Tuesday 25th October 2016

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Posts tagged ‘magnesite’

MGX Minerals to acquire 100% of B.C. silica property and begin Phase I on California magnesium project

July 6th, 2015

by Greg Klein | July 6, 2015

Two July 6 announcements show MGX Minerals CSE:XMG advancing its industrial minerals portfolio. The company now plans to increase its stake to 100% of the Longworth silica property in British Columbia and begin exploration on its White Moon magnesium project in California.

MGX Minerals to acquire 100% of B.C. silica property and begin Phase I on California magnesium project

White Moon’s magnesite beds occur discontinuously
across approximately 800 metres in strike, MGX states.

MGX picked up White Moon, originally called Needles, just last month. Beginning July 13, MGX plans geochemical sampling of 40 historic trenches, mapping and outcrop sampling. Hoping to build and operate the United States’ only magnesium oxide wallboard production plant, the company plans a scoping study to assess infrastructure and potential plant locations.

MGX has engaged Jack Bal as a consultant to help advance its magnesium assets. Having raised over $50 million for junior resource companies, Bal was recently involved in mill permitting for CMC Metals’ (TSXV:CMB) Radcliffe gold project in California.

A purchase agreement with Zimtu Capital TSXV:ZC would increase MGX’s interest in the Longworth silica property to 100%. Replacing a 50% earn-in, the new deal would cost MGX 700,000 shares at a deemed price of $0.30. The road-accessible central B.C. property was considered one of the province’s top silica occurrences by the B.C. Geological Survey. MGX hopes to produce ferro-silicon, an essential alloy in iron and steel production.

The company also holds most of B.C.’s significant magnesite occurrences.

Late last month the company updated its Driftwood Creek magnesium project in southern B.C. and doubled a previous private placement offer up to two million shares at $0.30.

Read more about MGX Minerals.

Disclaimer: Zimtu Capital Corp is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Zimtu Capital.

MGX updates Driftwood Creek, increases private placement, joins CSE Composite

June 25th, 2015

by Greg Klein | June 25, 2015

Initial results show progress in a plan to use alternative energy at the proposed Driftwood Creek magnesium project in southern British Columbia, MGX Minerals CSE:XMG reported June 25. The company also announced its addition to the Canadian Securities Exchange Composite Index and an increase in its private placement offer.

MGX updates Driftwood Creek, increases private placement, joins CSE Composite

Besides southeastern B.C.’s Driftwood Creek project, MGX Minerals holds most of the province’s
significant magnesite occurrences.

An initial desktop analysis indicated that biomass conversion could supply 93.3% of the heat energy necessary to conduct magnesia calcining in a multiple hearth furnace that would be installed at Driftwood Creek. Further analysis suggested that a specialized burner and fuel additive could supply the remaining energy, MGX added. The study was conducted by two strategic partners, Industrial Furnace Company and Highbury Energy.

MGX also announced its addition to the CSE Composite Index, “a broad measurement of market activity for securities” listed on the exchange. In addition the company doubled a private placement originally offered on June 2, now offered at up to two million shares at $0.30.

MGX issued 300,000 shares to the vendor of Driftwood Creek and 41,318 shares to the vendor of the Needles magnesite project, a California acquisition announced last week. Another 50,000 shares were issued to settle a $15,000 debt.

The company’s Driftwood Creek flagship currently undergoes permitting.

Read more about MGX Minerals.

MGX Minerals makes California magnesite deal

June 18th, 2015

by Greg Klein | June 18, 2015

A company that already holds most of British Columbia’s significant magnesite occurrences has signed a deal on a California project. MGX Minerals CSE:XMG announced a mining lease agreement on June 18 for the Needles magnesite property in San Bernardino county.

MGX Minerals makes California magnesite deal

The Needles agreement locates MGX in
one of North America’s largest construction markets.

Magnesite ore can be calcinated to produce caustic calcined magnesia to produce wallboard. Magnesium oxide wallboard “is generally known to be stronger and lighter than traditional wallboard as well as being fireproof and non-toxic,” the company stated. The product is “often used in areas prone to flooding as the boards can retain moisture, dry out and still retain their shape and integrity.”

The lease of up to 100 years would have renewal options every 10 years. In return MGX would make annual payments of US$12,000, $24,000 and $36,000 over the first three years, then an annual $36,000 plus cost-of-living adjustment. The company would also pay $5,000 within 30 days and issue $10,000 in shares. A work commitment calls for $350,000 in spending within three years. The landowner would retain a 10% net profit interest which MGX may buy for $10 million.

Earlier this month MGX offered a private placement of up to $300,000 and announced a memorandum of understanding with an industrial furnace company to provide engineering services and calcining equipment for MGX’s flagship Driftwood Creek magnesium property.

MGX has a partnership agreement with Eaton Industries (Canada) and Highbury Energy to study the design, development and financing of Driftwood’s proposed mining and processing operation. The southern B.C. project currently undergoes permitting.

Read more about MGX Minerals.

MGX Minerals teams with Eaton Industries and Highbury Energy on Driftwood Creek magnesium project

May 26th, 2015

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.

MGX Minerals teams with Eaton Industries and Highbury Energy on Driftwood Creek magnesium project

Recent surface sampling followed
last year’s drill program at Driftwood.

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.

Read more about MGX Minerals.

Disclaimer: Zimtu Capital Corp is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Zimtu Capital.

The stuff of life

March 23rd, 2015

Little-known but essential commodities can offer near-term potential, says MGX Minerals


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Without them, modern life wouldn’t be very modern. A wide range of industrial minerals make possible so much of what we take for granted, from luxuries to conveniences to necessities. Although few of the commodities are familiar to investors, CEO Jared Lazerson of MGX Minerals CSE:XMG believes he’s found opportunities for potentially near-term domestic production to supply North American markets.

