ALX Uranium Corp. (“ALX” or the “Company”) (TSXV: AL; FSE: 6LLN; OTC: ALXEF) is pleased to announce that it has received an exploration program and budget from Orano Canada Inc. (“Orano”) for a diamond drilling program at the Close Lake Uranium Project (“Close Lake”, or the “Project”) located in the eastern Athabasca Basin area of northern Saskatchewan, Canada. Close Lake is situated between the Cigar Lake and McArthur River mines, the two highest-grade uranium mines in the world.
ALX has signed a binding option agreement (the “Agreement”) for Close Lake with Orano, a subsidiary of Orano Group, France, a world leader in the nuclear marketplace, whereby ALX can earn up to a 51% participating interest in the Project (see ALX news release dated April 23, 2019). Orano, as operator, holds a 74.4004% interest in a joint venture at Close Lake with Cameco Corporation (“Cameco”) (TSX: CCO) holding a 14.9849% interest, and JCU (Canada) Exploration Company Ltd. (“JCU”) holding the remaining 10.6147% interest. The execution of the Agreement follows the non-binding letter of intent signed in February 2019 with Orano and confirms a five (5) year deal with ALX funding exploration expenditures for a total amount of $12.0 million and issuing 10,000,000 common shares of ALX to Orano.
2019 Drilling Program
Orano, as operator of exploration, has received approval from the Close Lake joint venture partners for a helicopter-supported diamond drilling program in the northern part of the Project of approximately 3,000 metres in up to four holes at an estimated cost of $1.1 million. The proximity of the Cigar Lake mine property infrastructure (approximately 10 kilometres from the northern boundary of the Project) as a staging area for personnel and equipment is expected to provide improved cost efficiency for a helicopter-supported drilling program. Drilling is planned to commence on or about the second week of September 2019 on highly-prospective target areas developed from Orano’s previous work at the Project.
Significant gaps in historical drilling remain along many of the defined conductor trends at Close Lake. The exploration strategy for the Project remains to test for unconformity-style uranium mineralization by ground-truthing conductor locations by geophysical means, fence drilling of geological targets, and drilling unexplored and underexplored conductors that demonstrate favourable characteristics for uranium mineralization. Click here to view maps of the Project.
About Close Lake
Close Lake consists of 21 mineral claims totaling 38,679 hectares (95,578 acres). Numerous uranium and base metals showings have been discovered from historical drilling by a joint venture first established in 1978. The eastern boundary of the Project adjoins the Cigar Lake uranium mine property and its southern boundary adjoins the McArthur River uranium mine property. Two licensed uranium mills are located in the eastern Athabasca Basin area. Close Lake is accessible by winter trail from Cigar Lake and Points North Landing, each of which has all-weather road access and nearby infrastructure, including airports.
Historical drilling at Close Lake totals approximately 110,049 metres in 170 drill holes. Uranium mineralization has been intersected at or near the unconformity between the Athabasca sandstone and basement rock units, often graphitic, with associated base metals values and rare gold occurrences at downhole depths ranging between 463 metres and 682 metres.
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 including 11.46% U3O8 over 2.5 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.
The grades, widths and lithologies encountered in the drilling to date provide compelling evidence that Close Lake could host a mineralizing system similar to those previously found within the Wollaston Belt, which has produced over 900 million pounds of U3O8 during the past four decades.
NI 43-101 Disclosure
The technical information in this news release was reviewed and approved by Sierd Eriks, P. Geo., President and Chief Geologist of the Company, who is a Qualified Person in accordance with the Canadian regulatory requirements set out in National Instrument 43-101. Readers are cautioned that some of the technical information described in this news release is historical in nature; however, the information is deemed credible and was produced by professional geologists of the eras discussed. ALX further cautions investors that it has reviewed but has not verified all of the historical Close Lake exploration data, and that mineralization located on adjacent properties by historical exploration may not be present at the Project.
ALX’s mandate is to provide shareholders with multiple opportunities for discovery by exploring a portfolio of prospective mineral properties in northern Saskatchewan, Canada, a superior mining jurisdiction. The Company executes well-designed exploration programs using the latest technologies and has interests in over 200,000 hectares in Saskatchewan, a Province which hosts the richest uranium deposits in the world, a producing gold mine, and demonstrates potential for economic base metals deposits. 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”. Technical reports are available on SEDAR at www.sedar.com for several of the Company’s active properties.
For more information about the Company, please visit the ALX corporate website at www.alxuranium.com or contact Roger Leschuk, Manager, Corporate Communications at PH: 604.629.0293 or Toll-Free: 866.629.8368, or by email: email@example.com
On Behalf of the Board of Directors of ALX Uranium Corp.
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 the Company’s plans to undertake exploration activities at the Close Lake Project (“Close Lake”), and expend funds on Close Lake. 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 our intended participation at Close Lake; our other mineral exploration projects in the Athabasca Basin may prove to be unworthy of further expenditure; and economic, competitive, governmental, environmental and technological factors may affect the Company’s operations, markets, products and prices. Additional risk factors are discussed in the Company’s Management Discussion and Analysis for the Six Months Ended June 30, 2019, which is available under 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.