MGX Minerals Completes Drill Program at Driftwood Creek Magnesite Property; Initiates N.I. 43-101 Compliant Resource Estimate
VANCOUVER, BRITISH COLUMBIA / ACCESSWIRE / September 16, 2014 / MGX Minerals Inc. ("MGX" or the "Company") is pleased to announce that the Company has successfully completed 1,437 feet of diamond drilling at its flagship Driftwood Cree-k magnesite property (the "Property"). Norman Tribe, P. Eng. and a Qualified Person under N.I. 43-101 standards, has also been engaged to complete a maiden N.I. 43-101 compliant mineral resource estimate.
Eight closely spaces drill holes were completed along the western portion of the high-grade Eastern magnesite zone of the Property. Seven of the eight holes were spaced within 30 meters of each other and will provide a high degree of certainty to the resource estimate.
"We are quite pleased with results on the first of two planned exploration stages at Driftwood," said MGX CEO Jared Lazerson. "Core samples have been cut and submitted for assaying. These results, combined with channel sampling and re-logging of historic drill core, will allow the Company to immediately begin preparing an N.I. 43-101 compliant resource estimate."
Two historic resource estimates* (non N.I. 43-101 compliant) were completed on the Property by past operators. Kaiser Resources Ltd. (Morris, 1978) estimated a non N.I. 43-101 compliant Inferred resource of 22.5 million tonnes of magnesite using a specific gravity of 2.5 and Canadian Occidental Ltd. (Rodgers, 1989) estimated a non N.I. 43-101 compliant Inferred resource of 29.4 million tonnes of magnesite at a specific gravity of 3.0.
The Driftwood Creek magnesite property is located 35 kilometers southeast of Golden, British Columbia. MGX can earn a 100% interest in the property by making cash and stock payments over three years.
*These are historical resource estimates that do not comply with the current CIM Definition Standards on Mineral Resources and Mineral Reserves as required by NI 43-101. A Qualified Person has not done sufficient work to upgrade or classify these historical resources estimates to current mineral resources prepared in accordance with NI 43-101. The issuer is not treating the historical estimate as current mineral resources and the historical estimate should not be relied on.
Andris Kikauka, Vice President of Exploration for MGX Minerals, and a non-independent Qualified Person as defined by N.I. 43-101, has reviewed the information contained in this news release and has verified the data.
Magnesite in its purest form is 47.6% Magnesium Oxide ("MgO"). Magnesite generally serves as an excellent feedstock for the production of MgO. MgO in turn is a valuable and widely used industrial mineral. Uses of MgO include abrasives, animal feed supplements, chemicals, coatings, construction, electrical, fertilizers, foundries, glass manufacture, insulation, lubricating oils, pharmaceuticals, plastics manufacture, refractory and ceramics, rubber compounding, steel industry, sugar refining, sulfite wood pulping, and wastewater treatment. At this time MGX is focused on the refractory and steel industries.
MGX Minerals is a diversified Canadian mining company engaged in the acquisition, exploration and development of highly prospective mineral properties in secure jurisdictions of Western Canada. MGX has been mandated to deliver value for shareholders through organic growth and strategic acquisition of properties of merit. For more information please visit the Company's website at www.mgxminerals.com.
For further information on MGX, please contact:
Jared Lazerson
Chief Executive Officer
MGX Minerals Inc.
Telephone: 604.681.7735
Email: [email protected]
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", "postulate" 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.