MGX Minerals Provides Update on B.C. Silicon Project Portfolio; Drilling and Metallurgical Programs Planned for 2018
May 24 2018 - 8:15AM
InvestorsHub NewsWire
MGX Minerals
Provides Update on B.C. Silicon Project Portfolio; Drilling and
Metallurgical Programs Planned for 2018
Vancouver, BC -- May 24, 2018 --
InvestorsHub NewsWire -- MGX Minerals Inc. (“MGX” or the
“Company”) (CSE:
XMG / FKT: 1MG /
OTCQB: MGXMF) is pleased to provide shareholders with a
progress report on its expanding silicon portfolio in British
Columbia along with planned 2018 development activities. MGX is
investigating the potential to source high-grade silica as a
feedstock to be used in industrial silicon metal and solar silicon
metal applications.
Acquisition of New High-Grade
Silicon Property
The Company is pleased to report it has
acquired the Gibraltar property (the “Property”) located
approximately 95 kilometers northeast of Cranbrook, BC (B.C.
MINFILE 082JSW001). The Property features high purity quartzite
that has potential for technological applications, consisting of
snow white coloured, high purity silica that contains >98.8%
SiO2 and < 1.2% impurities such as Al2O3, Fe2O3, CaO, MgO, Na2O,
K2O.
The Gibraltar quartzite unit is located
in the foreland thrust zone of the Hughes Range of the Rocky
Mountains. It covers a sedimentary clastic-carbonate rock package
located near the confluence of Kootenay and White River.
Sedimentary rocks generally have a north-northwest strike, but
locally a north-northeast strike is prominent. Minor folding was
noted in the carbonate sequence immediately adjacent to quartzite
unit. Two westerly dipping thrust faults (Hay, Carter, 1988) are
believed to run north-south close to the eastern edge of the
Gibraltar property.
The main exploration target on
Gibraltar includes a moderately dipping, 20-30 meter wide high
purity quartzite bed exposed over a strike length of approximately
420 meters. Fieldwork carried out in 2017 consisted of geological
mapping (approximately 10 hectares), geochemical sampling (7 rock
chip samples submitted for whole rock geochemical analysis, ALS
code ICP06), and GPS surveying quartzite outcroppings. A
total of 7 rock chip quartzite samples (ID numbers 15GIBR-1 to
15GIBR-7) were taken from the base of the Main Zone. Whole
rock geochemical analysis is summarized as
follows:
Sample
ID |
% SiO2 |
% Al2O3 |
% Fe2O3 |
% MgO |
% CaO |
Na2O |
K2O |
% LOI |
% Total |
SiO2/
Total |
17GIBR-1 |
99.8 |
0.24 |
0.39 |
0.1 |
0.04 |
0.02 |
0.07 |
0.28 |
100.97 |
98.84 |
17GIBR-2 |
100 |
0.16 |
0.32 |
0.11 |
0.26 |
0.02 |
0.06 |
0.51 |
101.46 |
98.56 |
17GIBR-3 |
98.1 |
0.25 |
0.4 |
0.09 |
0.39 |
0.02 |
0.11 |
0.56 |
99.96 |
98.14 |
17GIBR-4 |
88.5 |
0.08 |
0.34 |
0.02 |
0.07 |
<0.01 |
0.03 |
0.27 |
99.68 |
88.78 |
17GIBR-5 |
98.7 |
0.33 |
0.52 |
0.04 |
0.01 |
0.01 |
0.12 |
0.11 |
99.89 |
99.23 |
17GIBR-6 |
99 |
0.06 |
0.4 |
0.01 |
0.02 |
0.02 |
0.01 |
0.15 |
99.76 |
98.91 |
17GIBR-7 |
99 |
0.3 |
0.41 |
0.03 |
0.03 |
0.02 |
0.1 |
0.18 |
100.09 |
98.75 |
Based on sum of SiO2%/Total% values, the mean value
of the SiO2%/Total% for 6 out of 7 rock chip samples analyzed is
98.8%. The relatively high SiO2 content of 6 out of 7
samples (17GIBR-1 to 3, and 17GIBR 5 to 7) taken along
approximately 300-meter strike length of well exposed Mt Wilson
Formation quartzite, compares favourably with other silica
producers such as Moberly, Hunt and HCJ Properties near Golden, BC.
