Tuesday 22nd October 2019

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Posts tagged ‘ALX Uranium Corp (AL)’

Chris Berry takes a closer look at uranium

April 13th, 2016

by Greg Klein | April 13, 2016

How does one explain such a compelling story coinciding with such delinquent price performance? Chris Berry examines this peculiar yellow metal from a number of perspectives in his latest Zimtu Research report. Along the way readers gain a clear overview of nuclear energy, near- and long-term supply and demand, mining methods and jurisdictional risk, among other topics.

His SWOT analysis notes recent Asian investments in Fission Uranium TSX:FCU and ALX Uranium TSXV:AL that “demonstrate significant interest in developing future supply in Canada.”

Once again Berry applies his clarity and insight to a highly informative, readable report.

Download A Closer Look at Uranium.

See more from Zimtu Research.

ALX Uranium reports highly anomalous radon at Lazy Edward Bay

April 7th, 2016

by Greg Klein | April 7, 2016

Successful financings and a prospective portfolio distinguish ALX Uranium TSXV:AL with a steady news flow from five active Athabasca Basin projects this year. The company’s most recent announcement arrived April 7 from Lazy Edward Bay, where strong radon-in-water results near an historic hole will help ALX narrow down drill targets. This follow-up survey took 143 samples over an area of 1,400 by 450 metres on the 18,916-hectare property. Work was conducted by RadonEx Ltd, whose technology helped select drill targets for Fission Uranium’s (TSX:FCU) Triple R deposit.

Straddling the Athabasca Basin’s southeastern rim, the highway-accessible Lazy Ed lies about 55 kilometres from the Key Lake mill.

ALX Uranium reports highly anomalous radon at Lazy Edward Bay

Results show eight one-point samples with highly anomalous readings of 100 picocuries per litre. Four of the samples surpassed 200 pCi/L. The results showed up approximately 200 metres northeast of historic hole LE-50, which returned basement uranium grading 908 ppm U3O8 over 0.3 metres, along with boron, nickel and other pathfinders.

“Many of the anomalous samples appear to lie along a northeast-striking linear trend in the central portion of the grid which overlies historic conductors,” ALX noted.

Electromagnetic surveys in 2005 and 2007 confirmed the conductors, while further support came from geochem and radon work in 2014 and 2015, all of which helps pinpoint high-priority drill targets.

“Given the proximity of the highly anomalous radon samples to historic drill hole LE-50, which was never followed up with drilling along strike, the results of this radon survey demonstrate the significant exploration potential at Lazy Edward Bay,” commented president Jon Armes.

With one of Saskatchewan’s largest and most highly prospective uranium portfolios, ALX has five projects scheduled for exploration this year. Last week the company announced gravity anomalies pointing to prime drill targets at the western Basin’s Gorilla Lake project, where ALX holds an 80% option.

One week earlier came geophysical confirmation of multiple basement conductors at ALX’s Hook-Carter, a 16,461-hecatre property that covers extensions of three known conductive trends. Hook-Carter sits in the southwestern Basin region that hosts Fission’s Patterson Lake South, NexGen Energy’s (TSXV:NXE) Arrow deposit and Bow zone, and the Purepoint Uranium TSXV:PTU/Cameco Corp TSX:CCO/AREVA Resources Canada Spitfire discovery.

Cameco signed an agreement in February to buy ALX claims peripheral to Hook-Carter.

In mid-March ALX closed a $318,000 first tranche of a private placement from Holystone Energy, part of a strategic partnership in which Holystone would invest up to $750,000 on TSXV approval. Howard Haugom, Holystone’s nominee to the ALX board, has been appointed an adviser until the company’s AGM. The former Simon Fraser University economics professor co-owns a national retail chain and is a partner in the private equity firm Burkehill Capital.

Gorilla Lake gravity helps ALX Uranium define drill targets

March 30th, 2016

by Greg Klein | March 30, 2016

About 10 kilometres north of the Athabasca Basin’s former Cluff Lake mine complex, ALX Uranium TSXV:AL has wrapped up a round of geophysics over its Gorilla Lake project. While final interpretation continues, early analysis suggests gravity lows present “prime targets for drilling,” the company announced March 30.

