MGX Minerals Announces Completion of Gasification Scoping Study


VANCOUVER, BRITISH COLUMBIA / November 21, 2018 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / OTCQB: MGXMF / FKT: 1MG) and Highbury Energy Inc. (“Highbury”) are pleased to report completion of a comprehensive study analyzing beneficial gasification routes from Petroleum Coke (“Petcoke”) to three products of value: Hydrogen, FT Liquids and Fuel Gas. Each of these products has potential markets in the oil sands and heavy oil industry. The report outlines a variety and comparison of plant design parameters and a Petcoke-to-Hydrogen process with metals concentration via gasification, utilizing Highbury’s patented dual-bed gasification technology, which requires no fine grinding or air separation unit. The goal of ongoing joint research with Highbury is to develop fuel source alternatives and concentrated battery metals by-products including vanadium, nickel and cobalt, which can be seamlessly integrated into existing refinery operations. The study is viewed as positive and the project will now move to the demonstration plant design phase and preliminary pre-feasibility analysis.

Metals in Pet Coke and Ash
Previously released assay results of Petcoke samples collected from stockpiles produced from the Fort McMurray area mining and upgrading operation as well as an Edmonton refinery are summarized below. Both samples originated from Delayed Coking operations. Samples were obtained and prepared by Highbury and metal contents analyzed by Acme Labs of Vancouver, British Columbia using standard ICP analyses.

Ash Content
Ash content was determined by weighing residues after burning coke samples of about 200 g in air in a muffle oven over extended periods at 815°C. Table A indicates the average ash content of 6 to 7 samples of each coke.

Table A. Ash Content of Coke Samples

  Sample name Ash content (% wt.) No. of samples tested
  Upgrader Coke A 2.73 ±0.09 6
  Refinery Coke B 0.32 ±0.04 7

Upgrader Coke A had about nine times as much ash as was in Refinery Coke B.

Proximate Analyses
The cokes contain over 95 % organic (non-mineral) matter. Thermogravimetric analyses on 10 mg quantities are shown below.

Table B. Proximate Analyses of Coke by the Thermo-gravimetric Analyser Method

  Quantity (wt. %) Upgrader Coke A Refinery Coke B
  Volatile Matter 8.9 10.0
  Fixed Carbon 86.9 86.3
  Residues 4.3 1.7

Residue refers to residual mineral matter left after the thermo-gravimetric test. Except for the % Residue, the two cokes have similar combustion properties.

Metals Analysis in the Coke Samples
Lithium borate fusion ICP-MS method measures 45 trace metal concentrations in the coke. Results are expressed as (mg/kg) or ppmwt. Table C lists concentrations of selected metals.

Table C. Selected Metal Concentrations in Coke (mg Metal/kg Coke)

  Sample V Ni Cu Zr Co Au Ag
  Upgrader Coke A 421 76.8 86.2 40.5 4.8 0.0011 < 0.1
  Refinery Coke B 458 53.4 35.9 1.3 1.3 <0.0005 <0.1

Vanadium is the highest concentration of the 45 trace metals detected in the coke samples.

Ash Analyses
Ash analysis was completed by Bureau Veritas Commodities Canada Ltd. (“BV”) of Vancouver, British Columbia using XRF method (XF701). Results are expressed as % wt. in the ash as oxide. Sixteen elements as oxides, and LOI (loss on ignition) are determined. The ash samples were prepared in Highbury’s laboratory and sent to BV for analysis. The maximum % the analysis method could accommodate was 10.0 % for V2O5; therefore ash samples were diluted by mixing with other solids. In the Highbury laboratory both Al2O3 and Fe2O3 were used.

Table D. Selected Species in the Ash of Each Coke Type

  Species (wt. %) Upgrader Coke Ash A Refinery Coke Ash B
  Al2O3 27.7 9.8
  SiO2 42.6 23.6
  V2O5 6.6 45.1
  Fe2O3 8.0 2.7
  TiO2 5.7 0.7
  K2O+MgO+CaO 4.0 6.4
  LOI 0.0 4.3
  SubTotal (wt.%) 90.8 92.5

For Upgrader Coke A, the sum of Al2O3 +SiO2 is about 70 %. V2O5 is about 6.6%, according to the ash analyses. For Refinery Coke B, the average % V2O5 in the ash is 45 %.

