MGX Minerals says latest Driftwood drilling shows potential to expand mineralisation

MGX Minerals Inc (CSE:XMG, OTCQB:MGXMF) has updated  on its Driftwood Creek magnesium project in BC, saying it had now completed a geotechnical drill program, which shows the mineralisation could  be expanded.

The work was aimed to establish pit wall stability and assess static pressure of groundwater, the firm said.

An earlier positive PEA (preliminary economic assessment) on the project has shown a pre-tax NPV (net present value) at 5% discount of C$529.8mln with an IRR (internal rate of return) of 24.5% with a 3.5-year payback.

Highlights of the latest drilling includes 87m at 41.3% magnesium oxide in one hole, and 43.3% in a 37.1m interval in another.

MGX noted that based on these assays, the East Zone had ‘considerable’ potential to expand the magnesite mineral zone to the east and north, while the west zone has potential to contain additional magnesite with high silica-low calcium content in the north.

Based on the grade and interval of magnesite mineralization, these results will also be used to potentially further target holes, the company added.

Last week, MGX told investors it had hired engineer Hatch Ltd to conduct a review and multi-phased work program at the site, aiming to prepare Driftwood now for an NI 43-101 pre-feasibility study for the site.

Magnesium oxide, or magnesia, is a widely used industrial mineral that comes in various forms. End uses include fertilizer, animal feed, and environmental water treatment as well as industrial applications, mainly in the steel industry.

Story by ProactiveInvestors