VANCOUVER, BRITISH COLUMBIA / October 17, 2016 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / FKT: 1MG / OTC: MGXMF) is pleased to announce the 2016 diamond drilling program is more than 50% complete at the Company's flagship Driftwood Creek magnesium deposit (“Driftwood”). The Company has completed a total of 13 diamond drill holes to date as part of the current drill program.
A National Instrument (N.I.) 43-101 compliant mineral resource estimate totaling 8.1 million tonnes grading 43.3% magnesium oxide (MgO) (see press release dated September 5, 2016) was recently completed for Driftwood. The technical report recommended an infill drill program to further delineate continuity of the deposit as well as for pit shell optimization purposes in support of a N.I. 43-101 compliant Preliminary Economic Assessment (“PEA”). The updated data will be used for completion of the PEA which is expected to provide guidance on the Net Present Value of the project and be released prior to year-end. The current drill program will provide further information for the PEA, which in addition to providing a detailed assessment of potential economic extraction, will include a revised resource estimate. Additional drill holes have been added by the Company to the recommended infill drill program to further test extension along strike and the depth of the deposit, both of which remain open, as well as for geotechnical analyses.
Nine diamond drill holes at the Driftwood East zone have been completed totaling of 537.5 meters (1,763 feet). The objective of the drilling is to expand the known area of magnesite along the ridge crest, where past drilling and a 100 tonne bulk sample were recently completed in June (see press release dated June 9, 2016). Step out drilling to the east has extended the eastern edge of magnesite mineralization along strike. The diamond drill was recently moved to the Driftwood West zone, where further infill drilling has been successful with the completion of four additional holes. Drilling has now commenced on the first of four long holes aimed at testing the deposit at depth.
Completion of the drill program will provide additional information for further pit optimization which will be included in the upcoming PEA and revised Resource Estimate.
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.