Mr. Neil Foran reports

MGX MINERALS ANNOUNCES EXPLORATION RESULTS UP TO 75 OUNCES PER TONNE SILVER AT SILVER QUEEN DEPOSIT AND 0.4 OUNCES PER TONNE GOLD AT GRIZZLY DEPOSIT, TILLICUM CLAIMS, BRITISH COLUMBIA

MGX Minerals Inc. has released project geochemical analysis results of rock-chip samples taken from the Grizzly, Silver Queen, Arnie Flats, East Ridge, Jennie and Road zones.

Grizzly

Located 0.6 kilometre east and southeast of Tillicum Mountain, shear-related calc-silicate-quartz skarn zones host sulphide mineralization consists primarily of massive pyrrhotite, pyrite-marcasite, sphalerite, chalcopyrite, galena and traces of free gold hosted in conformable bands to pods within pelitic schist (shale protolith), tuffaceous basalt and feldspar porphyry (hybrid diorite) intrusion. The Grizzly mineralization closely resembles the Heino-Money and East Ridge zones. In 1989, diamond drilling at the Grizzly zone yielded values up to 10.4 grams per tonne gold over 1.2 metres in hole G89-214; 19.9 grams per tonne gold over 0.9 metre in hole G89-213; and 2.6 grams per tonne gold with 15.3 grams per tonne silver over 14.4 metres in hole G89-220, including 3.3 metres yielding 5.1 grams per tonne gold and 15.8 grams per tonne silver. Rock-chip sampling from a road cut near the 1989 drilling obtained gold values of 14.52 grams per tonne gold (0.424 ounce per ton gold) across a sample interval of 0.35 metre (1.15 feet). This area is in the southern portion of the Grizzly zone, and several drill holes are planned to intersect extensions of the southern (higher elevation) gold-bearing portions of the Grizzly zone.

Silver Queen

Locally tuffs and limy/sandy sediments strike east to northeast, dipping steeply south, have been intruded by numerous dikes. The gold and silver mineralization is related to hornfelsing associated with various dikes and sills and the mid-Jurassic Goatcanyon granitic stock. Mineralization is stratiform and hosted in limy and garnetiferous greenstone. Mineralization has been traced over a strike length of 950 metres. Drilling on the zone has identified several 20-metre-thick mineralized skarn zones hosted in a 30-metre-wide sequence of impure calcareous quartzites, siltstones and thin marble beds marginal to feldspar porphyry sills. Sulphide mineralization consisted of pyrite, pyrrhotite, tetrahedrite, sphalerite, galena, pyrargyrite and arsenopyrite. Alteration minerals include quartz, tremolite, actinolite and anhedral garnet. Grab sample 20SQ-7, located near the north portion of the northeast-trending Silver Queen trend, consisted of massive sphalerite-galena and returned assay values of 2,590 grams per tonne silver (75.54 ounces per ton silver), 11.05 per cent lead and 18 per cent zinc.

Arnie Flats

Locally, tuffaceous and metabasaltic andesites near a hybrid diorite sill host two subparallel calc-silicate skarn zones. The zones trend east to northeast with moderate dip to southwest and have been traced for 120 metres along strike. Sulphide mineralization consists of disseminated and stringer pyrite with pyrrhotite and trace argentite or tetrahedrite. Alteration minerals include epidote, quartz and chlorite. Rock-chip samples 20AF-1 and 20AF-2 returned assay values of 4.17 grams per tonne and 3.47 grams per tonne gold (0.122 ounce per ton and 0.101 ounce per ton gold) and 430 grams per tonne and 421 grams per tonne silver (12.54 ounces per ton and 12.3 ounces per ton silver).

The Grizzly, Silver Queen and Arnie Flats zones qualify as extension and exploration targets for further drill testing, where drilling is planned for Grizzly in 2021. The Jennie and Road zones also have good exploration potential and they align as north extensions of the high-grade gold Heino-Money zone.

Recent exploration

As announced July 24, 2020, six 0.5-kilogram to one-kilogram samples were taken at the 2030 portal of the Heino-Money pit zone at the Heino gold deposit during the SRK Consulting (Canada) site visit on July 8, 2020. Samples were shipped under direct chain of custody to ALS Canada Ltd. in Kamloops, B.C., crushed and pulverized, with further shipment to ALS Canada in North Vancouver, B.C., under custody of ALS Canada. The samples have undergone gold analysis by fire assay and gravimetric finish up to six ounces per tonne gold are reported. Previous silver, lead and zinc assays from a press release issued on July 20, 2021, are included. Bulk samples are of selected mineralized material and are not representative of the deposit as no mineral resource estimate at any level of confidence has been completed.

Historical work

A summary of recorded surface and underground drilling from the National Instrument 43-101-compliant technical report (the SRK report) is shown as follows.

Small-scale production occurred in 1981, 1984 and 1993 from the Heino-Money zone. An attached table from the SRK report summarizes tonnages and metal content recovered per year of extraction.

Qualified person

Andris Kikauka, PGeo, 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 NI 43-101.

About MGX Minerals Inc.

MGX Minerals invests in commodity and technology companies and projects focusing on battery and energy mass storage technology, extraction of minerals from fluids, and exploration for industrial minerals and precious metals.

We seek Safe Harbor.