VANCOUVER, BRITISH COLUMBIA - July 24, 2014 - MGX Minerals Inc. ("MGX") is pleased to announce that it has received a NI 43-101 compliant Technical Report on its Driftwood Creek Magnesite Property located in SW British Columbia, 38km NW of Brisco, BC. The report, dated July 22, 2014, was produced by D.G. MacIntyre & Associates of Victoria, BC and authored by Donald MacIntyre, (Ph.D, P.Eng). The Technical Report contains a compilation of exploration data to date and is now available on SEDAR. Section 17 of the Technical Report,Interpretation and Conclusions, is reprinted below in its entirety:
After reviewing all available data the writer offers the following interpretations, conclusions and observations;
- The Driftwood Creek deposit is a significant magnesite resource, comparing favourably in size with other deposits in BC e.g. Mt. Brussilof, Marysville, Anzac, Topaz Lake.
- Access to the property is relatively good with a reasonable access road connecting to the Driftwood FSR. It should be possible to work on this property from early April through to the end of October.
- There is good infrastructure in the form of a paved highway, CPR spur line and powerline all of which are located approximately 15 kilometres due east of the property.
- The deposit is hosted by Proterozoic (Helikian) carbonates and clastic sediments of the Mt. Nelson Formation. The deposit is cut by younger felsic and mafic dykes. These have locally resulted in recrystallization of the magnesite.
- The deposit appears to be folded into a number of syncline-anticline pairs that occur along the crest of a northwest trending ridge. Fold axis also trend northwest.
- The orientation of the deposit along the crest of a ridge presents an ideal open pit mining situation with a relatively low stripping ratio.
- Magnesite has been mapped over a strike length of 1900 metres and a maximum width of about 220 metres. The magnesite occurs at surface in two discreet bodies; a larger "Western Magnesite" drill tested in 2008 and a smaller "Eastern Magnesite" drill tested in 1990.
- Kaiser Resources (Morris, 1978) inferred 22,500,000 tonnes of magnesite using a specific gravity of 2.5 while Canadian Occidental (Rodgers, 1989) inferred a resource of 29,400,000 tonnes using a specific gravity of 3.0. These estimates are not NI 43-101 compliant and cannot be relied upon. However, they do give a general sense of the size of the Driftwood Creek Magnesite deposit which is substantial.
- An important factor in determining the economic viability of the deposit is the overall grade of the main magnesite deposit. Previous drilling indicates that there are zones of impurity especially at the base of the magnesite where it is in contact with underlying dolomite. Above this basal zone the grade and purity improves, approaching nearly pure magnesite in places.
- The Driftwood Creek deposit is classified as a Sparry Magnesite deposit that is most likely of an evaporitic origin. As such one could expect some very pure beds of magnesite with low impurities.
- The local coarse crystallinity of the magnesite is believed to be related to recrystallization during a thermal metamorphic event associated with emplacement of intrusive sills into the host stratigraphy.
- A limited Beneficiation study by SGS on behalf of Tusk Exploration indicates that Fe is tied up in the magnesite crystal structure. They were not successful in reducing the Fe content of the test concentrate using conventional grinding and screening and wet and dry magnetic separation techniques. However, overall the study indicates that an acceptable magnesite concentrate can be produced using conventional beneficiation techniques.
The Technical Report recommends a 1200m, 10 hole drill program for the purpose of generating a preliminary NI 43-101 compliant resource estimate. The program targets the higher grade Eastern Zone along strike with a spacing of approximately 30m between holes. A map of proposed drilling is included in the Technical Report. MGX has now begun preparation for the execution of the proposed program. The program will be overseen by MGX's Vice President of Exploration Andris Kikauka (P.Geo).