VANCOUVER, Oct. 17, 2016 /PRNewswire/ - MGX Minerals Inc. ("MGX" or the "Company") (CSE: XMG / FKT: 1MG / OTC: MGXMF) is pleased to announce the 2016 diamond drilling program is more than 50% complete at the Company's flagship Driftwood Creek magnesium deposit ("Driftwood"). The Company has completed a total of 13 diamond drill holes to date as part of the current drill program.
A National Instrument (N.I.) 43-101 compliant mineral resource estimate totaling 8.1 million tonnes grading 43.3% magnesium oxide (MgO) (see press release dated September 5, 2016) was recently completed for Driftwood. The technical report recommended an infill drill program to further delineate continuity of the deposit as well as for pit shell optimization purposes in support of a N.I. 43-101 compliant Preliminary Economic Assessment ("PEA"). The updated data will be used for completion of the PEA which is expected to provide guidance on the Net Present Value of the project and be released prior to year end. The current drill program will provide further information for the PEA, which in addition to providing a detailed assessment of potential economic extraction, will include a revised resource estimate. Additional drill holes have been added by the Company to the recommended infill drill program to further test extension along strike and the depth of the deposit, both of which remain open, as well as for geotechnical analyses.
Nine diamond drill holes at the Driftwood East zone have been completed totaling of 537.5 meters (1,763 feet). The objective of the drilling is to expand the known area of magnesite along the ridge crest, where past drilling and a recent 100 tonne bulk sample were completed in June (see press release dated June 9, 2016). Step out drilling to the east has extended the eastern edge of magnesite mineralization along strike. The diamond drill was recently moved to the Driftwood West zone, where further infill drilling has been successful with the completion of four additional holes. Drilling has now commenced on the first of four long holes aimed at testing the deposit at depth.
Completion of the drill program will provide additional information for further pit optimization which will be included in the upcoming PEA and revised Resource Estimate.
This press release was prepared under the supervision and review of Andris Kikauka, P. Geo. and Vice President of Exploration for MGX Minerals. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument (N.I.) 43-101 Standards.
About MGX Minerals
MGX Minerals (CSE: XMG) is a diversified Canadian mining company engaged in the development of a large-scale mineral portfolio of more than 30 properties in western Canada. The Company owns primary projects in magnesium, lithium, silicon and has recently re-commenced exploration at its 10,000 ha Fran Gold property located 35km SW of the Mount Milligan Mine. MGX recently released a maiden N.I. 43-101 compliant mineral resource estimate for its Driftwood Creek magnesium project, which outlined 8.1 million tonnes grading 43.31% magnesium oxide. In January, the Company received a 20-year Mining Lease for Driftwood Creek. The Company recently acquired the Sturgeon Lake lithium brine project in west-central Alberta, increasing the Company's lithium brine land position to over 376,000 hectares throughout the Province. For further information, please visit the Company's website at www.mgxminerals.com or contact MGX Minerals directly by email at firstname.lastname@example.org.
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 including the completion of the rights offering (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.