Projects

Close Lake

The Close Lake property is held 74.40% by Orano Canada Inc. (“Orano”), 14.99% by Cameco Corporation (“Cameco”) and 10.61% by JCU (Canada) Company Ltd. (“JCU”). ALX Uranium Corp. has the opportunity to earn up to a 51% participating interest from Orano subject to a letter agreement (“LOI”). The property hosts two significant uranium discoveries and is adjacent to the Cigar Lake and McArthur River uranium mine properties, along with a number of other uranium deposits and discoveries. Close Lake property has the potential to host high-grade uranium mineralization in an established uranium district in the eastern Athabasca Basin.

Highlights

  • Drill hole CL-11 (1985) intersected 1.52% U3O8 over 23.0 metres including 3.71% Ni and 0.52% Co.
  • Drill hole CL-90 (1997) intersected 0.34% U3O8 over 104.8 metres including 2.86% U3O8 over 8.5 metres, 2.00% U3O8 over 1.5 metres
  • In an area of the Wollaston Belt which has produced over 900 million pounds of U3O8 over the past four decades.

Location

  • Approximately 3.5 km northeast of the McArthur River uranium mine
  • Approximately 8.5 km west of the Cigar Lake uranium mine
  • approximately 40 km southwest of Points North Landing, Saskatchewan
  • Adjacent and parallel to Christie Lake uranium deposit

Property Description and Ownership

  • Close Lake consists of 21 claims over 38,679 hectares.
  • The property is held 74.40% by Orano Canada Inc., 14.99% by Cameco Corporation and 10.61% by JCU (Canada) Company Ltd. where ALX can earn up to 51% from Orano Canada Inc.

Option Agreement

For ALX to earn an option to acquire a 51% interest in Close Lake, ALX would be required to issue to Orano a total of 10,000,000 common shares of ALX and fund a total of $12.0 million towards exploration expenditures for the Project for a period of five (5) years. Subject to prior written approval by Orano, ALX would be able to accelerate any of the expenditure payments in order to earn interests in the Project sooner than as set out below.

In order to earn a participating interest in the Project, ALX would be obligated to:

(a) during the period commencing on the date of the LOI and expiring 12 months following the Effective Date (the “Initial Period”) pay to Orano $1,250,000 towards exploration expenditures, and issue to Orano 4,000,000 common shares of ALX; and

(b) following satisfaction by ALX of its obligation during the Initial Period, during the period commencing immediately following expiry of the Initial Period and expiring 24 months following the Effective Data (the "First Option Period") pay to Orano an additional $2,250,000 towards exploration expenditures, and issue to Orano an additional 3,000,000 common shares of ALX.

If ALX satisfies these obligations during the First Option Period, it will have earned an option to acquire a 20% interest in the Project (the "First Option").

(c) following satisfaction by ALX of its obligations during the First Option Period during the period commencing immediately following expiry of the First Option Period and expiring 42 months following the Effective Data (the "Second Option Period") pay to Orano an additional $3,500,000 towards exploration expenditures, and issue to Orano an additional 2,000,000 common shares of ALX.

If ALX satisfies these obligations during the Second Option Period, it will have earned an option to acquire a 35% interest in the Project (the "Second Option").

(d) following satisfaction by ALX of its obligations during the Second Option Period, during the period commencing immediately following expiry of the Second Option Period and expiring 60 months following the Effective Date (the "Third Option Period") pay to Orano and addition $5,000,000 towards exploration expenditures, and issue to Orano an additional 1,000,000 common shares of ALX.

If ALX satisfies these obligations during the Third Option Period, it will have earned an option to acquire a total 51% interest in the Project (the "Third Option").

Exploration Plans for 2019

An exploration program will be planned with Orano in 2019 to initiate the proposed terms of the LOI and Option Agreement that will consist of a diamond drilling program.

In 1985, a predecessor company of Orano, encountered a significant intersection of uranium mineralization in drill hole CL-11 (1.52% U3O8 over 23.0 metres) on the Tucker Lake C‑5 Trend in the northeastern portion of the Project. Follow-up drilling that year on section with CL-11 intersected 0.06% U3O8 over 1.5 metres in hole CL-12 and 1.21% U3O8 over 2.0 metres in hole CL‑13.

Drilling in 1997 on the C-1 East Trend in the southern portion of the Project intersected a wide interval of uranium mineralization in drill hole CL-90 (0.34% U3O8 over 107.3 metres including 2.86% U3O8 over 8.5 metres and 2.00% U3O8 over 1.5 metres). Subsequent follow-up drilling in 1998 along strike of drill hole CL-90 encountered 0.28% U3O8 over 0.5 metres in hole CL-106 and 0.06% U3O8 over 3.5 metres in hole CL‑109.

In its initial evaluation of the Project, ALX has determined that certain target areas at Close Lake that have only been explored with widely-spaced drill holes still exhibit high potential to host significant high-grade uranium deposits.

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