MGX Minerals Files Notice of Work for 3000 Meter Confirmatory Drilling in Support of NI 43-101 Resource Estimate at Heino Gold Deposit and Tillicum Claims
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MGX Minerals Files Notice of Work for 3000 Meter Confirmatory Drilling in Support of NI 43-101 Resource Estimate at Heino Gold Deposit and Tillicum Claims

Wednesday, July 15, 2020 9:00 AM
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VANCOUVER, BC / ACCESSWIRE / July 15, 2020 / MGX Minerals Inc. ("MGX" or the "Company") (CSE:XMG)(FKT:1MG)(OTC PINK:MGXMF) is pleased to announce a Notice of Work has been filed for 3000 meters of diamond drilling as recommended by SRK Consulting (Canada) in a recently filed Technical Report prepared in accordance with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") (the "SRK Report") for the Heino Gold Deposit and Tillicum Claims. The complete report is available on SEDAR. See British Columbia MINFILE 082FNW234 for detailed information regarding the deposit and claims.

SRK Site Visit

SRK completed a site visit on July 7th and 8th. The primary purpose of the visit was to perform independent data verification of historical drill core, assess existing portals and tunnels, and develop a geological theory behind the known and potential gold deposit in support of a Resource Estimate. SRK will provide an amendment to the recently filed SRK Report covering these topics shortly. A number of historical diamond drill core samples have been taken by SRK and sent for 51 element analyses.

Infrastructure Development

Road access to the mine and core shacks has been opened but is limited to 4 x 4 and ATV only. Trucks were able to come within 200 meters of the main haulage at the 2050 level portal but narrow access as the result of a recent washout made final truck access impossible. Further road work will be required to open access to main haulage and road access to upper portals as well as proposed Summer 2020 diamond drill sites. Work is expected to be completed shortly.

SRK Senior Mining Engineer Cliff Revering (P.Eng) and MGX Director Jared Lazerson July 8, 2020 @ 6500 ft Elevation

Resource Estimate

The Company is now executing the recommended work program as detailed in the SRK Report. This is a $525,000 work program prior to completing a Resource Estimate that is being prepared in accordance with the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

  1. Relogging and resampling of historical drill core will be required to validate the existing project drill hole and assay database for future use in estimating mineral resources. This should be conducted prior to any additional drilling on the property.
  2. Channel sampling of exposed mineralization within existing underground development should be considered for data validation purposes.
  3. Twin drilling of a small sub-set of historical drill holes (6 holes in total, estimated 1,800m of drilling) should be completed for validation purposes, as well as to collect oriented drill core for structural analysis.
  4. A LiDAR survey (or equivalent survey) should be conducted to obtain accurate topography of the project site;
  5. Existing underground workings should be re-surveyed to confirm positioning and obtain accurate volume estimates.
  6. Establish a chain of custody process, and quality assurance and quality control process for future drilling programs; and
  7. Perform an in-depth structural review whereby a detailed litho-structural model is produced because mineralization is strongly structurally controlled. This includes the steeply dipping Heino-Money type mineralization as well as the shallower dipping conformable or stratabound East Ridge Zone type mineralization. A structural understanding of these zones is necessary to help develop structural targets in the area and to provide confidence to the resource estimation. To develop a structural model, good coverage of structural data is necessary. This can be obtained from detailed structural surface and underground mapping and structural logging of orientated drill core. These data are most effective when used in combination with a structural interpretation of high-resolution LiDAR, and if available high-resolution geophysical data sets.

Historical Drilling and Production

Summary of recorded surface and underground drilling from the SRK Report.

Table 10-1: Summary of recorded drilling

Year(s)

Mineral Zone

Surface Drilling

Underground Drilling

No. of Holes

Meterage

No. of Holes

Meterage

1981-1987

Heino-Money

100

7,060

9

177

1988

   

92

3,079

1993

   

8

284

1981-1984

East Ridge

26

1,586

   

1988

75

13,149

14

610

1989

10

1,446

   

1984

Silver Queen

12

?

   

1984

Grizzly

4

615

   

1984

Arnie Flats

5

292

   

Totals

232

24,148

123

4,150

Small scale production occurred in 1981, 1984, and 1993 from the Heino-Money Zone. Table 6-4 from the SRK Report summarizes tonnages and metal content recovered per year of extraction.

Table 6-4: Summary of bulk sampling conducted on the Heino-Money Zone

Year

Mined Tonnes

Milled

Tonnes

Au Grams Recovered

Au Ounces Recovered

Ag Grams Recovered

Ag Ounces Recovered

1981

58

58

4,570

145

3,259

105

1984

227

168

48,351

1,554

51,570

1,658

1985/1986

2,972

2,972

98,910

3,180

   

1993

6,800

5,503

102,455

3,294

164,071

5,275

Total

10.057

8,701

254,286

8,173

218,900

7,038

COVID_19

The Company does not foresee COVID_19 impacting initial confirmatory exploration as recommended by the SRK Report or impairing the asset value of Tillicum Claims and Heino Gold Deposit at this time. Exploration and construction teams will be limited to 3-6 personnel. At such time that significant labor is needed MGX will prepare a comprehensive COVID_19 plan and will rely on distancing, hand washing, and symptom monitoring to control the spread. As required by Transport Canada, masks will be required on all flight operations, which will be limited to 6 personnel including pilot. The West Kootenays is not an area of significant COVID_19 outbreak at this time and it is not expected COVID _19 would not be transferred from local population to miners as long as basic hygiene protocol is maintained.

Qualified Person

Andris Kikauka (P. Geo.), 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.

Advisors

Kingsdale Advisors is acting as strategic shareholder and communications advisor and Norton Rose Fulbright Canada LLP is acting as legal advisor to MGX Minerals Inc.

About MGX Minerals Inc.

MGX Minerals Inc. 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.

Contact Information

Neil Foran
Chief Financial Officer
[email protected]
Web: www.mgxminerals.com

Andy Radia
Director, Communications and Marketing
Kingsdale Advisors
Ph: 416-867-2357
[email protected]

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.

Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forwardlooking information. Forward-looking information in this press release include, but are not limited to, statements with respect to plans for assessment and other activities conducted and proposed to be conducted at the Heino-Money Deposit and Tillicum Claims, the preparation and filing of the Technical Report, and the preparation for structural engineering review for the purpose of underground bulk sampling. Forwardlooking information is generally, but not always, identified by the words "expects", "plans", "anticipates", "in the event", "if", "believes", "asserts", "position", "intends", "envisages", "assumes", "recommends", "estimates", "approximate", "projects", "potential", "indicate" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.

The Company's forward-looking information are based on the applicable assumptions and factors the Company considers reasonable as of the date hereof, based on the information available to the Company at such time, including without limitation, the receipt of any necessary permits, licenses and regulatory approvals, and the Company's ability to comply with environmental, health and safety laws. 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 risk factors. These factors include, among others, geological and environmental factors, operating or technical difficulties in connection with the activities contemplated in this press release, general economic conditions, or conditions in the financial markets. 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. Except as required by securities law, the Company does not intend, and does not assume any obligation, to update or revise any forward-looking information, whether as a result of new information, events or otherwise.

SOURCE: MGX Minerals Inc.

MGX Minerals Inc.
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