VANCOUVER, BRITISH COLUMBIA / September 20, 2016 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF), as a result of a review by the British Columbia Securities Commission, is issuing this news release to clarify its disclosure regarding the Company’s Alberta lithium properties (the “Lithium Properties”) and Driftwood Creek Property (the “Driftwood Property”) in an interview published in the September 15, 2016 edition of the Financial Post’s Midas Letter (the “Midas Letter”).
The Company wishes to retract any potentially misleading statements in the Midas Letter concerning the Lithium Properties indicating there is a resource that can be used for an economic analysis for the Lithium Properties. The Company confirms there has been no resource estimate completed on the Lithium Properties, historical or current. Additionally, the Company has not tested its extraction process on the Lithium Properties.
Concerning comments on the Driftwood Property in the Midas Letter, the Company also retracts its statements concerning economic analyses of its magnesium resource. The Company has not completed a pre-feasibility or feasibility study which establishes mineral reserves with demonstrated economic and technical viability. Further, the Company cautions readers that any potential production may not be economically feasible and historically projects taken to production without establishing reserves through a feasibility study have a much higher risk of economic or technical failure.
The Company also retracts its use of in-situ metal value at its Driftwood Property. Gross in-situ is potentially misleading as it fails to take into consideration operating and capital costs, recoveries, smelter costs and other factors relating to the potential mining, extraction and recovery of metals.
The Company’s NI 43-101 compliant technical reports for the Driftwood Property and Lithium Property that may be found on its SEDAR profile at www.sedar.com.
Andris Kikauka, Vice President of Exploration for MGX Minerals, and a non-independent Qualified Person as defined by N.I. 43-101, has approved the information contained in this news release.