MGX Minerals Engages Hatch Ltd. for Magnesium Metal Study at Driftwood Creek, British Columbia
March 15 2018 - 9:06AM
InvestorsHub NewsWire
MGX Minerals
Engages Hatch Ltd. for Magnesium Metal Study at Driftwood Creek,
British Columbia
Vancouver, BC -- March 15,
2018 -- InvestorsHub NewsWire -- MGX Minerals Inc.
(“MGX” or the “Company”) (CSE:
XMG / FKT: 1MG /
OTCQB: MGXMF) is pleased to announce that as a result of the
recently announced positive Preliminary Economic Assessment (“PEA”)
for the production of 161,000 net tonnes per year of magnesium
oxide (MgO) at its Driftwood Creek Magnesium Project (“Driftwood
Creek” or the “Project”), the Company has engaged engineering firm
Hatch Ltd. (“Hatch”) to complete a scoping study for the purpose of
selecting appropriate process and associated economics for the
upgrading of magnesium oxide to magnesium metal. The Hatch
study will evaluate process routes, and order of magnitude capital
and operating cost estimates for an initial 10,000 tonne per year
(tpy) magnesium plant as well as address various environmental and
engineering topics.
The scoping study may
further enhance the already positive economics of Driftwood Creek
with the addition of Mg Metal to proposed MgO production as well as
provide diversification into advanced materials. The current price
of magnesium metal (99.5% ingot) is approximately $2,250 per tonne
versus MgO (DBM 95%) at approximately US$600 per tonne.
Contained Mg in MgO is 60.3%, making the process and associated
recovery as well as energy use a key focus of the study.
Additionally, long-standing anti-dumping and strategic metal
designation has significantly increased the domestic price of Mg in
the United States compared with global markets. A single sole
producer of magnesium metal in the U.S. has operated for many
years. Of note is the fact that Canada is no longer subject to
these U.S. tariffs against foreign magnesium metal imports.
Additionally, Driftwood is located in an area of low cost power in
southwest British Columbia and proximate by direct rail to even
lower cost power in eastern Washington State.
Magnesium metal is
considered an advanced material. Magnesium is 33% lighter than
aluminum, 60% lighter than titanium and 75% lighter than steel
while offering comparable strength ratios. Automobile and aerospace
manufacturers are increasingly shifting towards magnesium-alloys to
reduce vehicle and aircraft weights and meet growing
fuel-efficiency demands, while recent advances in magnesium battery
technology represent strong potential for future additional
non-structural applications.
Qualified
Persons
The technical portions of this press release were reviewed by
Andris Kikauka (P. Geo.), Vice President of Exploration for MGX
Minerals. Mr. Kikauka is a non-independent Qualified Person within
the meaning of National Instrument 43-101 Standards.
About Hatch
Hatch is an employee-owned and independent company with experience
spanning over 150 countries around the world in the metals, energy,
infrastructure, digital, and investments market sectors. Hatch
embraces its client visions as its own and partner with them to
develop better ideas that are smarter, more efficient, and
innovative. Hatch's exceptional, diverse teams combine vast
engineering and business knowledge, working in partnership with its
clients to develop market strategies, manage and optimize
production, develop new game-changing technologies, and design and
deliver complex capital projects.
About MGX
Minerals
MGX Minerals is a diversified Canadian resource company with
interests in advanced material and energy assets throughout North
America. Learn more at www.mgxminerals.com.
Contact
Information
Jared Lazerson
President and CEO
Telephone: 1.604.681.7735
Web: 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.
Forward-Looking
Statements
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.
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