viewMGX Minerals Inc.

MGX Minerals has portfolio approach to mining and tech sectors and is going for gold with new British Columbia project


The Vancouver-based group is "involved in the acquisition, exploration and development of resource properties and industrial technologies"

MGX Minerals Inc. -

Quick facts: MGX Minerals Inc.

Price: 0.07 CAD

Market: CSE
Market Cap: $9.83 m
  • Diversified Canadian resource and tech group
  • Newly acquired Heino-Money gold project, a past producer in BC 
  • New CEO in Patrick Power

What MGX Minerals does:

MGX Minerals Inc (CSE:XMG) (OTCQB:MGXMF) is a multi-layered company, which is active in various sectors.

The Vancouver-based group is "involved in the acquisition, exploration and development of resource properties and industrial technologies". Its four divisions are energy storage, mineral extraction, conventional mining, and wastewater purification.

Its mining assets are in Canada and are made up of lithium, magnesium oxide, silica, niobium-tantulum, and gold. The group has claims throughout the Driftwood mining district in British Columbia, where it controls the majority of significant known magnesium deposits in the Canadian province.

Its most advanced project is the Driftwood Creek project, which already boasts a resource of around 4.7 million tonnes at 43.27% magnesia in the measured and indicated (M&I) category. A preliminary economic assessment (PEA) in 2018 outlined a 19-year mine life, 3.5 year payback and C$529.8 million pre-tax net present value (NPV).

MGX also has three silicon projects in southeastern British Columbia.

Away from mining, the company also operates and sells water treatment systems to the oil and gas industry through its 60% owned partner PurLucid Treatment Solutions (PurLucid), which continues to develop advanced water treatment technology. MGX also owns a rapid lithium extraction technology from brine which eliminates the usual requirement for solar evaporation.

A subsidiary, MGX Renewables, which specializes in a zinc-air fuel cell battery, was spun-off in July 2019, and now trades as Zinc8 Energy Solutions (CSE:ZAIR).

How is it doing:

In March 2020, MGX Minerals named seasoned resource executive Patrick Power as its new chief executive. Power founded Western Potash Corp and was responsible for raising roughly C$200 million and arranging the sale of the company.

As well as industrial minerals such as potash and lithium, Power has experience in solution mining and the extraction of minerals from fluid. Jared Lazerson was appointed the group's chairman.

In May, the firm revealed a significant acquisition, getting its hands on the past-producing Heino-Money gold mine in British Columbia in a C$5 million deal and said it aims to complete an NI 43-101 resource update by the end of June. The Heino-Money mine was active between 1981 and 1993 and produced around 5,800 tons of gold and silver ore.

MGX has also bought the Tillicum Claims in the West Kootenay region, consisting of the Grizzley, Annie Flats, and Silver Queen occurrences, which lie around 110 kilometres east of the town of Kelowna in BC.

Early exploration work during the 1980s at Silver Queen returned promising results. Diamond drilling in 1983 intersected values ranging from 40.1 grams per ton silver over 3.65 metres to 144.7 grams per ton over 4.51 metres.

On June 1, MGX said a field crew had reached the Heino-Money gold deposit mine portal and drill core storage area by helicopter after the firm cleared 11 kilometers (km) of the mine access road.

The team has identified over 30 drill core storage racks, containing up to 10 x 10 drill core storage boxes each, and a vast amount of core appears to be labelled as visible mineralization, it said. More than 400 diamond drill holes, representing over 40,000 meters (m), are reported to have been completed at Heino-Money by previous owners, around 20,000m of which were drilled from five levels of underground development.

MGX's silicon projects also got a shot in the arm early in 2020 when the group unveiled positive findings from research work in a collaboration with the University of British Columbia. The goal was to develop a low-cost and scalable method to fabricate a silicon-based anode to improve the energy density of lithium-ion batteries.

Results showed that nanostructured silicon with a specialized surface coating maintained a reversible capacity of 607.5 mAh g-1 (milliampere hours per gram) at a current density of 2A g-1 for 1,000 battery cycles, while traditional lithium-ion batteries have a life expectancy of between 500 and 1,500 cycles.

In late 2019, the group also revealed that it was poised to start drilling at its Driftwood Creek magnesium site as part of ongoing work for a pre-feasibility study (PFS), which will add to a preliminary economic assessment (PEA) which was completed in March, 2018.

Inflection points:

  • More activity at Heino-Money project
  • Exploration and results from Driftwood Creek project

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