Gorilla Lake gravity helps ALX Uranium define drill targets

Initial results from last February’s ground gravity work showed one gravity low that could be attributed to a topographical feature, another on the west side of Gorilla Lake and a third striking northeast-southwest that coincides exactly with a “magnetic button,” the company stated.

Further gravity work in March showed a large northeast-trending gravity low west of the lake. The company considers the anomalies west of the lake and over the magnetic button to be prime drill targets. Further ground electromagnetic surveys prior to drilling would better define the conductive trends in both areas.

ALX holds an 80% option on the 7,552-hectare project in a joint venture with Logan Resources TSXV:LGR. Gorilla Lake comprises one of three JVs in ALX’s Cluff Lake properties adjacent to the former Cluff Lake mine, which produced over 62 million pounds of U3O8 over 22 years. Historic drill results from Gorilla include 0.46% U3O8 over 1.5 metres and 0.17% over seven metres. Gorilla is one of five ALX projects in the Basin slated for winter/summer exploration.

In the southwestern Basin’s Patterson Lake South region, geophysical surveys over ALX’s Hook-Carter project verified multiple basement conductors, the company reported last week. The complexity of the conductors requires additional DC resistivity and gravity surveys prior to drilling.

In February Cameco Corp TSX:CCO signed an agreement to buy ALX claims peripheral to Hook-Carter.

Two weeks ago ALX closed a first tranche of $318,000, part of a strategic partnership in which Holystone Energy would buy 12.5 million shares for $750,000 and retain the right to maintain its ownership level for three years.

ALX Uranium confirms multiple conductors at PLS-region Hook-Carter project

March 23rd, 2016

by Greg Klein | March 23, 2016

ALX Uranium confirms multiple conductors at PLS-region Hook-Carter project

ALX Uranium found two complex models of multiple conductors at the A1 and W1/W2 areas.

 

Initial geophysical results verify multiple basement conductors on the Hook-Carter project, ALX Uranium TSXV:AL reported March 23. Analysis shows one area (W1/W2 on the map) hosting at least six conductors within a 2.5-kilometre width and another area (A1) of at least three conductors within a 1.5-kilometre width.

Results come from an airborne and ground sub-audio magnetic transient electromagnetic (HeliSAM TEM) survey over two of the project’s three conductive corridors. The complexity of the conductors calls for additional surveys such as DC resistivity and gravity to better define drill targets, ALX noted. Meanwhile study continues on the current data for final interpretation.

ALX Uranium confirms multiple conductors at PLS-region Hook-Carter project

The 16,461-hecatre property covers northeastern extensions of three known conductive trends, the Carter, Derkson and Patterson corridors. Historic and recent exploration has already identified drill targets on two of them. Depending on weather, ALX plans up to two holes on the Patterson corridor and two more along Derkson, still the project’s most advanced exploration target.

Patterson hosts Fission Uranium’s (TSX:FCU) Triple R deposit and three additional zones now stretching 2.58 kilometres along strike at Patterson Lake South. That prolific corridor also hosts the Athabasca Basin’s largest undeveloped resource at NexGen Energy’s (TSXV:NXE) Arrow deposit, as well as NexGen’s Bow zone and the Spitfire discovery at the Hook Lake JV of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada.

The discoveries took place along an approximately 14-kilometre-long section of the Patterson corridor, about 8.5 kilometres to 22 kilometres southwest of Hook-Carter.

Last week ALX closed a $318,000 private placement first tranche, part of a strategic partnership with Holystone Energy. Pending approvals, Holystone will buy a total of 12.5 million shares for $750,000 and retain the right to participate in future financings for three years to maintain its ownership level.

Holystone’s nominee to the board of directors, Howard Haugom, has been appointed an ALX adviser until the company’s AGM. A former economics professor at Vancouver’s Simon Fraser University, Haugom co-owns a national retail chain and is a partner in the private equity firm Burkehill Capital.

In January ALX announced winter/summer exploration plans for four other Basin properties, as well as Hook-Carter.

Last month Cameco signed a purchase agreement for ALX claims peripheral to Hook-Carter.

