Hook-Carter

The Hook-Carter property covers the northeastern end of the highly prospective Derkson, Carter and Patterson Lake structural and conductor trends, host to numerous uranium showings, deposits and recent discoveries. The Patterson Lake Corridor (“PLC”) hosts the Triple R uranium deposit (Fission Uranium Corp.), the Arrow uranium deposit, Harpoon, Bow and South Arrow uranium discoveries (NexGen Energy Ltd.), and the Spitfire, Hornet and Dragon uranium discoveries (a joint venture of Purepoint Uranium Group Inc., Cameco Corp., and Orano Canada Inc. ALX, in partnership with Denison Mines Corp., has the goal at Hook-Carter to explore for high-grade mineralization in this emerging uranium district in the southwestern Athabasca Basin.

• Hook-Carter features between 250 and 700 metres of Athabasca Group sandstone cover overlying the basement rocks that define the prospective geological trends or corridors
• Three prospective conductive corridors transect the property, two of which (Patterson Lake, Derkson) host known uranium deposits and uranium occurrences
• Carter Lake Corridor remains untested
• Numerous drill-ready targets based on historical and recent exploration
• Prospective areas lie between widely-spaced historical drill holes up to 4.3 km apart

• Located near the southwestern margin of the Athabasca Basin in northern Saskatchewan approximately 27 km east of Highway 955
• Proximity to uranium discoveries, deposits, mills and mines, (approx.) 75 km southeast of the past-producing Cluff Lake uranium mine
• 20 km (approx.) northeast of Fission Uranium’s Triple R (Patterson Lake South) uranium deposit
• 13 km (approx.) northeast of NexGen’s Arrow deposit and Bow, Harpoon and South Arrow discoveries
• 8 km (approx.) northeast of Cameco/Orano/Purepoint’s Spitfire, Hornet and Dragon discoveries

• Hook-Carter consists of 24,229 hectares in 80 claims located approximately 375 kilometres (233 miles) northwest of La Ronge, SK
• ALX owns a 20% interest after the November 2016 sale of an 80% interest to Denison Mines Corp. for 7.5 million common shares of Denison
• Denison, as operator, has agreed to fund ALX’s share of the first $12.0 million in exploration expenditures – geophysical work was carried out in 2017, drilling totalling 6,960 metres in nine holes was completed in 2018 and further drilling is planned in winter of 2019

In 2017, Denison announced that its exploration plans included initial ground resistivity and electromagnetic surveying during the winter season.The completion of this geophysics generated several high-priority targets for drilling along the Patterson Lake Corridor.

The winter of 2018 brought on the first round of reconnaissance drilling by Denison.Four holes totaling 3,062 metres were completed.Results from the drilling included elevated radioactivity and zones of strong hydrothermal alteration in sandstone and basement lithologies.

In the spring of 2018, a second drilling program commenced and five holes totaling 3,898 metres were completed on high-priority geophysical targets.Results from the drilling included multiple prospective trends of strong hydrothermal alteration in sandstone and basement lithologies that are associated with graphitic basement structures.These features are consistent with unconformity-related mineralizing systems in Athabasca Basin uranium deposits and provide a strong indication of the continuation of the mineralizing system within the PLC onto the Hook-Carter property.

The winter 2019 program consisted of 4,797 metres of diamond drilling in six completed holes to test high-priority geophysical targets developed by Denison which were identified from the resistivity and moving loop time-domain electromagnetic (MLTEM) surveys carried out in 2017 within the interpreted extension of the PLC. The winter 2019 drilling program was designed as a continuation of the 2018 winter and summer drilling programs which totaled 6,960 metres in nine holes.

Favourable structure and alteration were encountered in the majority of the drill holes completed in the 2019 drilling program and initial geochemical results received to date show significant concentrations of uranium pathfinder elements, which indicate the presence of a mineralizing system on Hook-Carter. Completion of the 2018 and 2019 drilling programs has provided reconnaissance level drill hole coverage along the PLC at an approximate 1,200-metre spacing throughout the 2017 geophysical survey area. These reconnaissance drill holes form an important initial repository of drilling data, which is expected to be used to prioritize target horizons and plan future exploration programs.

