VANCOUVER, BRITISH COLUMBIA / July 18, 2016 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG) is pleased to announce acquisition of the Pond magnesium occurrence (“Pond”) as well as the expansion of its Marysville magnesium project (“Marysville”). Both projects were previously operated by the Consolidated Mining Company of Canada (COMINCO- now Teck Resources) and are now 100% controlled by MGX.
“MGX continues to acquire magnesium projects close to its proposed mill location at Cranbrook, British Columbia. These two new projects cover long strike lengths, have had historic drilling and are close to infrastructure meeting our key criteria for quarry development potential. MGX recognizes key advances being made in magnesium applications in aerospace, automotive, and energy storage, being a third lighter than aluminum and having a double charge (2x) by molecule compared to lithium for battery applications,” stated President and CEO Jared Lazerson.
Pond Magnesium Acquisition
The Company reports it has acquired, through staking, the Pond dolomite occurrence located 60 kilometers north of Cranbrook, British Columbia. Significant past work occurred at Pond, including diamond drilling and geochemical sampling. COMINCO completed eight drill holes and outlined two mineralized zones (North and South) traced along a strike length of 6.3 kilometers. Assay results of historic whole rock analyses from drill core are summarized below:
Cominco also extracted a 91-kilogram dolomite sample from the proposed quarry within the South zone that was analyzed and returned the following values:
Pond was acquired in 2011 by American Manganese Inc. who subsequently performed whole rock geochemical analysis on 37 rock chips samples from the North and South zones. American Manganese reported considerably lower silica levels than previously assayed by COMINCO.
MGX announces it has expanded its Marysville magnesium claims to more than 480 hectares (1,190 acres). Marysville is located just 25 kilometers north of Cranbrook, British Columbia and features a stratabound layer of magnesite mineralization hosted in the Lower Cambrian Cranbrook Formation. This mineralized structure spans approximately 10-20 meters in width across an intermittent strike length of 4.5 kilometers. COMINCO historically excavated a 2,700 tonne bulk sample on the northern portion of the deposit, which is part of the claim block recently acquired by the Company.
Fieldwork and assays recently completed on the deposit included 10 rock chip samples taken from the Mag 2 claim. Ten samples taken over a 700-meter strike length averaged 41.7% magnesium oxide (MgO). The Company plans to conduct additional fieldwork, including geologic mapping and sampling, to prioritize drill targets and further delineate the deposit laterally down dip. Assay results are reported below:
|Sample ID||Width (cm)||MgO%||Al2O3%||CaO%||Fe2O3%||P2O5%|
Longworth Silica Property
The Company announces it has filed a Technical Report (the “Report”) pursuant to National Instrument (N.I.) 43-101 - Standards for Disclosure for Mineral Projects on the Longworth Silica Property (“Longworth”). The Report, entitled “Longworth Silica Property North-Central British Columbia Canada”, has an effective date of June 27, 2016 and was prepared in accordance with CIM Standards by independent Qualified Person Don MacIntyre (Ph.D., P.Eng.) of D.G. MacIntyre & Associates Ltd. The Report is available for review on the Company’s SEDAR (www.sedar.com) profile as well as the Company’s website (www.mgxminerals.com).
MGX announces it has issued the final installment of 300,000 common shares of the Company to the vendors of the Driftwood Creek magnesium project per terms of the definitive asset purchase agreement dated July 7, 2014.
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.