MGX Minerals Announces Driftwood Creek Magnesium Metal Production Conceptual Engineering Study by Hatch

2021-11-10 / @thenewswire

(TheNewswire)

VANCOUVER – TheNewswire - November 10, 2021 - MGX Minerals Inc. (“MGX” or the “Company”) (CSE:XMG) (CNSX:XMG.CN) (FKT:1MG) (OTC:MGXMF) announces a review is underway of a Conceptual Engineering Study for the Production of Magnesium by Hatch Engineering (Canada) for Driftwood Creek Magnesium. Due to an increase in the price of magnesium and related special application of magnesium as a solid rocket fuel, MGX has begun a review of the report, commissioned by the Company, and generated by Hatch Engineering in 2018. Findings consist of a required US magnesium market price of $4,000-$6,000 USD per tonne Mg for positive economics to be achieved. Consideration for value added specialized magnesium products such as rocketry were not considered in the study. The 160 page report confirms no technical or economic issues beyond spot price using known technology. Due to the significant increase in magnesium price (reaching >$11,000 USD per tonne in September 2021) and advances in purpose and application for magnesium solid fuel rockets, the project is now under review as a magnesium metal project versus solely as a magnesium oxide project. The report remains confidential for competition related reasons.

Mg/CO2 type rockets

Utilizing powdered magnesium as a solid fuel and carbon dioxide as an oxidant. The calculated specific impulse of powder rocket engines is higher than that of traditional propulsion systems.

Research and Development

MGX has identified a potential research and development partner with an available test site to provide design, production and testing of a large scale Mg/CO2 type rocket potentially utilizing Mg fuel from the Company’s Driftwood Creek Magnesium project.

Driftwood Creek Magnesium Deposit

MGX has completed a Preliminary Economic Assessment (“PEA”) for the Driftwood Creek magnesium project (Tuun, 2018). The PEA references report title “Driftwood Magnesite Project Mineral Resource Estimate, Brisco, BC”, author Allan Reeves, P.Geo, report date September 30, 2016, revised July 21, 2017. The resource highlights are listed as follows:

- Measured 2.8 million tonnes grading 43.3%plus Indicated 5.2 million tonnes grading 43.3% (M+I) mineral resource totaling 8.028 million tonnes grading 43.3% magnesium oxide (MgO)

- Inferred mineral resource totaling 846,000 tonnes grading 43.20% MgO

- Bulk of resource is located less than 100 meters from surface

Qualified Person

Andris Kikauka (P. Geo.), Chief Executive Officer of MGX Minerals, has prepared, reviewed and approved the scientific and technical information in this press release. Mr. Kikauka is a non-independent Qualified Person within the meaning of NI 43-101.

About MGX Minerals Inc.

MGX Minerals is a diversified Canadian resource and technology company with interests in advanced metals, industrial minerals, and energy technologies.

Contact Information:

Andris Kikuaka

Chief Executive Officer

andris@mgxminerals.com

604 681 7735

Forward-Looking Statements

This press release contains forward-looking information or forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. All statements, other than statements of historical fact, included herein are forward‐looking information. Forward-looking information in this press release include, but are not limited to, statements with respect to holding the postponed Meeting, and the filing of an amended notice of meeting and record date for the postponed Meeting. Forward-looking information is generally, but not always, identified by the words "expects", "plans", "anticipates", "in the event", "if", "believes", "asserts", "position", "intends", "envisages", "assumes", "recommends", "estimates", "approximate", "projects", "potential", "indicate" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.

The Company’s forward-looking information are based on the applicable assumptions and factors the Company considers reasonable as of the date hereof, based on the information available to the Company at such time, including without limitation, the ability to host the postponed Meeting at a later date, and the ability to find a suitable location which can accommodate an in-person shareholders’ meeting. The Company cautions investors that any forward-looking information provided by the Company is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various risk factors. These factors include, among others, uncertainties arising from the COVID-19 pandemic, and general economic conditions or conditions in the financial markets. The reader is referred to the Company's public filings for a more complete discussion of such risk factors, and their potential effects, which may be accessed through the Company's profile on SEDAR at www.sedar.com. Except as required by securities law, the Company does not intend, and does not assume any obligation, to update or revise any forward-looking information, whether as a result of new information, events or otherwise.