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MGX Minerals recommended to carry out C$525,000 work program ahead of resource estimate for BC project

Among the work recommended by SRK was a re-logging and resampling of historical drill core

MGX Minerals Inc. -
MGX Minerals acquired the past-producing gold project, which is located in West Kootenay in May this year

MGX Minerals Inc (CSE:XMG) (OTCMKTS:MGXMF) revealed that mining consultant SRK had recommended a C$525,000 work program to support a resource estimate at the firm's Heino gold deposit and Tillicum claims in British Columbia.

It came as MGX reported that an NI 43 101 technical report had now been prepared by the consultant for the project.

Among the work recommended by SRK was a re-logging and resampling of historical drill core and channel sampling of exposed mineralization within existing underground development.

READ: MGX Minerals reaches main haulage portal at the Heino-Money deposit in British Columbia

A LiDAR or equivalent survey should be conducted to obtain accurate topography of the project, SRK also recommended, while existing underground workings should be re-surveyed to confirm positioning and obtain accurate volume estimates.

MGX Minerals acquired the past-producing gold project, which is located in West Kootenay, BC, in May.

According to the firm, more than 400 diamond drill holes or 40,000 metres have been sunk at Heino-Money by previous operators, nearly half of which were drilled from five levels of underground development.

Heino-Money was active between 1981 and 1993 and produced around 5,800 tons of gold and silver ore.

In its last year, the firm reported that 5,503 tons of mineralization with an estimated head grade of 24.4 grams per ton gold was shipped to a mill for processing, and around 102,443 grams of gold and 149,546 grams of silver were recovered into concentrates that were shipped to Japan for smelting.

In terms of bulk sampling, in May 1993, 6,800 tonnes of material was mined from four underground levels within the Heino-Money zone, while the 5,503 tonnes were shipped to Bethlehem's Goldstream mill.

Recovered average grades from the bulk sample were reported at 18.62 grams per ton (g/t) gold and 29.81 g/t silver.

A notice of work has been filed following SRK's recommendation and consultations with First Nations are underway. MGX believes that there are no significant objections to confirmatory exploration and immediate employment of significant local labour.

MGX said it also does not foresee coronavirus (COVID-19) impacting initial confirmatory exploration as recommended by the report.

MGX Minerals shares advanced 10% on the day in Toronto to C$0.055.

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Market: CSE
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