ALX Resources has entered into a strategic option agreement with Rio Tinto Exploration Canada for Falcon Nickel Project. Rio Tinto is likely to be working with ALX on its Falcon Nickel Project as Rio may acquire upto 80pc interest in the project by incurring around $12mn in exploration expenditures over a period of six years and making a total of $125,000 to ALX in cash payments.
Rio and ALX have decided to change the name of the project to Firebird Nickel project after fulfilling the terms of Option Agreement. The size of the project is approximately 20,500ha. The six samples collected by ALX returned 0.04pc to 2.43pc nickel and 0.01pc to 0.43pc copper.
The partnership will result in unlocking of potentials for new high grade nickel-copper-cobalt deposits at the project. In March, ALX conducted nickel-cobalt-copper mineralization in two of the three holes drilled on new targets.
ALX had recently acquired the Falcon Nickel and Flying Vee Nickel projects in northern Saskatchewan, the Vixen Gold Project in the historic Red Lake Mining District of Ontario, Canada, and the Draco VMS Project in Norway. ALX Resources executes well-designed exploration programs using the latest technologies.