MGX Minerals Reports Phase III Drill Results from Driftwood Creek Magnesium- Up to 120 Meters Grading 42.0% Magnesium Oxide
VANCOUVER, British Columbia, Dec. 05, 2016 (GLOBE NEWSWIRE) — MGX Minerals Inc. (“MGX” or the “Company”) (CSE:XMG) (FKT:1MG) (OTC:MGXMF) is pleased to report assay results from infill and extension drilling at its flagship Driftwood Creek magnesium deposit (“Driftwood Creek”) in British Columbia. The Phase III drill program followed recommendations from the National Instrument (N.I.) 43-101 compliant mineral resource estimate totaling 8.3 million tonnes grading 43.3% Magnesium Oxide (“MgO”) reported in September (see press release dated September 5, 2016).
The Phase III drill program completed 16 holes totaling 1,211.5 meters in the East and West zones at Driftwood Creek. Drill holes were spaced at 50 meter intervals with nine holes located in the East zone and seven holes in the West zone. Significant intercepts from the drill program include:
– 85 meters of 41.6% MgO in hole 16-1 (East zone)
– 46.5 meters of 43.8% MgO in hole 16-7 (East zone)
– 55.5 meters of 43.5% MgO in hole 16-10 (West zone)
– 56 meters of 42.9% MgO in hole 16-11 (West zone)
– 120 meters of 42.0% MgO in hole 16-13 (West zone)
– 107 meters of 42.1% MgO in hole 16-14 (West zone)
The purpose of the infill drill program was to prove up the continuity and thicknesses of magnesite mineralization within the East and West zones. Additionally, management is encouraged by results from drill holes that were placed along potential lateral extensions of the deposit, suggesting room for expansion along strike. New assay data will now be used to prepare an updated mineral resource estimate as part of the upcoming N.I. 43-101 compliant Preliminary Economic Assessment (“PEA”) for Driftwood Creek, which is currently underway.
“Phase III drill results continue to reflect a large magnesite resource of highly consistent grade,” stated MGX Minerals CEO Jared Lazerson. “At this time MGX has a clear path forward with high expectations of the upcoming PEA and upgraded NI 43-101 Resource Estimate. The PEA will provide a net present value for the project providing a fundamental basis for the valuation of the Company’s shares.”
A summary of selected assay results is shown below:
|DDH||From (m)||To (m)||Interval (m)||MgO %||CaO %||SiO2 %||L.O.I. %||Total %|
The East zone has now been drill tested over an area of 450×200 meters and the West zone over an area of 650×200 meters. Magnesite is the most common rock type encountered in drill holes. Minor dolomite, argillaceous dolomite and quartzite rock types are also encountered in drill holes. Magnesite zones are characterized by solid, competent rock with relatively high rock quality designation.
Quality Assurance / Quality Control
The sample chain of custody is managed by MGX under the supervision of Mr. Andris Kikauka. Drill core is split at three meter intervals, secured in a nearby storage facility and shipped to ALS Minerals (“ALS”). Blanks and standards are used for data verification purposes. ALS is an independent, ISO-certified analytical laboratory located in North Vancouver, British Columbia. ALS conducts whole-rock analysis using a lithium borate fusion process to calculate oxide equivalent values.
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.
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. The Company operates lithium, magnesium and silicon projects throughout British Columbia and Alberta. MGX recently released a maiden N.I. 43-101 compliant mineral resource estimate for its Driftwood Creek magnesium project, which outlined 8 million tonnes grading 43.31% magnesium oxide. In January the Company received a 20-year Mining Lease for Driftwood Creek. Additionally, the Company recently acquired the Sturgeon Lake lithium brine project in west-central Alberta, increasing the Company’s lithium brine land position to over 376,000 hectares throughout the Province. 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 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.
Chief Executive Officer