ALX Uranium JV begins diamond drilling at Close Lake
2019-09-18 08:03 ET – News Release
Mr. Warren Stanyer reports
ALX URANIUM CORP. ANNOUNCES DRILLING UNDERWAY AT CLOSE LAKE URANIUM PROJECT IN ATHABASCA BASIN
A diamond drilling program is under way at ALX Uranium Corp.’s Close Lake uranium 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. Orano Canada Inc. is operator of the project, which is currently a joint venture between Orano Canada, Cameco Corp. and JCU (Canada) Exploration Company Ltd. ALX has the right to earn up to a 51-per-cent participating interest in Close Lake from Orano (see ALX news release dated April 23, 2019).
2019 drilling program
Orano Canada has commenced a helicopter-supported diamond drilling program in the northern part of the project consisting of approximately 3,000 metres in up to four holes at an estimated cost of $1.1-million. Initial drill targets are located on the C-14 and C-12 conductive trends, with each trend hosting highly prospective settings for uranium mineralization identified from the joint venture’s previous work at the project.
“ALX has provided its shareholders with an opportunity for a new uranium discovery at Close Lake,” said Warren Stanyer, chief executive officer and chairman of the company. “With this drilling program, we receive the benefit of Orano Canada’s experience and expertise, and that of the Close Lake joint venture partners, in the world’s richest uranium district.”
About Close Lake
Close Lake consists of 21 mineral claims totalling 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 Canada encountered a significant intersection of uranium mineralization in drill hole CL-11 (1.52 per cent triuranium octoxide over 23.0 metres, including 11.46 per cent 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 per cent U3O8 over 1.5 metres in hole CL-12 and 1.21 per cent 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 per cent U3O8 over 107.3 metres including 2.86 per cent U3O8 over 8.5 metres, and 2.00 per cent U3O8 over 1.5 metres). Subsequent follow-up drilling in 1998 along strike of drill hole CL-90 encountered 0.28 per cent U3O8 over 0.5 metre in hole CL-106 and 0.06 per cent 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. Readers are cautioned that mineralization located on adjacent properties by historical exploration may not be present at the project.
In April, 2019, ALX signed a binding option agreement for Close Lake with Orano Canada, a subsidiary of Orano Group, France, a world leader in the nuclear marketplace, whereby ALX can earn up to a 51-per-cent participating interest in the project. Orano Canada holds a 74.4004-per-cent interest in Close Lake with Cameco Corp. holding a 14.9849-per-cent interest and JCU (Canada) Exploration Company Ltd. holding the remaining 10.6147-per-cent interest. The execution of the agreement confirms a five-year deal with ALX financing exploration expenditures for a total amount of $12.0-million and issuing 10 million common shares of ALX to Orano Canada.
National Instrument 43-101 disclosure
The technical information in this news release was reviewed and approved by Sierd Eriks, PGeo, 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.
About ALX Uranium Corp.
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, B.C., 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.
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