ALX Uranium (TSX-V: AL) CEO Warren Stanyer on Acquisitions of Vixen Gold Project in Red Lake, Draco VMS Project in Norway, Additional Claims at Falcon Nickel Project in Saskatchewan, & Drilling at Close Lake Uranium Project in the Athabasca Basin

October 22, 2019

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Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the Chairman and CEO of ALX Uranium (TSX-V: AL)(OTC: ALXEF), Mr. Warren Stanyer. Warren, how are you?

Warren Stanyer: I'm doing well. Thank you, Gerardo. How's it with you?

Gerardo Del Real: Things are excellent. Thank you so much for asking. It's been a busy 30 to 45 days. Frankly, you've been busy all year.

You added the Vixen Gold Project in Red Lake. You also followed that up in the first week of October by adding additional claims at the Falcon Nickel Project. And just recently, you acquired a VMS project in Norway. All of this after you announced that drilling was underway at Close Lake in the Athabasca Basin, of course.

That's a lot of news within a 45-day timeframe. I wanted to have you on and just get a brief catch up on the new projects and how things are coming along with Close Lake.

Warren Stanyer: Well, they're just finishing up at Close Lake right now. So we'll have some news on that soon. But in the meantime, these other projects, one of them came up quickly, which was Vixen. A director of ours has a geological consulting firm. He said, "Hey, one of my guys just spotted an opportunity here.”

Gold showings near the Springpole deposit, which First Mining Corporation has. It's over 4 million ounces of gold that's been out lying there in a compliant resource. Okay, let's do it. It was basically at cost, and his company is doing the work. We're just finishing up a program there, a prospecting program – actually they finished yesterday.

That came up quickly. What do you do? Do you say, "Nah, we'll pass." Or do you say, "Hey, let's give it a shot." I mean, Great Bear has done very well in finding new gold zones and buried gold zones in this terrain, this Greenstone Belt. So we're just applying the things that we do for uranium, we're applying it to gold.

Gerardo Del Real: Excellent, excellent. So, let's talk about the other projects. Let's get a status update on Close Lake, because I know that's a project that has a lot of people's attention. How are things there?

Warren Stanyer: Well, we're not operating so we don't get information every day. But we do know that, as I said, the program has just finished, or just finishing, so I'll probably get an update today or tomorrow about it, and we'll see what they've found.

Gerardo Del Real: Wonderful, wonderful. Let's talk Norway. That's also an interesting pivot.

Warren Stanyer: Yeah. Norway, again, we look for opportunities. So, we look for things that other people haven't looked at for a long time, and that's Norway. Norway got involved in oil and gas. The geologist that we use for the Norway projects is Norwegian, lives in Vancouver. In his class, when he graduated 30 years ago, whenever it was, he said that only one or two people went into minerals. Everyone else went into oil and gas. Gradually, all metal exploration, or most of it, just dissipated down to a trickle.

So, what does that mean? I mean, here's a place where you've got VMS deposits, you have mines. They've mined for 350 years in Norway, and all of a sudden, nobody's doing it? So, that's why we went there.

We took airborne data that sat in the government archives for years and years, for 20 years, and no one had ever looked at it again. They might have looked at it, but they didn't do what we did, which is modern processing techniques so you can actually see things instead of just colors on a map. We found anomalies, and we followed up on the ones that were near mines.

We know that VMS deposits are not a one-off. They occur and usually in a chain or a cluster, and for example, at Skyftesmyr, which is right in the middle of our map, if you see the map on our website, that deposit is sitting there. It's basically not economic on its own. If we can find another one beside it, then all of a sudden, you've got the power to go to a major mining company in Europe and say, "Hey, look at this."

We're shopping these projects. We're not going to spend millions of dollars of our own money on them.

Gerardo Del Real: That was my next question.

Warren Stanyer: Yeah. We're recognizing opportunities and we're applying what we know how to do.

Gerardo Del Real: Excellent, excellent. So, you're basically applying the project generator model to these non-flagship assets. Is that accurate?

Warren Stanyer: That is.

Gerardo Del Real: Fantastic, fantastic. So, what's next? When can we expect the next bit of news and catalyst here as we close out the year, Warren?

Warren Stanyer: Well, the one thing we haven't discussed here is Falcon Nickel. The more I look at this project, the more excited I get. I never put the word “excited” in a news release, but I'll tell you right now that I'm very intrigued by this.

We have a new consultant who knows the area for the last 35 years. He's told me how bullish he is on the project. It sat dormant for over 10 years, because Pure Nickel abandoned it, and now they're into gold. They've got some gold deal, a new president, an American president, and they're doing something in Nevada.

So, these claims came up for staking in May of this year. There was a big staking rush. We eventually came to terms with Eagle Plains Resources for the pieces of the known deposits, adding to what we already had with Eagle Plains', and now we're adding some more.

These nickel deposits are right on surface. But the big question is, how did they get there? Where's the deeper source? Nobody's looked at it for a decade. So we're, again, applying the techniques that we've learned from airborne interpretation. We have the best people working on it as we speak, on a report that's just being finished, and we will have targets there that are potential sources for this nickel mineralization that's right on surface. You can see it from the air.

Gerardo Del Real: The way I understand the structure of the deal for the Falcon Nickel project, you have the option to acquire 100% of this. Correct?

Warren Stanyer: Yeah. We have 100% of everything that we've announced. We own it 100%. Some of it is subject to a 2% NSR. There's two vendors and we're adding some more property, too. So it'll be a similar deal. We'll have basically all the best targets on the property and the known deposits.

This is millions of tonnes. It's not compliant. No one's done a resource in the modern day. People have been on that property for the last 90 years on and off, in the '20s, the '50s, the '60s, the '90s, the 2000s, and then it sat. But we think that we can find something that nobody else found.

I'm reading the story of Voisey's Bay right now. It's called The Big Score. It's exciting because we're seeing things on surface, and it's not me saying it, I can show you a geological paper where they show the similarities between the Axis Lake area, Falcon Nickel, and Voisey's Bay. What we're looking for is that O-void, that big blob of nickel, where the magma came up from below, and reacted with the rocks, and created a mega-deposit.

Gerardo Del Real: That The Big Score book is one of my favorites, and any time you're feeling like this bullish bear market, or this bearish bull market, is getting the best of you, that book makes for an absolutely great read. So, yeah. I think you said it well.

Warren, I get the feeling we'll be chatting soon in regards to Close Lake, and it sounds like you're still on the hunt for both new projects, and obviously potentially partnering on some of these projects. We'll be chatting soon. Thanks again for coming on.

Warren Stanyer: You're very welcome. Thanks, Gerardo.

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