MGX partner Belmont samples up to 580 ppm Li at Kibby

Oct 2, 2018

2018-10-01 06:20 ET – News Release

Also News Release (C-BEA) Belmont Resources Inc (3)

Mr. Jared Lazerson of MGX reports

MGX MINERALS ANNOUNCES ADDITIONAL ASSAYS FROM DRILLING AT KIBBY BASIN, NEVADA LITHIUM PROJECT; UP TO 580PPM LITHIUM

MGX Minerals Inc.’s joint venture partner Belmont Resources Inc. has released additional assay results from 25 core samples collected in drill hole KB-3 (1,270 to 1,798 feet) at the Kibby basin lithium project. As reported by Belmont, 20 of 25 samples exceeded greater than 100 parts per million lithium, with seven samples containing greater than 300 ppm lithium, and the highest sample containing 580 ppm lithium.

Lithium at Kibby basin is enriched in clay-rich samples. Ash layers accounted for four of the five low lithium samples, suggesting that initial lithium content may have been leached from the porous ash layers and transported to brines elsewhere in the basin. The boreholes targeting the southern portion of a large magnetotelluric conductor still offer potential to identify saturated sediments containing lithium-rich brines.

            KIBBY KB-3C ASSAY RESULTS             
                                               
Feet            Recovered weight         Lithium
                           (ppm)           (ppm)

1278-1281                   1.09             207
1316-1318                   1.27             140
1344-1348                   1.88             181
1384-1388                   2.54             263
1403-1406                   1.78             386
1411-1412                   0.37            51.9
1412-1412.3                 0.08              13
1413-1414.5                 0.96             226
1434-1438                    2.9             418
1441.8-1445                  0.2            33.7
1452-1454.5                 2.33             375
1480-1490                   0.88             9.5
1490.5-1492.5               1.44             408
1528-1532                   1.15             395
1538-1542                    2.1             212
1596-1598                    1.2             375
1598-1598.5                 0.26            24.1
1726-1730                   2.13             274
1730-1731.5                 0.36             292
1746-1750                   2.75             240
1768-1771.5                 2.35             417
1791-1791.5                 0.28             580
1793-1798                   2.43             290
1440-1442                    1.5               -
1485.5-1488                  1.1               -

Twenty-five samples of representative core were selected for assay from this lower part of drilling and were delivered to ALS Labs in Reno, Nev., on Aug. 31, 2018, for 41-element inductively coupled plasma analysis (including Li).

Samples were of ash layers, silicified sediments, and high pyrite and magnetite zones. Based on Quantec MT geophysics, the proposed second hole (KB-4, AKA 2018-2) would likely mimic hole 3 with redox boundary (and aquifer) at 900 to 1,000 feet in depth, and reduced clays with high Li content below 1,000 feet. The Kibby basin shares many characteristics with Clayton Valley, where lithium brines are being exploited, including: closed structural basin, large conductor at depth, lithium anomalies at surface and depth, evidence of a geothermal system, and potential aquifers in porous ash and gravel zones.

About the Kibby basin lithium brine partnership

MGX is partnered with Belmont Resources on the property and currently earning a 50-per-cent interest with the goal of forming a 50/50 joint venture to utilize MGX’s rapid lithium extraction technology. Kibby basin is located in the western portion of the Great basin in Nevada. The property covers 2,560 acres located in Esmeralda county, Nevada. Geologic research of the Kibby basin has indicated that proximal rhyolitic flows and tuffs surrounding the basin could be a potential source of Li brine in the Kibby basin playa. In addition, the Kibby basin is located within a geothermal cluster at a basin low setting. Regional geophysical signatures in the area reflect similar anomalies comparative to that of Clayton Valley, approximately 50 kilometres to the south, location of Abermarle’s Silver Peak mine, the only North American lithium producer.

Rapid lithium brine extraction technology

MGX has developed a rapid lithium extraction technology eliminating or greatly reducing the physical footprint and investment in large, multiphase, lake-sized, lined evaporation ponds, as well as enhancing the quality of extraction and recovery across a complex range of brines as compared with traditional solar evaporation. This technology is applicable to petrolithium (oil and gas waste water), natural brine, and other brine sources such as lithium-rich mine and industrial plant waste water. The technology was recently chosen as winner of the Base and Specialty Metals Industry leadership award at the 2018 S&P Global Platts Global Metals Awards, held in London in May (see press release dated May 18, 2018).

Qualified person

Andris Kikauka, PGeo, vice-president of exploration for MGX Minerals, has prepared, reviewed and approved the scientific and technical information in this press release. 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.

We seek Safe Harbor.

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