MGX Minerals Inc (CSE:XMG) (OTC:MGXMF) announced Monday that metallurgy studies for extraction of gold from mineralized rock from the Heino gold deposit and Tillicum claims are now underway at ALS Global Canada.
For Phase 1, the company said a set of samples from the project site were received at ALS Metallurgy on August 14. These included about 140 kilograms (kgs) of surface rock samples from the Heino zone and 210 kgs of ½ drill core samples from the East Ridge zone. Historical gold assay values on samples from the East Ridge zone were provided and reviewed with consultants from SRK.
In a statement, MGX said it was decided that a greater understanding of the gold contents was required, as significant variances in gold grades from multiple assays on several samples were reported.
As a result, it designed a test plan to assess the degree to which gold nugget occurrences are affecting the assay results, and determine what preparation methods might be suitable for future samples:
The Heino samples would be prepared into three composites, each representing a section of the surface outcropping. Selected East Ridge drill core intervals would be prepared separately for analysis. These include six intervals that reported significantly higher gold grades, three intervals that reported considerable gold assay variances over multiple cuts, and four intervals that are expected to be of average gold grade.
Each sample would be stage crushed to minus 6 mesh, homogenized and split into sub-samples using a rotary splitter where applicable. Smaller sample masses would be riffle split. A 500 gram (g) head cut would be extracted from each sample and analyzed using a screened metallic preparation method, which includes fire assays on the plus 106µm portion and duplicate cuts of the minus 106µm portion following pulverizing. An additional 200g head cut would be extracted from each sample, pulverized, and gold fire assays would be conducted on duplicate 30g aliquots. The Heino composites would also be assayed for silver in duplicate.
All remaining East Ridge samples would be crushed to minus 6 mesh and homogenized with the crushed rejects from the assayed East Ridge intervals. A 48 kg sub-sample would be rotary split into two kg charges for metallurgical testing and suitably sealed under nitrogen and kept in cold storage until consumed in the Phase 2 testing. Similar to above, a 500 g head cut would be extracted for a screened metallic gold analysis, and an additional 200 g cut for duplicate standard gold fire assays as well as silver analysis. At this point, results would be reported and reviewed prior to proceeding.
For Phase 2, the company said that, provided that the gold analyses are acceptable, additional preparation and head analyses would be conducted in advance of metallurgical testing. The three Heino composites would be combined into a single composite, homogenized and a 48 kg sub-sample would be rotary split into 2 kg charges, sealed under nitrogen and kept in cold storage until consumed in the test program.
Stake claim and name change
In other company news, the company has staked the GC Rare Earth LCT Pegmatite lithium - cesium - rubidium property located on Tonkawatla Ridge about five kilometres north-north west of Victor Lake in British Columbia.
MGX currently controls the nearby REN niobium rare earth property and has completed successful drilling for niobium and related minerals in 2018. MGX also controls a portfolio of industrial and speciality minerals and metals in British Columbia including magnesium oxide and silica.
Meanwhile, MGX said it has received provincial and regulatory approval for a name change to Tillicum Mountain Gold Inc and ticker symbol change to TLCM, as the company plans to focus on gold moving forward.
The company also announced it has been forced to further postpone its annual general meeting and requisitioned a meeting of shareholders, originally scheduled for June 30, 2020 with the deadline to hold the meeting extended by Court Order to September 30, 2020. The postponement of the meeting is necessary due to public health measures currently in place with regard to the COVID-19 pandemic.
MGX said it will file a further application with the court seeking relief from statutory meeting deadline requirements and then ask to hold the meeting at any time prior to January 31, 2021.
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