ALX Resources (TSX-V: AL) CEO Warren Stanyer on Winter Drill Program Results from the Falcon Nickel Project in 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, how are you? Being safe, I hope.
Warren Stanyer: Yeah, we're being safe. The weather's so beautiful. It's hard to fathom what's going on in the world, but we just had an incredible spring here in Vancouver. Thank you.
Gerardo Del Real: You're very welcome. Let's get right to it. A few weeks ago we chatted about the Falcon Nickel Project. We talked about what looked like a discovery. That's been confirmed now. You've announced the results of the 2020 winter drilling. I would love an overview from you.
Warren Stanyer: Well, what we did at Falcon, there are known deposits on the property, the Axis Lake deposit, the Rea Lake deposit. They're both lower grade than what's on the surface at Currie Lake. From south to north, Rea Lake is fairly weakly mineralized, and then there's modest mineralization at Axis as you go to the north, and then finally Currie, this third echelon of conductors, that's where we were getting 3% nicke in grab samples in the trenches.
We could have gone to Axis Lake and drilled where everyone else drilled. But we looked at the geophysics in detail and we looked for conductors that nobody had ever touched. We were building a set up just at the end of this program where we could see where Noranda had drilled three holes back in 1991, but they all missed the conductor that we can see.
So the geophysics is the key here. Sometimes it's not 100% in terms of airborne, if you try and drill off airborne. That's what we realized with the V-1 target, our first hole. We aimed at a conductor. Where is it? Where's the conductor we can see in the airborne? We do a borehole survey. We still don't see that conductor, but we see another one that's shallow. So we drilled it. That was our second hole. And there's nickel in it and a new zone that no one ever saw before.
So what we know of that area, the V-1 target area, is that we have to do a ground survey that's very comprehensive and detailed. It's the only way we're going to resolve all these issues with that area, in terms of what's really going on. Sometimes there's what they call null coupling where you might be surveying but you're surveying in parallel with the zone and it literally disappears geophysically. This has to be worked on. At the end of the season, we didn't have time to go and do that. And with the virus crisis coming north and encroaching into our area, we had to be very careful.
But we moved over to the V-3 target area and that was a target that we've developed from, again, airborne. We did a ground survey and then when we just looked like we clipped something, the borehole survey confirmed that. As soon as we got the borehole tool down at the 200-meter mark, we could clearly see that there was a larger body that was just lying above where the drill hole passed. We just caught some stringers related, hopefully, to a mineralized body. So that's the next hole. The platform's still there. The drill is still there. It's just a question of when conditions permit us to go back.
Gerardo Del Real: And just to provide some context here, Hole 2 hit 23.78 meters of 0.36% nickel, 0.09% copper and 0.01% cobalt. That was relatively shallow, of course, from 47 meters. So you're working on targets, I'm assuming, during this downtime that we have. Is that accurate, Warren?
Warren Stanyer: Yes. There are so many targets on the property. We've got a really great geophysicist working with us. He's very experienced, very highly sought in Vancouver, highly sought and highly thought of at the same time. We've got other airborne anomalies that were pointed out, say, well it's 14, almost 15 years ago now that nobody acted upon. The property was dormant for over 10 years until we staked it in May of 2019. The last work was in 2007, maybe in 2008. It just sat there, nobody touched it.
So there are many things to do on this property. My dream scenario is that we attract a large company to this project, that we explore it for years to come. Perhaps if that large company wants to earn a majority interest, then that's one path for us. The other is to raise money, make a huge discovery, and then all doors will open in the entire resource world.
Gerardo Del Real: You mentioned raising money. What's the treasury look like now?
Warren Stanyer: We have just under $1 million dollars in cash. It's all hard dollars. Working capital, mainly cash. I'd like to raise some more flow-through for exploration. I'd rather not spend hard dollars on the exploration, but we'll see what happens in the next couple of months here. We need the virus situation to settle down before we can go back.
Gerardo Del Real: Sure. Let me ask you, with gold at $1,700 I know you still have the Vixen Gold Project in Red Lake. Is that correct?
Warren Stanyer: Yes, we do.
Gerardo Del Real: What's the status there? Is that getting a look right now given the favorable gold environment?
Warren Stanyer: It's a great project. It's a little bit remote in that we have to chopper in. It's not like the helicopter ride at Falcon, which is only 12 minutes from the town of Stony Rapids to the property. So I would like to work on Falcon this summer and do some more prospecting and maybe this soil survey, what's called SGH is a great way to outline zones, which is what Great Bear has been using on their project closer to the town of Red Lake.
We're also being offered gold projects. I just had something come in yesterday. People see our gold presence in Ontario and they seek us out for that. I would like to get some more gold properties, but it's got to be at the right price. People have to be realistic and reasonable about it.
A far as Vixen goes, yes, we'd like to work some more on it. But again, flow-through funds. And of course for your American listeners, flow-through is for Canadians only. Canadians that invest in a certain type of share from a mining company, they get a tax benefit from the Canadian government. And really it's what keeps Canadian exploration going is that program.
Gerardo Del Real: Absolutely, absolutely. Warren, congrats on an early stage, but very encouraging discovery at Falcon. I'm looking forward to the follow-up work there. Thank you for your time. Anything else that you'd like to add?
Warren Stanyer: I'd just like everyone to know that we're working hard for our shareholders. We want to make discoveries. Please everyone stay safe. Let's get through this COVID-19 crisis and move forward.
Gerardo Del Real: Well said. Thanks again, Warren.
Warren Stanyer: Thank you, Gerardo.