Two-thirds of the world's magnesium originates from China. The United States has designated magnesium as a strategic metal. As demand continues to rise and the metal becomes more difficult to source, MGX’s Driftwood Creek magnesium deposit represents a North American solution to a growing global problem.
Located in southeastern British Columbia, Driftwood Creek is the largest undeveloped magnesium deposit in North America. It offers the potential to mine a strategic metal in a geopolitically stable, mining-friendly jurisdiction that meets the highest environmental and ethical standards.
Estimated pre-tax life of mine cash flows during production at Driftwood*
Percentage of annual global magnesium production originating from China
Sources: Global Magnesium Market Overview / USGS Minerals Commodities Summary, 2017
MGX is poised to become the next producer of magnesium oxide in North America. The 2018 N.I. 43-101 Preliminary Economic Assessment completed on Driftwood Creek highlighted the robust nature of the high-grade deposit:
Driftwood Creek is currently undergoing a comprehensive work program to prepare for completion of a N.I. 43-101 Pre-Feasibility Study. The current tonnage and grades of the Driftwood Creek mineral resource, using a 42.5% MgO cut off, are shown in the table below:
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 Lerchs-Grossman (LG) constrained shell economics used a mining cost of US$8.82/t, processing+ g&a costs of US$106/t, and a commodity price of US$600.00/t 95%MgO DBM.
Mineral resources are reported within the constrained shell, using a cutoff grade of 42.5% MgO (based on a 20-year LOM) to determine “reasonable prospects for eventual economic extraction.”
Mineral Resources are reported as undiluted
Mineral Resources were developed in accordance with CIM (2010) guidelines
Tonnages are reported to the nearest kilotonne (kt), 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.
M&I = Measured and Indicated.