MGX Minerals Inc (CSE:XMG) (OTCMKTS:MGXMF), the energy metals and materials group, told investors on Tuesday it was set for further exploration at the Driftwood Creek magnesium oxide project in British Columbia after receiving an up to 50-hole-drill permit.
The aim of the program is to complete comprehensive infill and extension drilling at Driftwood as part of the larger, ongoing work program to prepare a pre-feasibility study (PFS).
READ: MGX Minerals unveils high grade gold assays from drilling at Fran project in British Columbia
That will build on a preliminary economic assessment (PEA), which was completed in March last year.
Highlights of that PEA showed a pre-tax net present value (NPV) of C$529.8 million and an internal rate of return (IRR) of 24.5% with a 3.5-year payback.
Initial capital costs were C$235.9 million for a conventional quarry pit mine with a 1,200 tonne per day (tpd) processing plant.
The average annual magnesium oxide (MgO) production was put at 169,700 tonnes during a 19-year mine life with average head grades of 43.27% of magnesium oxide.
Magnesium oxide, also known as magnesia, is a widely used industrial mineral that comes in various forms. It is used in fertilizer, animal feed, and environmental water treatment as well as in the steel industry.
The majority of refractory grade magnesia used in the US and Canada is imported from China.
Shares added nearly 6% in Toronto to C$0.18 each.
---Updates for share price rise---
Contact the author at [email protected]
