MGX samples up to 4.43% Li2O at Paterson Lake

Jul 30, 2018

2018-07-30 07:32 ET – News Release

Mr. Jared Lazerson reports

MGX MINERALS ANNOUNCES ASSAY SAMPLES UP TO 4.43% LI2O AT PATERSON LAKE LITHIUM PROJECT, ONTARIO

MGX Minerals Inc.’s geological mapping at Paterson Lake, 60 kilometres north of Kenora in Northwestern Ontario, has successfully identified high-grade lithium (Li) mineralization. The geological mapping program also identified three target areas for follow-up exploration:

Paterson Lake grab sample assay highlights from the western extension of Marko’s pegmatite include:

Three pure petalite samples (159037, 159201, 159222) with 4.43, 4.17 and 3.90 per cent lithium oxide (Li2O);
Two petalite dominate samples (159217, 159038) with 3.62 and 3.36 per cent Li2O;
Sample 159218 with abundant petalite with 1.57 per cent Li2O.

Petalite is an ore mineral of lithium. Petalite (LiAlSi4O10) is the high-temperature lithium aluminosilicate whereas spodumene (LiAlSi2O6) is the low-temperature/high-pressure lithium aluminosilicate.

In addition to lithium, the western extension of Marko’s pegmatite grab samples are also enriched in high-grade tantalum (Ta) and cesium (Cs) with:

Sample 159219 with 1,236 parts per million Ta and 2,473 ppm Cs;
Sample 159221 with 725 ppm Ta and 472 ppm Cs.

The western extension of Marko’s pegmatite’s grab samples were collected between Marko’s petalite pegmatite outcrop to the east and the J series petalite pegmatite to the west. The grab samples are up to 260 m west of the historically known Marko’s pegmatite outcrop. Historical mapping has shown that the Marko’s pegmatite occurs along the contact between mafic metavolcanics, gabbro and iron formation. Grab sampling found the petalite pegmatite samples along strike of Marko’s pegmatite along the same lithology contact. Historical mapping has shown that the Marko’s pegmatite has a central core of petalite surrounded by blocky pegmatite which hosts Ta oxide mineralization.

In 2002, historical drilling indicated that the Marko’s pegmatite was 170 m long and made up of two to 12 m wide boudinaged lenses. The 2002 drilling also intersected North Marko’s pegmatite, a 10 to 30 m wide pegmatite dike, parallel to Marko’s pegmatite with an unknown strike length. This historical drilling did not test the western extension of the Marko’s pegmatite. Since Li-rich grab samples are along strike of the Marko’s pegmatite and North Marko’s pegmatite, there is an excellent potential for the Marko’s pegmatite to extend westward.

Paterson Lake grab sample assay highlights from Rhea’s pegmatite include:

Sample 159021 with 2.31 per cent Li2O and 111 ppm Ta;
Sample 159022 with 198 ppm Ta.

Cook’s pegmatite has elevated Li values up to 0.34 per cent Li2O and up to 161 ppm Ta. Rhea’s pegmatite and Cook’s pegmatite are 312 metres apart along strike along the contact between mafic metavolcanics, metasediments and mafic tuffs. Rhea’s and Cook’s pegmatites are along the same contact between mafic metavolcanics and metasediments as other petalite pegmatites historically mapped by Ontario Geological Survey: Draven, Black Bear, Ballpeen, Pegmatites No. 5, 6, 7, 8, 9, 10 and 11. The exploration potential is excellent that more petalite pegmatites will be found along this contact on the Paterson Lake property. The Cook’s pegmatite is an enormous pegmatitic granite 420 m long by 140 m wide covered by black lichen. A thorough cleaning of the Cook’s pegmatite may result in discovery of lithium mineralization similar to that at Rhea’s pegmatite.

The Paterson Lake property occurs within the Separation Rapids greenstone belt which is also home to the Big Whopper and Big Mack petalite pegmatites. Separation Rapids greenstone belt is known as the Bird River greenstone belt in Manitoba which hosts the Tanco pegmatite. The property consists of 106 cell claims within the Paterson Lake and Treelined Lake areas. The property is approximately seven kilometres by three km in size. Power Metals optioned the Paterson Lake property in 2017 because the property has multiple known petalite pegmatite dikes on surface, but yet is still underexplored.

Quality control

The grab samples were delivered to SGS preparation lab in Red Lake by Power Metals’ geologist. The samples were then shipped to SGS analytical lab in Lakefield, Ont., which has ISO 17025 certification. Every 20 samples included one external quartz blank and one external lithium standard. The ore-grade Li2O per cent was prepared by sodium peroxide fusion with analysis by ICP-OES (inductively coupled plasma optical emission spectroscopy) with a detection limit of 0.002 per cent Li2O. A quality assurance/quality control review of the standards and blanks for this mapping program indicates that they passed and the assays are accurate and not contaminated.

Paterson Lake

Paterson Lake property is located in Paterson Lake and Treelined Lake areas, 60 km north of Kenora in Northwestern Ontario close to the Ontario-Manitoba border. Paterson Lake property is located within the Separation Rapids greenstone belt and hosts multiple petalite-bearing pegmatite dikes. The property was optioned from Exiro Minerals Corp. in 2017 (Power Metals press release dated April 20, 2017). Avalon Advanced Materials’ Separation Rapids lithium project with 8.12 million tonnes at 1.37 per cent Li2O measured and indicated resources as of Nov. 15, 2017, is located 1.2 km from the Paterson Lake property.

 GRAB SAMPLES FROM PATERSON LAKE PROPERTY, NORTHWESTERN ONTARIO
 
Sample                    Li2O               Ta               Cs
No.                        (%)            (ppm)            (ppm)

West along
strike of
Marko's
pegmatite
159001                   0.096              151              327
159002                   0.204              116              373
159035                   0.233              3.1              935
159037                    4.43             23.1              170
159038                    3.36              157            1,742
159039                   0.121              200            1,307
159201                    4.17             17.4             39.5
159217                    3.62             74.3            1,025
159218                    1.57              1.9              230
159219                   0.245            1,236            2,473
159221                   0.118              725              472
159222                    3.90             29.7              185
Rhea's
pegmatite
159021                    2.31              111             32.1
159022                   0.018              198             22.9
Cook's
pegmatite
159018                   0.221             22.3              195
159043                   0.217             17.4             81.8
159045                   0.275              161              120
159206                   0.337             25.8              170

Terms of the joint venture

MGX currently has a paid 20-per-cent working interest in five lithium hardrock properties in Ontario controlled by Power Metals as well as any additional properties acquired by Power Metals prior to August, 2020. MGX also maintains the right to acquire an additional 15-per-cent working interest, for a total of 35 per cent, in each of the hardrock lithium properties by making a one-time payment of $10-million prior to August, 2020. MGX currently holds an option to acquire 10 million shares of Power Metals at 65 cents (see press release dated Aug. 2, 2017).

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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