MGX Minerals Reports Maiden N.I. 43-101 Resource Estimate for Driftwood Creek Magnesium Project: 8 Million Tonnes Grading 43% Magnesium Oxide
VANCOUVER, British Columbia, Sept. 06, 2016 (GLOBE NEWSWIRE) — MGX Minerals Inc. (“MGX” or the “Company”) (CSE:XMG) (FKT:1MG) is pleased to announce a maiden National Instrument (N.I.) 43-101 compliant mineral resource estimate for its Driftwood Creek magnesium project (“Driftwood Creek”).
- 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
The 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.
|Class||Tonnes x 1000||MgO%||Al2O3%||CaO%||Fe2O3%||SiO2%||LOI%|
|M + I||8,028||43.31||1.14||0.84||1.36||5.82||46.67|
- 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.
An updated technical report on Driftwood Creek, including the new resource estimate, will be filed on SEDAR within 30 days.
MGX Minerals has the right to acquire a 100% interest in Driftwood Creek. 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 rounds of diamond drilling 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.
The technical portions of this press release have been reviewed by Allan Reeves (P. Geo.) of Tuun Consulting, Inc. and Andris Kikauka (P. Geo.), Vice President of Exploration for MGX Minerals.
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 further 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”, “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.
CONTACT: Contact Information Jared Lazerson Chief Executive Officer Telephone: 1.604.681.7735 Email: email@example.com