Since its trading debut last October, MGX has been busy acquiring properties in British Columbia, mostly with a goal of producing magnesite. In fact the company has tracked down and claimed most of B.C.’s significant magnesite occurrences. The province currently hosts one of the only two magnesite mines in North America.

Little-known but essential commodities can offer near-term potential, says MGX Minerals

Driftwood Creek drilling confirmed near-surface magnesite mineralization.

As a source of magnesium, magnesite—not to be confused with magnetite—meets a number of agricultural, pharmaceutical, environmental and industrial applications. Exceptionally light for a structural metal, magnesium is used to manufacture cars and planes, among other uses. As part of an alloy, it helps make more rigid metals suitable for shaping into manufactured products.

Magnesium can be mined from magnesite or dolomite and can also be extracted from seawater or natural brines, which accounted for about 69% of American domestic magnesium compounds production in 2014, according to the U.S. Geological Survey.

USGS data shows about 52% of magnesium compounds consumed in that country last year went to agricultural, chemical, construction, environmental and industrial applications. The remaining 48% was used for refractories.

As for magnesium metal, USGS numbers show 35% of American consumption in 2014 went to aluminum-based alloys used largely in packaging and transportation. Another 30% was used as a reducing agent in the production of titanium and other metals, 15% for structural purposes, 10% for desulfurization of iron and steel, and 10% for other applications.

By far the largest global supplier, China accounted for about 89% of the world’s magnesium metal production last year, according to the USGS. Israel and Russia managed to make up about 3.3% and 3.1% respectively.

As for magnesium compounds, China again dominated world production with about 70% last year. Russia came up with about 5.7% and Turkey 4.3%.

A new North American producer, especially one that’s close to existing transportation infrastructure, could offer the continent’s market considerable advantages, says Zimtu Capital TSXV:ZC president Dave Hodge.

“MGX is a fairly unique story,” he points out. “It’s had a very recent IPO but it’s already in the permitting process. Magnesium comes in a variety of forms and one of the things they’re working on now is determining what form they would produce at what cost, versus the size of the market for that specific commodity. Those markets take different grades and different grades are produced at different costs. The opportunity here is to determine what’s the best product to produce and create value for their shareholders.”

Hodge adds, “In many respects this is not so much a mining story but more of a business story.”

Last July Lazerson signed a three-year cash, share and expenditure deal that would give the company a 100% interest in the 326-hectare Driftwood Creek project. Now MGX’s flagship, it’s located in southwestern B.C.’s Kootenays, a region that also hosts Baymag Inc’s Mount Brussilof magnesite mine. With logging roads on the property itself, Driftwood sits about 15 kilometres from highway, power and a CP spur line.

Lazerson sees near-term potential for a relatively simple quarry operation with a low strip ratio.

MGX also gained considerable expertise in CFO Michael Reimann and VP of exploration Andris Kikauka. Reimann, with a PhD in physics, has served over 45 years in senior corporate management positions, most recently with Skana Capital and PNG Gold TSXV:PGK. Kikauka’s 30-year background includes service as project geologist for the exploration and geotechnical consulting firm Rio Minerals. He’s currently a director of American Manganese TSXV:AMY.

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EU names six new critical materials, warns of industry challenges

May 26th, 2014

by Greg Klein | May 26, 2014

Six new critical raw materials bring the European Commission’s list up to 20, posing a “major challenge for EU industry,” the EC announced May 26. An update to the original 2011 collection, the set now includes borates, chromium, coking coal, magnesite, phosphate rock and silicon metal. No longer included is tantalum, now considered to have a lower supply risk. The division of rare earths into two categories, light and heavy, brings the total to 20 materials:

Raw materials are everywhere—just consider your smartphone. It might contain up to 50 different metals, all of which help to give it its light weight and user-friendly small size. Key economic sectors in Europe—such as automotive, aerospace and renewable energy—are highly dependent on raw materials. These raw materials represent the lifeblood of today’s industry and are fundamental for the development of environmental technologies and the digital agenda.—EC Enterprise and Industry

  • antimony
  • beryllium
  • borates
  • chromium
  • cobalt
  • coking coal
  • fluorspar
  • gallium
  • germanium
  • graphite (natural)
  • indium
  • magnesite
  • magnesium
  • niobium
  • phosphate rock
  • platinum group metals
  • rare earths (heavy)
  • rare earths (light)
  • silicon metal
  • tungsten

With 54 candidates considered, materials were evaluated largely on two criteria, economic importance and supply risk. Economic importance was determined by “assessing the proportion of each material associated with industrial megasectors” and their importance to the EU’s GDP.

Supply risk was assessed through the World Governance Indicator, which considers factors “such as voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law or control of corruption.”

Not surprisingly, the report names China as the biggest global supplier of the 20. “Several other countries have dominant supplies of specific raw materials, such as Brazil (niobium). Supply of other materials, for example platinum group metals and borates, is more diverse but is still concentrated. The risks associated with this concentration of production are in many cases compounded by low substitutability and low recycling rates.” About 90% of the critical materials’ primary supply comes from outside the EU.

The commission hopes its list will encourage European production of the materials. The list will also be considered when negotiating trade agreements and promoting R&D, as well as by companies evaluating their own supplies.

As for the future, the EC sees growing demand for all 20 critical raw materials, “with niobium, gallium and heavy rare earth elements forecast to have the strongest rates of demand growth, exceeding 8% per year for the rest of the decade.”

The commission adds that “all raw materials, even when not critical, are important for the European economy” and therefore should not be neglected.

The EC intends to update its list at least every three years.

Download the EU report on critical raw materials.