MGX Minerals says drillbits now turning at Kibby Basin

Energy metals firm MGX Minerals Inc (CSE:XMG, OTCQB: MGXMF) said drilling had now started at the Kibby Basin lithium brine property in Nevada.

Contractor Harris is carrying out the work, which MGX said, has extensive experience drilling Clayton Valley lithium brines.

The renowned Clayton Valley area is the home of Abermarle’s Silver Peak mine, the only US lithium producing mine, which lies just 50km south of the Kibby basin.

As previously reported, Harris will use a rotary drill to complete the holes on targets generated based on results from a geophysical survey completed in January.

The proposed holes are designed to test a large conductor, which may represent aquifers containing lithium brines.

The holes have been designed to intercept the anomaly starting at depths of 325 m (1065 ft) and continue to as deep as 760 m (2500 ft).

MGX is partnered on the project with Belmont Resources (CVE: BEA) and is currently earning a 50% interest for the purpose of forming a 50:50 joint venture, using MGX’s rapid lithium extraction technology.

The Kibby Basin project covers 2,560 acres in Esmeralda County, Nevada. It is a dry playa with no springs or water sources.

The target area is a large well-defined anomaly discovered by a survey by Belmont in January this year.

MGX with partner Purlucid has developed a rapid lithium extraction technology, which reduces costs and enhances the quality of extraction across a complex range of brines.

This technology is applicable to petrolithium (oil and gas wastewater), natural brine, and other brine sources such as lithium-rich mine and industrial plant wastewater.

MGX Minerals shares closed down 8.24% to C$0.78 in Toronto.

Story by ProactiveInvestors