It’s all systems go at MGX Minerals Inc (CNSX:XMG), the developer of specialty metals in North America. The company is has recently completed infill and extension drilling on its Driftwood Creek magnesium property in British Columbia, as part of an ongoing preliminary economic assessment.
The company has already established a measured and indicated resource of more than eight mln tonnes of ore grading 43.3% magnesium oxide at Driftwood Creek, with additional significant showings of other minerals.
The plan is to advance the project to the construction phase by the end of next year and for first production to take place in the summer of 2018.
Meanwhile, in Alberta, MGX announced earlier this month that it is well on track to complete its oilfield lithium brine plant, which it will use to extract lithium carbonate from its extensive holdings.
The plant is now more than 50% complete, new patents have been filed and negotiations well advanced with oil and gas producers.
Across the 376,000 hectares of ground over which MGX holds licenses, over a million barrels per day of salt brine is produced. What’s more the grades on these properties are very attractive.
According to data compiled by the Alberta Geological Survey, MGX holds 14 of the top 25 highest grade lithium properties in the state.
The lithium will be extracted using a proprietary technology that MGX is acquiring through a deal with its owner, PurLucid, under the terms of which MGX will invest C$5 mln for an initial 50% of PurLucid with the right to acquire the other 50% for an additional C$10 mln.
Commercial units are being designed to be scalable and modular, allowing for deployment into small and large oilfields alike, and the plan is to deploy the first of these in the third quarter of next year.
Lithium does not occur as a pure element in nature, but rather concentrates over time within pegmatite ores and brine solutions.
It’s been much in demand lately as its use in battery technology is extensive and is only set to rise as battery usage becomes more and more pervasive.
The company is also evaluating the economic viability of three high grade silicon projects in British Columbia.
Story by ProactiveInvestors