VANCOUVER, BRITISH COLUMBIA -- August 29th, 2017 -- InvestorsHub
NewsWire -- MGX Minerals Inc. (MGX or the
Company) (CSE: XMG / FKT: 1MG / OTC: MGXMF) is pleased to
provide shareholders with a progress report on multiple fronts
inclusive of lithium, magnesium, silicon, and newly acquired rare
earth (REE) superalloy projects.
US / Canadian Petrolithium and Lithium Brine Projects
MGX has processed wastewater and lithium brine from eight North
American project sites since inception of its one cubic meter per
hour pilot plant in July 2017. These bulk samples of one US barrel
each were shipped from six oil and gas sites and two mine sites in
the US and Canada. Independent assays are pending to verify lithium
and other mineral recoveries as well as clean water output profile
to determine environmental and water handling benefit.
This data will provide the basis for the engineering of these
projects and final commercial arrangement. These projects represent
high priority lithium and environmental water handling projects. In
addition to its wholly owned projects, MGX has entered testing and
analyses agreements with major oil companies across North America
and has completed testing at more than 25 locations providing an
initial pipeline of mineral and water handling projects and sites
for deployment of 1200 cubic meter of water per day systems (7,500
US barrels per day).
The first 120 cubic meter per day system is near completion and
first 1,200 cubic meter skid mounted mobile system is currently
being manufactured with mass production scheduled for Q1 2018. MGX
Minerals controls over two million acres of lithium brine mineral
permits across North America covering in many areas lithium brine
correlated with existing oil and gas operations.
Driftwood Creek Magnesium Update
The Driftwood Creek magnesium project (Driftwood) contains a
National Instrument (N.I.) 43-101 Measured plus Indicated (M+I)
mineral resource estimate totaling 8.028 million tonnes grading
43.31% magnesium oxide (MgO) and Inferred mineral resource totaling
846,000 tonnes grading 43.20% MgO. The Company has conducted three
rounds of diamond drilling at Driftwood and a 100-tonne bulk
sample. Driftwood is located 164 kilometers north of Cranbrook,
British Columbia and is accessible by a network of maintained
logging roads.
Geotechnical Drilling Underway
A geotechnical drill program is currently underway to define hard
contacts between magnesite and dolomite host rock for pit
optimization and further examination on rock strength and fracture
density. The program is being conducted by FB Drilling Ltd. of
Cranbrook, British Columbia.
Process Design Completed / PEA Nears Completion
Samuel Engineering Inc. has completed a detailed process circuit
design with equipment requirements and site layout. This improves
on initial process and metallurgy work completed by SGS Lakefield.
A number of scenarios and parameters, aimed at reducing initial
capital requirements and maximizing annual output, are currently
being examined and will be incorporated into the upcoming PEA
expected shortly.
Pilot Plant Mill
The pilot plant mill is largely operational. The Company expects to
begin processing mineralized material from the previously completed
bulk sample shortly based on recent process design by Samuel
Engineering. The mill will utilize a reverse flotation circuits to
create multiple concentrates- a high purity magnesite tailing and
by-product silica sand float. The magnesite (MgCO3) concentrate
will undergo further calcination optimization testing as well as
thermal analysis.
Environmental Studies Underway
The Company has now completed Piezo holes for water collection and
monitoring. An Archaeological Impact Assessment (AIA) is currently
ongoing while the Company reviews government requirements to submit
an Operating Permit Application. MGX has already received Mining
Lease approval, which carries an initial term of 20 years (see press release dated January 11,
2016).
Longworth Silica Update
The previously announced drill program at Longworth Silica
(Longworth) continues to make progress. (see press release dated July 19,
2017). The first hole DDH-17LW-1 has been completed to a depth
of 120 meters and drilling of the second hole is now underway. Hole
DDH-17LW-1 showed limonite in fractures to a depth of 10 meters,
thereafter drilling intersected a continuous interval of visually
identifiable orthoquartzite with high rock-quality designation
(RQD) over greater than 100 meters.
