Vancouver-based MGX Minerals (CSE: XMG) announced Friday that it had entered into a comprehensive development agreement with Dominion Excavating Ltd. in a press release. The agreement will provide services for MGX’s promising Driftwood Creek Property in southeastern British Columbia in exchange for an equity stake, including road construction and mine development.
“We remain committed to partnering with local business and bringing new economic opportunities for the East Kootenay region,” stated MGX President and CEO Jared Lazerson.
Dominion is a First Nations-owned company that remains committed to employing local residents, making the partnership an excellent fit for MGX.
Driftwood Creek a Promising Magnesium Property
Driftwood Creek’s potential as a magnesium property has been well documented, with two high-grade mineralized zones delineated at this point as well as a strong foundation of infrastructure that includes access to rail, roads, labor, and electricity. The site is also potentially a strong one for open pit mining methods that would significantly reduce extraction costs.
Driftwood Creek is in the Mount Nelson Formation, a Precambrian-aged sedimentary formation about 1,300-meters thick and intruded by younger felsic and mafic igneous dykes. The magnesium mineralization can be found in the upper half of that formation, meaning that it’s well exposed at surface level as part of an isolated topographic ridge.
The claim was initially acquired by Kaiser Resources in 1978, who completed surface mapping and limited drilling. Then, in 1987, Canadian Occidental staked the Driftwood Creek deposit, drilling four NQ-sized diamond drill holes and collecting 68 core samples of five kilograms apiece. Present owners took control of the location in 1999 and completed rock chip geochemistry over part of the Western zone.
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