MGX Minerals Preparing to Conduct Drill Program at Francisco Basin Lithium Brine Project, Chile

VANCOUVER, BC / ACCESSWIRE / September 27, 2018 / MGX Minerals Inc. (“MGX” or the “Company”) (CSE: XMG; FKT: 1MG; OTCQB: MGXMF) is pleased to announce it has received notice from the Chilean state agency National Geology and Mining Service (“SERNAGEOMIN”) that the Company will be approved to carry out a 6-hole drill program at the Francisco Basin lithium project (“Francisco Basin” or the “Project”) located 30 kilometers south of Salar de Maricunga. MGX has also received a positive response from the Environmental Assessment Service (“SEA”) and does not expect that an environmental impact assessment will be required in order to carry out these exploration activities on the Project.

MGX and its Chilean joint venture partners continue to work with SRK Consulting Inc. (U.S.) to complete a definitive exploration program for the Francisco Basin lithium project. The Project lease area comprises 12,900 hectares and reconnaissance brine sampling in January 2018 confirmed the presence of lithium enrichment in surface brines. An electromagnetic geophysical survey was completed in April 2018 and results indicated strong potential for the presence of two highly conductive brines zones where significant thickness and horizontal coverage may exist. In May 2018 additional samples were taken near the southern shore of the surface and sent to Servicios Quimicos Ltda. (“SERQUIM”) in Antofagasta, Chile, for content analysis. Results reported to date are shown in Table 1 below.

Table 1. Francisco Basin Assay Samples

Sample

Na
g/L

K
g/L

Li
ppm

Mg
g/L

SO4
g/L

B
ppm

Dens

Northern
Lagoon – January 2018

LNF 01

75.2

4.59

372

2.00

4.07

799

1.179

LNF 02

72.5

4.34

372

1.92

4.07

832

1.170

LNF 03

69.5

4.06

369

1.85

3.74

767

1.163

LNF 04

74.5

4.32

374

1.75

4.02

832

1.174

LNF 05

80.0

4.40

388

1.78

4.71

961

1.188

LNF 06

67.9

3.98

361

1.73

3.85

821

1.181

LNF 07

79.8

4.66

387

1.74

4.44

864

1.183

LNF 08

73.4

4.31

371

1.86

3.93

842

1.172

LNF 09

76.8

4.39

374

1.70

4.05

864

1.174

LNF 10

80.0

4.56

384

1.86

4.38

896

1.185

Northern
Lagoon – May 2018

LNF 01

103.0

6.62

694

3.54

28.70

–

–

Southern Lagoon – January 2018

LNF 11

2.35

0.19

7.9

0.15

3.07

248

1.007

LNF 12

0.57

0.41

3.0

0.003

1.55

151

1.121

LNF 13

1.27

0.01

0.4

0.07

0.61

65

1.002

The Francisco Basin salar resides within a large, fault-bound, alluvium-filled basin to the immediate south of the Copiapó Volcano. The basin is closed, drains a large area and the salar appears to be the lowest point within the drainage. The rocks in the drainage surrounding this salar are dominantly volcanic, ranging in age from Eocene to Miocene, juxtaposed with some older rocks. To the west is a Cretaceous sedimentary sequence separated from the volcanic rocks of the Francisco Basin area by the Cerro Guerrita Fault. To the east, an older Oligocene to Miocene volcanic sequence is overlain by the Copiapó volcanic rocks. The Francisco Basin alluvial basin sits at the junction of three catchments. These river systems presumably provide the fill for the basin and are in part, along with the limits of the salar, structurally controlled. The alluvial fill may be covering post-Copiapó aged faulting.

About MGX’s Chilean Lithium Joint Venture

MGX is earning a 50% interest in Chilean Lithium Salars SpA (“CLS”). CLS is a wholly owned subsidiary of Chilean Lithium Salars Holdings Ltd. (“CLSH”) and holds a 100% interest in three prospective lithium exploration projects located in Chile, including the Francisco Basin, Laguna Brava and Laguna Escondida lithium projects (the “Projects”). To acquire an undivided 50% interest in CLS, MGX has agreed to make Option Payments totaling US $1.5 million, incur exploration expenditures totaling US $2 million, and complete an NI 43-101 resource estimate on at least one of the Projects within 20 months. MGX is acting as project operator and has appointed Mr. Aldo Boitano, current project manager for CLS, as project manager to work alongside Kura Minerals. MGX maintains the right to participate as a service provider of the engineering, construction and/or procurement of a brine processing plant using its rapid lithium extraction technology.

Rapid Lithium Brine Extraction Technology

MGX has developed a rapid lithium extraction technology that reduces the capital cost of recovery compared to traditional solar evaporation as it does not require the investment in large, multi-phase, lake sized, lined evaporation ponds, greatly reducing the physical footprint and enhancing the quality of extraction and recovery across a complex range of brines previously considered un-processable due to complexity or geographical location outside of solar evaporation appropriate zones. This includes oil and gas wastewater, natural brine, and other brine sources such as lithium-rich mine and industrial plant wastewater. The technology was recently chosen as winner of the Base and Specialty Metals Industry Leadership Award at the 2018 S&P Global Platts Global Metals Awards, held in London earlier this month (see press release dated May 18, 2018).

Qualified Person

Andris Kikauka (P. Geo.), Vice President of Exploration for MGX Minerals, has prepared, reviewed and approved the scientific and technical information in this press release. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument 43-101 Standards.

About MGX Minerals

MGX Minerals is a diversified Canadian resource company with interests in advanced material and energy assets throughout North America. Learn more at www.mgxminerals.com.

Contact Information

Jared Lazerson

President and CEO

Telephone: 1.604.681.7735

Web: www.mgxminerals.com

Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This press release
contains forward-looking information or forward-looking statements
(collectively “forward-looking information”) within the meaning of
applicable securities laws. Forward-looking information is typically identified
by words such as: “believe”, “expect”,
“anticipate”, “intend”, “estimate”, “potentially”
and similar expressions, or are those, which, by their nature, refer to future
events. The Company cautions investors that any forward-looking information
provided by the Company is not a guarantee of future results or performance,
and that actual results may differ materially from those in forward-looking
information as a result of various factors. The reader is referred to the
Company’s public filings for a more complete discussion of such risk factors
and their potential effects which may be accessed through the Company’s profile
on SEDAR at www.sedar.com.

SOURCE: MGX Minerals Inc.

ReleaseID: 512903