Drilling encounters up to 35.9 g/t gold on the Fran Property

View northeast toward the Bullion Alley Zone, Fran Property. (Source: Technical Report, 2013)

Today, MGX Minerals Inc. announced a significant gold discovery at its Fran Gold Project in British Columbia, just 30 km southwest of the prolific Mount Milligan Gold-Copper Mine. 

The recently drilled hole FR18-5 returned a broad intercept (14 m) of high-grade gold at depth (227-241 m) in the Bullion Alley Gold Zone, averaging 21 g/t gold over 2.2 m including 35.9 g/t gold across 0.76 m and 26.7 g/t gold over 0.75 m. This has confirmed extension of gold mineralization in gold veins from near surface to depth

What makes this discovery significant is that previous work presumed the gold veins to pinch out a depth (MacIntyre 2013, MINFILE 093 108). MGX took the risk of drilling this 314 m long hole to prove this assumption wrong. Now, an alternative model must be considered, and that gold mineralization extends and remains open. Jared Lazerson, CEO of MGX, commented: 

"At MGX we have always taken risks others were not willing to take. Previous operators did not test the Bullion Alley strike at depth, but drilling deeper than ever before at Fran appears to have returned initial favorable results. Although early in this new exploration, MGX has immediately found continuity along strike and within the main gold zones 1, 2 and 3. We have now opened the Fran Property up to a re-examination."

Full size / Schematic drill hole section looking northwest showing interpreted mineralized structures intersected in drill holes FR07-072, FR07-074 and FR10-080. (Diagram from previous operator Yankee Hat; Source: Technical Report on the Fran Property, 2013)

No significant drilling below 150 m occurred prior to 2018. With the exception of short hole reconnaissance drilling at Fran East in 2017, the Fran Property has been dormant since 2011. The Bullion Alley Zone has been the subject of extensive shallow exploration starting in the late 1990’s. Significant gold mineralization associated with shear zones has been intersected by historic diamond drilling. A total of 15,575 m of diamond drilling was completed in 87 drill holes at the Bullion Alley Zone prior to 2018. Previous drilling identified 3 areas along the northwest trending 1.5 km strike with up to 3 lateral zones (Zone 1, Zone 2 and Zone 3). This drilling encountered numerous gold intercepts with variable silver, copper, lead and zinc.

Based on the favorable gold mineralization encountered in hole FR18-5, MGX has re-mobilized a drill to the property to arrive at the property shortly with drilling to re-commence this week. The Winter 2018 drill program will further test the Main Zone at depth and along strike to the east, as well as test under explored zones with high-grade historical results proximate to the Main Zone.  

Full size / Historic drill intercepts until 2007. (Source: MGX Minerals Inc.)

Highlights from the 2005 drilling program (historic):
• 7.89 g/t gold, 12.78 g/t silver, 0.54% copper and 0.39% zinc over 4 m (hole FR-05-047)
• 2.94 g/t gold over 10.07 m, including 7.75 g/t Au over 3.34 m (hole FR-05-042)
• 2.87 g/t gold over 8.83 m, including 32.2 g/t gold , 28.85 g/t silver and 0.88% copper over 0.61 m (hole FR-05-048)
• 4.13 g/t gold over 9.11 m (hole FR-05-043)

Highlights from the 2007 drilling program (historic):
• 3.84 g/t gold over 27.6 m including 10.62 g/t gold over 8.3 m (hole FR-07-74)
• 7.91 g/t gold over 4 m including 19.52 g/t gold over 1.55 m (hole FR-07-047)
• 5.18 g/t gold over 8.58 m including 17.62 g/t gold over 2.4 m (hole FR-07-049)

Branson (2011) described the dominant style of mineralization in the Bullion Alley area on the Fran Property as auriferous quartz-sulphide veins and wallrock replacements that appear to be intrusion-related, indicating an intrusion-hosted disseminated copper-gold system with a probable porphyry affinity. The Bullion Alley Trend auriferous vein systems have several features in common with the gold deposits of the past producing Rossland Camp in British Columbia, historically the second largest gold producer in BC (3.5 million ounces of gold) with significant silver and copper. 

The near-by Mount Milligan Gold-Copper Open-Pit Mine, operated by Centerra Gold Inc. (TSX: CG; market capitalization: $1.6 billion CAD) hosts 468 million tonnes of Proven and Probable Reserves averaging 0.3 g/t gold and 0.188% copper, containing 5.1 million ounces of gold and 1.9 billion pounds of copper (as of December 31, 2017).