MGX plans to complete additional drill holes at 50-meter
spacings and build further confidence in the continuity of high
purity quartzite mineralization within the Snow Zone for inclusion
in a planned N.I. 43-101 Resource Estimate. Longworth is listed as
one of the top silica occurrences throughout the Province of
British Columbia by the BCGS (Simandl, 2014) and was previously
controlled but largely undeveloped by Consolidated Silver Standard
Mines (Silver Standard) for 25 years.
Exposed bedrock samples collected from the Snow Zone by MGXs
Vice-President of Exploration, Andris Kikauka (P. Geo). has
averaged 99.34% silicon dioxide (SiO2) (see press release dated May 30,
2016).
Average values from 10 rock chip samples taken from the Snow
zone at Longworth are listed below:
% SiO2
|
% Fe2O3
|
% CaO
|
% MgO
|
% Al2O3
|
% Na2O
|
% K2O
|
% LOI
|
% Total
|
99.34
|
0.028
|
0.012
|
0.014
|
0.205
|
0.039
|
0.06
|
0.122
|
99.834
|
The relatively high SiO2 content (98.7-99.9% SiO2) of rock
samples is favorable. Further metallurgical testing for use of
material for silicon metal or ferrosilicon production and other end
uses is planned to include testing of recently developed processing
technology for upgrading of ~99% quartzite feedstock to 99.999999%
solar grade silicon. Metallurgy will commence upon completion of
drilling.
Longworth encompasses 1,198 hectares and consists of four
distinct high purity quartzite zones across a collective strike
length of 7,000 meters. Longworth is situated four kilometers from
the Canadian National railroad mainline and power grid and
accessible by a network of well-maintained logging roads.
REN Niobium-Tantalum-Titanium-REE Mineral Property
The Company is pleased to announce it has completed a total of
62 soil and 8 rock chip samples in a 1.3 X 0.3 km area of
mineralized carbonatite in its recently acquired REN mineral claims
(REN or the Property) located in the northern Monashee Mountains of
southeastern British Columbia. The Property features a 100-200
meter wide mineralized carbonatite zone that includes screens and
interlayers of mafic and potassic fenite, pegmatite and intruded
country rock. In addition to the presence of elevated
Niobium-Tantalum-Titanium, analysis indicates the REEs are strongly
zoned into the hanging wall (southwest side) of the carbonatite
over a 1.5 kilometers strike length.
In 1988 Teck Explorations Limited completed stream silt sampling
(89 samples) from four drainages, 17.85-line kilometers of
magnetometer surveying, 15.35-line kilometers of
spectrometer/scintillometer surveying and 749 meters of trenching,
mapped and sampling. The best niobium values were from trench ATR-2
of 0.19% Nb over a width of 55 meters. Carbonatite that was
excavated in all trenches averaged 0.13% Nb. Cerium and lanthanum
were all highly anomalous but the values were not plotted. The rock
samples were not analyzed for tantalum or neodymium.
In 2011 International Bethlehem built 700 meters of drill access
trails. A total of 1,134 m of NQ2 core drilling was successfully
completed in 8 holes, giving the following results (B.C. MINFILE
32959):
DDH
|
From
(m)
|
To
(m)
|
Interval
(m)
|
Nb2O5 ppm
(grams per tonne)
|
MC-11-03
|
24.13
|
43.36
|
19.23
|
2712
|
including
|
29.07
|
38.07
|
9.00
|
4284
|
Including
|
35.07
|
38.07
|
3.00
|
9250
|
|
43.36
|
46.69
|
3.33
|
|
and
|
46.69
|
64.69
|
18.00
|
1531
|
Including
|
57.69
|
64.69
|
7.00
|
2037
|
|
|
|
|
|
MC-11-04
|
66.91
|
76.38
|
9.47
|
1460
|
|
76.38
|
80.70
|
4.32
|
|
and
|
80.70
|
89.04
|
8.34
|
1950
|
|
89.04
|
107.06
|
18.02
|
|
and
|
107.06
|
122.00
|
14.94
|
1359
|
|
|
|
|
|
MC-11-05
|
39.22
|
51.70
|
12.48
|
2010
|
|
51.70
|
73.63
|
21.93
|
|
and
|
73.63
|
96.63
|
23.00
|
1708
|
|
|
|
|
|
MC-11-06
|
108.95
|
115.45
|
6.50
|
2072
|
|
115.45
|
123.70
|
8.25
|
|
and
|
123.70
|
146.30
|
22.60
|
1555
|
Note: The mineralized composite carbonatite zone includes screen
and interlayers of mafic and potassic fenite, pegmatite and
intruded country rock, which were analyzed and are reported as
waste.
