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[ferro-alloys.com]ALX Resources (TSXV: AL) announced on Monday that it has entered into an option agreement with Rio Tinto on its Falcon nickel project in northern Saskatchewan.

Rio Tinto may acquire up to an 80% interest in the project by incurring a total of C$12 million in exploration expenditures over six years and by making cash payments to ALX totaling C$125,000.

Due to a naming conflict with another Rio Tinto mineral exploration project located in the province of Saskatchewan, the companies changed the name of the Falcon Nickel Project to the Firebird Nickel Project.

Helicopter-supported diamond drilling and ground geophysical programs were completed by ALX at Firebird in March.

Magmatic nickel-copper-cobalt mineralization was intersected in two of three holes drilled, with the best result being 23.78 metres grading 0.36% nickel in hole FN20-002, including 10.61 metres of 0.55% nickel and 2.05 metres of 0.90% nickel (true widths unknown).

Rio Tinto is planning an airborne electromagnetic survey over the northern part of Firebird to meet its initial expenditure commitment. The airborne survey will cover about 8,000 hectares of the project that have never been surveyed with modern airborne methods.

Midday Monday, ALX’s stock was up nearly 17% on the TSXV. The company has a C$9 million market capitalization.

(Mining.com)

• [Editor:王可]