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MGX Contractor Completes Capex Report for Lithum Carbonate Plant

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2016-05-09 09:58 ET – News Release

Mr. Jared Lazerson reports

MGX MINERALS RECEIVES INITIAL CAPEX REPORT FOR LITHIUM CARBONATE PLANT

MGX Minerals Inc. has received the initial capital expenditure (capex) report for a lithium carbonate production plant from engineering consultant Cementation AG. The capex budget is the second part of the previously received initial process design and scoping study (see press release dated April 14, 2016).

MGX engaged Cementation AG to analyze extraction of minerals from the heavily mineralized brine within the Fox Creek and Swan Hills areas, which are part of the company’s portfolio of Alberta lithium properties. Cementation AG formulated a detailed initial capex budget based on quotations from potential vendors in addition to applying in-house expertise and experience. The capex plan provides a positive basis for the company to proceed with engineering of an initial 20,000 bpd (barrels per day) lithium carbonate production plant.

Scoping study highlights

Further details of the proposed process and production plant design are provided as follows:

  • Reduction of production time of lithium carbonate by greater than 99 per cent over current traditional brine production — one day versus 18 months;
  • Multiple end market products including lithium carbonate, sodium chloride and calcium chloride with potential for addition of boron and bromine production;
  • Strategic sourcing of reagents and energy to reduce input costs;
  • Application of energy-efficient technology to significantly reduce potential operating expenditures (opex);
  • Utilization of existing oil and gas infrastructure and expertise to reduce capex and opex.

The study includes flowsheet recommendations and operational expenditure (opex) calculations to process lithium-bearing brine of 20,000 bpd (barrels per day) in a commercial plant. The process is designed to rapidly separate brine minerals to produce various industrial mineral compounds. The study also includes a metallurgy testing protocol. MGX is currently evaluating metallurgical laboratories for bench testing of the proposed process. As a result of the positive capex report, Cementation AG has provided a six-month engineering and development project plan to follow metallurgy testing for the detailed engineering of the proposed lithium carbonate plant.

Alberta lithium properties

MGX has staked or entered into purchase agreements to acquire a 100-per-cent undivided interest in 24 metallic and industrial mineral permits throughout the province of Alberta encompassing over 1,150 square miles (300,000 hectares). These permits were acquired based on compilation of historic exploration for lithium by the province as well as oil and gas well data and known geology. The permits are all geological associated with current and past-producing oil fields.

Qualified person

This press release was prepared under the supervision and review of Andris Kikauka, PGeo, and vice-president of exploration for MGX Minerals. Mr. Kikauka is a non-independent qualified person within the meaning of National Instrument 43-101 standards.

We seek Safe Harbor.

© 2016 Canjex Publishing Ltd. All rights reserved.

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