ALX Uranium president/CEO Jon Armes comments on Cameco’s purchase of claims peripheral to ALX’s Hook-Carter project

March 21st, 2016

…Read more

ALX Uranium prepares for southwestern Athabasca Basin geophysics and drilling

March 9th, 2016

by Greg Klein | March 9, 2016

ALX Uranium prepares for southwestern Athabasca Basin geophysics and drilling

A map shows ALX’s targets in relation to the uranium
discoveries of Saskatchewan’s southwestern Athabasca Basin region.

 

The prolific Patterson corridor gets additional attention as ALX Uranium TSXV:AL readies a new campaign for its Hook-Carter property. The corridor hosts seven discoveries in the southwestern Athabasca Basin area including the Triple R deposit, as well as the R1620E, R600W and R840W zones of Fission Uranium’s (TSX:FCU) Patterson Lake South, the Arrow deposit and Bow zone of NexGen Energy’s (TSXV:NXE) neighbouring Rook 1, and the Spitfire discovery at the Purepoint Uranium TSXV:PTU/Cameco Corp TSX:CCO/AREVA Resources Canada JV’s Hook Lake. The Patterson corridor extends at least 12.7 kilometres northeast, running through ALX’s Hook-Carter property. Hook-Carter also hosts the Carter and Derkson conductive corridors running parallel on each side of Patterson.

The Patterson discoveries show predominately basement-hosted uranium associated with gravity low or resistivity geophysical anomalies, electromagnetic conductors and in some cases highly anomalous radon geochemistry, features that can help guide further exploration, ALX pointed out.

ALX Uranium prepares for southwestern Athabasca Basin geophysics and drilling

Extending 5.8 kilometres along the Hook-Carter property, Derkson has previously undergone airborne gravity, magnetics, MegaTEM and VTEM, as well as ground resistivity and TDEM surveys. An historic hole on the corridor about 10 kilometres southwest of Hook-Carter assayed 0.24% U3O8 over 2.5 metres in basement rocks.

The Carter corridor has undergone less activity, but historic work included airborne MegaTEM and VTEM surveys.

Over the next few weeks ALX plans an advanced airborne and ground sub-audio magnetic transient EM (HeliSAM TEM) survey to further explore the parallel conductors. “The survey configuration combines the cost-effective capabilities of an airborne system to survey large areas with the precision and high power of a more expensive ground loop EM system,” the company stated.

Weather permitting, ALX also plans to drill up to two holes along the Patterson corridor and another two along Derkson, the project’s most advanced exploration target.

The news comes one day after the company announced a strategic partnership with Holystone Energy Company. Pending approvals, Holystone will buy 12.5 million shares at $0.06 for $750,000 and appoint a director to ALX’s board. Holystone would also have the right to take part in future financings for three years to maintain its pro-rata ownership.

Two weeks earlier ALX announced Cameco signed a purchase agreement for claims peripheral to Hook-Carter.

Arrow hits uranium bullseye

March 3rd, 2016

But NexGen Energy’s already pushing for an H2 resource update

by Greg Klein

But NexGen Energy’s already pushing for an H2 resource update

Fast-paced progress has distinguished NexGen’s
Rook 1 project since the Arrow discovery.

A maiden resource showing the Athabasca Basin’s largest undeveloped uranium deposit comes barely two years after NexGen Energy TSXV:NXE discovered the Arrow zone on its Rook 1 property. And CEO Leigh Curyer anticipates more good news as soon as this winter’s assays arrive. Hence an update’s anticipated later this year and a further milestone—possibly going straight to pre-feasibility—seems likely for 2017. With an inferred 201.9 million pounds U3O8, a grade 26 times the global average and $31 million to spend, this company’s not wasting any time.

Although considerably deeper and so far limited to the inferred category, Arrow outnumbers Fission Uranium’s (TSX:FCU) neighbouring Patterson Lake South for tonnage, grade and pounds.

With a 0.25% cutoff, NexGen provided separate numbers for four stacked shear structures, one of them bursting with a stupendous high-grade area.

