Joma mine (reported historical resources of 22.5 million tons of 1.6% copper and 1.5% zinc1). Mining from 1972 to 1998 at the Joma mine produced 171,000 tonnes copper, 166,000 tonnes zinc and an unknown amount of gold and silver from 11.45 million tonnes of ore (Geological Survey of Finland, Special Paper 53, 2012)

Mining from 1972 to 1998 at the Joma mine produced 171,000 tonnes copper, 166,000 tonnes zinc and an unknown amount of gold and silver from 11.45 million tonnes (Geological Survey of Finland, Special Paper 53, 2012)

Fero – two claims totaling 813 hectares, with target areas located approximately 1.0 kilometre from the Skiftesmyr VMS deposit. Indicated mineral resources at Skiftesmyr total 3.51 million tonnes of 1.0% copper, 1.5% zinc, 0.1 grams/tonne (“g/t”) gold and 2.5 g/t silver, and Inferred mineral resources total 0.57 million tonnes of 1.0% copper, 1.6% zinc, 0.1 g/t gold and 2.7 g/t silver, with each estimate calculated using a cut-off grade of 0.5% copper2 (Technical Report, Skiftesmyr Mineral Resource Estimate, October 2013, by Geovista AB);

Vektor – two claims totaling 796 hectares, with target areas located approximately 5.0 kilometres NNW of the past-producing Gjersvik mine (reported historical resource of 1.62 million tonnes3, of which 500,000 tonnes grading 2.15% copper and 0.5% zinc were mined from 1993 to 1998) (Geological Survey of Finland, Special Paper 53, 2012).

1, 2, 3. The historical mineral resource estimates listed above either use categories that are not compliant with National Instrument 43‑101 (“NI 43-101”) and cannot be compared to NI 43-101 categories, or are not current estimates as prescribed by NI 43-101, and therefore should not be relied upon. A qualified person has not done sufficient work to classify the estimates as current resources and ALX is not treating the estimates as a current resource estimates. However, the estimates are relevant to guiding the Company’s exploration plans and provide geological information regarding the type of mineralization that could be present in the Draco project area. Mineralization hosted on adjacent properties is not necessarily indicative of mineralization that may be hosted on the Company’s Draco project.

ALX has engaged a geophysical consultant to perform detailed modeling on the electromagnetic trends within the three Draco sub-projects, and plans “ground truthing” of anomalies and follow-up follow-up geochemical and ground geophysical surveys at the Project.

National Instrument 43-101 Disclosure

The technical information on this web page has been reviewed and approved by Tor Bruland, P.Geo., a consulting geologist to ALX, who is a Qualified Person in accordance with the Canadian regulatory requirements set out in NI 43-101. Readers are cautioned that the technical information described on this web page is historical in nature; however, the information is deemed credible and was produced by professional geologists in the years discussed.

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