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MGX Minerals set to advance Francisco Basin lithium project in Chile as drilling to start

A five-hole drill program will target the Northern lagoon
electric car plugged in
Lithium is used to make electric cars

MGX Minerals Inc. (CSE:XMG) (OTCQB:MGXMF) announced Thursday progress at its lithium project in Chile, where its joint venture partner Chilean Lithium Salars (CLS) has mobilised a rig for drilling.

A five-hole program will target the Northern lagoon, where samples in May this year averaged 694mg/L (miligrams per litre) of lithium.

CLS will test lithium mineralization to a depth of up to 300 meters as well as the lateral extent of the mineralization and the data will be used to define the hydrogeological model for the 12,900-hectare project.

READ: MGX Minerals brings in $3.2M from first tranche of placing; drilling starts at Salinitas lithium project

In October this year, MGX said it had finalised the deal to acquire 50% of  CLS, which holds three prospective lithium exploration projects in Chile.

These include the Francisco basin, Laguna Brava and Laguna Escondida lithium projects.

MGX said it and CLS will continue to work with SRK Consulting to complete a definitive exploration program for the Francisco Basin project.

An electromagnetic geophysical survey was completed in April this year at Francisco and, significantly, results indicated strong potential for the presence of two highly conductive brines zones.

Rapid extraction

As is well documented, MGX  has developed a rapid extraction technology for lithium, which can remove the need to invest in large, multi-phase, lake-sized, lined evaporation ponds.

It says it is prepared to mobilize a rapid lithium extraction system to the Francisco Basin project.

In a separate statement today, MGX posted its results for the year to end July, which showed its total assets had increased to $38.5 million compared with $11.6 million at the end of the fiscal year 2017.

In keeping with a company at this stage of development, the loss was $25.4 million, compared with $13.9 million in 2017, or a loss per share of $0.27 compared with a loss of $0.24 per share last year.

MGX Minerals shares were down 2.1% in Toronto at the time of writing at $0.46.

 

Contact Giles Gwinnett at [email protected]

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