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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


ALX Resources inks deal with Denison Mines to boost ownership in Hook-Carter property

Hook-Carter consists of eleven claims covering 25,115 hectares and is located in the southwest corner of the Athabasca Basin

ALX Resources inks deal with Denison Mines to boost ownership in Hook-Carter property
Image via ALX Resources.

ALX Resources Corp. (TSXV: AL) (FSE: 6LLN) (OTC: ALXEF) has signed an agreement with Denison Mines Corp. (TSX: DML) (NYSE: DNN) to boost its ownership interest in the Hook-Carter uranium property in the Athabasca basin.

Announced on Thursday, the agreement promises to boost ALX’s ownership stake from 20 per cent to 25 per cent by funding the next CAD$3 million of exploration at the project over the next 30 months.

Hook-Carter is a highly prospective and large exploration property with significant coverage along the Patterson Lake, Carter, and Derksen exploration corridors. It notably covers approximately 13 kilometers of the Patterson Lake Corridor, which is along strike of the Arrow uranium deposit owned by NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE) (ASX: NXG) and the Triple R uranium deposit owned by Fission Uranium Corp (TSX: FCU).

ALX and Denison entered into an all share purchase agreement in 2016 where ALX sold an 80 per cent interest in exchange for 7.5 million shares.

ALX retained a 20 per cent interest in Hook-Carter, and Denison agreed to fund ALX’s share of the first CAD$12 million of expenditures. In 2019, ALX and Denison formed a joint venture. This came about after Denison completed a CAD$3 million funding requirement for project expenditures within a three year period.

Since 2016, Denison has spent CAD$7 million exploring Hook-Carter. This exploration includes surface and airborne geophysical programs and nearly 12,000 meters of diamond drilling.

Hook Carter map. Image via Alx Resources.

Read more: ATHA Energy closes acquisition of Latitude Uranium, obtains Nunavut and Labrador properties

Read more: ATHA Energy receives approval for TSX Venture listing; Latitude shareholders authorize acquisition

Project shows excellent uranium deposit potential

Hook-Carter consists of eleven claims covering 25,115 hectares. It’s located in the southwest corner of the Athabasca Basin, approximately 147 kilometers northeast of La Loche, Saskatchewan.

The project has excellent potential to host economic uranium deposits. Hook-Carter hosts the northeastern strike extension of the Patterson Lake Corridor, which includes NexGen’s Arrow uranium deposit, Fission’s Triple R uranium deposit, and Purepoint Uranium Group’s Spitfire, Hornet, and Dragon zones in a joint venture with Cameco Corporation (NYSE: CCJ) (TSX: CCO) and Orano Canada.

NexGen has strategic investments in other uranium operators in the Athabasca Basin. The company holds a 33.9 per cent stake in IsoEnergy Ltd. (TSXV: ISO) and has entered into a uranium extraction partnership agreement with ATHA Energy Corp. (TSXV: SASK) (OTCQB: SASKF) (FRA: X5U).

The project also overlies the strike extension of the Carter and Derksen corridors. These are highly prospective and under-explored corridors where significant uranium mineralization may exist.

“The Patterson Lake Corridor has seen the discovery of hundreds of millions of pounds of uranium in the past decade, making it one of the world’s most fertile regions for uranium exploration,” said Warren Stanyer, CEO and chairman of ALX.


ATHA Energy Corp. is a sponsor of Mugglehead news coverage


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