MGX to start 15,000 m drill program at Case in May

Apr 2, 2018

2018-04-02 06:10 ET – News Release

Mr. Jared Lazerson reports

MGX MINERALS ANNOUNCES 15,000 METER DRILL PROGRAM AT CASE LAKE LITHIUM JV

MGX Minerals Inc’s spring drill program at the company’s Case Lake lithium JV will commence in May. Spring/summer drilling will total 8,000 metres followed by an additional 7,000 metres of planned drilling in the fall. There have been 8,400 metres of drilling completed at Case Lake to date. Substantial spodumene mineralization intersections have included:

PWM-17-34: 1.81 per cent lithium oxide (Li2O) over 17.0 metres;
PWM-17-33: 2.11 per cent Li2O over 11.0 m;
PWM-17-10: 1.74 per cent Li2O over 15.06 m;
PWM-17-08: 1.94 per cent Li2O over 26.0 m.

Proposed drilling

The 8,000-metre spring drill program will target new spodumene pegmatite dikes located between the main dike and the south dike. These new dikes were discovered in the final drilling of the main dike in the fall of 2017 and include drill hole PWM-17-49 with 1.61 per cent Li2O and 143.8 parts per million tantalum over 3.0 metres.

The spring drill program will also target the area between the main dike and the northeast dikes. Coarse-grained spodumene pegmatite was intersected in the main and north dikes and in the northeast dike. The northeast dike is located 900 metres northeast along strike of the north and main dikes and is within the same tonalite dome as the north and main dikes. The northeast, north and the main dikes are on strike and all within the same dome indicating that they were emplaced in the same deep-seated structure.

Additional drilling will test spodumene mineralization identified during the mapping program on granitic outcrops west of the main dike. Follow-up drilling in the fall will target the east dike, downdip extension of main dike and additional targets within the dome identified during the spring.

Case Lake

The Case Lake property is located in Steele and Case townships, 80 kilometres east of Cochrane in Northeastern Ontario close to the Ontario-Quebec border. The Case Lake pegmatite swarm consists of five dikes: north, main, south, east and northeast dikes. The northeast dike contains very coarse-grained spodumene. MGX currently has a paid-up 20-per-cent working interest in Case Lake and four other lithium hardrock properties in Ontario controlled by Power Metals as well as any additional properties acquired prior to August, 2020. The company has the right to acquire an additional 15-per-cent working interest, for a total of 35 per cent, in Case Lake lithium and the other lithium properties by making a one-time payment of $10-million prior to August, 2020. The company holds an option to acquire 10 million shares of Power Metals at 65 cents (see press release dated Aug. 2, 2017).

Qualified person

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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