ALX is planning a helicopter-borne airborne survey at Electra in early 2021 to locate and define geophysical targets related to the many surface showings discovered by historical exploration, followed by ground-truthing of anomalies, the application of leading-edge geochemical surveys, and diamond drilling.
Details of the Acquisition
ALX has executed a definitive agreement (the “Agreement”) with a vendor group (“the Vendors”) to earn up to a 100% interest in one hundred and forty-eight (148) units totaling 3,168.02 hectares (7,828.35 acres), in exchange for total payments of $135,000 cash, 1.1 million common shares of ALX, and $500,000 in exploration expenditures (the “Expenditures”), according to the following schedule:
- A non-refundable $3,000 cash payment paid by ALX as a pre-option payment for an exclusive 45-day period during which ALX conducted due diligence on the Project (completed);
- On the later of TSX Venture Exchange (“TSXV”) approval and signing of the Agreement (such date becoming the “Anniversary Date”): $7,000 in cash and 300,000 common shares of ALX (paid);
- On or before 1st Anniversary Date: $15,000 in cash and 250,000 common shares of ALX, and $100,000 in Expenditures;
- On or before 2nd Anniversary Date: $20,000 in cash and 200,000 common shares of ALX, and an additional $100,000 in Expenditures;
- On or before 3rd Anniversary Date: $25,000 in cash and 150,000 common shares of ALX, and an additional $100,000 in Expenditures;
- On or before 4th Anniversary Date: $30,000 in cash and 100,000 common shares of ALX, and an additional $100,000 in Expenditures;
- On or before 5th Anniversary Date: $35,000 in cash and 100,000 common shares of ALX, and an additional $100,000 in Expenditures.
Electra is subject to a 2.5% net smelter returns royalty (“NSR”) payable to the Vendors on the sale of valuable minerals from the Project. At any time, ALX shall have the right to purchase from the Vendors up to 1.5% of the NSR in 0.5% increments for $500,000 per 0.5% increment.
Electra lies within the western extension of the Abitibi-Wawa-Shebandowan subprovince of the Superior structural province of the Canadian Shield. The volcanic-sedimentary units of this belt are bounded to the south by granitic terrain, and to the north by the Quetico subprovince.
A major structural feature known as the Thunder Lake Fault striking northeast-southwest through Electra is traced through the property using airborne magnetic geophysics, and is interpreted as a lithospheric scale fault. This type of deep-seated structure is a requisite for the emplacement of mineralization from a magmatic source.
Historical exploration at Electra since the 1960s consisted of prospecting, soil sampling, trenching and limited geophysical and drilling programs, intermittently searching for nickel and gold mineralization. A 1995 drilling program by Winslow Gold Corp. intersected multiple zones of Ni-Cu-Co and zinc mineralization, including 16.6 metres of 0.15% nickel. At the Kwiatkowski Zone showing, ground prospecting located komatiitic rocks that returned values of up to 9,482 parts per million (“ppm”) nickel. The komatiites hosting the showing are notable for exhibiting spinifex textures associated with the nickel mineralization. Follow-up trenching and channel sampling of the komatiites by Linear Metals Corporation in 2008 returned a maximum value of 6,675 parts per million nickel over 3.7 metres.
National Instrument 43-101 Disclosure
This technical information 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 National Instrument 43-101. Readers are cautioned that much of the technical information described on this web page is historical in nature; however, the historical information is deemed credible and was produced by professional geoscientists in the years discussed.
Geochemical results quoted on this web page were taken directly from assessment work filings published by the Government of Ontario and other regulatory filings. Management cautions that historical results were collected and reported by past operators and have not been verified nor confirmed by its Qualified Person, but create a scientific basis for ongoing work in the Electra property area. Management further cautions that past results or discoveries on adjacent or nearby mineral properties are not necessarily indicative of the results that may be achieved on ALX’s mineral properties.