The Company plans correlation of recent surface sampling with
previous drilling and geophysics to construct a drill program for
the purpose of defining a resource.
The purchase price payable to the vendors for MGX to earn a 90%
interest in the Property consist of the following:
a) Exploration and development expenses of $200,000 in the
next two years;
b) Cash payments of $33,333 over the next year; and
c) The Issuance of 600,000 common shares to the vendors
under the following schedule:
(i) 200,000 within 30 days of the Effective Date;
(ii) 200,000 prior to August 1, 2018; and
(iii) 200,000 prior to August 1, 2019.
The vendors will also retain a 10% carried interest on the
Property, which MGX can purchase back at any time for $200,000 in
cash.
One of the vendors, Andris Kikauka, is a non-arm's length party
to the Company by virtue of being a Director and Vice President of
Exploration of the Company. Mr. Kikauka is entitled to 50% of the
purchase price of the property. The acquisition of the Property was
considered a "related party transaction" pursuant to Multilateral
Instrument 61-101 - Protection of Minority Security Holders in
Special Transactions ("MI 61-101"). The Company was exempt from the
requirements to obtain a formal valuation or minority shareholder
approval in connection with Mr. Kikaukas participation in the
transaction in reliance of sections 5.5(b) and 5.7(a) of MI
61-101.
Case Lake Lithium Joint Venture
MGX recently entered into a Binding Letter of Intent (LOI) with
Power Metals Corp. (Power Metals) to acquire certain interests held
by Power Metals in exchange for common shares of the Company
(see press release dated August 2,
2017). Inclusive in the LOI was acquisition of a 20% working
interest in the Case Lake Lithium Property and option to acquire an
additional 15% by making certain cash payments.
As reported by Power Metals, drilling has commenced at the Case
Lake lithium property (Case Lake) in Ontario. A 5,000-meter drill
program is now underway to test known and new targets identified
from recent 3-D modeling and include:
4,000 meters of resource drilling at 30-metre spacings and to
depths of 100 to 150 meters on the spodumene Main and North dike
surface exposure (approximately 26 holes); and
1,000 meters of expansion drilling to depths of 100 to 150 meters
to extend the Main and North dikes along strike to the east and
west (approximately 10 holes).
Case Lake is located in northeastern Ontario and consist of five
identified pegmatite swarm dikes ranging in thicknesses from 10 to
35 meters and reaching up to 1,200 meters in strike length. The
North and Main dikes feature spodumene-rich zones and the 100-meter
surface exposure within the Main dike has not been drill tested
previously.
Qualified Person
The technical portions of this press release were prepared and
reviewed by Andris Kikauka (P. Geo.), Vice President of Exploration
for MGX Minerals. Mr. Kikauka is a non-independent Qualified Person
within the meaning of National Instrument (N.I.) 43-101
Standards.
About MGX Minerals
MGX Minerals is a diversified Canadian resource company with
interests in petrolithium, magnesium and silicon assets throughout
North America. Learn more at www.mgxminerals.com.
Contact Information
Jared Lazerson
President and CEO
Telephone: 1.604.681.7735
Web: www.mgxminerals.com
Neither the Canadian Securities Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
Canadian Securities Exchange) accepts responsibility for the
adequacy or accuracy of this release.
Forward-Looking Statements
This press release contains forward-looking information or
forward-looking statements including the completion of the rights
offering (collectively "forward-looking information") within the
meaning of applicable securities laws. Forward-looking information
is typically identified by words such as: "believe", "expect",
"anticipate", "intend", "estimate", "potentially" and similar
expressions, or are those, which, by their nature, refer to future
events. The Company cautions investors that any forward-looking
information provided by the Company is not a guarantee of future
results or performance, and that actual results may differ
materially from those in forward-looking information as a result of
various factors. The reader is referred to the Company's public
filings for a more complete discussion of such risk factors and
their potential effects which may be accessed through the Company's
profile on SEDAR at www.sedar.com.
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