Featured Companies: ALX Resources Corp.
ALX Resources (TSX: AL) CEO Warren Stanyer on Advancing Multiple Projects & New Credit Facility
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO and Chairman of ALX Resources, Mr. Warren Stanyer. Warren, how are you?
Warren Stanyer: I'm good Gerardo. Nice to hear your voice. And I hope you're well.
Gerardo Del Real: I know you're busy. I am well. Thank you for asking. We chatted a bit offline. And listen, the last couple of weeks, you've not only secured a $4 million equity financing facility with Alumina Partners, but you also optioned your Alligator Lake Gold Project and reported surface samples of up to 547 grams per tonne gold. I would love for you to provide the audience with an update on the financing facility and the optioning of the project.
Warren Stanyer: Well, thanks Gerardo for the opportunity. With Alumina Partners, it's a very good thing to have in our back pocket that if we need money for any reason, it's all hard dollars. There's no flow through involved, which is that Canadian tax credit for Canadian investors. But they called me to discuss it back in ... I think it started in August/September. Then we got tied up in our financings that we completed in October, so things just percolated along through the late fall and through Christmas and then we restarted the process in January and now we have that facility in place. So, we can draw down upon it. They would become an investor in us, and I'm looking forward to having the use of that.
Gerardo Del Real: Let's talk about sampling 547 grams per tonne gold. I'm no geologist, but even I know those are pretty good numbers.
Warren Stanyer: Very good numbers. Alligator Lake, I'd heard about through geologists. It was a private deal in Northern Saskatchewan. And as it turned out, people that I knew that were working on it had been involved for say up to a decade or more. And it goes back over three decades that an investment club in Saskatoon, a group of businessmen, decided to try and explore a new property. Well, they ended up finding gold all over the surface of the property, and then Uranerz came in, a German exploration company, drilled in 1995. But they were following up on the Broken Hammer zone, which we have a great interest in because when we sent our geologists there, they found a similar sample without knowing exactly where the historical one was from that ran 20 ounces of gold for tonne.
Ours came out to about 16 and 17 and we did multiple assays on it. So that is exciting. When you have those kinds of grades on surface, you don't know what's below. When Uranerz drilled, they drilled four holes, 100 meters apart. Now I think anybody might figure out that that's quite a distance between drill holes and that one should not write off the property after ... What did they get? 0.23 ounces per tonne. So about seven grams plus, over a meter and a half, was their best result. But that was 1995.
And that was the year I started in the mining business and gold was about $300 U.S. an ounce. So that would be something that you probably might not follow up on at that time. This is what we see everywhere now. We see properties that it was decided, "Oh, well, you know, that's just not going to make it." But now we see things differently with the prices that we have in commodity. So we're excited about it. And we have a drilling permit in place. We're just waiting for the moment to get out there and strike onto the ground so.
Gerardo Del Real: The binding letter agreement allows for an option to earn up to an 80% interest. You mentioned the mining permit, or the drilling permit. I believe that's approved for up to 5,000 meters of diamond drilling. Is that correct, Warren?
Warren Stanyer: That's right. And that's for a couple of years. It goes into ... Let's see, it will be 2023, I believe. But at this point, yeah, we have to execute a definitive agreement. We don't really see any issues, impediments to that. We're looking at all the data still and checking everything to make sure that all the historical information is properly geo registered so that we're in the right place when we put a drill on the ground. So that's what we're involved in right now.
Gerardo Del Real: You have gold. You have exposure to copper. You have exposure to multiple commodities. We talked about this the last time you and I chatted when you were reviewing your copper project. A lot to look forward to in 2021. I mentioned you were busy. The phone's ringing validates the fact that you are indeed busy. Is there anything else to add to that, Warren?
Warren Stanyer: Well, I think that was our president and chief geologist calling because we just had a two hour meeting with Rio Tinto about Firebird Nickel. And these are all positive things, and there is a lot coming. And I encourage people to take a good look at ALX and to be a little bit patient because it may be some time in certain places before we can drill, but there's a lot going on this year for sure.
Gerardo Del Real: Market cap today stands at-
Warren Stanyer: Just under $11 million Canadian.
Gerardo Del Real: It's a lot to like for a company with a market cap of $11 million Canadian. Thank you, Warren. I appreciate your time.
Warren Stanyer: And thank you, Gerardo. Take care.Click here to see more from ALX Resources Corp.