MGX Acquires Lithium Brine Projects in Chile - Rapid Lithium Extraction to be Tested - Drilling to Commence Shortly
August 08 2018 - 8:20AM
InvestorsHub NewsWire
MGX Acquires Lithium Brine Projects in Chile -
Rapid Lithium Extraction to be Tested - Drilling to Commence
Shortly
Vancouver, BC -- August 8, 2018 -- InvestorsHub
NewsWire -- MGX Minerals Inc. (“MGX” or the
“Company”) (CSE:
XMG / FKT: 1MG / OTCQB: MGXMF) is pleased to
announce it has entered into an Memorandum of Understanding (the
“MOU”) to acquire 50% of the issued shares of Chilean Lithium
Salars SpA (“CLS”). CLS is a wholly owned subsidiary of Chilean
Lithium Salars Holdings Ltd. (“CLSH”) and holds a 100% interest in
three prospective lithium exploration Projects (the “Projects”)
located in Chile, including Francisco Basin, Laguna Brava and
Laguna Escondida Lithium Projects.
Francisco Basin Lithium
Project
The Francisco Basin lithium project
(“Francisco Basin”) is located 30km south of Maricunga salar, 100
km southeast of the regional center of Copiapo and accessible via a
regional highway and established tracks. The lease area comprises
12,900 hectares. Historical exploration work on the project was
previously limited to hydrology studies. In January 2018,
CLSH completed a reconnaissance brine sampling at the project. This
sampling confirmed the presence of lithium enrichment in the
surface brines. The samples were assayed at the University of
Antofagasta (“Antofagasta”), Antofagasta, Chile which has one of
the two leading laboratories in the world for this type of brine
analysis. In May 2018, sampling continued and a 2.5L sample was
taken near the southern shore of the surface Northern lagoon and
sent to Servicios Quimicos Ltda. (“SERQUIM”), Antofagasta, Chile
for content analysis. CLSH reported results to date are shown in
Table 1.
A geophysical program comprising an
electromagnetic survey was completed in April 2018. The survey was
based on a grid of sections which indicated the presence of high
conductivity brines in two zones with significant thickness and
horizontal coverage. The presence of anomalous lithium levels in
the water body area located in the Northern lagoon, which is
potentially underlain by a fault bound, saturated basin of
undetermined thickness and the presence of widespread felsic to
intermediate volcanic rocks as a lithium source.
Table 1. Francisco Basin
Assay Samples
Sample |
Na g/L |
K g/L |
Li ppm |
Mg g/L |
SO4 g/L |
B ppm |
Dens |
Northern Lagoon - January
2018 |
LNF 01 |
75.2 |
4.59 |
372 |
2.00 |
4.07 |
799 |
1.179 |
LNF 02 |
72.5 |
4.34 |
372 |
1.92 |
4.07 |
832 |
1.170 |
LNF 03 |
69.5 |
4.06 |
369 |
1.85 |
3.74 |
767 |
1.163 |
LNF 04 |
74.5 |
4.32 |
374 |
1.75 |
4.02 |
832 |
1.174 |
LNF 05 |
80.0 |
4.40 |
388 |
1.78 |
4.71 |
961 |
1.188 |
LNF 06 |
67.9 |
3.98 |
361 |
1.73 |
3.85 |
821 |
1.181 |
LNF 07 |
79.8 |
4.66 |
387 |
1.74 |
4.44 |
864 |
1.183 |
LNF 08 |
73.4 |
4.31 |
371 |
1.86 |
3.93 |
842 |
1.172 |
LNF 09 |
76.8 |
4.39 |
374 |
1.70 |
4.05 |
864 |
1.174 |
LNF 10 |
80.0 |
4.56 |
384 |
1.86 |
4.38 |
896 |
1.185 |
Northern Lagoon - May
2018 |
LNF 01 |
103.0 |
6.62 |
694 |
3.54 |
28.70 |
- |
- |
Southern Lagoon - January
2018 |
LNF 11 |
2.35 |
0.19 |
7.9 |
0.15 |
3.07 |
248 |
1.007 |
LNF 12 |
0.57 |
0.41 |
3.0 |
0.003 |
1.55 |
151 |
1.121 |
LNF 13 |
1.27 |
0.01 |
0.4 |
0.07 |
0.61 |
65 |
1.002 |
The Francisco Basin salar is within a large,
fault-bound, alluvium-filled basin to the immediate south of the
Copiapo Volcano. The basin is closed, drains a large area and the
salar appears to be the lowest point within the
drainage.
The rocks in the drainage surrounding
this salar are dominantly volcanic, ranging in age from Eocene to
Miocene, juxtaposed with some older rocks. To the west is a
Cretaceous sedimentary sequence separated from the volcanic rocks
of the Francisco Basin area by the Cerro Guerrita Fault. To the
east, an older Oligocene to Miocene volcanic sequence is overlain
by the Copiapo volcanic rocks.
The Francisco Basin alluvial basin sits
at the junction of three catchments. These river systems presumably
provide the fill for the basin and are in part, along with the
limits of the salar, structurally controlled. The alluvial fill may
be covering post-Copiapo aged faulting.
