VANCOUVER, April 2, 2015 /CNW/ - MGX Minerals Inc. ("MGX" or the "Company") (CSE: XMG / FKT: 1MG) is pleased to report that due to a low snow pack throughout the region, the Company has commenced early-season exploration and field reconnaissance activities.
Field Reconnaissance completed at Kootenay Silica
The Company recently entered into an agreement with American Manganese Inc. to acquire the Kootenay Silica prospect ("Koot Claims") (see press release dated March 5, 2015). Recent field reconnaissance has included mapping and geochemical sampling (See Figure 1). Rock chip samples collected at Kootenay Silica have been sent to ALS Minerals for whole rock analysis. Results are expected shortly and will assist in planning a phase one diamond drill program at Kootenay Silica for the purpose of delineating an initial mining block.
Historic exploration on the Kootenay Silica Property by Cominco (now Teck-Cominco) outlined a mineralized zone spanning approximately 400 meters consisting of high-purity silicon dioxide (SiO2). Whole rock analysis of composite samples in six of seven diamond drill holes returned values ranging between 98.7% and 99.3% SiO2. The zone remains open along strike and at depth to the north, east and west. Cominco also completed decrepitation testing of rock fragments at 1,000° Celsius from three quartzite outcrops and noted no decrepitation.
MGX intends to use silica produced at the Kootenay Silica Property as the primary ingredient for the production of ferro-silicon, a major industrial compound. The Company has completed ingredient composition and preliminary plant design for production of ferro-silicon.
Being regionally located near the Company's flagship Driftwood Creek Magnesium Property ("Driftwood Magnesium"), Kootenay Silica may benefit from economies of scale through co-location of the magnesium oxide and ferro-silicon plants.
Driftwood Magnesium Update
MGX has conducted an internal scoping study to determine the final location for its magnesium oxide production plant. Negotiations are underway regarding MGX's preferred locales.
Work is also underway at Driftwood Magnesium to construct a resource model that includes both the "Western" and "Eastern" mineralized zones (See Picture 1). Re-assaying of historic drill core from the "Western Zone" is proceeding on schedule. The historic drill core comprises over 620 meters of drilling across eight diamond drill holes and represents a mineralized zone spanning approximately 325 meters of strike length and up to 140 meters in true thickness (Klewchuk 2010).
Two historic resource estimates* (non 43-101 compliant) have been completed on the Property. Kaiser Resources Ltd. calculated a historic resource estimate totaling 22.5 million tonnes of magnesium oxide (MgO) using a specific gravity of 2.5 (Morris, 1978). Canadian Occidental Ltd. also prepared a resource estimate that totaled 29.4 million tonnes at a specific gravity of 3.0.
MGX is also preparing an updated mine plan. The current mine plan suggests annual gross throughput totaling 220,000 tonnes of ore to produce approximately 100,000 tonnes of mid-grade (94-96%) dead-burned magnesia (DBM) for refractory use, along with substitution capacity to produce up to 100,000 tonnes of caustic calcined magnesia (CCM) for specialty fertilizer and animal feed supplement.
The Company is developing a long life quarry to support production of magnesium oxide (MgO) and continues to work with the Ministry of Energy and Mines to build a suitable mine plan.
*These are historical resource estimates that do not comply with the current CIM Definition Standards on Mineral Resources and Mineral Reserves as required by NI 43-101. A Qualified Person has not done sufficient work to upgrade or classify these historical resources estimates to current mineral resources prepared in accordance with NI 43-101. The issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied on.
Andris Kikauka (P. Geo), Vice President of Exploration for MGX Minerals, and a non-independent Qualified Person as defined by N.I. 43-101, has reviewed the information contained in this news release and has verified the data.
About MGX Minerals
MGX Minerals (CSE: XMG) is a diversified Canadian mining company engaged in the acquisition and development of industrial mineral deposits in western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures. For more information please visit the Company's website at www.mgxminerals.com.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company's public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company's profile on SEDAR at www.sedar.com.
SOURCE MGX Minerals Inc.
For further information: Jared Lazerson, Chief Executive Officer, Telephone: 604.681.7735, Email: [email protected]; Dr. Michael Reimann, Chief Financial Officer, Telephone: 604.681.7735, Email: [email protected]