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MGX Minerals Inc.

Driftwood Creek Magnesium Project

Highlights

  • Located in the Brisco-Driftwood mining district of southeastern British Columbia
  • Land package spanning 776 hectares across three mineral tenures
  • Mineralization traced over strike length of 2,000 meters; remains open in both directions and at depth
  • Two high-grade mineralized zones (“Eastern” and “Western”) delineated to date
  • Excellent infrastructure including access to rails, road, labor and electricity
  • Potentially amenable to low-cost, open pit mining methods

Geology & Mineralization

The Driftwood Creek project is hosted by the Precambrian-aged Mount Nelson Formation. This sedimentary formation is approximately 1,300 meters thick and intruded by younger felsic and mafic igneous dykes. Magnesite mineralization occurs in the upper half of the formation and is well exposed at surface along as an isolated topographic ridge.

Mineralization is stratigraphically associated with red to purple dolomites, cherty dolomites, stromatolitic dolomites, dissolution breccias and other sedimentary rock units containing dolomite pseudomorphs. Stromatolitic textures are preserved locally within magnesite-bearing rocks.

Magnesite has been traced over a strike length of 1,900 meters and to a maximum width of 220 meters. Mineralization occurs in two discrete zones that are believed to have been remobilized and enriched during a period of metamorphic recrystallization.

Eastern Zone
Western Zone

Historic Exploration

1989 Geochemical ResultsKaiser Resources Ltd. acquired the Driftwood claims in 1978 and completed surface mapping and limited drilling. In 1987 Canadian Occidental Ltd. staked the Driftwood Creek deposit. Exploration activities included four NQ-sized diamond drill holes and collection of 68 core samples weighing five kilograms each.

In 1999 the Driftwood claims were staked by the present owners, who completed rock chip geochemistry over part of the Western zone where outcrop is exposed at surface. Assay results from 10 sample locations showed weighted averages ranging between 39.98% and 44.42% MgO (magnesium oxide). Tusk Exploration Ltd. optioned the property in 2008 and completed seven diamond drill holes over the Western Zone.

2014 Exploration

MGX Minerals optioned the property in 2014 and subsequently completed eight diamond drill holes over the Eastern zone (click to view 2014 drill hole map). Summary of select drill intercepts are listed below:

DDH

From (m)

To (m)

Width (m)*

MgO%

CaO%

SiO2%

Fe2O3%

LOI%

14-1

1 m

27 m

26 m

42.55

0.75

5.86

0.75

47.93

14-2

2 m

51 m

49 m

43.04

1.06

5.18

0.74

48.55

14-2A

.35 m

36 m

35.65 m

41.83

1.5

6.83

0.93

46.91

14-3

2.8 m

9 m

6.2 m

41.04

1.16

8.33

0.98

46.05

14-3

21 m

63 m

42 m

41.52

1.33

6.49

0.88

47.44

14-4

0.8 m

9 m

8.2 m

43.2

1.24

4.12

0.86

48.64

14-4

21 m

66 m

45 m

41.92

2.08

4.71

0.77

48.54

14-5

24 m

71.63 m

47.63 m

41.43

1.64

6.87

0.78

47.5

14-6

3 m

18 m

15 m

42.62

1.92

5.54

0.86

47.48

14-6

30 m

36.58 m

6.58 m

41.92

0.69

9.01

0.97

45.53

14-7

.2 m

54 m

53.8 m

43.1

1.17

4.93

0.93

47.13

Note: *Width refers to drill hole intercepts, true widths have not been determined.Seven (7) samples were inserted for QA/QC data verification (@ 20 sample intervals) ID #20,40,60,80,100,120,140.

          

2015 Exploration

MGX has conducted additional exploration in 2015 including re-assaying of historic Tusk Exploration drill core (see press release dated May 7, 2015) and surface outcrop sampling (see press release dated May 12, 2015). Results have identified additional exploration targets.

Re-analysis of historic Tusk Exploration drill core used an advanced assay method to calculate oxide equivalent values and remove unknown or previous unaccounted for material. Results from historic drill core re-analysis completed by ALS Minerals are reported below:

DDH

From (m)

To (m)

Interval (m)

MgO%

CaO%

Fe2O3%

SiO2%

2008-1

2.0

64.0

62.0

43.32

1.33

1.50

3.85

2008-1

94.8

114.4

19.6

43.12

0.61

1.41

4.72

2008-1

118.2

133

14.8

43.81

0.77

1.52

3.10

2008-2

2.0

132.0

130.0

42.46

1.39

1.49

4.82

2008-3

2.0

7.0

5.0

43.73

0.79

1.45

3.31

2008-3

20.4

31.5

11.1

38.78

5.48

1.70

4.96

2008-4

2.0

26.0

24.0

40.13

1.23

1.29

8.78

2008-4

44.1

50.1

6.0

38.30

1.80

1.78

10.56

2008-4

57.0

68.6

11.6

42.22

0.73

1.55

5.50

2008-5

0.7

16.0

15.3

41.66

1.72

1.72

5.06

2008-5

16.0

35.6

19.6

37.57

0.78

1.93

14.40

2008-5

38.2

95.8

57.6

41.18

1.15

1.55

6.72

2008-6

0.7

32.8

32.1

42.42

1.02

1.44

5.90

2008-6

45.4

52.5

7.1

42.87

0.45

1.52

5.74

2008-6

65.5

91.1

25.6

41.95

0.31

1.41

10.80

2008-7

3.5

25.3

21.8

44.09

0.49

1.43

3.43

2008-7

35.5

72.0

36.5

42.72

0.61

1.50

6.19


MGX also sampled surface outcrops over a 200 x 2,000 meter area to target existing and potential new zones of mineralization at Driftwood Creek.

