Falcon Nickel Project

The Falcon Nickel Project (“Falcon”) is comprised of 67 claims owned 100% by ALX totaling 20,002 hectares (49,427 acres) that are prospective for nickel, copper and cobalt (“Ni-Cu-Co”) mineralization, located in the northern Athabasca region of Saskatchewan. Falcon hosts a magmatic nickel-sulphide mineralizing system that has been underexplored by modern methods until its acquisition by ALX.

The centre of Falcon is located approximately 18 kilometres (11.2 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”). However, no exploration was carried out from 2007 to 2019 until ALX acquired its claims by staking and subsequent purchase in 2019.

2020 Summer/Fall Surface Exploration Plans

On June 29, 2020, ALX announced the commencement of a prospecting and geological mapping program at Falcon and its contiguous 100%-owned Gibbons Creek Project (“Gibbons Creek”). Exploration is planned to consist of ground follow-up on historical airborne electromagnetic (“EM”) anomalies present at Falcon and detailed investigation of a gold and platinum group elements (“PGE”) showing discovered near Falcon in 2014 by a predecessor company of ALX. ALX’s field personnel on site are observing best practices for COVID-19 prevention in order to carry out a safe and successful exploration program.

The highest-priority target areas for the 2020 prospecting program are as follows:

  • Helicopter-supported prospecting of the surface trace of several EM anomalies interpreted as possible sulphide targets, which were identified by airborne EM surveys flown in 1991 and 2005 at Falcon. Outcrop sampling is planned along certain strong, “late-time” conductors that were not followed up for over a decade until ALX’s exploration began in 2019. Some of the conductive targets seen in the 2005 VTEMTM survey were simply not detected by earlier airborne survey methods that had limited depth penetration of less than 100 metres;
  • The JJ Gold showing (“JJ”), discovered in the southern part of the Project by Noranda Exploration Company, Limited in 1991. Ground follow-up along strike of an airborne EM conductor (re-interpreted by ALX as having a 1,000 metre strike length) led to the discovery of a gossanous outcrop described as a possible iron formation-style gold occurrence. Fourteen of sixteen grab samples taken from the outcrop proved to be anomalous for gold, ranging from 50 parts per billion (“ppb”) gold to 1,430 ppb (1.43 grams/tonne) gold. Follow-up work was recommended but was not carried out. ALX plans to use a small, hand-held diamond drill for sampling fresh rock below the weathered surface of the gossan in order to gain a better understanding of the gold potential at JJ;

Testing of portable outcrop drill

Test core from outcrop drill

  • The Star Gold and PGE showing (“Star”) at Gibbons Creek is located on the southern shore of the Fond du Lac River about 1.0 kilometer west of Stony Rapids and was discovered in 2013 by Lakeland Resources Inc., a predecessor company of ALX. Initial sampling returned gold and PGE values from regolith and outcrop ranging up to 5.7 grams/tonne gold, 389 ppb palladium, and 358 ppb platinum (see Sample #77947 and Sample #98942, Lakeland Resources Inc., 2013-2014, SMDI 5897). Star became the subject of geological mapping in 2016 by the Saskatchewan Geological Survey, specifically to investigate the occurrence of gold and PGE in an unexpected locale. ALX believes that Star may be part of an unrecognized regional mineralized system that is interpreted to lie within a significant northwest-trending fault zone that extends onto the Falcon property, and surface lineaments observed in satellite photos appear to extend northwest to JJ.

Winter 2020 Drilling Program

A site visit carried out by ALX in October 2019 at the Currie Lake deposit area confirmed grades in surface rock samples of up to 3.17% nickel and 0.40% copper from historical trenches, along with anomalous grades of cobalt, gold and platinum group metals. ALX has since identified drill targets at Currie Lake located deeper than the reported historical mineralized intersections. ALX’s geophysical modeling completed in February 2020 has revealed that the historical drilling at Currie Lake, last carried out in 1957 and 1965, overshot the highly-prospective anomalies defined by the recent geophysical modeling. Other prospective targets along the northern Currie Lake trend have been developed for ALX’s inaugural 2020 drilling program, which began on March 2, 2020.