Impurity compounds of interest (Al2O3, MgO, CaO, Fe2O3) approach
specifications required for producing ferrosilicon alloy. Based on
the range of %SiO2 and impurity values such as MgO, CaO, P2O5,
Al2O3, and Fe2O3, it is possible that the Gibraltar quartzite
silica is suitable for use as a raw material for ferrosilicon or
silicon metal production.
As consideration, MGX has issued
100,000 common shares of the Company to the vendors of the
Property. The vendors were Glen Rodgers and Andris Kikauka. Mr.
Kikauka, is a non-arm's length party to the Company by virtue of
being a Director and Vice President of Exploration of the Company.
Mr. Kikauka is entitled to 50% of the purchase price of the
Property. The acquisition of the Property was considered a "related
party transaction" pursuant to Multilateral Instrument 61-101 -
Protection of Minority Security Holders in Special Transactions
("MI 61-101"). The Company was exempt from the requirements to
obtain a formal valuation or minority shareholder approval in
connection with Mr. Kikauka’s participation in the transaction in
reliance of sections 5.5(a) and 5.7(a) of MI 61-101.
Wonah and Koot Silicon Project
Updates
MGX is also pleased to report it has
received permits to conduct drill programs at its Wonah (“Wonah”)
and Koot (“Koot”) silicon properties (collectively the “Projects”)
located in British Columbia. The Company will complete 13 combined
drill holes and along with a metallurgical program to test the
Projects for suitability of upgrading to silicon metal and solar
grade silicon.
At Wonah, the main target includes the
ridge where steeply dipping Ordovician age quartzite is exposed
over a strike length of approximately 850 meters. Geological
mapping, geochemical sampling, and surveying identified a series of
white quartzite outcroppings (Wonah Quartzite Formation) that form
2 lenses, the ‘Central Zone’ that has been traced for approximately
500 m, and South Zone traced for 350 m along strike. The Central
and South Zones consist of a highly competent quartzite unit that
trends N to NNE, is approximately 50 meters in width, and has a
steep east dip.
At Koot, historic Exploration conducted
by Cominco (now Teck-Cominco) during the 1980’s 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 shallow diamond drill holes
returned values ranging between 98.7% and 99.3% SiO2 (Assessment Report 10160). The zone remains open
along strike and at depth to the north, east and west. Cominco also
conducted decrepitation testing of rock fragments at 1,000 degrees
Celsius from three quartzite outcrops and noted no
decrepitation.
Metallurgy Test
Design
A metallurgy program has been designed
to test for suitability of upgrading to silicon metal and solar
grade silicon. A bulk sample requirement of two tonnes has been
requested by the evaluation laboratory. The evaluation laboratory
is qualified to complete process and plant design should the silica
be found suitable for upgrading to silicon metal.
Energy
Applications
To further the Company’s expansion into
low cost energy mass storage systems, MGX has prioritized
evaluation and development of its silicon projects for silicon
metal potential. One of the primary uses of silicon metal is in
solar panels. Solar panels are a cornerstone to remote and
distributed energy solutions. Solar, combined with a mass storage
system such as that currently under development by the Company’s
wholly owned subsidiary ZincNyx
Energy Solutions Inc. (“ZincNyx”), serves to replace or
augment diesel generators, as well as having broad applications in
energy storage for residential and commercial grid load balancing
and backup, and in providing primary and backup power for
industrial sites, telecommunications, large scale computer server
arrays and military bases. Additional information on the
integration of solar with ZincNyx energy storage systems is
available at www.zincnyx.com.
Qualified
Person
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 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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