Highlights of the winter 2019 drill holes are as follows:

1. HC19-015 tested a resistivity target that is coincident with a historical electromagnetic anomaly located along the eastern edge of the 2017 geophysical grid. Weak dravite and pyrite alteration was noted mostly in the upper portions of the sandstone column. The basal 30 metres of sandstone were desilicified with several unconsolidated sections. Basement lithologies encountered included a graphitic breccia and a weakly graphitic pelite unit. Pervasive strong quartz flooding was observed throughout the basement and elevated radioactivity of up to 350 counts per second was measured with a hand-held RS-125 scintillometer in a hematized zone below the unconformity. Geochemical results for HC19-015 are pending.
2. HC19-014A and HC19-013A tested two electromagnetic targets located along the northeastern portion of the 2017 geophysical grid. HC19-013A encountered multiple zones of strongly brecciated, faulted and hydrothermally altered sandstone, particularly near the unconformity. Strongly silicified pelitic gneisses and a graphite-rich pelitic gneiss were intersected within the basement that exhibited extensive shearing, faulting and brecciation. Elevated radioactivity (up to 170 cps with a handheld RS-125 spectrometer) was recorded in some of the fault zones in the basement. Collared approximately 1.2 kilometres northeast of HC19-013A, drill hole HC19-014A encountered similar sandstone structure and alteration; however, it was restricted to the basal portion of the sandstone column. A massive white clay zone approximately three metres in thickness was encountered at the unconformity. HC19-014A encountered strongly sheared, faulted and brecciated graphitic pelitic gneiss in the basement. Strong clay alteration and hematization followed the graphitic unit extending approximately 10 metres into the underlying quartz-flooded granitic gneiss. Geochemical results for HC19-013A and HC19-014A are pending.
3. HC19-012 targeted a strong electromagnetic anomaly in the central portion of the 2017 geophysical survey area. The hole was designed to test the basement below historical drill hole HK-002. Sandstone structure in drill hole HC19-012 included several narrow zones of blocky and locally brecciated core. Significant hydrothermal alteration was also noted in the sandstone. Geochemical samples analyzed from this hole returned strongly anomalous boron values of up to 1,000 ppm for the entire sandstone column. Structurally controlled clay alteration was observed in multimetre sections. A weakly to moderately bleached, locally sheared, weakly graphitic unit was intersected in the basement of drill hole HC19-012 below HK-002.
4. HC19-011 tested a roughly coincident electromagnetic-resistivity anomaly located along the eastern edge of the 2017 geophysical grid. Drill hole HC19-011 intersected moderate to locally strong hydrothermal alteration in the sandstone and weakly elevated radioactivity in hematized clay near the unconformity (up to 225 cps with a hand-held RS-125 spectrometer). Elevated levels of boron (up to 3,320 parts per million) were returned in the sandstone and immediately below the unconformity. It has been interpreted that HC19-011 likely overshot the optimal target and additional targets may exist to the southeast on section.
5. HC19-010A targeted a resistivity anomaly located 900 metres along strike to the northeast of HC19-011. The hole intersected weak to moderate hydrothermal alteration in the sandstone. Geochemistry results returned anomalous boron values of up to 762 ppm throughout the sandstone column.

Uranium exploration in the vicinity of the Hook-Carter property has been recorded since 1969 by a large number of companies. Several major conductive trends were identified on the Hook-Carter property and neighbouring properties, including the Patterson Lake, Derkson and Carter Corridors. Significant past results on the current Hook-Carter property are as follows:

In 1996, Uranerz Exploration and Mining discovered through boulder sampling that the area north of Derkson Lake up to Carter Lake and along the Williams River was geochemically anomalous with elevated boron (dravite), kaolinite and chlorite.

In 1997, UEM Inc. and Cameco completed Fixed Loop Time-Domain Electromagnetic (FLTEM) and discovered several conductive trends, leading to a follow-up boulder sampling program. In 1998, the same companies completed additional ground EM surveys and a larger airborne GEOTEM survey.

Several Hook-Carter claims were drill tested between 1999 and 2003 by Cameco Corporation with a total of six drill holes. Several holes displayed criteria favourable to unconformity uranium deposits with anomalous clay alteration, quartz dissolution, Athabasca Group and basement structure and/or anomalous geochemical enrichment.

Between 2005 and 2007, ALX's predecessor company, ESO Uranium Corp., carried out airborne EM surveys, ground resistivity and diamond drilling. PIMA (infra-red spectroscopy) analyses performed on drill core from the 2007 drilling were re-evaluated in 2013. This work identified important clay alteration minerals including sudoite (chlorite), dravite, smectite/illite, sericite, and probable carbonate. In addition, anomalous values of pathfinder elements including nickel, copper, silver, tungsten, and mercury were returned from samples of Athabasca sandstone, which along with the dissolution and silicification noted in drill logs provide evidence of hydrothermal alteration.

Alpha Exploration Inc. (a predecessor to ALX) engaged CGG Aviation (Australia) Pty Ltd. of West Perth, Australia to perform a FALCON® airborne gravity gradiometer gravity survey in late 2014, which included magnetic and laser scanning digital elevation components: 987 line-km were flown at 200-metre line spacing covering a grid area of approximately 10 x 14 km. The survey provided important gravity and magnetic data for integration with known geology and drill hole information.

In 2016, ALX completed a Sub-Audio Magnetic Transient Electromagnetic (HeliSAM TEM) geophysical survey conducted by Gap Discovery Geophysics.The survey provided a total of 115 line-km and confirmed the presence of multiple basement conductive units within the Carter Corridor where it crosses the Property.