Fish Zone

The Fish Zone is a near surface magnesite-bearing zone located along strike and as a lateral extension of the Western Zone at Driftwood Creek.* The Fish zone was originally discovered and explored by Kaiser Resources in the 1970’s. Encouraging results led to extraction of an 8,000 tonne bulk sample (Morris 1978).

In April 2015 eight rock chip samples were taken across a northeast bearing profile spanning approximately 300 meters that targeted surface outcrops within the Fish Zone. Results of ALS analysis are reported in the table below:

Sample

Zone

MgO%

CaO%

Al2O3%

Fe2O3%

SiO2%

DR-15-AR-11

Fish

46.2

0.51

0.10

0.67

1.09

DR-15-AR-12

Fish

43.5

0.51

0.11

0.56

5.91

DR-15-AR-13

Fish

45.0

0.62

0.04

0.58

3.20

DR-15-AR-14

Fish

40.8

3.98

0.15

0.77

5.93

DR-15-AR-15

Fish

42.0

3.03

0.07

0.81

4.72

DR-15-AR-16

Fish

42.3

3.29

0.53

0.78

4.28

DR-15-AR-17

Fish

45.6

0.80

0.54

0.71

1.64

DR-15-AR-18

Fish

41.5

4.07

0.55

0.79

3.98

Note: Each sample represents three meter intervals

* The potential quantity and grade of the Fish zone is conceptual in nature and there has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource.

Western Zone Results

Seventeen samples were also collected throughout the Western Zone of Driftwood Creek. The results, when juxtaposed with recent re-analysis of historic drill core (see press release dated May 7, 2015), confirm continuity of magnesite mineralization within the Western Zone. Assay results reported by ALS are outlined in the table below:

Sample

Zone

MgO%

CaO%

Al2O3%

Fe2O3%

SiO2%

DR-15-AR-1

West

43.2

0.41

0.62

1.57

5.32

DR-15-AR-2

West

45.8

0.38

0.27

1.66

0.54

DR-15-AR-3

West

38.6

7.42

0.37

1.6

1.35

DR-15-AR-4

West

37.5

8.87

0.34

1.74

1.57

DR-15-AR-5

West

44.0

2.43

0.07

1.44

0.75

DR-15-AR-6

West

37.9

9.08

0.05

1.53

0.64

DR-15-AR-7

West

43.9

0.68

0.72

1.56

2.81

DR-15-AR-8

West

44.6

1.27

0.16

1.65

1.11

DR-15-AR-9

West

44.1

0.55

0.64

1.35

3.94

DR-15-AR-10

West

40.9

0.19

0.09

1.04

11.56

DR-15-AR-25

West

33.4

10.65

0.07

0.89

8.91

DR-15-AR-26

West

42.9

0.57

0.08

0.91

7.10

DR-15-AR-27

West

43.5

0.82

0.18

1.5

4.75

DR-15-AR-28

West

41.6

2.13

0.17

1.47

6.07

DR-15-AR-29

West

39.9

0.15

0.13

1.24

14.34

DR-15-AR-30

West

38.1

0.93

0.04

1.48

15.58

DR-15-AR-31

West

44.0

0.49

0.49

1.38

4.02

Note: Each sample represents three meter intervals

MGX also conducted an infill drill program during 2015 to further prove up the continuity of grades and thicknesses within the Western Zone. Select results are reported below:

DDH

From (m)

To (m)

Interval (m)

MgO%

CaO%

Fe2O3%

SiO2%

2015-1

6.0

63.0

57.0

43.07

1.30

1.49

4.47

and

81.0

121.92

40.92

43.87

0.50

1.46

6.76

2015-2

2.74

45.0

42.26

42.60

0.67

1.43

7.56

and

54.0

91.44

37.44

41.55

0.31

1.43

11.46

2015-3

0.61

65.53

64.92

40.71

0.92

1.48

13.13

2015-4

30.0

128.02

98.02

44.28

0.97

1.51

3.4

Note: Intervals represent drilled thickness, not true widths.

MGX Minerals Phase II Drill Core     MGX Minerals Phase II Drill Core     MGX Minerals Phase II Drill Core

Eastern Zone Results

Six additional widely-spaced samples were collected along the northwestern edge of the Eastern Zone. Four of the six samples collected reported grades above 42% magnesium oxide (MgO) with low levels of calcium and iron. Results of sampling from the Eastern Zone are reported below:

Sample

Zone

MgO%

CaO%

Al2O3%

Fe2O3%

SiO2%

DR-15-AR-19

East

44.9

0.71

0.39

0.85

2.13

DR-15-AR-20

East

44.3

1.23

0.46

0.87

4.35

DR-15-AR-21

East

37.7

8.45

0.34

1.07

3.59

DR-15-AR-22

East

45

0.72

0.62

0.86

2.33

DR-15-AR-23

East

42.6

0.74

0.71

0.73

7.61

DR-15-AR-24

East

36.4

9.87

0.60

0.9

3.78

Note: Each sample represents three meter intervals

Metallurgy

SGS Lakefield Research Ltd. conducted metallurgical assessments in 2008 on both the Western and Eastern zones. A preliminary flotation flow sheet and reagent scheme were developed that consisted of pyrite and silicate flotation circuits. Magnesite concentrate was recovered as silicate flotation tailings. Magnesite recoveries from West and East zone composites using reverse flotation were 91 and 92%, respectively.