MGX partner CLS starts drilling at Francisco basin

Dec 13, 2018

2018-12-13 06:16 ET – News Release

Mr. Jared Lazerson reports

MGX MINERALS ANNOUNCES DRILLING AT FRANCISCO BASIN LITHIUM PROJECT, CHILE

MGX Minerals Inc.’s joint venture partner Chilean Lithium Salars (CLS) is drilling at the Francisco basin project located 30 kilometres south of the Salar de Maricunga.

The five-hole program was designed to target the brine aquifer that extends from the Northern Lagoon, where samples in May of 2018 averaged 694 milligrams per litre lithium (see press release dated Sept. 27, 2018). The drill program is testing lithium mineralization to a depth of up to 300 metres as well as the lateral extent of lithium mineralization.

The first hole is located in the centre of where the salt lagoon anomaly encountered very high pressure of fresh water and was shut down at 20 metres.

The second hole is located on the western edge of the anomaly. It has successfully drilled and cased through the fresh water and is now advancing toward a depth of 110 metres where it is expected to encounter brine as predicted by the electromagnetic survey.

The project lease area comprises 12,900 hectares. An electromagnetic geophysical survey was completed in April, 2018, and results indicated strong potential for the presence of two highly conductive brines zones where significant thickness and horizontal coverage may exist.

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.

Francisco basin

The Francisco basin salar resides within a large, fault-bound, alluvium-filled basin to the immediate south of the Copiapo volcano. The basin is closed, drains a large area and the salar appears to be the lowest point within the drainage. The rocks in the drainage surrounding this salar are dominantly volcanic, ranging in age from Eocene to Miocene, juxtaposed with some older rocks. To the west is a Cretaceous sedimentary sequence separated from the volcanic rocks of the Francisco basin area by the Cerro Guerrita fault. To the east, an older Oligocene to Miocene volcanic sequence is overlain by the Copiapo volcanic rocks. The Francisco basin alluvial basin sits at the junction of three catchments. These river systems presumably provide the fill for the basin and are in part, along with the limits of the salar, structurally controlled. The alluvial fill may be covering post-Copiapo-aged faulting.

About MGX’s Chilean Lithium Joint Venture

MGX is earning a 50-per-cent interest in Chilean Lithium Salars SpA (CLS). CLS is a wholly owned subsidiary of Chilean Lithium Salars Holdings Ltd. (CLSH) and holds a 100-per-cent interest in three prospective lithium exploration projects located in Chile, including the Francisco basin, Laguna Brava and Laguna Escondida lithium projects. To acquire an undivided 50-per-cent interest in CLS, MGX has agreed to make option payments totalling $1.5-million (U.S.), incur exploration expenditures totalling $2-million (U.S.), and complete a National Instrument 43-101 resource estimate on at least one of the projects within 20 months. MGX is acting as project operator and has appointed Aldo Boitano, current project manager for CLS, as project manager to work alongside Kura Minerals. MGX maintains the right to participate as a service provider of the engineering, construction and/or procurement of a brine processing plant using its rapid lithium extraction technology.

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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