MGX Minerals Inc (CNSX:XMG) shares climbed by 2.4% to C$0.42 on Thursday after the company declared that its acquisition of 11 additional metallic and industrial minerals permits makes the company the largest lithium brine land holder in Canada.
The extra permits cover an additional 91,610.02 hectares in the province of Alberta.
The permits encompass the Redwater and Swan Hills oil fields, which were acquired based on compilation of historical 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.
Over 1mln barrels per day
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 140 milligrams per litre, as reported in the provincial industrial minerals database.
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 signed an agreement with the operator of the Sturgeon Lake oil field to conduct water sampling. Read more.
These oil fields produce excessive amounts of brine in comparison with 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 co-operation with existing oil field operators to leverage existing infrastructure.
Field testing completed at Sturgeon Lake
As a result of the recent water testing and analyses agreement signed with the oil field operator, testing of 10 wells and two centralized water batteries has been completed at the company's Sturgeon Lake lithium brine project. The centralized water battery testing is for the purpose of bulk sampling 400 litres of brine. This brine will be run through the bench-scale pretreatment and mineral extraction processes developed by MGX and water purification partner PurLucid Treatment Solutions Inc.
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 pretreatment and water purification portion of the pilot plant is complete.
This pretreatment 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, the pilot plant is 50% complete. Read more.