Helicopter slinging drilling equipment to first Falcon drill site

On April 15, 2020 ALX announced analytical results from the 2020 winter drilling program at Falcon. Three holes were drilled for a total of 600 metres. Nickel-bearing sulphide mineralization was intersected in two of the three holes, which were designed to test geophysical targets developed by the Company.

2020 Exploration Program

Hole FN20-002 targeted a borehole electromagnetic (“BHEM”) anomaly carried out on the first hole of the program in the V-1 target area approximately 100 metres east of the historical Currie Lake deposit. Magmatic nickel sulphide mineralization was intersected from 47.03 to 70.81 metres, averaging 0.36% nickel and 0.09% copper over the 23.78 metre interval, including 10.61 metres of 0.55% nickel and 0.14% copper from 54.01 to 64.62 metres, and 2.05 metres of 0.90% nickel and 0.19% copper from 58.95 to 61.00 metres.

A detailed ground geophysical EM survey is recommended over the V-1 area in order to better resolve the strike, character and possible connections between the multiple conductors identified to date.

Hole FN20-003 targeted a 1,400 metre-long electromagnetic (EM) conductor first detected by a 2005 VTEM™ airborne survey, known as the V-3 target (“V-3”). In order to better define this conductor a ground EM survey was carried out, which defined two distinct conductive bodies, “V-3A” and “V-3B”. The V-3A conductor, which displayed modelled high conductance and a strike length of approximately 580 metres, was selected for drilling. The drill hole intersected stringer-type magmatic nickel sulphide mineralization in two narrow intervals, with a peak value of 0.13% nickel and 0.11% copper over 0.65 metres from 235.27 to 235.92 metres. A follow-up borehole electromagnetic (“BHEM”) survey was carried out and after reviewing the modelled BHEM data, ALX concluded that the targeted high-conductance body was not intersected and that the drill hole passed under the bottom edge of the body by approximately 10 metres.

Due to the possible encroachment of the COVID-19 epidemic into the Stony Rapids district, ALX suspended the winter drilling program in late March 2020. The drill was secured on-site at V-3 and drilling can be restarted at such time as ALX deems appropriate for the safety of its workers and the local communities.

Falcon drill site for FN20-001 and FN20-002

ALX geologist surveying drill hole location

2020 Geochemical Sampling Program

In January 2020, ALX completed a helicopter-supported Spatiotemporal Geochemical Hydrocarbon (“SGH”) survey from the surface ice of Konkol Lake, which is located over the eastern end of the Currie Lake East airborne conductor trace. ALX collected 45 lake sediment samples from a grid consisting of nine lines spaced 150 to 200 metres apart. Results from the SGH survey are expected in late February 2020 and will be integrated into the targeting matrix for ALX’s 2020 drilling program.

Lake Sediment Sampling on Konkol Lake, January 2020

Results of 2019 Geophysical and Geochemical Work

On January 16, 2020, ALX announced the results of a reconnaissance soil sampling program and a new geophysical interpretation study carried out on Falcon. The integration of the new exploration data with the known geology mapped at the Project has led to the definition of a compelling new target area for drilling in the winter of 2020.

The Currie Lake East (“CLE”) airborne conductor was modelled by Condor Consulting, Inc. of Lakewood, Colorado (“Condor”) as part of 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. The CLE conductor was first detected by a 2005 Versatile Time Domain Electromagnetic (VTEM) airborne survey, but the results were not processed with modern computer modelling techniques until ALX commissioned its 2019 study. Condor describes the CLE conductor as a deeper, late-time, high-priority EM conductor approximately 1.2 kilometres in length that is associated with a magnetic anomaly. This conductor is located approximately 4 kilometres north of the historic Axis Lake East nickel-copper-cobalt deposit and ranks as one of the most significant geophysical anomalies described in the Condor interpretation report to ALX.

