UPDATE (Monday January 30th, 2017 || 7:45am pt): With today’s news MGX Minerals is now up over 300% this year. Read today’s news here.
MGX Minerals (XMG:CNX) is having a great start in 2017. Shares are up near 100% and are continuing as a great momentum play for the year. The company has mandated PetroLithium Corporation to acquire oil field assets, including brine-bearing lithium resources, oil wells and existing oil and gas (“O&G”) infrastructure. Staking and oil well acquisition activities in lithium brine-bearing areas of Utah have already commenced. Additionally, acquisition and exploration activities are expected to commence shortly in Colorado, Texas and Arkansas. All states are host to significant current and past producing oil production associated with areas of enriched minerals including sodium, calcium, magnesium, potassium, boron, bromine and lithium.
MGX is focused on building long-term shareholder value through development of industrial mineral portfolios in specific commodities and jurisdictions that offer near-term production potential, minimal barriers to entry and low initial capital expenditures. Our corporate strategy is to:
- Recognize Opportunity: Identify commodities & jurisdictions where large-scale development opportunities exist
- Build Asset Portfolio: Acquire regional control in majority of mineral properties to enhance portfolio value
- Implement Strategy: Engage industry experts to mitigate execution risk and rapidly increase time to market
MGX has received approval of a 20-year Mining Lease for its Driftwood Creek magnesium project located in southeastern British Columbia. The Company has conducted two rounds of diamond drilling, completed a 100-tonne bulk sample and recently announced a maiden N.I. 43-101 compliant mineral resource estimate. Driftwood is part of a large portfolio of magnesium properties controlled by the Company throughout the Province of British Columbia. The Company controls the majority of magnesium properties throughout the Province as reported by the British Columbia Geological Survey (BCGS) (Simandl, 2014).
The Company identified an opportunity in early 2016 to acquire and develop lithium brine properties throughout the Province of Alberta. Since that time the Company has consolidated a strategic land position spanning over 376,000 hectares, including 14 of the top 25 historical high grade lithium properties (>=90 mg/L lithium) as reported by the Alberta Geological Survey (AGS, 2013). The Company released an N.I. 43-101 technical report in June and is working with well operators throughout the Province to conduct water sampling and acquisition. In August the Company acquired Sturgeon Lake lithium brine property located in the Fox Creek area of Alberta.
MGX has acquired three high-grade silicon projects in British Columbia. Exploration has identified elevated silicon dioxide (SiO2) levels at each project that compare favorably to other silica operators throughout the Province. Recent field reconnaissance reported SiO2 levels reaching up to 99.9%. The Company believes that further metallurgical work is warranted to identify potential ferrosilicon end market uses.
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