ALX Resources (TSX-V: AL) CEO Warren Stanyer on Prospective Gold Target at 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?
Warren Stanyer: I'm doing great. The only thing missing from that introduction was trumpets.
Gerardo Del Real: That's it, that's it.
Warren Stanyer: How are you doing, Gerardo?
Gerardo Del Real: I am well. Thank you for asking. Healthy, and the bottom line is we have $1,700 gold. We have a clear gold bull market. I know that ALX underwent a name change recently from ALX Uranium, I believe, to ALX Resources.
Now it appears that you have surface exploration planned for a new gold target at the Falcon Nickel Project. So, again, just to be clear, it's a gold target at the Falcon Nickel Project. Can we talk about that a bit?
Warren Stanyer: Yeah, it's a little known gold target, that's for sure. When we purchased the property from Eagle Plains Resources back in October of 2019, I think we closed it around early part of the month, one of the geologists mentioned to me, "Hey, don't forget about the JJ Showing. It's got a gold kick," because that was on one of the claims that we bought. And I thought, "Oh."
So over time, we were focused on the nickel, which it has huge potential for, but in the back of my mind, I always remembered that Chuck had said that to me. So I went back to the old reports from 1991, started looking at them again and trying to figure out what was going on. Sure enough, they had detected an airborne conductor. They went onto the ground, they found a mineralized gossan that had up to 1.4 grams per tonne gold in it. I thought, "Wow, that's interesting." Plus it goes at a certain direction that's a little bit different from most of the other mineralized systems on the Falcon property.
I asked around and talked to our geologists, and no one has been there since 1991, since Noranda walked there, probably because when I was starting out in this business in the late '90s, gold was $275 or just under $300 an ounce US. So in 1998, '99, no one cared that much about something like this. But when you know that something that's mineralized on surface could be a lot bigger and better mineralization under what's already been rusting away, it could be something that's really interesting. So we're going to give it a shot when we can get out there.
Gerardo Del Real: I understand that the geophysical modeling has outlined approximately 1,000 meters of a conductor.
Warren Stanyer: Yeah. Noranda saw 600 meters of conductor. We modeled it with modern tools, and our geophysicist sees 1,000. The interesting thing is we just compared that strike of the conductor, because we have the digital data from 1991, which is pretty rare, but we managed to purchase that from people that owned it. When we overlay that onto these really high-resolution air photos that we have, you can clearly see a long strip of rock that's coincident, and we can see rusty areas or red areas on either side of that in these swamps.
So this iron has been draining off into it. It might actually provide us with a way to look for these iron stains on the property, but nobody's ever really done that. Number one, they wouldn't have had the quality, the high-resolution air photos that we have right now. No one ever would have had those. We might even get some artificial intelligence scan of some kind to scan the whole thing.
We know there's gold and iron at JJ. Where else is it on the property where nobody's ever seen it or noticed it? Maybe where it's deeper, there's a deeper conductor that the Noranda couldn't even see at that time. So there's all kinds of questions about this that make it interesting.
Gerardo Del Real: When do you plan to follow that up, Warren?
Warren Stanyer: Well, that's the tricky part for access to Northern Saskatchewan. We're preparing and sharpening our swords for when we can go. But right now on the western side of Northern Saskatchewan, there is an outbreak of COVID-19. That's on basically the highway that runs up to Patterson Lake area and Cluff Lake, where the uranium mine was many years ago and, of course, where Triple R and NexGen have Arrow. That highway and the communities along it have been struck by the virus.
On the other side of Saskatchewan, the eastern side and the northeast, it's been extremely limited, which we're thankful for. We got out of that area at the end of March when we just didn't know how long that blissful period might last. Well, it's continued, which, to the credit of those communities, they have roadblocks, they take people's temperature, write people's names. They do their own form of tracing, I guess, or keeping track of who's coming and going. To their credit, they have had very few cases.
Now, we're going to have to run that gauntlet to get in there and work, and we don't know exactly what that's going to entail yet. But with the easing that is going on throughout North America, it's happening in Saskatchewan as well. I'm hoping we'll be out there later in the summer/early fall after the fire season is done, because it's really tricky to get helicopters until mid to late August. So that's the plan.
Gerardo Del Real: I got to believe while you're out there, you're also going to focus on the nickel targets. Correct?
Warren Stanyer: Absolutely. We have several. We've been woodshedding on all these things, and not only the old Noranda data, which is kind of interesting. It didn't penetrate very deeply. But the VTEM data from 2005, we have reports where the interpreter says, "Here's conductor number 11. Number 11 is a very good conductor," it goes on, "it should be followed up on the ground." Well, guess what? Nobody ever went there. That was 2006 the recommendations were made, and we know that nobody ever went there. They just didn't have the time or inclination to do it, so we can do it. And we have several places like that to visit this summer/fall.
Gerardo Del Real: Excellent. Well, I'm glad to hear that you're in good health, that the region the project's located in is taking precautions, and I'm looking forward to having you back on to follow up on those exploration plans as we get closer to it. Anything else that you'd like to add?
Warren Stanyer: Well, just that we had a successful drilling season and found some new targets, and we have a lot going on in the nickel side. I'm just waiting for a little bit of catch up here, that the economy catches up, that access catches up, access to capital, all these things. That's what we need.
We're prepared when things ease and make it easier for us to get in there and work. I just wish everybody all the best and that people stay safe and follow the social distancing guidelines that seem to be really making a difference right now.
Gerardo Del Real: Same your way. Thank you so much, and we'll chat soon.
Warren Stanyer: Thanks, Gerardo. All the best.