Table E. Trace Metals Concentration in Ash (mg Metal/kg Ash) for Selected Species [Two Determinations Average]

  Sample V Ni Cu Zr Co Au Ag Mo
  Upgrader Coke Ash A 34600 740 130 1840 230 0.02 2.5 1405
  Refinery Coke Ash B 193000 177000 340 405 620 0.02 0.175 5000

Vanadium metal concentrations are 3.5 % wt. in Upgrader Coke Ash A, and 19.3 % wt. in Refinery Coke Ash B, which is also enriched in Nickel.

Petcoke is a carbon material by-product of the oil and gas industry that forms during the oil refining process. As refineries have become more efficient at processing extra heavy crude oils (bitumen) over the last two decades, output of petcoke globally has risen significantly. Because petcoke originates from heavier petroleum fractions, its denser impurities such as metals and sulphur compounds are concentrate in it.

The majority of Canadian petcoke output occurs in close proximity to oil sand producing regions, where bitumen is upgraded into synthetic crude oil. Specifically, the Province of Alberta is known to host vast stockpiles of petcoke. According to the Alberta Energy Regulator, petcoke inventories are estimated to have reached 106 million tonnes in 2016(1).

(1) Source: Alberta Energy Industry, Alberta Mineable Oil Sands Plant Statistics

Research and Development
Development of the detailed process will be spearheaded by Dr. Paul Watkinson, a Professor Emeritus in the Department of Chemical and Biological Engineering at the University of British Columbia and a co-founder of Highbury. Dr. Watkinson is a published expert in the field of gasification and oversaw early work on related oil sand gasification in the early 1990’s. He is also a registered Professional Engineer, Fellow of the Chemical Institute of Canada and Fellow of the Canadian Academy of Engineering. Dr. Watkinson is also an active participant in the Canadian Society for Chemical Engineering as well as Engineering Conferences International. He has received numerous awards for his research and has published multiple articles in scientific journals on pilot-scale investigations of conversion of carbonaceous solids, such as coal, shale and biomass, into gaseous and liquid fuels.

N.I. 43-101
Although authored by leading experts in the field and significantly advancing research and development of gasification and metals extraction, N.I. 43-101 does not recognize a scoping study as a N.I. 43-101 Compliant Report. As such MGX cannot release any economic projections whatsoever in regard to metals extraction or associated gasification steps. As Petcoke is widely available in very large quantities at low cost in the Alberta Oil Sands it is unlikely MGX will complete an N.I. 43-101 Resource Estimate, which precludes a compliant Preliminary Economic Assessment, Pre-feasibility Study or Feasibility Study that would allow for the release of economic projections. It is anticipated that a Pre-feasibility and Feasibility Study will be completed for the plant design itself but not the Petcoke resource as it will be purchased as needed and not owned or controlled by MGX.

Qualified Person
Andris Kikauka (P. Geo.), Vice President of Exploration for MGX Minerals, has reviewed and approved the technical information in this press release. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument 43-101 Standards.

About Highbury Energy
Highbury Energy Inc. is an innovative energy company dedicated to the development and utilization of renewable energy resources through the procurement and conversion of biomass. Highbury has developed a proprietary dual-bed steam gasification technology and patented gas cleanup system that converts biomass into high-grade synthesis or fuel gas. This robust process produces a medium calorific value gas from most types of organic matter, such as wood or agricultural wastes, without need of tonnage oxygen. The cleaned synthesis gas can readily replace natural gas in industrial kilns and furnaces in the mineral, pulp & paper, glass, and cement industries. Alternately, the syngas can fuel an internal combustion engine to make electricity, with waste heat used for refrigeration, or district heating. Syngas can also be converted to high value low carbon liquid fuels such as diesel or jet fuel, or into chemicals such as methanol or ethanol

About MGX Minerals
MGX Minerals is a diversified Canadian resource and technology company with interests in global advanced material, energy and water assets. Learn more at www.mgxminerals.com.

