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March 5th, 2012, VANCOUVER, B.C.– ALIX RESOURCES CORP. (“Alix” or the “Company”) (AIX-TSX:V) (37N–FRANKFURT) announces it has entered into an agreement with Corvus Gold Inc. ("Corvus") (KOR-TSX, CORVF-OTCQX) to option Corvus' 1950 hectare (4800 acre) West Pogo (WP) project in Alaska. With the addition of the Corvus ground to Alix' adjacent Money Rock project (see Alix News, February 25, 2010) the Company now controls some 2980 hectares (7360 acres) of State of Alaska Mining Claims in this important area just three and a half kilometers (two miles) west of Sumitomo Minerals' Pogo Mine. The Pogo Mine road and power line pass through the West Pogo property providing easy access.
The Company also announces that the option agreement announced June 9, 2010, between Liberty Gold Mines (formerly Precious Metals Exploration Corporation) and Alix has been terminated.
Alix anticipates developing drill targets on their ground as well as the newly acquired Corvus block this year. The preliminary target concept for the 2012 program at both Money Rock and West Pogo is for low and high angle, high-grade gold vein systems similar to the Pogo deposit located 3.5 kilometers (2 miles) to the east. Sumitomo Metals Corp. produces an annual average of just under 400,000 ounces of gold at Pogo (Alaska Division of Geological and Geophysical Surveys Special Report 65, 2011).
The Alix & Corvus ground shares very similar geology to that at Pogo with late Cretaceous Paleozoinc orthogneiss and paragneiss country rocks intruded by late Cretaceous reduced felsic intrusions ranging from tonalites to granites. Geochemical soil anomalies on the Corvus and Alix ground appear to trend towards one another. In 2011 a 3D IP/Resistivity survey on the Corvus ground detected geophysical anomalies trending north-northwestward towards the Alix ground.
Previous work at West Pogo has identified two +1 km zones of gold mineralization which produced rock-chip grab samples up to 118.5g/T gold. Surface work at Money Rock has produced grab samples up to over 200 g/T gold. Both properties have produced numerous grab samples with over 1 g/T gold. Exploration at both prospects has always been hampered by the relatively poor outcrop exposure in the area; however, systematic work on the two properties has revealed a large auriferous mineralizing system of apparent good lateral continuity that is near-ready for drill testing.
Jeff Pontius, Corvus Gold CEO states: “…Corvus is keenly interested in having Alix apply their knowledge gained on recently completed work north of WP to define and drill targets on the Corvus ground in this win-win partnership.”
Alix will complete USD $5M in work on the project and pay $125,000 to Corvus over 5 years to earn a 60% interest in the project. Additional highlights of the agreement include Corvus retaining a 2-3% Net Smelter Return (NSR) royalty on the project with Alix having the right to purchase 1% of the royalty for USD $1M.
"We are very pleased to add Corvus' West Pogo project area to our Money Rock project just west of the Pogo Mine," said Mike England, President and CEO of Alix. "There is clearly a great synergy in combining Alix' and Corvus' lands and expertise into an expanded project in this area. Our geologists are excited to fully digest the Corvus data package and get started on our 2012 field program."
Key terms of the Alix earn-in agreement at West Pogo are summarized below:
· The agreement is for Alix to earn 60% interest in the 1950 hectare (4800 acre) State of Alaska Mining Claim land package from Corvus;
· USD $5M work commitment earn-in over 5 years with year one being USD $250,000;
· Annual payments of USD $25,000 during the earn-in period to Corvus;
· Upon Alix's completion of its obligations under the buy-in and annual payment provisions, a 60/40 Alix/Corvus joint venture will be formed to operate the property;
· Corvus reserves a sliding scale 2-3% NSR royalty against the 60/40 Alix/Corvus joint venture with a USD $1,500/oz gold break point and with Alix having the right to purchase 1% of the NSR at a cost of USD $1M;
· Alix has the right to purchase Corvus’ interest in the project by converting each 10% interest in the property into an additional 1% NSR.
David Hedderly-Smith, Ph.D., P.G., and Alix Director, who is a Qualified Person as defined by NI 43-101, has reviewed the geological and technical information contained in this release, and has approved the disclosure of the technical information in this news release on behalf of Alix.
This transaction is subject to TSX Venture Exchange approval.
Alix Resources Corp. is a junior exploration company actively seeking mineral opportunities for the benefit of all its stakeholders. For further information we invite you to visit us at www.alixresources.com.
Corvus Gold Inc. is a resource exploration company focused in Nevada, Alaska and Canada which controls a number of exploration projects representing a spectrum of early-stage to advanced gold projects. For further information go to: http://www.corvusgold.com.
ON BEHALF OF THE BOARD
Michael England, President
FOR FURTHER INFORMATION PLEASE CONTACT:
Toll Free: 1-888-945-4770
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.