by Greg Klein | May 26, 2015
A partnership agreement announced May 26 brings MGX Minerals CSE:XMG considerable support to develop its flagship Driftwood Creek magnesium property in southern British Columbia. Immediate plans include a scoping study with initial results expected in about 30 days. The study will consider a processing plant with one or more industrial kilns and ancillary processing equipment for calcining magnesite ore. Caustic calcined magnesia can be used in fertilizer and feedstock, hydrometallurgy for nickel, copper and cobalt, pulp and paper production, and water treatment.
The study will be conducted by Eaton Industries (Canada), a subsidiary of Eaton Corp NYE:ETN, which provides energy-efficient services for electrical, hydraulic and mechanical power, including new mine and mill design. With about 102,000 employees, Eaton Corp’s 2014 revenue came to US$22.6 billion.
The third partner is Highbury Energy, a company that uses proprietary technology to convert biomass into high-grade synthesis or fuel gas. Driftwood’s kiln would be powered partly by Highbury’s technology, offering the project clean, low-cost energy.
The three companies will work together on several aspects of designing, developing and financing Driftwood’s proposed mining and processing project. Additionally, the trio will apply a similar business model to between seven and 10 other industrial minerals projects, MGX stated. The company’s portfolio includes most of B.C.’s known magnesite occurrences.
MGX also holds a strategic alliance with Zimtu Capital TSXV:ZC and Electra Stone TSXV:ELT to develop other B.C. industrial minerals properties, including Electra’s Longworth silica project. Additionally MGX has a technical services agreement regarding Electra’s chalky geyserite (aluminum silica) quarry operation on Vancouver Island.
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