MGX Minerals hires Hatch for Driftwood scoping study

Mar 15, 2018

2018-03-15 09:06 ET – News Release

Mr. Jared Lazerson reports

MGX MINERALS ENGAGES HATCH LTD. FOR MAGNESIUM METAL STUDY AT DRIFTWOOD CREEK, BRITISH COLUMBIA

As a result of the recently announced positive preliminary economic assessment for the production of 161,000 net tonnes per year of magnesium oxide (MgO) at its Driftwood Creek magnesium project, MGX Minerals Inc. has engaged engineering firm Hatch Ltd. to complete a scoping study for the purpose of selecting appropriate process and associated economics for the upgrading of magnesium oxide to magnesium metal. The Hatch study will evaluate process routes, and order-of-magnitude capital and operating cost estimates for an initial 10,000-tonne-per-year magnesium plant, as well as addressing various environmental and engineering topics.

The scoping study may further enhance the already positive economics of Driftwood Creek with the addition of Mg Metal to proposed MgO production, as well as providing diversification into advanced materials. The current price of magnesium metal (99.5 per cent ingot) is approximately $2,250 per tonne versus MgO (DBM 95 per cent) at approximately $600 (U.S.) per tonne. Contained Mg in MgO is 60.3 per cent, making the process and associated recovery, as well as energy use, a key focus of the study. Additionally, long-standing anti-dumping and strategic metal designation has significantly increased the domestic price of Mg in the United States compared with global markets. A single sole producer of magnesium metal in the United States has operated for many years. Of note is the fact that Canada is no longer subject to these U.S. tariffs against foreign magnesium-metal imports. Additionally, Driftwood is located in an area of low-cost power in southwest British Columbia and proximate by direct rail to even lower-cost power in eastern Washington state.

Magnesium metal is considered an advanced material. Magnesium is 33-per-cent lighter than aluminum, 60-per-cent lighter than titanium and 75-per-cent lighter than steel, while offering comparable strength ratios. Automobile and aerospace manufacturers are increasingly shifting towards magnesium alloys to reduce vehicle and aircraft weights and meet growing fuel-efficiency demands, while recent advances in magnesium battery technology represent strong potential for future additional non-structural applications.

Qualified persons

The technical portions of this press release were reviewed by Andris Kikauka, PGeo, vice-president of exploration for MGX Minerals. Mr. Kikauka is a non-independent qualified person within the meaning of National Instrument 43-101 Standards.

About MGX Minerals Inc.

MGX Minerals is a diversified Canadian resource company with interests in advanced material and energy assets throughout North America.

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