Argo Project

The Argo project (“Argo”) consists of 3 claims totaling 6,975 hectares in the southwestern Athabasca Basin and cover a prospective area between the Company’s Kelic Lake Project to the west and Cameco Corporation’s Centennial uranium deposit and Dufferin uranium zone to the east. A high-sensitivity airborne radiometric survey flown by ALX in 2018 identified several areas of anomalous radioactivity, including certain spot anomalies that could represent the presence of radioactive boulders. Prospecting is being carried out to locate the radioactive anomalies using the ground coordinates provided by the 2018 airborne survey. In addition, Argo was the subject of airborne and ground geophysical surveys in the mid-2000s, which ALX re-interpreted in 2018 using new geophysical modeling programs that were not available at the time of the historical surveys. A new basement conductor was discovered through the modeling process and the anomalous radioactivity defined by the 2018 airborne survey shows that the strike area of the new conductor could represent a potential source area for uranium mineralization.

On November 9, 2021, ALX announced a transaction with Okapi Resources Ltd. ("Okapi") of Perth, Australia, where Okapi can purchase ALX's interest in Argo as part of a six-property transaction. Okapi is engaged in a 60-day due diligence period on the six properties that began on November 4, 2021.

Argo straddles the southern margin of the Athabasca Basin, where sandstone thickness is less than 250 metres, which is an ideal setting for locating radioactive boulders that may have been moved by glaciers from a near-surface source. In the Athabasca Basin, “boulder hunting” has led to the discovery of large uranium deposits, including the Midwest deposit and the Triple R deposit at Patterson Lake. In 2009, the joint venture of ESO Uranium Corp. (later Alpha Minerals Inc., a predecessor company of ALX) and Fission Energy Corp. employed the same Special Projects Inc. (“SPI”) airborne high-definition radiometric survey at Patterson Lake. The SPI system uses a powerful sensing crystal that is more effective in the detection of buried radioactive boulders than the hand-held scintillometers used by prospectors in the 1970s and 1980s. The SPI airborne survey at Patterson Lake successfully detected numerous buried, high-grade uraniferous boulders with uranium values ranging up to 25.7% U3O8, which were subsequently excavated and provided an important vector to the discovery the mineralized PLG-3B conductor at the Triple R deposit in November 2012.