ALX Resources (TSX-V: AL) CEO Warren Stanyer on Finding Nickel-Copper Mineralization in a New Zone at Falcon Nickel Project in Northern Saskatchewan

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the Chairman and CEO of ALX Resources (TSX-V: AL)(OTC: ALXEF), Mr. Warren Stanyer. Warren, I would ask how you are – and I hope personally that you are well – but man, I know it's a volatile time. We just saw a 13% drop in the Dow. The VIX closed, I think, above 80. Truly historic times. So I will ask personally, how are you doing, sir?

Warren Stanyer: Well, I'm doing well physically. I think everybody emotionally feels a little bit, there's a combination of fear and dread and then the optimism that you hope to reappear. So I think that's how I feel. Honestly, it's been a tough time the last week or so, the week after PDAC.

Luckily a lot of people haven't showed symptoms from PDAC, people that were on the floor, exhibitors like myself. So that's a good thing. There was a lot of hygiene that was being practiced. At least that was something that I think has helped a lot.

Gerardo Del Real: Good. Let me ask you, just again personally, how has this outbreak, this pandemic affected you? What's changed? Moving forward, can you share some optimism on what you hope could come out of this situation?

Warren Stanyer: Well, I think what's changed is the average investor is scared witless. I'll rhyme that word. I don't know when the retail market will recover here, because most people have really been hammered and lost a lot of money. The positive side of that is that's when big companies tend to move in, because they have cash generally. They're the ones that want to get something at a lower price without being total vultures, because they don't like being labeled that way. I think we have a possibility that a big company might like what we're doing. We just have to come up with some goods here.

Gerardo Del Real: Well, let's talk about it. You had a news release today where you mentioned intersecting nickel-copper mineralization at your Falcon Nickel Project in Northern Saskatchewan. Can we talk about that? Obviously encouraging news, we're awaiting assays. I think this came on the second hole. Is that correct?

Warren Stanyer: Came on the second hole. So on this particular target, we modeled from the VTEM data, the airborne data from 2005, which generally you can model from and get a reliable target. For whatever reason, the first hole missed. So we did a borehole survey, where you put an electromagnetic probe down the hole that you've just drilled, and everybody's standing, the drillers are waiting for you, et cetera. You want to get it done quickly.

We saw a target that was shallower, nearby the first hole that we drilled. So we aimed for it, and we hit it from the same setup. So we're excited about that. There's a map on our website. I'm staring at it right now. We're basically 100 meters away from two mineralized holes that were drilled in 1965. And we're more than 100 meters away from a hole that was drilled in 1957 that had over 1% nickel over 5.5 meters or so.

So there's definitely potential for the area. What we need to do now is we've moved off of that set up to a new target, what we call V-3, Victor-3. And V-3 has some great potential. The drill's getting towards it, so we're all on pins and needles. We all love discoveries. Meanwhile, Victor-1, V-1, we need to do a ground survey there to resolve these issues. The borehole doesn't give you everything that you need. It gave us enough to see a nearby anomaly near the first hole. And sure enough, it was mineralized. I mean, we see the sulfides. We're using an XRF machine. So that's X-ray fluorescence. It's a device that allows you to know what kind of minerals are in your drill core. So we know that there's nickel there. We know that there's copper there. You can't come up with a precise assay from such a thing, generally, but at least you know the presence is there, and it matches the sulfidic intersection. So that's what we're waiting for now. And so this is a new zone. I'm trying to come up with a name. The Gerardo Zone?

Gerardo Del Real: The Covid zone.

Warren Stanyer: That's for sale. Anybody wants that name, it's going to cost you.

Gerardo Del Real: So in all seriousness, Warren, I understand that the sulfide mineralization began relatively shallow. Right?

Warren Stanyer: That 47 meters, we first saw the sulfides in this noritic rock that started a few meters before that. So this is classic of a magmatic nickel sulfide style flow, obviously buried, whereas the ones in the trenches it came up to surface. In this case, it's deeper than almost any intersection in that area. So that's 150 feet. A lot of the nickel that was found there in the past, in drill holes, was at 50 feet.

So we're finding new things. And a ground survey, again, will tie things together for us, and we can see how this conductor, why it's so mysterious. And we just didn't get what we needed from (A) the airborne, or (B) the borehole, in terms of a global look at the zone.

Gerardo Del Real: Excellent. So I would ask you what the next steps are. It sounds like you're on that as we speak. Do you have a timeline in mind for when you'll get that accomplished and have results out to the market?

Warren Stanyer: Well again, we won't have assays right away, but if we hit sulfides in this next hole, we will likely give a similar update. Because we can tell, again, it's sulfides, (B) the XRF tells us if there's minerals in those sulfides, because some sulfides can be barren. That's the risk here. It always is. But because we're in an area where there is nickel – and there's a lot of nickel around – we hope and pray that this will be mineralized as well.

Gerardo Del Real: Hope and pray. A lot of that going on, Warren. I am looking forward to having you back on, once we get some numbers that we can actually talk about in more certain terms. Thank you for taking the time today. I know it's a historic time as far as the markets and as a society. Thanks for coming on. Hopefully next time we're talking about a big new discovery.

Warren Stanyer: Well, I appreciate coming on. I'd like to urge your listeners and any shareholders that want to see what we're doing to go to our website. There's some pictures. There's a map of what we're doing and how we're doing it. There's two things that I've learned recently, that nickel will always be consumed because it's sitting at $5.50 here. It hasn't dropped off the map. And the second thing I've learned is that printer ink will always cost more than the printer that you own. So two things in life you can count on.

Gerardo Del Real: The printer is the loss leader, right?

Warren Stanyer: Anyway, thanks for calling. I appreciate being able to tell people about the project, about the Falcon Nickel Project.

Gerardo Del Real: Looking forward to having you back on. Thanks again, Warren.

Warren Stanyer: You're welcome. All the best, Gerardo.

Gerardo Del Real: Same your way. Thank you.

Warren Stanyer: Thanks.