  • A1 shear: 380,000 tonnes averaging 0.5% for 4.2 million pounds U3O8
  • A2: 1.48 million tonnes averaging 0.85% for 27.6 million pounds
  • A2 high grade: 410,000 tonnes averaging 13.26% for 120.5 million pounds
  • A3: 1.13 million tonnes averaging 1.9% for 47.3 million pounds
  • A4: 80,000 tonnes averaging 1.35% for 2.3 million pounds

  • Total: 3.48 million tonnes averaging 2.63% for 201.9 million pounds

The report bases its numbers on 59,796 metres completed by last October, in which 80 of 82 holes hit mineralization. Currently 645 metres in strike, the resource has a lateral width of 235 metres. It begins 100 metres below surface, just below the unconformity, and extends 820 metres vertically. The deposit remains open in all directions.

The 0.25% cutoff compares to a global average mine grade of 0.1% and, as Curyer emphasized in his March 3 conference call, remains “incredibly robust under any measure of analysis.” Even at a 10% cutoff, Arrow would have 101.3 million pounds, according to data provided.

By comparison, Fission’s September 2015 PLS update used a 0.2% open pit cutoff and 0.25% underground cutoff, showing:

  • indicated: 2.01 million tonnes averaging 1.83% for 81.11 million pounds U3O8

  • inferred: 785,000 tonnes averaging 1.57% for 27.16 million pounds

The first and most advanced of the discoveries, PLS reached its preliminary economic assessment last September. But Curyer boasts of having the southwestern Basin’s “most dominant land position … covering all nine uranium-bearing conductive corridors in the region.” Running through Arrow are nine kilometres of the Patterson corridor, which also hosts Rook 1’s Bow discovery, 3.7 kilometres northeast along strike of Arrow, and Fission’s PLS. Some other companies working the corridor include Cameco Corp TSX:CCO, ALX Uranium TSXV:AL and a joint venture of Cameco, AREVA Resources Canada and Purepoint Uranium TSXV:PTU, which discovered the Spitfire zone.

But NexGen Energy’s already pushing for an H2 resource update

NexGen claims “some of the best drill intercepts
on a grade/thickness basis ever publicly recorded.”

Like PLS, Arrow sits within basement rock, where development would presumably avoid any Cigar Lake-type adventures. But Arrow’s “uniquely 100% land-based,” Curyer points out.

Although obviously proud of this achievement, Curyer repeatedly emphasized there’s more to come. Preliminary results from the 30,000-metre winter program show some of Arrow’s highest radioactivity and have already added another 25 metres in strike.

The resource is “effectively going to be out of date as soon as those assays are returned,” he enthuses. “It’s blown that high-grade domain wide open and that’s why we’re already expecting to do an updated resource in the latter half of 2016.”

The property’s currently under attack by six rigs. Three focus on delineation, two others seek possible Arrow extensions to the northeast and southwest, while another searches for separate zones along the northeast-southwest corridor.

Apart from the “unprecedented speed” of just two years to build the Basin’s third-largest deposit (after the McArthur River and Cigar Lake operations), NexGen said the resource “truly sets one for the record books in terms of cost of discovery”—about 13 cents a pound U3O8.

“Throughout history there have been a discrete number of Tier 1 discoveries across the various commodities worldwide which have occurred during downturns or flat commodity price environments,” Curyer said. “These discoveries have demonstrated significant value creation and kick-started a sustained quality of investment environment for the entire resources sector.” Rook 1, he maintains, holds “potential to join that exclusive club.”

The Hook-Carter claims

February 25th, 2016
Cameco bolsters its PLS presence as ALX Uranium tightens its land position

Before-and-after maps show geographical advantages to both Cameco and ALX Uranium.

The high-grade camp

February 25th, 2016

Cameco bolsters its PLS presence as ALX Uranium tightens its land position

by Greg Klein

Renewed interest in the southwestern Athabasca Basin area’s Patterson Lake South camp comes from Cameco Corp TSX:CCO, as the giant signs a purchase agreement with ALX Uranium TSXV:AL. The merchandise consists of 27 claims totalling 7,064 hectares peripheral to ALX’s Hook-Carter property. That leaves ALX with a more closely consolidated PLS camp position of 16,461 hectares.

