A Vancouver junior miner is taking a fresh look at a Thunder Bay-area gold property.
ALX Resources signed an option agreement with a group of undisclosed vendors to acquire the Electra Nickel Project, 35 kilometres northwest of Thunder Bay.
During the due diligence phase last month, ALX staked additional ground around Electra, growing the land package by 42 per cent to 3,168 hectares.
Formerly known as the Bateman Lake property, ALX said gold mineralization is present at Electra as well as nickel, copper, cobalt and platinum group elements.
Situated on the Shebandowan Greenstone Belt, the area has been explored off and on since the 1960s with companies searching for nickel and gold.
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Inco ran the former Shebandowan Mine, 35 kilometres to the northwest, producing 9.29 million tons of nickel, copper, cobalt and platinum group elements from 1972 to 1998.
Five kilometres from Electra, White Metal Resources' Tower Stock Gold Project hosts an inferred resource estimated at 86,297 ounces of gold at an average grade of 0.68 grams per tonne.
ALX considers the Electra property underexplored. Over the last decade little to no modern exploration has been carried out.
In 1995, Hemlo Gold Mines mapped a gold-bearing system over a 700-metre strike length and sampled up to 82.5 grams per tonne gold on the northeast shore of Bateman Lake. Hemlo believed there was a larger gold-bearing system at depth.
That same year, drilling by Winslow Gold showed multiple zones of nickel, copper, cobalt and zinc, including 16.6 metres of 0.15 per cent nickel.
In early 2021, ALX plans to do an airborne survey at Electra to line up geophysical targets before starting geochemical surveys and bringing in the drills.
Under the terms of the acquisition deal, the vendors group receive $135,000 in cash, more than a million common shares of ALX, $500,000 in exploration expenditures, and 2.5 per cent net smelter royalty to the vendors from the sale of valuable minerals from the property.
ALX holds a raft of other gold, nickel and uranium exploration properties in northern Saskatchewan, and northwestern Ontario, including its Vixen Gold Project, a 10,000-hectare property, east of Red Lake.
