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ALX Resources Corp. gets drilling permit and purchases claims at Vixen Gold Project near Red Lake

Aug 10, 2021

ALX Resources Corp. is providing an update for its 100%-owned Vixen Gold Project in the Red Lake Mining District. Vixen consists of three sub-projects totaling 10,614 hectares (26,227 acres), Vixen North, Vixen South and Vixen West, located within the Birch-Uchi greenstone belt approximately 60 kilometres east of Red Lake. 

Vixen North Exploration Permit

In the fall of 2020, ALX completed a high-resolution helicopter-borne magnetic and VLF-EM survey totaling 475.7 line-kilometres to over a known 3,000 metre-long high magnetic trend and other important structural trends present at Vixen North. Drill targets were subsequently defined by the integration of the airborne survey results with the geochemical results of site visits carried out in 2019 and 2020 (see ALX news release dated October 29, 2020), which led to the filing of an exploration permit application for Vixen North. 

In late June 2021, following a positive engagement with local First Nations, ALX received an exploration permit from the Ontario Ministry of Energy, Northern Development and Mines (the "Permit"). The Permit allows for diamond drilling at up to ten locations at Vixen North totaling approximately 1,000 metres (3,280 feet), and is effective until June 28, 2024. The drilling program is designed to be helicopter-supported with a start date to be determined, due to the continuing forest fire emergency and the resulting moratorium on exploration activities in the Red Lake Mining District.

Vixen South Claims Acquisition

In early May 2021, ALX executed an option-to-purchase agreement with arm's-length vendors (the "Vendors") to purchase a 100% interest in a group of claims west of Grace Lake, consisting of nineteen claim units and a single patented claim (the "Claims", see ALX news release dated May 12, 2021). The Claims comprise approximately 384 hectares (949 acres) and are located along the northern edge of the Vixen South claim block

ALX carried out due diligence on the Claims, which included a site visit in late June 2021 before forest fires effectively closed off access to the Vixen South area. In August 2021, ALX decided to exercise its right to purchase a 100% interest in the Claims in exchange for a total of $40,000 cash and 500,000 common shares of ALX. The Claims remain subject to a 2.5% net smelter returns royalty ("NSR") in favour of the Vendors, which can be purchased in its entirety by ALX for $2.5 million. This transaction is subject to the acceptance of the TSX Venture Exchange.

Tags: Northern Ontario / Exploration / Gold / All Articles