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Enter Symbol
or Name
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MGX Minerals Inc
Symbol XMG
Shares Issued 105,375,277
Close 2018-05-23 C$ 1.12
Market Cap C$ 118,020,310
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MGX Minerals acquires Gibraltar silicon property

2018-05-24 06:57 ET - News Release

Mr. Jared Lazerson reports

MGX MINERALS PROVIDES UPDATE ON B.C. SILICON PROJECT PORTFOLIO; DRILLING AND METALLURGICAL PROGRAMS PLANNED FOR 2018

MGX Minerals Inc. has provided 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 located approximately 95 kilometres northeast of Cranbrook, B.C. The property features high-purity quartzite that has potential for technological applications, consisting of snow-white-coloured, high-purity silica that contains greater than 98.8 per cent silicon dioxide (SiO2) and less than 1.2 per cent in impurities such as Al2O3 (aluminum oxide), Fe2O3 (iron (III) oxide), CaO (calcium oxide), MgO (magnesium oxide), Na2O (sodium oxide), K2O (potassium oxide).

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-to-30-metre-wide high-purity quartzite bed exposed over a strike length of approximately 420 metres. Fieldwork carried out in 2017 consisted of geological mapping (approximately 10 hectares), geochemical sampling (seven rock chip samples submitted for whole-rock geochemical analysis, ALS code ICP06), and GPS (global positioning system) surveying quartzite outcroppings. A total of seven rock chip quartzite samples (ID No. 15GIBR-1 to No. 15GIBR-7) were taken from the base of the main zone. Whole-rock geochemical analysis is summarized as shown in the associated table.


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
                                                less than
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 six out of seven rock chip samples analyzed is 98.8 per cent. The relatively high SiO2 content of six out of seven samples (17GIBR-1 to 3, and 17GIBR-5 to 7) taken along approximately 300-metre strike length of well-exposed Mt. Wilson formation quartzite, compares favourably with other silica producers such as Moberly, Hunt and HCJ Properties near Golden, B.C. 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 per cent 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. 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 and Koot silicon properties 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 metres. Geological mapping, geochemical sampling and surveying identified a series of white quartzite outcroppings (Wonah quartzite formation) that form two 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 north to north-northeast, is approximately 50 metres in width, and has a steep east dip.

At Koot, historic exploration conducted by Cominco (now Teck-Cominco) during the 1980s outlined a mineralized zone spanning approximately 400 metres 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 per cent and 99.3 per cent 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 C 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., 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 ZincNyx's website.

Qualified person

The technical portions of this press release were reviewed by Andris Kikauka, PGeo, 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 Inc.

MGX Minerals is a diversified Canadian resource company with interests in advanced material and energy assets throughout North America.

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