VANCOUVER, BRITISH COLUMBIA / July 24, 2015 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG) reports closing of the previously announced transaction with Zimtu Capital Corp. (“Zimtu”) (TSX.V: ZC) pursuant to which MGX has acquired a 100% undivided interest in the Longworth silica property (“Longworth” or the “Property”) (see press release dated July 6, 2015).
In connection with the transaction MGX has issued 700,000 common shares of stock to Zimtu at a deemed price of CA$0.30. Zimtu has transferred to the Company rights to 15 contiguous mineral claims, which are outlined below in Schedule A.
“We are pleased to close the Longworth transaction with Zimtu,” stated MGX President and CEO Jared Lazerson. “The Company is now planning to conduct a multi-phase exploration program to further advance the Property. Our initial focus will target the Snow claim, where historic work has been completed by past operators.”
Consolidated Silver Standard Mines Ltd. ("Silver Standard") conducted exploration and metallurgical work on the Longworth property during the 1980’s (MINFILE No. 093H 038). Internal reports by Silver Standard 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 16 samples also boasted acceptable levels of thermal shock resistance for production of silicon metal. Sampling of outcrop across the Snow claim has shown consistent high grade (~99%) SiO2 levels.
The Longworth claims encompass 1,084 hectares situated four kilometers from the Canadian National railroad mainline and power grid. The Property is located approximately 85 kilometers east of Prince George, British Columbia and is 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).
|Longworth Group of Claims|
|Claim Number||Name||Record Date||Expiry Date||Ha|
|1022782||Silver Standard Silica #2||2013/Oct/03||2015/Dec/31||380.36|
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.