MGX Minerals Becomes Largest Lithium Brine Land Holder in Canada - 486,800 Hectares (1,190 Square Miles) - Completes Bulk Sample at Sturgeon Lake
MGX Minerals Inc. (CSE: XMG / FKT: 1MG / OTC: MGXMF) (“MGX” or the “Company”) is pleased to announce the Company has acquired 11 additional Metallic and Industrial Minerals Permits (the “Permits”) covering an additional 91,610.02 hectares in the Province of Alberta.
The Permits cover the Redwater and Swan Hills oilfields, which were acquired based on compilation of historic exploration for lithium, oil and gas well brine production data, and known geology. Both areas contain significant daily volumes of oil field brine production from the primary lithium bearing brine formations in Alberta.
In aggregate, MGX now holds Permits covering over one million barrels per day of brine production by various oil field operators throughout the Province, including some of the highest levels of lithium bearing brine, up to 140mg/L, as reported in the Provincial Industrial Minerals database (1).
MGX currently has exploration level agreements including well water testing, bulk water testing (centralized) and water analyses with major oil companies throughout the Province. Last week the Company reported it has signed an agreement with the operator of the Sturgeon Lake oilfield to conduct water sampling (see press release dated December 8, 2016).
These oilfields produce excessive amounts of brine in comparison to petroleum due to their mature nature, which requires increased pumping to produce crude oil. The brine is considered a waste product as it is presently treated to separate and remove petroleum products and then reinjected back down into subsurface formations. MGX continues to work in cooperation with existing oilfield operators to leverage existing infrastructure.
Field Testing Completed at Sturgeon Lake
MGX also announces that as a result of the recent water testing and analyses agreement signed with the oil field operator, testing of 10 wells and 2 centralized water batteries has been completed at its Sturgeon Lake Lithium Brine Project. The centralized water battery testing is for the purpose of bulk sampling 400 liters of brine. This brine will be run through the bench scale pre-treatment and mineral extraction processes developed by MGX Minerals and water purification partner PurLucid Treatment Solutions. The Sturgeon Lake property is a prime candidate for pilot plant deployment. Data from the bulk sampling will be used for final specifications of the mineral extraction components of the pilot plant. The pre-treatment and water purification portion of the pilot plant is complete. This pre-treatment section removes all oil and physical particulate, allowing steady flow of low impurity feedstock to the mineral extraction process. The Company recently announced that in partnership with PurLucid Treatment Solutions Inc., the pilot plant is 50% complete (see press release dated November 14, 2016).
(1) All assays referenced are as reported by Alberta Geological Service.
Table 1. MGX Minerals Alberta Lithium Portfolio
|Fox Creek West||17,021.10|
|Lower Smoky River||8,741.76|
|Lesser Slave Lake||9,216.00|
|Upper Smoky River||9,216.00|
The technical portions of the press release were prepared by Roy Eccles (P. Geo.) of APEX Geoscience Ltd., and have been 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 (N.I.) 43-101 Standards.
About MGX Minerals
MGX Minerals (CSE: XMG) is a diversified Canadian mining company engaged in the development of large-scale industrial mineral portfolios in western Canada. The Company operates lithium, magnesium and silicon projects throughout British Columbia and Alberta. MGX recently released a maiden N.I. 43-101 compliant mineral resource estimate for its Driftwood Creek magnesium project, which outlined 8 million tonnes grading 43.31% magnesium oxide. In January the Company received a 20-year Mining Lease for Driftwood Creek. Additionally, the Company is the largest lithium brine land holder in Canada, controlling nearly 487,000 hectares of land representing over one million barrels of brine production per day. For further information, please visit the Company's website at www.mgxminerals.com.
Source: MGX Minerals