VANCOUVER, BRITISH COLUMBIA / March 14, 2016 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG) is pleased to announce the Company has made an application for 5 Metallic and Industrial Minerals Permits to the Coal and Mineral Development Unit of the Alberta Ministry of Energy covering 45,000 hectares. The claims are contiguous or geologically associated with existing MGX lithium claims of 96,000 hectares, which are known to contain some of the highest levels of lithium bearing brine in the Province of Alberta, up to 140mg/L. as reported in the Provincial Industrial Minerals database.
MGX previously entered into a purchase agreement for a 100% undivided interest in 12 Metallic and Industrial Mineral Permits encompassing 96,000 hectares throughout the Province of Alberta (see press release dated February 1, 2016). These Permits were acquired based on compilation of historic exploration for lithium by the Province as well as oil and gas well data and known geology. MGX’s current lithium brine bearing land position by way of permits and permit applications now stands at over 540 sq. miles (141,000 hectares). The permits and permit applications are all geologically associated with current and past producing oil fields.
Existing Infrastructure of Alberta
Major existing infrastructure including wells, roads, and power are available on MGX’s lithium properties as well as the support of nearby oil field services. MGX continues to focus on leveraging existing infrastructure in cooperation with oil and gas operators and all levels of government with the explicit goal of moving to immediate test production and test processing of lithium brine. Alberta offers the unique advantage in the global lithium race of massive existing infrastructure associated with lithium brine bearing areas and large existing historical databases essentially, in these areas, eliminating the need for conventional exploration drilling.
MGX has recently engaged Cementation AG (see press release dated February 29 2016) to complete a pilot plant scoping study for the production of lithium carbonate. Initial plant specifications involve the processing of up to 20,000boe/d (barrel of oil equivalent per day) and production of up to 500t lithium carbonate per year as a result dependent precursor to large scale commercial development.
“As natural gas once posed problems for oil well production, but was eventually harnessed to produce new energy opportunities, lithium brine is the next phase in this energy evolution. None better than the Alberta oil and gas industry to lead this energy evolution in this move to energy diversification for western Canada,” stated MGX Chief Executive Officer Jared Lazerson. Adding, “MGX now holds significant concessions of advanced energy and materials commodities including lithium, magnesium, and high purity silica (used in solar panels). We hold a portfolio of the most important commodities for the next 100 years.”
This press release was prepared under the supervision and review of Andris Kikauka, P. Geo. and Vice President of Exploration for MGX Minerals. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument (N.I.) 43-101 Standards.