VANCOUVER, BRITISH COLUMBIA - July 6, 2015 - MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT:1MG) is pleased to announce the Company has entered into a Purchase Agreement (the “Agreement”) with Zimtu Capital Corp. (“Zimtu”) (TSX.V: ZC) to acquire a 100% undivided interest in the Longworth silica property (“Longworth” or the “Property”).
The Longworth property consists of 15 contiguous claims encompassing 1,084 hectares. The Property is located approximately 85 kilometers east of Prince George, British Columbia and accessible by a network of well-maintained logging roads. Longworth is listed as one of the top silica occurrences throughout the Province of British Columbia by the BCGS (Simandl, 2014).
“Consolidating ownership of the Longworth claims solidifies MGX's position in silica in British Columbia as we prepare for production of ferro silicon,” stated MGX President and CEO Jared Lazerson.
Four northwest trending bands of quartzite have been mapped to date at Longworth along the western flank of Bearpaw Ridge. Thicknesses reach up to 400 meters in places across a discontinuous strike length of nearly 10 kilometers. The Longworth claims were formerly explored by Silver Standard Resources Inc. ("Silver Standard"), who completed detailed metallurgical work on the contained silica mineralization. Internal reports suggested positive results as a potential feed source for silicon metal smelting (Quartermain 1986). Of the 42 samples collected and analyzed by Silver Standard, 28 met the required chemical specifications with silica dioxide (SiO2) levels ranging between 98.84 and 99.80 percent (Assessment Report 14815). Twelve of the 16 samples also boasted acceptable thermal shock results for production of silicon metal. Initial exploration at Longworth will focus on the Snow claim, where sampling of outcrop has shown consistent high grade (~99%) SiO2 levels. The Company aims to produce an initial 40,000 tonnes per annum of ferro silicon.
This Agreement supersedes the previously announced alliance between MGX, Zimtu and Electra Gold (TSX.V: ELT) (see press release dated November 20, 2014). Per terms of the Agreement, MGX will issue 700,000 common shares of the Company to Zimtu at a deemed price of CA$0.30.
About Ferro Silicon
Ferro Silicon is an essential alloy in the production of iron and steel. Ferro Silicon is used to remove oxygen and increase the strength, resistance and elasticity of steel. It can also serve as the basis to manufacture pre-alloys like Magnesium Ferro Silicon (FeSiMg). According to leading independent research firm Roskill, demand for Ferro Silicon doubled between 2000 and 2013, while projections are forecasting growth of more than eight percent annually over the next five years (Roskill, 2014).
Andris Kikauka, Vice President of Exploration for MGX Minerals, and a non-independent Qualified Person as defined by N.I. 43-101, has reviewed the information contained in this news release and has verified the data.