Contact Information
Jared Lazerson
President & 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 (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”, “postulate” 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.

You are receiving this email because you have subscribed to receive news alerts from MGX Minerals. Our Mailing Address is 1080 Howe St., Suite 303, Vancouver, BC V6C 2T1.


© 2010 Junior Gold Report and TechMoney360

Junior Gold Report and TechMoney360 Newsletter: Junior Gold Report’s and Tech Money 360’s Newsletter is published as a copyright publication of Junior Gold Report (JGR) and TechMoney360 (TM360).  No Guarantee as to Content:  Although JGR/TM360 attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. It may contain errors and you should not make any investment decisions based on what you have read on here. JGR/TM360, its associates, authors, and affiliates are not responsible for errors or omissions. By accessing the site and receiving this email/reading this article, you accept and agree to be bound by and comply with the terms and conditions as set out herein. If you do not accept and agree to the terms you should not use the Junior Gold Report and TechMoney360 sites or accept this email. Consideration for Services: JGR/TM360, it’s editor, affiliates, associates, partners, family members, or contractors have an interest and position in the featured company (MGX Minerals), as well as sponsored companies which compensate JGR/TM360 as such our opinions are biased. We do hold shares in and trade these stocks of the companies we profile and as such our opinions are biased. JGR/TM360 and its’ owner and affiliates/associates may buy/sell and trade the featured companies from time to time. JGR/TM360 has been paid by the MGX Minerals in the form of cash, shares and stock options. Thus, multiple conflicts of interest exist. Therefore, information provided here within should not be construed as a financial analysis but rather as an advertisement. Conduct your own due diligence: The author’s views and opinions regarding the companies featured in report(s) are his/her own views and are based on information that he/she has researched independently and has received, which the author assumes to be reliable. You should never base any buying/selling/trading decisions off of our emails, newsletter, website, videos or any of our published materials. JGR/TM360 aims to provide information and often stock ideas but are by no means recommendations. The ideas and companies featured are highly speculative and you could lose your entire investment – consult a licensed financial advisor if you are considering investing in any of the featured companies. Subscribers/readers are encouraged to conduct their own research and due diligence. The companies mentioned are high risk and considered penny stocks that contain a high risk of volatility, therefore consult your investment advisor and do your own due diligence before purchasing. Never base any investment decision on information contained from our emails, newsletter, website, videos or any of our published materials. No Offer to Sell Securities: JGR/TM360 is not a registered broker dealer, investment advisor, financial analyst, stock picker, investment banker or other investment professional. JGR/TM360 is intended for informational, educational and research purposes only. It is not to be considered as investment advice. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein. Links: JGR/TM360 may contain links to related websites for stock quotes, charts, etc. JGR/TM360 is not responsible for the content of or the privacy practices of these sites. Information contained herein was extracted from public filings, profiled company websites, and other publicly available sources deemed reliable. Information in this report was taken on or before writing and dissemination and may not be updated. Do you own due diligence as information and events can and do change. Published reports may reference company websites or link to company websites and we disclaim and responsibility for the content and accuracy of any such information or website. Cautionary Statement: MGX may decide to advance its petrolithium projects into production without first establishing mineral resources supported by an independent technical report or completing a feasibility study. A production decision without the benefit of a technical report independently establishing mineral resources or reserves and any feasibility study demonstrating economic and technical viability creates increased uncertainty and heightens economic and technical risks of failure. Historically, such projects have a much higher risk of economic or technical failure. All statements in this report, other than statements of historical fact, should be considered forward-looking statements. Release of Liability: By reading and/or watching videos by JGR/TM360, you agree to hold JGR/TM360, its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.


Forward Looking Statements
Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by the use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. Junior Gold Report/TechMoney360 does not take responsibility for the accuracy of forward looking statements and advises the reader to perform their own due diligence on forward looking numbers or statements.

Want the Best News?
Increase your wealth by staying informed:
Trend Alerts - Exclusive Articles - Videos
We respect your privacy.