VANCOUVER, British Columbia, May 16, 2016 (GLOBE NEWSWIRE) -- MGX Minerals Inc. (“MGX” or the “Company”) (CSE:XMG) / (FKT:1MG) reports the Company has received notice from mining contractor Dominion Excavating Ltd. that mine haul road construction has been completed for the Driftwood Creek magnesium project (“Driftwood”) (see press release dated February 25, 2016).
Commencement of mining operations to support the previously announced 100-tonne bulk sample program is scheduled to begin this week. The bulk sample program represents the first bulk tonnage material removed from Driftwood Creek since Kaiser Resources mined 8,000 metric tonnes as part of a test quarry in 1978 (Morris, 1978).
The purpose of the bulk sample program is to complete a maiden National Instrument (N.I.) 43-101 mineral resource estimate for Driftwood, conduct metallurgy testing for finalization of the upgrade circuit by Kemetco Labs, and provide Industrial Furnace Company with a 10-tonne sample for kiln testing and sample preparation of magnesium oxide (MgO).
Driftwood Creek Magnesium
MGX Minerals has the right to acquire a 100% interest in the Driftwood Creek magnesium project. The Company has completed a Phase I and Phase II drill program at Driftwood Creek and is now conducting a 100-tonne bulk sample program. MGX received a 20-year Mining Lease for Driftwood Creek in January (see press release dated January 11, 2016).
Qualified Person
This press release was prepared under the supervision and review of Andris Kikauka, P. Geo. and Vice President of Exploration for MGX Minerals. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument (N.I.) 43-101 Standards.
About Dominion Excavating
Dominion Excavating is a quarry mining and construction company located in Invermere, British Columbia. MGX has entered into a comprehensive development agreement with Dominion for the road and mine construction at the Driftwood Creek magnesium project. Dominion is an MGX Minerals equity partner and a First Nations owned company.
About MGX Minerals
MGX Minerals (CSE:XMG) is a diversified Canadian mining company engaged in the acquisition and development of industrial mineral deposits in western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures. The Company operates lithium, magnesium and silicon projects throughout British Columbia and Alberta, including the Driftwood magnesium project. MGX has recently received approval of a 20 year mining lease for Driftwood and bulk sampling is currently underway. For further information, please visit the Company’s website at www.mgxminerals.com.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Company is actively working on bringing its Driftwood Creek magnesium project into production. However, readers are cautioned that the Company has not completed a pre-feasibility or feasibility study which establishes mineral reserves with demonstrated economic and technical viability. Further, the Company cautions readers that any potential production may not be economically feasible and historically projects taken to production without establishing reserves through a feasibility study have a much higher risk of economic or technical failure.
Forward-Looking Statements
This press release contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Company's public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Company's profile on SEDAR at www.sedar.com.