Projects

Falcon Nickel

On June 12, 2019, ALX announced the acquisition of claims prospective for nickel, copper and cobalt (“Ni-Cu-Co”) mineralization totaling approximately 7,169 hectares (17,714 acres) at its Falcon Nickel Project (“Falcon”, or the “Project”) located in the northern Athabasca region of Saskatchewan. The Company staked 25 claims during a staking rush in late May 2019 in the historic Axis Lake area, and added to its land position by purchasing a single claim from an arms-length vendor at the Rea Lake deposit located southeast of Axis Lake.

On October 7, 2019, ALX announced the acquisition of additional claims prospective for Ni-Cu-Co mineralization at Falcon through a purchase agreement with Eagle Plains Resources Ltd. (“Eagle Plains”) for a 100% interest in 31 claims located in the historic Axis Lake area.

The centre of the Project is located approximately 14 kilometres (8.7 miles) northwest of Stony Rapids, Saskatchewan within the Tantato Domain, otherwise known as the East Athabasca Mylonite Triangle, which forms a segment of the Snowbird Tectonic Zone. A long history of exploration beginning in 1929 discovered numerous Ni-Cu-Co showings within Falcon’s boundaries, including the Axis Lake deposit (“Axis Lake”), the Rea Lake deposit (“Rea Lake”) and the Currie Lake deposit (“Currie Lake”).

Details of the Rea Lake Claim Purchase

ALX has executed a purchase agreement for a 100% interest in the Rea Lake claim totaling 121.06 hectares, and has agreed to pay to the vendor the following:

  • $2,000 cash upon execution (paid);
  • an additional $10,000 cash and 200,000 common shares of ALX at closing, the date of which will be determined by receipt of TSX Venture Exchange acceptance for the transaction;
  • the vendor will retain a 2.0% net smelter returns royalty (“NSR”), and ALX has the right to purchase 1.0% of the NSR for $1.0 million.

Details of the Eagle Plains Claims Purchase

ALX has executed a purchase agreement for a 100% interest in 31 claims totaling approximately 5,064 hectares (12,513 acres) in exchange for the following consideration payable to Eagle Plains:

  • $20,000 cash as reimbursement for staking and initial exploration costs incurred by Eagle Plains;
  • 2.0 million common shares of ALX;
  • Eagle Plains will retain a 2.0% net smelter returns royalty, of which ALX has the right to purchase 1.0% of the NSR for $2.0 million.

2019 Initial Work Programs

ALX has produced a preliminary 3D geologic model for Falcon, using modern geologic software for areas reported to contain historic Ni Cu Co mineralization by incorporating all available historical drill and surface data. The Company also reprocessed deep-penetrating airborne ZTEM data with modeling techniques not available when the survey was flown over a decade ago.

ALX has engaged Condor Consulting, Inc. of Lakewood, Colorado (“Condor”) to perform a detailed interpretation of historical digital data from three airborne surveys flown over the Falcon area between 1991 and 2008. Condor is recognized internationally as expert in the field of airborne electromagnetics, and its final report on the results of the historical airborne surveys is pending. All available historical drill data and surface sampling data will be integrated with the Condor report to better understand the controls on Ni-Cu-Co mineralization within the Project.

About the Falcon Nickel Project

Falcon is located approximately 20 kilometres southwest of ALX’s Flying Vee Nickel Project. Axis Lake is the most significant Ni-Cu-Co deposit within the Falcon area and was the subject of historical mineral resource estimates variously reported as:

  • 3,750,000 tons of 0.60% nickel, 0.60% copper, and 0.15% cobalt (c. 1929-1930, from Mineral Occurrences in the Precambrian of Northern Saskatchewan, Beck, 1959)1, and
  • 3,400,000 tons of 0.60% nickel and 0.60% copper, (Technical Report, Organic Soil Sampling, Airborne And Ground Geophysics and Diamond Drilling, Fond Du Lac Property, Fond Du Lac Area, Northern Saskatchewan, Canada dated April 15, 2007, Vivian and Lo, 2007)2.

Historical mineral resource estimates for Rea Lake of 70,400,000 tons grading 0.10% copper and 0.10% nickel plus traces of gold and silver are reported in the Saskatchewan Mineral Deposit Index (“SMDI”) 1627. Historical mineral resource estimates for Currie Lake of 47,536 tonnes grading 0.79% nickel are reported in SMDI 1585.3

1, 2, 3. The historical mineral resource estimates listed above use categories that are not consistent with National Instrument 43‑101 (“NI 43-101”) and cannot be compared to NI 43-101 categories, and 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 Falcon area.

Axis Lake Deposit

Following a review of historical interpretations of the strike length of Axis Lake, ALX believes that its recent staking captured the majority of the Axis Lake East Zone. Ni-Cu-Co mineralization at Axis Lake appears semi-continuous over at least a 5 kilometre strike length parallel to the regional east-striking structural trend. Mineralization is comprised of a south-dipping, sulphide-rich layer varying 1½ to 10 metres thick and is hosted by strongly deformed, granulite facies mafic rocks (Geology of the Axis Lake East Zone Nickel-Copper Deposit, Tantato Domain, Northern Saskatchewan, Normand, 2015). Primary magmatic sulphide mineralization consists of pyrrhotite, pyrite, chalcopyrite and pentlandite ranging from finely disseminated to coarsely disseminated or semi-massive network to massive (Vivian and Lo, 2007). Preliminary analysis of published geochemical data of mineralized samples from the eastern part of the deposit shows remarkable similarities between this deposit and the world-class Voisey’s Bay nickel deposit in Labrador (Normand, 2015).

Rea Lake Deposit

ALX believes it has acquired approximately 1,500 metres of the interpreted strike length of Rea Lake, which is located approximately 1.6 kilometres southeast of Axis Lake. Rea Lake occurs within granulite facies garnetiferous felsic gneisses, iron formation and banded mafic rocks close to the apex of a major southwesterly plunging synform. Mineralization is hosted by an upper metaquartzite and a lower nortite and consists of nickeliferous pyrrhotite, pyrite and chalcopyrite disseminated throughout the country rock. The mineralized zone trends east-west and dips to the south. Rea Lake is estimated to be approximately 2,700 metres long, 90 to 240 metres wide and 30 metres thick (SMDI 1627). Significant proportions of the sulphides in this deposit are remobilized and contain more pyrite and chalcopyrite as compared to Axis Lake (Technical Report on Operations, April 1 to March 31, 2006, Fond du Lac Project, Red Dragon Resources Corporation, Hull, 2006).

Currie Lake Deposit

Currie Lake is located approximately 5.4 kilometres northwest of Axis Lake. Two parallel zones of mineralization consisting of disseminations and fracture fillings of pyrrhotite, pyrite and chalcopyrite hosted by sheared norites are separated by 15 metres of metaquartzites and metagreywackes. Two mineralized zones have been identified: the Upper Zone varies from 3½ to 30 metres in width and the Lower Zone varies in width from 1½ to approximately 60 metres (SMDI 1585).

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