VANCOUVER, BRITISH COLUMBIA – September 27, 2016 – MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT:1MG / OTC: MGXMF) reports the Company has filed on SEDAR a National Instrument (N.I.) 43-101 technical report (the “Report”) for its flagship Driftwood Creek magnesium project (“Driftwood Creek”). The Report includes a maiden N.I. 43-101 compliant mineral resource estimate for Driftwood Creek.
The maiden N.I. 43-101 resource estimate was prepared by Mr. Allan Reeves. Mr. Reeves is a Professional Geologist and independent Qualified Person (QP) as defined by N.I. 43-101 Standards of Disclosure for Mineral Projects. He has over 35 years of industry experience and spent 23 years at BHP Billiton where he held senior-level positions at both the Ekati Diamond Mine and Island Copper Mine.
- Measured plus Indicated (M+I) mineral resource totaling 8.028 million tonnes grading 43.31% magnesium oxide (MgO)
- Inferred mineral resource totaling 846,000 tonnes grading 43.20% MgO
- Bulk of resource is located less than 100 meters from surface
- Opportunities to expand mineral resource along strike and at depth with additional drilling
Class Tonnes x1000 MgO% Al2O3% CaO% Fe2O3% SiO2% LOI% Measured 2,828 43.34 1.08 0.90 1.39 5.19 47.16 Indicated 5,200 43.29 1.17 0.80 1.35 6.17 46.40 M+I 8,028 43.31 1.14 0.84 1.36 5.82 46.67 Inferred 846 43.20 1.30 0.47 0.51 6.87 45.09
- Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all, or any part of the Mineral Resources estimated will be converted into Mineral Reserves.
- The LG constrained shell economics used a mining costs of US$6.25, processing costs of US$129.41/tonne and a commodity price of US$400.00/tonne 95%MgO DBM.
- Mineral resources are reported within the constrained shell, using a cut-off grade of 42.5% MgO (based on 40 years) to determine ‘reasonable prospects for eventual economic extraction’.
- Tonnages are reported to the nearest 1,000 tonnes, and grades are rounded to the nearest two decimal places.
- Rounding as required by reporting guidelines may result in apparent summation differences between tonnes, grade and contained metal.
The resource estimate was prepared in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves as adopted by the CIM Council.
The Company has commenced work on a N.I. 43-101 compliant Preliminary Economic Assessment (“PEA”) for Driftwood Creek and expects completion before the end of 2016. The PEA is being prepared by AKF Mining Services Inc.
MGX Minerals has the right to acquire a 100% interest, in the Driftwood Creek magnesium project. The project is located 164 kilometers north of Cranbrook, British Columbia and is accessible by a network of maintained logging roads. The Company has conducted two diamond drilling programs at Driftwood Creek and recently completed a 100-tonne bulk sample program (see press release dated June 9, 2016). MGX received a 20-year Mining Lease for Driftwood Creek in January (see press release dated January 11, 2016).
Pilot Plant Mill
The Company is in the process of transporting and assembling a pilot plant mill (the “Mill”) at the current stock-pile location of the recently completed 100-tonne bulk sample (see press release dated June 9, 2016). The Mill equipment includes a jaw crusher, ball mill, flotation cells, cyclone dewatering equipment and a tailings filtration and thickener system. Previously the Mill was utilized to process polymetallic concentrate. MGX intends to process mineralized bulk sample material through the Mill using reverse flotation to produce two products- a high purity magnesite tailing and silica sand float byproduct. The magnesite (MgCO3) material will then be shipped off site to undergo calcination optimization testing to produce magnesium oxide (MgO) as well as thermal and electrolytic analysis to produce magnesium metal (Mg).
Extensive metallurgical and process design work was previously completed on mineralized material from Driftwood Creek by SGS Lakefield (“SGS”). The process design developed by SGS closely follows the current flowsheet plans for the pilot plant mill, inclusive of the reverse flotation and tailings dewatering system, to produce high grade magnesite concentrate. Pilot plant testing will allow the Company to further optimize grinding, milling and flotation elements to develop a finalized process flow.
Magnesium (Mg) is a non-metallic abundant alkaline earth metal that represents an important material for today’s modern lifestyle- smartphones, automobiles, aircrafts, and other everyday essentials all require magnesium. Magnesium’s unique characteristics make it 75% lighter than steel and 33% lighter than aluminum while still offering comparable strength-to-weight ratios. Magnesium is the third most used structural metal (behind iron and aluminum) and considered a critical strategic metal by the United States and European Union. China is responsible for approximately 80% of annual worldwide production. There is currently only one magnesium metal producer in the US.
Magnesium Oxide (MgO) is a widely used industrial mineral with end uses in fertilizer, animal feed, and environmental water treatment as well as industrial applications primarily as a refractory material in the steel industry. The majority of refractory grade MgO used in the US and Canada is imported from China.
This press release was prepared under the supervision and review of Andris Kikauka, P. Geo. and 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.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resource estimates do not account for mineability, selectivity, mining loss and dilution. The Mineral Resource estimate stated herein includes Inferred material, which is normally considered too geologically speculative to have economic considerations applied, thereby to enable them to be categorized as Mineral Reserves. There is also no certainty that Inferred material will be converted to either the Indicated or Measured categories of Mineral Resources, through further drilling. Similarly, there is no certainty that Mineral Resources will convert to Mineral Reserves, once economic considerations are applied.
About MGX Minerals
MGX Minerals (CSE: XMG) is a diversified Canadian mining company engaged in the development of large-scale industrial mineral portfolios in western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures. The Company operates lithium, magnesium and silicon projects throughout British Columbia and Alberta. For more information please visit the Company’s website at 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.
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.
Disclaimer© 2010 Junior Gold ReportJunior Gold Report’ Newsletter: Junior Gold Report’s Newsletter is published as a copyright publication of Junior Gold Report (JGR). No Guarantee as to Content: Although JGR 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. JGR, its associates, authors, and affiliates are not responsible for errors or omissions. Consideration for Services: JGR, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in featured, written-up companies, as well as sponsored companies which compensate JGR. JGR has been paid by the company written up. Thus, multiple conflicts of interests exist. Therefore, information provided herewithin should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. No Offer to Sell Securities: JGR is not a registered investment advisor. JGR is intended for informational, educational and research purposes only. It is not to be considered as investment advice. Subscribers are encouraged to conduct their own research and due diligence, and consult with their own independent financial and tax advisors with respect to any investment opportunity. 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 may contain links to related websites for stock quotes, charts, etc. JGR is not responsible for the content of or the privacy practices of these sites. Release of Liability: By reading JGR, you agree to hold Junior Gold Report 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 our 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 our 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 does not take responsibility for accuracy of forward looking statements and advises the reader to perform own due diligence on forward looking numbers or statements.