In October 2019, ALX collected a total of 45 soil samples from a land-based grid aligned over the surface trace of the CLE conductor which were submitted to Activation Laboratories Ltd. (Actlabs) in Ancaster, Ontario for conventional and Spatiotemporal Geochemical Hydrocarbons (“SGH”) analysis. This initial soil survey program represents ALX’s first test of the SGH process, which is reported to detect buried mineralization at depths up to 500 metres. A nickel-copper anomaly was detected within the grid over the western end of the CLE conductor trace. According to the SGH report, the results could indicate the presence of a “Redox zone”, which may be associated with the presence of nickel-copper mineralization beneath this anomaly. The nickel and copper anomalies at Falcon directly coincide with one another, giving further confidence that this result might represent a surface indication of nickel-copper type mineralization.

2019 Reconnaissance Prospecting Program

On November 20, 2019, ALX announced additional analytical results from rock samples collected during a reconnaissance prospecting program in October 2019. Samples taken from historical trenches and from outcrops in the northern part of the Project returned values of up to 3.17% nickel and 0.402% copper, along with anomalous values of cobalt, gold, platinum and palladium.

In October 2019, ALX carried out a site visit with two objectives: (1) to sample historical trenches at the Currie Lake nickel-copper-cobalt deposit, known for its higher grades of nickel, and (2) ground truthing of certain geophysical anomalies identified in a 2005 airborne survey that were never followed up. Sixteen rock samples containing up to 50% to 60% sulphides were collected from three historical trenches, seven outcrop samples were collected near the surface traces of high-priority geophysical conductors, and 45 soil samples were collected over the surface trace of a conductor. The trench samples returned the higher nickel values and the results of the samples that returned over 1.0% nickel are shown in the table below:

Table 1 Additional Analytical Results of Falcon Nickel Project Surface Rock Samples

Falcon hosts three shallow magmatic nickel sulphide deposits, one of which, Axis Lake, can be seen from the air due to its distinctive gossanous (oxidized) appearance. ALX believes that the higher grades of nickel found at the northernmost Currie Lake deposit may represent the near-surface expression of a higher-grade section of the mineralizing system at Falcon. Through its geophysical review and modelling of historical airborne survey data, which is still underway, the Company is seeking to locate magmatic conduits and feeder systems that could represent the sources of the known deposits at the Project, and provide additional mineralized zones.

On November 12, 2019 ALX announced initial analytical results from a reconnaissance prospecting program at Falcon. Three of the rock samples were submitted on a rush basis to SRC Geoanalytical Laboratories in Saskatoon, SK, and returned the following values shown in Table 2 below:

Table 2. November 12 Analytical Results of Falcon Nickel Project Surface Rock Samples

2020 Exploration Programs

ALX has produced a preliminary 3D geologic model for Falcon, which is being expanded to better understand the controls on the known zones of nickel-copper-cobalt mineralization hosted by the Project.

ALX received an exploration permit for geophysical surveying and diamond drilling at Falcon and is currently developing drill targets for an exploration program for the winter of 2020.

Acquisition of the Falcon Nickel Project

  • On June 12, 2019, ALX announced its first acquisition of claims at Falcon totaling approximately 7,414 hectares (18,322 acres). 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 totaling approximately 5,064 hectares (12,513 acres) located in the historic Axis Lake area.
  • On October 24, 2019, ALX announced it had increased its land position at Falcon through a purchase agreement with an arm’s length vendor for a 100% interest in 9 additional claims totaling approximately 7,508 hectares (18,553 acres) located in the northern Axis Lake area, bringing ALX’s land position at Falcon to its current size of 20,002 hectares.

About the Falcon Nickel Project

Falcon is located approximately 20 kilometres southwest of ALX’s Flying Vee Nickel Project, and near recent staking by Kobold Metals, a private U.S. company exploring for energy metals. Of the three known deposits present on the property, Axis Lake is the most significant Ni-Cu-Co deposit within the Falcon area.

Axis Lake Deposit

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

Rea Lake 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).

National Instrument 43-101 Disclosure

The technical information on this web page has been reviewed and approved by Sierd Eriks, P.Geo., President and Chief Geologist of ALX, who is a Qualified Person in accordance with the Canadian regulatory requirements set out in NI 43-101. Readers are cautioned that the technical information described is historical in nature; however, the information is deemed credible and was produced by professional geologists in the years discussed.