ALX Resources Corp. Announces Option Earn-In Transaction and 2024 Winter Drilling Program for the Gibbons Creek Uranium Project
Vancouver, February 28, 2024 - ALX Resources Corp. (TSXV: AL) (FSE: 6LLN) (OTC: ALXEF) ("ALX" or the "Company") is pleased to announce an option earn-in transaction (the "Transaction") for its 100%-owned Gibbons Creek Uranium Project ("Gibbons Creek", or the "Project") located in the northern Athabasca Basin near the community of Stony Rapids, Saskatchewan. ALX has executed a binding letter agreement (the "Letter Agreement") with Trinex Lithium Ltd., a wholly-owned subsidiary of Trinex Minerals Limited ("Trinex"), which is a publicly-traded mineral exploration company listed on the Australian Securities Exchange. Under the terms of the Letter Agreement, Trinex can earn an initial 51% interest and up to a 75% participating interest in the Project in two stages over a period of five years by making cash payments and common shares payments to ALX, and by incurring exploration expenditures as shown in the table below.
ALX also wishes to announce a 2024 winter drilling program at Gibbons Creek of approximately 1,200 metres of diamond drilling in up to six (6) holes to test for unconformity-type and basement-hosted uranium mineralization in the eastern area of the Project. Mobilization of equipment and personnel is planned for the first week of March, with drilling scheduled to commence on or about March 7, 2024. The drilling program is expected to be completed by the end of March or early April 2024.
Details of the Option Earn-In Transaction
Trinex can earn an initial 51% participating interest, and up to a 75% participating interest in the Project according to the schedule of cash and common shares payments and exploration expenditures, as follows:
| Option Stages | Cash Payments (CAD) | Value of Share Payments (CAD) | Annual Exploration Expenditures (CAD) | Participating Interest Earned by Trinex |
| Upon signing the Letter Agreement | $50,000 | - | - | - |
| Upon signing the Definitive Agreement (the "Effective Date") | $50,000 | $250,000 | - | - |
| On or before 1st Anniversary of the Effective date | $150,000 | $300,000 | $1,000,000 | - |
| On or before 2nd Anniversary of the Effective date | $200,000 | $350,000 | $1,000,000 | - |
| On or before 3rd Anniversary of the Effective date | $250,000 | $400,000 | $1,000,000 | 51% |
| On or before 4th Anniversary of the Effective date | $300,000 | $450,000 | $1,250,000 | - |
| On or before 5th Anniversary of the Effective date | $350,000 | $500,000 | $1,250,000 | 75% |
| TOTALS | $1,350,000 | $2,250,000 | $5,500,000 | 75% |
"ALX is pleased to welcome Trinex as a new partner in our Athabasca Basin uranium exploration," said Warren Stanyer, CEO and Chairman of ALX. "We look forward to forging a strong relationship between the two companies and to achieving drilling success at Gibbons Creek."
ALX and Trinex expect to negotiate a more comprehensive definitive option earn-in agreement (the "Definitive Agreement"), which will set out the definitive terms and conditions of the Transaction. The Definitive Agreement shall include such representations, warranties, covenants and conditions as are customary in connection with such agreement or otherwise required by a party. ALX and Trinex have agreed to negotiate in good faith and make reasonable commercial efforts to complete the Definitive Agreement no later than 90 days after the execution of Letter Agreement.
2024 Drilling Program
ALX has carried a comprehensive review of Gibbons Creek historical exploration data and has integrated that information with the high-resolution magnetic and SGH geochemical surveys completed in November 2023. Six (6) targets have been selected for drill testing in the 2024 winter program, totaling approximately 1,200 metres of drilling. The historical data and the results of ALX's ground surveys on the 2023 exploration grid show important characteristics of the Project's potential to host uranium mineralization, which is demonstrated by the mineralization found in ALX's 2015 hole GC15-03 (0.13% U3O8 over 0.23 metres from 107.67 metres to 107.90 metres) and in Eldorado Nuclear's 1979 hole GC-15 (0.179% U3O8 over 0.13 metres from 134.11 to 134.24 metres) (see Figure 1).
Figure 1. Gibbons Creek Uranium Project 2024 Drilling Plan
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3046/199422_b802837394b30bdc_001full.jpg
The historical data review by ALX included the results from the following survey methods:
- DC resistivity surveys;
- Ground gravity survey;
- Ground electromagnetic surveys;
- Radon in soil survey;
- Digitized drill traces and the radiometric and geochemical results of historical drill holes by Famok (1969), Eldorado Nuclear (1979,1980), and ALX (2015).
About Gibbons Creek
Gibbons Creek consists of eight mineral claims comprising 13,864 hectares (34,259 acres) located along the northern margin of the Athabasca Basin (Figure 2).
