ALX Resources finds visible gold at Alligator Lake, Saskatchewan
ALX Resources Corp. [AL-TSXV; ALXEF-OTC; 6LLN-FSE] reported that visible gold has been encountered in two recently completed drill holes at the Alligator Lake gold project located approximately 165 km (103 miles) northeast of La Ronge, Saskatchewan. ALX’s 2021 drilling successfully intersected the targeted Broken Hammer shear zone, which is known to be prospective for high-grade gold mineralization.
“The presence of visible gold at shallow depths in our first group of drill holes at Alligator Lake bodes well for the project,” said Warren Stanyer, CEO and Chairman. “Gold is an elusive target and to plainly see it in our drill core is a very rewarding experience.”
The Phase 1 drilling program consisted of six diamond NQ-size drill holes totalling 617.6 metres (2,026 feet) focused along an approximate 1,000-metre section of the Broken Hammer shear zone, where ALX had previously sampled a sulphide-bearing quartz vein in outcrop at the Broken Hammer showing that returned 504 g/t gold (16.13 oz/ton) and 46.2 g/t silver, by fire assay.
The 2021 drilling targeted a mineralized quartz vein system first discovered in 1995, and preliminary observations by ALX geologists during logging of the company’s first six holes confirm quartz veining with associated sulphides in every hole. Visible gold was encountered in hole AL21-05 in five locations between 6.6 metres and 62.2 metres, and in at least two locations in hole AL21-06 at 26.7 metres and at 27.15 metres.
Alligator consists of 2,973.32 hectares adjacent to Provincial Highway 102, with an established winter trail suitable for mobilizing drilling equipment directly to ALX’s primary areas of interest. The project has been held since 1985 by a private company and has been the subject of a number ofl prospecting programs, some geophysical surveying and limited drilling.
Prior to ALX’s 2021 work, only 16 diamond drill holes have been drilled since 1995 to depths less than 86 metres.
Upon ALX obtaining an 80% interest (by exercise of the first option and the second option), ALX and ARL will form a joint venture (with ALX as operator), with the terms of the joint venture agreement to be negotiated and executed prior to ALX earning a 51% interest. Alligator is subject to an underlying 2.5% NSR of which half of the NSR (1.25%) can be purchased by ALX for $1-million.