A recent report from Rockstone Research highlighted MGX Minerals (CSE:XMG) recent news that they have entered into a Purchase Agreement with Zimtu Capital Corp., DG Resource Management Ltd. and Ridge Resources Ltd. to acquire a 100% undivided interest in 12 Metallic and Industrial Mineral Permits and Permit Applications encompassing 96,000 hectares throughout the Province of Alberta.
Today’s acquisition is in line with MGX’s business model to be engaged in the acquisition and development of industrial mineral deposits that offer near-term production potential, minimal barriers to entry and low initial capital expenditures (“CAPEX”). The acquired 12 Metallic & Industrial Mineral Permits surround existing wells that have provided the initial historic lithium assays. The properties are generally associated with past producing oil fields that are fully serviced with nearby roads, power and wellheads in place.
6 of the acquired Permits are located in Alberta’s Fox Creek District and include wells with reported historic lithium values ranging from 115-140 mg/L in the lithium-bearing Leduc and San Hills Formations. Additional 6 Permit Applications cover various locations throughout Alberta including the Keg River, Winterburn and Woodbend Group Formations, with reported historic lithium values ranging from 95-140 mg/L. Assessment of exploration and production requirements at all 12 sites will commence shortly with assay confirmation, wellhead pumping and pressure tests, as well as initial infrastructure scoping studies. Evaluation of de-watering technologies is underway, including evaporation, drying and filtration options with a focus on low-cost solutions that leverage the existing oil field services industry and infrastructure, as well as being suitable to the climate of Alberta.