Figure 2. Gibbons Creek Uranium Project Claims and Historical Exploration
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3046/199422_b802837394b30bdc_002full.jpg
The Project is located in a region that hosts numerous historical uranium occurrences, such as the Black Lake discoveries in several drill holes beginning in 2004, and the historical Nisto Mine, from which 500 tons of ore was shipped in 1950 to the historical Lorado Mill at Uranium City, SK, including 106 tons grading 1.6% U3O8 (Source: Saskatchewan Mineral Deposits Index, #1621). ALX holds an exploration permit for Gibbons Creek, good until October 2025, which allows for up to 20 diamond drill holes totaling approximately 5,000 metres, along with ground-based geophysics, prospecting, and geochemical sampling. Access to Gibbons Creek is via roads and trails that lead from the community of Stony Rapids, SK, which is connected to all-weather Highway 905, thereby creating flexibility for either summer or winter exploration programs. Stony Rapids has readily-available fuel, supplies and accommodations for field personnel, and an airport with daily flights to cities and towns in southern Saskatchewan.
To view maps and photos of Gibbons Creek, click here.
Statement of Qualified Person
Geochemical analyses on samples from ALX's 2015 drill hole described in this news release were carried out by SRC Analytical Laboratories in Saskatoon, Saskatchewan using Inductively-Coupled Plasma Optical Emission Spectrometry ("ICP") and Inductively-Coupled Plasma Mass Spectrometry ("ICP-MS") methods. Eldorado's 1979 geochemical analyses were carried out by accredited laboratories of that exploration era, which are believed to be reliable.
The technical information in this news release has been reviewed and approved by Robert Campbell, P.Geo., and Martin St-Pierre, P.Geo., each of whom are Qualified Persons in accordance with the Canadian regulatory requirements set out in National Instrument 43-101.
About ALX
ALX is based in Vancouver, BC, Canada and its common shares are listed on the TSX Venture Exchange under the symbol "AL", on the Frankfurt Stock Exchange under the symbol "6LLN" and in the United States OTC market under the symbol "ALXEF".
ALX's mandate is to provide shareholders with multiple opportunities for discovery by exploring a portfolio of prospective mineral properties in Canada, which include uranium, lithium, nickel-copper-cobalt and gold projects. The Company uses the latest exploration technologies and holds interests in over 240,000 hectares of prospective lands in Saskatchewan, a stable jurisdiction that hosts the highest-grade uranium mines in the world, a producing gold mine, diamond deposits, and historical production from base metals mines.
ALX's uranium holdings in northern Saskatchewan include 100% interests in the Gibbons Creek Uranium Project, the Sabre Uranium Project, the Bradley Uranium Project, and the Javelin and McKenzie Lake Uranium Projects, a 40% interest in the Black Lake Uranium Project (a joint venture with Uranium Energy Corp. and Orano Canada Inc.), and a 20% interest in the Hook-Carter Uranium Project, located within the uranium-rich Patterson Lake Corridor with Denison Mines Corp. (80% interest) as operator of exploration since 2016.
ALX also owns 100% interests in the Firebird Nickel Project, the Flying Vee Nickel/Gold and Sceptre Gold projects, and can earn up to an 80% interest in the Alligator Lake Gold Project, all located in northern Saskatchewan, Canada. ALX owns, or can earn, up to 100% interests in the Electra Nickel Project and the Cannon Copper Project located in historic mining districts of Ontario, Canada, and in the Vixen Gold Project (now under option to First Mining Gold Corp., who can earn up to a 100% interest in two stages.
ALX owns a 50% interest in eight lithium exploration properties staked in 2022-2023 collectively known as the Hydra Lithium Project, located in the James Bay region of northern Quebec, Canada, a 100% interest in the Anchor Lithium Project in Nova Scotia, Canada, and 100% interests in the Crystal Lithium Project and the Reindeer Lithium Project, both located in northern Saskatchewan, Canada.
For more information about the Company, please visit the ALX corporate website at www.alxresources.com or contact Roger Leschuk, Manager, Corporate Communications at: PH: 604.629.0293 or Toll-Free: 866.629.8368, or by email: rleschuk@alxresources.com
On Behalf of the Board of Directors of ALX Resources Corp.
"Warren Stanyer"
Warren Stanyer, CEO and Chairman
FORWARD-LOOKING STATEMENTS
Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this news release include: ALX's 2023 exploration results and 2024 exploration plans at the Gibbons Creek Uranium Project, ALX's ability to continue to expend funds on its mineral exploration projects, and the successful closing of the option earn-in transaction with Trinex Minerals Limited. It is important to note that the Company's actual business outcomes and exploration results could differ materially from those in such forward-looking statements. Risks and uncertainties include that ALX may not be able to fully finance exploration on our exploration projects, including drilling; our initial findings at our exploration projects may prove to be unworthy of further expenditures; commodity prices may not support further exploration expenditures; exploration programs may be delayed or changed due to any delays experienced in consultation and engagement activities with First Nations, Metis communities and local landowners in the region, and the results of such consultations; and economic, competitive, governmental, societal, public health, weather, environmental and technological factors may affect the Company's operations, markets, products and share price. Even if we explore and develop our projects, and even if uranium, lithium, nickel, copper, gold or other metals or minerals are discovered in quantity, ALX's projects may not be commercially viable. Additional risk factors are discussed in the Company's Management Discussion and Analysis for the Nine Months Ended September 30, 2023, which is available under the Company's SEDAR profile at www.sedar.com. Except as required by law, we will not update these forward-looking statement risk factors.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release