ALX Uranium Corp (TSXv:AL) is Positioning to Explore and Produce Uranium in the High Grade Uranium Athabasca Basin in Canada
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By Dr. Allen Alper, PhD Economic Geology and Petrology, Columbia University, NYC
on 4/1/2016
ALX Uranium (TSXv: AL), a premier uranium explorer in Canada’s Athabasca Basin, is currently working on exploring more of their newly held projects after a merger that gives them better access to -- high grade uranium resources. Jon Armes, President and CEO of ALX Uranium, believes that the main reasons people should invest in his company is the amazing synergy of projects, people and money. With drill ready targets on multiple properties the company is in the process of raising additional funding to meet their exploration needs.
Jon Armes, President and CEO of ALX Uranium (TSXv: AL) updated investors on the progress that his company has made on exploration and advancement after a merger between Lakeland Resources and Alpha Exploration. The company works in the Athabasca Basin in Saskatchewan, Canada, which is known to have high grade uranium resources and deposits. Recently, ALX Uranium is the merger of Alpha Exploration and Lakeland Resources; which allowed them to consolidate their holdings and teams.
Mr. Armes said, “So last year, with the markets being as grim as they were, we started to have some discussions with some other uranium companies active in the basin. The Alpha group had a lot of synergies with our people, our projects and our treasuries so we decided to bring the two companies together in a strategic merger and focus on six or eight high profile type projects that resulted from our merger.”
The uranium markets have not improved too much, but ALX Uranium has continued to move forward. Mr. Armes said, “The market has continued to be tough, however recently we have managed to secure a strategic partner in Holystone Energy, who has taken a 19.9% interest in our company and has representation on the Advisory Board in the interim, and at our next annual meeting they will gain a seat on the Board of Directors.”
ALX Uranium is focused on a specific area of the Athabasca Basin where high grade uranium has been found in the past. Mr. Armes said, “There have been significant developments along the Patterson Lake trend which is where Alpha and Fission first made their PLS discovery in 2012. NexGen has now just come out with a resource of 202 million pounds to the northeast of PLS and one of our key projects is just a few kilometers to the northeast of these discoveries. That is where we are going to be focusing our attention on some exploration to define high priority drill targets. We will raise the necessary funds to take it to the drill stage. That, combined with a few other projects, means we will be busy this year on the exploration front.”
Why choose to work in the Athabasca Basin? For Armes and his team, the answer lies in the grades that are possible to find there. Mr. Armes said, “So the Athabasca Basin, as compared to anywhere else in the world, has the highest grade deposits. There are deposits there that have 20%, 22%, 24% and your worldwide grades are .1% to .15%, so we are talking about hundreds of times higher grade. Even the combined average grade of all known deposits in the Athabasca Basin are still 20 to 30 times higher than the grades you will find elsewhere in the world. It is a very safe jurisdiction to work in, Saskatchewan currently being the second most-friendly jurisdiction in the world to explore in. As well as being in Canada, it has a lot of mining history. Mining for uranium in Saskatchewan dates back to the 1940s and 1950s. It is an ideal place to work. With the deposits being the grade and nature they are, I think the future of uranium will be coming from the Athabasca Basin.”
Mr. Armes feels the company has benefitted from the expertise of the two merged teams. He said, “With the merger with Alpha their Board members were with Hathor’s Roughrider project that Rio Tinto bought out for $654 million. The same group was part of the Alpha discovery which Fission purchased in an all share transaction valued at $189 million. Combined, it is almost a billion dollars in takeover transactions in arguably one of the worst uranium markets.”
The company has money in the treasury at this time, though they will be looking to add funds in the short term to meet their exploration needs. Mr. Armes said, “We have just over one million in the bank. We are looking to raise some money to do some drilling uptrend. We will look for additional funds so that we can carry out further work on these projects. The Company has approximately 48 million shares outstanding which offers tremendous leverage to our investors in the event of a new discovery.”
Mr. Armes himself has a great deal of knowledge working the mining space, including uranium, from prospecting all the way through to working on the management end of mining operations. He said, “I have been in mining since 1993 and I have spent time prospecting, staking claims, managing drill programs and understand how things run in the office. That experience lends itself well to managing a company like ours.”
Mr. Armes believes that there are many reasons investors should take a close look at investing in ALX Uranium. He said, “We have an amazing synergy of projects, people and money. We have the support of financial/brokerage community, which allows us to maintain the projects that we have, along with the significant leverage we have with our share structure. Any of the targets in the portfolio could be the next big one in the Basin.”
For more information about ALX Uranium, their projects and management team, you can visit their website at
http://www.alxuranium.com/
Head Office
Suite 1450 - 789 West Pender Street
Vancouver, BC
Canada V6C 1H2
Email: info@alxuranium.com
Tel: 604 681-1568604 681-1568
Toll Free: 1 877 377-62221 877 377-6222 FREE
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