Laguna Brava
Project
The Laguna Brava salar (“Laguna”) is
geologically prospective for lithium brine. The catchment is large
and dominated by volcanic rocks, many of which have been altered by
hydrothermal fluids associated with volcanism. The lake is also fed
by active hot springs. Historical sampling of surface brines
indicated significant lithium enrichment. In December 2017, CLSH
undertook a four-hole reconnaissance drilling program at a southern
access point of the salar to investigate the deeper aquifer. Prior
to the CLSH reconnaissance drilling program in December 2017, no
previous work had been undertaken to assess the volume and grade of
the subsurface resource. Previous work recommended that the
subsurface brines be investigated on the basis of his conclusion
that Laguna Brava is geothermally fed. The presence of hot springs
being present either at the margins or beneath salars is common
within the Chilean Altiplano, other notable locations include the
Salar de Coposa in Region I and Salar de Atacama in Region II. The
principal origin of lithium in the Salar de Atacama is interpreted
to be the lithium-bearing geothermal waters from the El Tatio
Geyser Field, located north of the salar. The geothermal fluids
enter the northern part of the Salar de Atacama via surface and
subsurface flow. It has also been reported that the chemistry of
the salar brines is almost identical to the chemistry of the
geothermal fluids of El Tatio.
Furthermore, work by Risacher et al.,
(2003) has shown that subsurface brines contained within the
volcanic geology are of a much higher concentration, typically
250,000–350,000 mg/L TDS. Given this hypothesis, CLSH commissioned
a reconnaissance drilling program in December 2017 comprising four
bores; the locations are shown in Figure 6-4. Two bores reached the
design depth of 120 m, and the other two bores were abandoned due
to collar collapse because of high water flows. The results from
this program confirmed the presence of lithium at depth.
Results were as follows (Sanchez, 2018):
Table 2. Assay Results from
Reconnaissance Drilling
Bore |
No. of
Samples |
Li
(mg/L) |
Na
(mg/L) |
K
(mg/L) |
Mg
(mg/L) |
So4
(mg/L) |
B
(mg/L) |
Density |
LBRC001 |
5 |
190 |
31860 |
1842 |
1453 |
8726 |
504 |
1.066 |
LBRC002 |
11 |
167 |
28376 |
1635 |
1175 |
8189 |
494 |
1.058 |
LBRC003 |
24 |
184 |
30979 |
1730 |
1288 |
8995 |
536 |
1.064 |
LBRC004 |
16 |
201 |
34059 |
1999 |
1587 |
8513 |
519 |
1.071 |
Average |
185 |
31,320 |
1800 |
1375 |
8605 |
515 |
1.065 |
Figure 1. Location of Laguna Brava 2018
Reconnaissance Drilling
A geophysical program comprising
electromagnetic and gravity surveys was completed by CLSH in
February 2018. The electromagnetic survey based on sections around
the periphery of the salar indicated the presence of high
conductivity brines exceeding 100 meter thickness at the margins of
the salar. The survey indicated that drill holes completed prior to
the program were in an area with brines of relatively low
conductivity.
Within the vicinity of the Laguna Brava
salar, the Project includes additional concessions covering Lagunas
del Gilguero and the southern margin of Piedra Parada.
Laguna Escondida
Salar
The Laguna Escondida project (“Laguna
Escondida “) is located approximately 200 km east–northeast of the
regional capital and is accessible via a provincial highway to
within 10–15 km of the project.
Regional
Geology
The Portfolio of projects are located
within the Central Volcanic Zone in the foothills of the Andes
mountain range on the eastern side of Chile. All the projects are
located at altitudes exceeding 4,000 m. The geology of this region,
like the rest of Chile, is dominated by the eastward subduction
zone under the entire country generating uplift that has created
the Andes Mountains and the Coastal Cordillera (Moreno and Gibbons,
2007). This subduction has intensely deformed the older rocks and
generated volcanic activity that spans geological history from the
Mesozoic to the present.
Figure 2. Location of Laguna Brava,
Francisco Basin and Laguna Escondida project
Terms of the
MOU
To acquire an undivided 50% interest in
CLS, MGX has agreed to make Option Payments totaling US$1.5
million. The first US$100,000 portion of the Option Payments are
payable in cash at the discretion of CLS while the remainder of
Options Payments will be payable in common shares of the Company.
MGX has agreed to incur exploration expenditures totaling US$2
million and also complete an NI 43-101 resource estimate on at
least one of the Projects no later than 20 months after the
Effective Date of the MOU. MGX will act as project operator and
appoint Mr. Aldo Boitano, current project manager for CLS, as
project manager to work alongside Kura Minerals. CLSH shall
contribute an equal amount of expenditures to maintain its
respective interest in CLS. MGX also maintains the right to
participate as a service provider of the engineering, construction
and/or procurement of a brine processing plant using its rapid
lithium extraction technology. Closing of the transaction remains
subject to due diligence.
Rapid Lithium Brine Extraction
Technology
MGX has developed a rapid lithium
extraction technology that reduces the capital cost of recovery
compared to traditional solar evaporation as it does not require
the investment in large, multi-phase, lake sized, lined evaporation
ponds, greatly reducing the physical footprint and enhancing the
quality of extraction and recovery across a complex range of brines
previously considered un-processable due to complexity or
geographical location outside of solar evaporation appropriate
zones. This includes oil and gas wastewater, natural brine, and
other brine sources such as lithium-rich mine and industrial plant
wastewater. The technology was recently chosen as winner of the
Base and Specialty Metals Industry Leadership Award at the 2018
S&P Global Platts Global Metals Awards, held in London earlier
this month (see press release dated May 18,
2018).
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 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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