MGX Minerals Inc.(CSE: XMG/ FKT: 1MG / OTCQB: MGXMF) announced today that it has filed on SEDAR a National Instrument 43-101 Preliminary Economic Assessment (“PEA”) Technical Report for its Driftwood Creek magnesium project (“Driftwood Creek”) located in southeastern British Columbia.
The PEA study was independently prepared for MGX by AKF Mining Services Inc. (AKF), Tuun Consulting Inc. (Tuun) and Samuel Engineering Inc. (Samuel) in accordance with CIM guidelines and National Instrument 43-101 Standards of Disclosure for Mineral Projects. The PEA is now available under the Company’s profile at www.sedar.com and also on the Company’s website at www.mgxminerals.com.
Highlights of the PEA include the following:
- Pre-tax NPV@5% of $529.8 million, IRR of 24.5% with a 3.5-year payback
- Post-tax NPV@5% of $316.7million, IRR of 19.3% with a 4.0-year payback
- Initial capital costs of $235.9 million (Total life-of mine (“LOM”) – $239.8 includes sustaining/closure costs of $3.9 million and contingency costs of $40.0 million)
- Conventional quarry pit mine with a 1200 tonne per day (“tpd”) process plant using conventional crushing, grinding, flotation upgrading, calcination, and sintering to produce a saleable DBM product
- Average annual MgO production of 169,700 tonnes during a 19-year mine life
- LOM average head grades of 43.27% MgO
- LOM MgO recoveries of 90%
- LOM strip ratio of 2.4 to 1 of rock to mineralized material
PEA SUMMARY OF RESULTS
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