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MGX Minerals pushes on at Driftwood Creek magnesium project with completion of archaeological study

The archaeological study is part of an ongoing feasibility study for the site

Magnesium symbol
Magnesium is 75% lighter than steel and 33% lighter than aluminum

MGX Minerals Inc (CSE:XMG) (OTCMKTS:MGXMF) has advanced a little further its Driftwood Creek magnesium oxide project in British Columbia, having completed an Archaeological Impact Assessment (AIA).

Engineering group Tipi has found that no evidence of archaeological sites or areas of high archaeology potential (HAP) were found within the project area, the energy metals and materials firm said in a statement.

READ: MGX Minerals closes spin-out of technology unit MGX Renewables

The archaeological study is part of an ongoing feasibility study for the site.

That feasibility report is set to build on a positive NI 43-101 preliminary economic assessment, completed in March last year, said Vancouver-based MGX.

Magnesium Oxide, or magnesia, is a widely used industrial mineral that comes in various forms including dead burned magnesia (DBM) and fused magnesia (FM).

Its uses include for fertilizer, animal feed, and environmental water treatment as well as industrial applications, mainly as a refractory material in the steel industry.

Magnesium is 75% lighter than steel and 33% lighter than aluminum while still offering comparable strength-to-weight ratios.

Measured and Indicated

The mineral resource at Driftwood showed measured and indicated resource (M&I) of around 7.8 million tonnes at 43.27% magnesium oxide.

The preliminary economic assessment (PEA) showed a robust project, with average annual magnesium oxide production of  169,700 tonnes over a 19 year mine life. The pre-tax net present value (NPV) was $529.8 million, IRR (internal rate of return) of 24.5% with a 3.5-year payback.

Initial capital costs were pegged at $235.9 million, while the life of  mine (LOM) pre-tax cashflow during production was pegged at $1,051 million.

Shares in MGX in Toronto eased 2% to stand at C$0.245.

Contact the author at [email protected]

Follow him on Twitter@Gile74

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