ALX Resources (TSX-V: AL) CEO Warren Stanyer on Upcoming Drill Program Focusing on SGH Survey Identified Targets at Falcon Nickel Project in Saskatchewan, Canada
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, how are you today?
Warren Stanyer: I'm doing great, Gerardo. Thanks for calling.
Gerardo Del Real: Thanks for taking the time to go over the latest bit of news, which was published this morning. You described it well. You said a picture's worth 1000 words, right? A million in this case. So can you provide an overview of the exploration update that you provided for Falcon Nickel?
Warren Stanyer: Well, what we've been doing at Falcon is looking at the historical data. There's quite a bit, but drilling that we can actually use the results of that goes back to 1953, then it was 1965, there was some in 1991, there was no drilling down until 2006 and 2007, and not since. Oh, I missed 1965 in there.
These sporadic drill programs actually give us a lot of information that we've digitized. And you combine that with the airborne surveys that were done, there's three that we have digital data for. Now, the thing that the explorers didn't have at the time was the digital tools to do the modeling that you're looking at in our news release today.
So nobody saw these, what we call Maxwell plates, these conductive bodies that have size. They're always described or just shown as rectangles or squares because that's just the way the program presents them. What we do know is that these conductive bodies are below where the historical drilling was at Currie Lake because we've digitized all those holes, we know which direction they went. They were surveyed from time to time so we know approximately, within a degree or two of where they actually ended up.
They all overshot these, that's what the picture shows. And even then, I was just calculating an intersection when you called, and one of them was 2.11% nickel over 4.27 meters. So, that was in the overshooting, that's what they intersected. So we've got these bodies that are about 150 meters down that they never saw, never aimed for, and that's what we're going to drill in a matter of a couple of weeks here. Today's the 13th, they'll be building a drill pad on the 27th and hopefully returning by the 1st of March.
Gerardo Del Real: So drills start turning, let's call it two weeks. The Falcon Nickel project, again you mentioned, this will be the first modern – in the true sense right? – exploration that it's seen. I love that it's an inexpensive program, I love that it's shallow holes.
Can you go into that a bit? What's this going to cost? I know you just recently raised some cash.
Warren Stanyer: Yeah, we raised $560,000 Canadian in a flow-through, which is the Canadian tax benefit for Canadian residents. If they buy those mining shares, they get a rebate from the government when they file their taxes in April of this year, if they bought them in 2019. That's why we hurry to get it all done by New Year's Eve of any year. It's because, literally, it's a calendar year thing. So, that money will be spent on the program. It has to be spent. That's one of the things about flow-through and can only be spent on exploration, not on rent or salaries to executives like me, for example.
So yeah, we'll spend it all. And we'll probably spend a little bit more because we were doing things like this lake sediment survey. We sent people in there, they collected. On our website, you can see a picture of one of the guys out there on the frozen lake back in January drilling holes through the ice, dropping this, it's called a torpedo, it penetrates the mud at the bottom of the lake. And we're waiting for those results to help us with subsequent holes.
But what you see today is you see our first target, which is called V-1 or Victor 1 in radio parlance. Victor 1 is right where the historical deposit is at Currie Lake. So, we figured that was a good place to start, and we'll move east from there to our other targets that we're developing right now.
Gerardo Del Real: You mentioned results from the SGH survey are expected in late February, 2020. So obviously at the end of this month before or right around when drilling commences. You referenced the first drilling program. Are you anticipating, with success, a further program?
Warren Stanyer: Absolutely. If we hit what we're looking for, or what we believe is there. There's no other reason why you get 3% nickel sitting on surface in an outcrop. There has to be a source for it and the source was just literally deeper than anybody could see. The original airborne surveys that were done were so shallow-penetrating they really only saw what was on surface. It wasn't until 2005, when the VTEM came along, the helicopter borne system, that we could see these bodies, and then model them, and then understand how they were missed. If we hit, we'll be drilling a lot. I don't think the world is going to ignore a high-grade nickel discovery, if that's what we find.
Gerardo Del Real: Well, Warren, hopefully, the next time we chat we're discussing that high-grade nickel discovery. Is there anything else that you'd like to add?
Warren Stanyer: Well, I got high hopes for SGH. I know that Great Bear Resources was using it in the Red Lake district. In today's release, they don't discuss it at all. Now, one of the things that you get from Actlabs, it's a proprietary geochemical, call it geochemical survey and analytical system or process that Actlabs has. They say in their reports that many companies have used it, but some never talk about it because they don't want to lose their competitive advantage.
Well, in August, 2019 Great Bear spoke of SGH in glowing terms. Today, they don't mention it at all, which is kind of interesting. So they're going to grid drill, but they did say in August that SGH helped them locate new areas of mineralization. What we've seen so far in our first survey is that we got an anomaly right where it should have been, over top of a conductor that's never been drilled. And now, we've extended that survey into the lake.
If that works for us we're going to be using it all the time. And I'm not going to pretend that we're not using it, we'll tell everybody that we're using it. And if it works for us, well it's going to change exploration as we know it.
Gerardo Del Real: And just to be clear, the Falcon Nickel project is 100% owned by ALX, correct?
Warren Stanyer: It is. It's 20,000 hectares so that's about 50,000 acres. There are two royalties, actually three of the properties that we bought. We have to give a royalty to the vendor, there's just no way around that. But almost half of the project is royalty-free. And originally when we staked our claims, we gained the majority. We got all of the Currie Lake deposit strike length that was known. We got most of Axis Lake and we got most of Rea Lake. Well, we're not going to be working at Rea Lake because the grade is so low, but it's still in the inventory as a deposit that's on the property, and we own most of it. And we have royalties payable on some of it.
Gerardo Del Real: Warren, exciting times. I know it's been a tough market for ALX. I absolutely believe if there is a discovery of significance that the market will catch on and, hopefully again, that's what we're discussing here over the coming weeks and months. Thank you again.
Warren Stanyer: You're very welcome, Gerardo. Have a great day in Texas.
Gerardo Del Real: Thank you, sir. You as well, though not in Texas
Warren Stanyer: Thanks, Gerardo. Take care. Bye.