ALX Resources Corp. Announces Definitive Option Agreement with Trinex Minerals for the Gibbons Creek Uranium Project, Athabasca Basin, Saskatchewan
ALX Resources Corp. has announced a definitive option agreement with Trinex Minerals for the Gibbons Creek Uranium Project in Saskatchewan. Trinex Canada can earn an initial 51% interest and up to 75% in the project over five years by making payments and exploration expenditures. ALX initiated a diamond drilling program in March 2024, with promising uranium mineralization results.
Opportunity for Trinex Canada to earn up to a 75% interest in the Gibbons Creek Uranium Project.
Promising uranium mineralization results from the recent drilling program.
Risks associated with the exploration activities and uncertainty of future results.
Potential delays or complications in meeting payment and expenditure obligations.
Vancouver, British Columbia--(Newsfile Corp. - May 8, 2024) - ALX Resources Corp. (TSXV: AL) (FSE: 6LLN) (OTC: ALXEF) ("ALX" or the "Company") is pleased to announce the execution of a definitive agreement (the "Definitive Agreement") for an option earn-in transaction (the "Transaction") on its
Details of the Option Earn-In Transaction
Trinex Canada can earn an initial
Option Stages | Cash Payments (CAD) | Value of Share Payments (CAD) | Annual Exploration Expenditures (CAD) | Participating Interest Earned by Trinex |
Upon signing the Letter Agreement (Feb/2024) | - | - | - | |
Upon signing the Definitive Agreement (the "Effective Date", May 7/2024) | - | - | ||
On or before 1st Anniversary of the Effective date | - | |||
On or before 2nd Anniversary of the Effective date | - | |||
On or before 3rd Anniversary of the Effective date | ||||
On or before 4th Anniversary of the Effective date | - | |||
On or before 5th Anniversary of the Effective date | ||||
TOTALS |
1,2 Star Minerals Group Ltd. ("SMG") has underlying rights under a Mineral Property Option Agreement dated November 5, 2013 (the "SMG Agreement") to buy-back a
To satisfy the initial payment terms of the Definitive Agreement, Trinex Canada has paid ALX a total of CAD
If Trinex Canada meets its payment and expenditure obligations in relation to the initial option interest, it may elect by written notice to receive a
Trinex also holds the right to elect to earn an additional
Where payments are to be made in shares, the number of shares will be determined by reference to the 10-trading day volume weighted average price (or "VWAP") of Trinex Minerals Limited ordinary shares up to the end of the business day before the date of issue.
The timing by which Trinex Canada must incur the minimum exploration expenditures will be extended in circumstances where Trinex Canada is prevented from undertaking work and activities on the Project due to encountering any force majeure events.
Trinex Canada may withdraw from the Initial Option Interest or Second Option Interest at any time. If Trinex Canada withdraws after earning a
2024 Exploration Program
In March 2024, ALX initiated a diamond drilling program at the Project and completed five holes totaling 905.4 metres (see Figure 1). Under the terms of the Definitive Agreement, Trinex Canada will assume operatorship of exploration at Gibbons Creek and will reimburse ALX for the costs of the 2024 program, which totalled approximately CAD
Four of the five 2024 drill holes intersected uranium mineralization at or near the unconformity, based upon hand-held scintillometer readings on drill core, downhole gamma probe results, and visual observation of uranium minerals by ALX's geological team (see ALX's news release dated April 25, 2024). Core samples were shipped to Saskatchewan Research Council Geoanalytical Laboratories in Saskatoon, SK for geochemical analysis. Results will be released after their receipt, compilation and interpretation.
Figure 1. Gibbons Creek Uranium Project: 2024 Drilling Plan
To view an enhanced version of this graphic, please visit:
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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.
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
ALX carried out a comprehensive review of Gibbons Creek historical exploration data and integrated that information with the high-resolution magnetic and Soil Gas Hydrocarbon (or "SGH") geochemical surveys completed in November 2023.
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).
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 (
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 Activation Laboratories in Ancaster, Ontario using Inductively-Coupled Plasma Mass Spectrometry ("ICP-MS") methods on both partial and total digestions. Eldorado's 1979 geochemical analyses were carried out by Bondar-Clegg & Company Ltd. Laboratories, Ottawa, Ontario using Atomic Absorption, Colormetric, Fluorometric and XRF methods, which were standard methods of that exploration era.
The technical information in this news release has been reviewed and approved by Robert Campbell, P.Geo., who is a Qualified Person 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
ALX also owns
ALX owns a
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 2023-2024 exploration plans and preliminary results at the Gibbons Creek Uranium Project, ALX's ability to continue to expend funds on its mineral exploration projects; the reimbursement by Trinex Canada for expenditures ALX has incurred for the 2024 exploration program; the payments, share issuances and expenditures to be made or incurred by Trinex Canada pursuant to the Definitive Agreement and the timing thereof. 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, and that Trinex Canada may not exercise its option(s) pursuant to the Definitive Agreement. 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 Year Ended December 31, 2023, which is available under the Company's SEDAR profile at www.sedarplus.ca. 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
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/208342
FAQ
What is the agreement between ALX Resources Corp. and Trinex Minerals for?
How can Trinex Canada earn interest in the project?