Cameco bolsters its PLS presence as ALX Uranium tightens its land position

Most of the vended claims are isolated from Hook-Carter’s main contiguous block, states ALX’s February 25 announcement. They also “include a small, northeastern portion of the main block, covering ground with depths to the unconformity much deeper than the main parts of the property where ALX intends to focus its exploration.”

The development might portray Cameco in an acquisitive mood, following the previous day’s news that the company had optioned 60% of CanAlaska Uranium’s (TSXV:CVV) West McArthur project in the eastern Basin.

ALX president/CEO Jon Armes says the Hook-Carter transaction benefits both parties. ALX gets $170,000 and, on some claims, a 1% net refining returns royalty that can be reduced to 0.25% by paying ALX $750,000. Other claims have a 2% NRR reducible to 1% for $500,000. Cameco, he says, gets to “tidy up its land position” in the PLS area, making concerted exploration more viable.

“A lot of that ground is 600-plus metres to the unconformity,” Armes points out. “When you start drilling 1,000-metre holes at $400 a metre, that’s quite a costly endeavour for a junior. When you’ve got little bits and pieces, you’re not typically going to drill a 16-hectare piece when you’re surrounded by Cameco.”

The sale “provides ALX with some significant hard dollars, certainly more than we paid in our staking and other costs, and we maintain a small underlying royalty,” he adds. “The chance of Cameco making a discovery northeast of us would only benefit us.”

Cameco bolsters its PLS presence as ALX Uranium tightens its land position

Before-and-after maps show geographical advantages to
both Cameco and ALX Uranium. Click for a larger view.

ALX retains land covering the Patterson corridor, hosting three attention-grabbing projects, as well as the parallel Carter and Derkson corridors. Winter plans currently under evaluation include ground electromagnetics to define deep conductors and possibly drilling, Armes says.

Encouraging news continues from the camp’s standouts, Fission Uranium’s (TSX:FCU) Patterson Lake South, NexGen Energy’s (TSXV:NXE) Arrow zone and Bow discovery, and the Cameco/AREVA Resources Canada/Purepoint Uranium TSXV:PTU Spitfire zone.

Fission’s $7.9-million, 39-hole, 13,000-metre winter program aims to expand the Triple R deposit and do some exploration too. On the latter front, one hole recently added 135 metres to the project’s potential strike, now consisting of five zones along a 2.47-kilometre trend. Three of the zones lie outside Triple R’s January 2015 resource. That estimate, showing 79.61 million pounds indicated and another 25.88 million pounds inferred at shallow depths, formed the basis of a September preliminary economic assessment envisioning PLS as potentially one of the world’s lowest-cost uranium mines.

In January Fission closed an $82.2-million strategic investment, giving a Chinese uranium trader nearly 20% of the company.

Next-door neighbour NexGen has six rigs drilling a 30,000-metre winter program on the Rook 1 project’s Arrow zone. Last month the company announced its best assay so far, 10% U3O8 over 78 metres, including 38.29% over 12 metres. The project’s previous record-holder was 9.72% over 35.5 metres.

Earlier this month came more superlatives—Arrow’s “most significant accumulations of massive pitchblende” and scintillometer results showing the project’s “most intense mineralization to date.”

More recently NexGen added 25 metres to Arrow’s strike, now 670 metres with a lateral width of up to 235 metres and mineralization ranging from depths of 100 metres to 920 metres. The zone remains open in all directions and at depth. NexGen plans Arrow’s maiden resource for H1 release.

The company closed a $21-million bought deal in December, following last May’s $23.74-million private placement.

At Spitfire, project operator Purepoint announced an expansion to the mineralized area early this month with a 130-metre stepout that returned 0.67% eU3O8 over 10.1 metres, including 9.2% over 0.6 metres. Results came from a downhole probe that measures uranium oxide-equivalent. The winter schedule calls for at least 14 holes and 6,000 metres. Purepoint holds a 21% stake in the joint venture, with big guys Cameco and AREVA sharing the rest. Purepoint ended last year by closing a $204,000 private placement.

