PRESS RELEASES

MGX Minerals Announces 6.78% Li2O from Spodumene Grab Sample, Gullwing Lake Pegmatite

VANCOUVER, BRITISH COLUMBIA / September 10, 2018 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG / OTCQB: MGXMF / FSE: 1MG) is pleased to announce that joint-venture partner Power Metals Corp. (TSX.V: PWM) (“Power Metals”) has reported that assays have confirmed the presence of high grade Lithium (Li) and Tantalum (Ta) mineralization on Gullwing-Tot Lakes Property located 30 km northeast of Dryden, Ontario. Gullwing Lake pegmatite and Tot Lake pegmatite are located 6.3 km apart and are hosted by the same mafic metavolcanics unit.

The assay highlights from grab samples from Tot Lake pegmatite include:

  • 58 % Li2O from quartz – spodumene core, sample 159056 (Figure 1)
  • 62 % Li2O from quartz – spodumene core, sample 159057
  • 68 % Li2O and 233 ppm Ta from pink spodumene pegmatite zone, sample 1590235
  • 498 ppm Ta from albitized K-feldspar zone, sample 159238 (Figure 2)

The assay highlights from grab samples on the Gullwing North outcrop include:

  • 78 % Li2O from pure spodumene sample, sample 159082 (Figure 3)
  • 73 % Li2O from spodumene – albite – quartz sample, sample 159084
  • 759 ppm Ta from large Ta-oxide crystals in albite unit, sample 159254 (Figure 4)

Figure 1. Spodumene – quartz core, sample 159056, Tot Lake
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Figure 2. Coarse-grained Ta-oxide in albitized K-feldspar zone, sample 159238, Tot Lake
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Figure 3. Pure spodumene sample with trace lepidolite, sample 159082, Gullwing North outcrop
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Figure 4. Large Ta-oxide crystal on albite, sample 159254, Gullwing North outcrop
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Location map for Gullwing and Tot Lakes pegmatites is given in Figure 5 and tables of assays and UTM coordinates are given in Tables 1 and 2.

Mapping on Tot Lake pegmatite revealed eye-popping lithium and tantalum mineralization with pale green megacrystic spodumene blades up to 75 cm long and 15 cm wide identified next to megacrystic K-feldspar crystals in historical trench 3 (Power Metals Corp, press release dated July 11, 2018). The Ta-oxide crystals are up to 1 by 2 cm in size and are some of the largest Ta-oxide crystals in pegmatites in the province of Ontario. Typically, Ta-oxide minerals are 1 to 2 mm in size. In addition to lithium and tantalum mineralization, the cesium mineralization is also impressive at Tot Lake. Pollucite (Cs ore mineral) at Tot Lake is concentrated in a 1 by 5 m pod near the southwestern end of the pegmatite dyke where it comprises 32 vol% of the pod (Breaks et al., 2014). Pollucite is rare in nature and is only known at four other pegmatite localities in Ontario (Breaks et al., 2014). Pollucite is an indicator mineral for extreme chemical fractionation.

Table 1. High grade Li assays for grab samples from Gullwing and Tot Lakes pegmatites, UTM NAD 83, Zone 15.

Sample No.

Station

Easting (m)

Northing (m)

Elevation (m)

Lithology

Ta (ppm)

Li2O (%)

Pegmatite

159082

JK-18-157

532777

5529476

397

Pegmatite

7.2

6.78

Gullwing North

159056

JK-18-126

538935

5530873

287

Pegmatite

27.8

4.58

Tot Lake

159057

JK-18-126

538935

5530872

287

Pegmatite

78

2.62

Tot Lake

159235

AV-18-075

538930

5530873

397

Pegmatite

233

1.68

Tot Lake

159059

JK-18-126

538934

5530872

396

Ultramafic Volcanic

18.2

0.757

Tot Lake

159084

JK-18-158b

532777

5529480

393

Pegmatite

40.6

0.733

Gullwing North

159058

JK-18-127

538936

5530878

392

Pegmatite

9.2

0.551

Tot Lake

159241

AV-18-080

538932

5530877

400

Pegmatite

40

0.512

Tot Lake

Sample 159059 represents the metasomatized ultramafic host rock next to spodumene-rich pegmatite.

Table 2. High grade Ta assays for grab samples from Gullwing and Tot Lakes pegmatites, UTM NAD 83, Zone 15.

Sample No.

Station

Easting (m)

Northing (m)

Elevation (m)

Lithology

Ta (ppm)

Li2O (%)

Pegmatite

159254

AV-18-104

532783

5529473

401

Pegmatite

759

0.007

Gullwing North

159238

AV-18-078

538918

5530897

399

Pegmatite

498

0.019

Tot Lake (north)

159235

AV-18-075

538930

5530873

397

Pegmatite

233

1.68

Tot Lake

159237

AV-18-077

538916

5530888

401

Pegmatite

227

0.342

Tot Lake

159239

AV-18-079

538933

5530876

397

Pegmatite

208

0.004

Tot Lake

159262

AV-18-111

532774

5529386

413

Pegmatite

150

0.013

Central Gullwing

159236

AV-18-076

538935

5530874

395

Pegmatite

101

0.061

Tot Lake


Figure
5. Location of high grade grab samples from Gullwing and Tot Lakes pegmatites, northeast of Dryden.
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Quality Control
The grab samples were shipped to SGS analytical lab in Lakefield, Ontario by Manitoulin Transport. SGS analytical lab in Lakefield has ISO 17025 certification. Every 20 samples included one external quartz blank and one external lithium standard. The ore grade Li2O% was prepared by sodium peroxide fusion with analysis by ICP-OES with a detection limit of 0.002 % Li2O. A QA/QC review of the standards and blanks for this mapping program indicate that they passed and the assays are accurate and not contaminated.

Gullwing-Tot Lakes
Gullwing-Tot Lakes Property is located in Drope and Webb townships, 30 km northeast of Dryden, NW Ontario with excellent road access. Gullwing and Tot Lakes pegmatites contain spodumene. The Property was optioned from Exiro Minerals Corp. in 2017 (Power Metals press release dated April 20, 2017). The Property is located 5.5 km northeast of the Mavis Lake spodumene pegmatite field.

Terms of the Joint-Venture
MGX currently has a paid 20% working interest in five lithium hard rock properties in Ontario controlled by Power Metals Inc as well as any additional properties acquired by Power Metals prior to August 2020. MGX also maintains the right to acquire an additional 15% working interest, for a total of 35%, in each of the hard rock lithium properties by making a one-time payment of $10M prior to August 2020. MGX currently holds an option to acquire 10,000,000 shares of Power Metals at $0.65 (see press release dated August 2, 2017).

Qualified Person
Andris Kikauka (P. Geo.), Vice President of Exploration for MGX Minerals, has prepared, reviewed and approved the scientific and technical information in this press release. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument 43-101 Standards.

About MGX Minerals
MGX Minerals is a diversified Canadian resource and technology company with interests in global advanced material, energy and water assets.

Forward-Looking Statements
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