Looking at the Basin’s opposite side, ALX also announced assay results from last fall’s seven-hole, 1,005-metre campaign at Gibbon’s Creek. Although significant radioactivity failed to materialize, anomalous uranium (up to 297 ppm), nickel, copper and boron came from the basement near a previous hole that showed strongly anomalous geochemical pathfinders. ALX will evaluate further exploration after integrating drill results with regional and property-scale data.

With Hook-Carter now under consideration for ground EM and a possible drill program, the company last month announced exploration plans for four other projects. On the agenda are ground gravity for Gorilla Lake and Perch, a radon-in-lake survey for Lazy Edward Bay and ground EM for Newnham Lake. ALX holds one of the Basin’s largest uranium portfolios.

Late last month the company closed tranche two of a private placement totalling $358,500.

ALX Uranium announces exploration plans for five Athabasca Basin properties

January 21st, 2016

by Greg Klein | January 21, 2016

Holding one of the Athabasca Basin’s largest and most prospective portfolios keeps ALX Uranium TSXV:AL busy on multiple fronts. On January 21 the company announced winter/summer plans for five projects.

The Hook-Carter property sits on three conductive corridors in the southwestern Basin, within 10 kilometres along strike with the superlative discoveries at Patterson Lake South, Rook 1 and Spitfire, held respectively by Fission Uranium TSX:FCU, NexGen Energy TSXV:NXE and Cameco Corp TSX:CCO/AREVA Resources Canada/Purepoint Uranium TSXV:PTU. Once two separate projects, Hook-Carter came together in September when Lakeland Resources and Alpha Exploration combined to form ALX. Previous work on the 23,265-hectare property included four drill holes as well as airborne electromagnetic and gravity surveys. The project’s now slated for a ground moving loop time domain EM survey to define deep conductors.

ALX Uranium announces exploration plans for five Athabasca Basin properties

Still to come are results from last month’s drill campaign at Gibbon’s
Creek, another active ALX Uranium project in the Athabasca Basin.

Farther north, about 10 kilometres from the past-producing Cluff Lake mine, Gorilla Lake gets a ground gravity survey over northeast and southwest extensions along strike of a conductive trend where basement-hosted uranium was found in 2008. ALX holds an 80% option on the 7,552-hectare project, a joint venture with Logan Resources TSXV:LGR.

Straddling the Basin’s southeastern margin and near the Cable Bay shear zone, Lazy Edward Bay has a radon-in-lake survey scheduled to extend a 2014 survey. Past work on the 26,375-hectare property found two boulders grading 537 ppm and 896 ppm U3O8, along with anomalous levels of pathfinder elements. Two nearby soil samples returned uranium values of 13.7 ppm and 14.8 ppm.

On the Basin’s northeastern margin, the Perch property will undergo ground gravity over a four-kilometre-long conductor and coinciding magnetic low. Perch features easy access from the nearby community of Stony Rapids.

Just east of Perch, Newnham Lake gets a ground moving loop time domain EM survey to define conductive targets in the southwestern area of the 24,544-hectare property. Results released in November showed a radon anomaly about 100 metres by 750 metres associated with a north-south trending fault that crosscuts a conductor and coincides with a gravity low. Less than a kilometre away, two historic holes showed basement uranium assays up to 0.27% U3O8 over 0.13 metres and 0.09% over 0.5 metres. Newnham features a 15-kilometre-long conductive trend that’s about 25 kilometres when accounting for folding.

Meanwhile results are pending from a December drill program of 1,000 to 1,500 metres at Gibbon’s Creek, another northern Basin project near Stony Rapids. The previous winter’s drilling returned 0.13% U3O8 over 0.23 metres within 333.8 ppm over 1.1 metres, starting at 106.8 metres in downhole depth. Uranium values also showed up in three other holes. Another found highly anomalous geochemical pathfinders at the edge of a large radon anomaly and gravity low.

To complement its existing treasury, ALX closed a $149,000 first tranche last month of a private placement offered two days earlier at up to $355,000. “The company continues to evaluate three high-priority targets for follow-up diamond drilling this winter,” ALX stated.