Full size / Regional geologic setting of the Fran Property. (After Branson, 2011; Source: Technical Report on the Fran Property, 2013)

Bottom Line

Today’s gold discovery in British Columbia comes as a full surprise. The encountered high-grade gold mineralization opens up another major window of opportunity for MGX and its shareholders as the company proved wrong the previous geologic understanding of the Fran Gold Property, re-awakening this project now with highly promising drill results of this initial hole. It’s a big property with big potential to discover much more gold yet to be found with upcoming drilling. 

MGX may have a total of 4 drills turning simultaneously in North and South America this week: British Columbia (Fran Gold and Gibraltar Silica), Chile (lithium brine) and Argentina (lithium brine). Once weather conditions permit, drilling at Kibby Basin in Nevada (lithium brine) may also start. 

While MGX has recently started its revenue and growth cycle with the commercial deployment of its petrolithium wastewater treatment and rapid lithium extraction plants in Alberta, the upcoming weeks may also bring multiple significant discoveries.  

Company Details

MGX Minerals Inc.
#303 - 1080 Howe Street
Vancouver, BC, Canada V6C 2T1
Phone: +1 604 681 7735 

Shares Issued & Outstanding: 125,324,075


Canadian Symbol (CSE): XMG
Current Price: $0.45 CAD (11/30/2018)
Market Capitalization: $56 Million CAD


German Symbol / WKN (Frankfurt): 1MG / A12E3P
Current Price: €0.30 EUR (11/30/2018)
Market Capitalization: €38 Million EUR 

Previous Coverage

Report #84 “Revenue Phase For This Canadian Industrial Cleantech Superstar"

Report #83 “MGX Starts Petrolithium Revenue And Growth Cycle Next Week"

Report #82 “New MGX Patent To Make Heavy Oil And Oilsands Producers Much More Competitive"

Report #81 “Belmont reports final lithium assays from first hole of 2018 and gets ready for continued drilling at Kibby Basin in Nevada"

Report #80 “MGX-Belmont Announce Next Round of Encouraging Lithium Drill Results from Nevada"

Report #79 “MGX-Belmont sample up to 580 ppm lithium in sediments at Kibby Basin Nevada Joint Venture"

Report #78 “MGX Identifies Large Geophysical Anomaly at Salinitas Lithium Project, Salinas Grandes, Argentina"

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Report #76 “MGX-Belmont Drilling Finds Multiple Brine Prospective Zones at Kibby Basin Lithium Joint Venture in Nevada"

Report #75 “MGX engages one of the world‘s most respected lithium upgrading and commercial scale-up experts"

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Report #72 “MGX Moves to the Big Time, Acquires Chilean Lithium Brine Projects"

Report #71 “MGX provides Update on Deployment of Several Plants for Rapid Lithium Extraction and Wastewater Treatment in Alberta“

Report #70 “The Drills are Turning at MGX-Belmont‘s Kibby Basin Lithium Joint Venture in Nevada“

Report #69 “MGX Engages Hatch Engineering for Scale-Up of its Rapid Lithium Extraction Plant in the Western United States“

Report #68 “MGX and Belmont to Start Drilling at Kibby Basin Lithium Project in Nevada on Saturday“

Report #67 “MGX Expands to Argentina, Home to One of the Largest and Richest Lithium Resources in the World“

Report #66 “MGX and Belmont Form Nevada Lithium Joint Venture at Kibby Basin“

Report #65 “MGX-Highbury Expand Work to Gasify Petcoke into a Synthetic Crude Oil Equivalent“

Report #64 “MGX Delivers Update on Commercial Deployment of its Wastewater Treatment and Lithium Extraction Systems“

Report #63 “MGX is Drilling for Solar Grade Silicon Metal in British Columbia“

Report #62 “MGX-ZincNyx Now Ready To Start Commercialization Of Battery Systems For Mass Storage Of Energy“

Report #61 “MGX Minerals Raises $15,5 Million in an Oversubscribed Financing to Speed Up Lithium and Advanced Material Projects“

Report #60 “Sneak Preview of Big Oil Entering the Business of Big Batteries“

Report #59 “MGX Wins Industry Leadership Award from S&P Global Platts“

Report #58 “MGX Nears Commercial Deployment of 4 Petrolithium and Water Treatment Systems in Alberta“

Report #57 “MGX Announces Quadrupling of Power Output of Zinc-Air Fuel Cell Battery“

Report #56 “MGX Sets The Record Date For Its First Dividend“

Report #55 “The First ZincNyx Energy Storage Plant to be Deployed in New York City“

Report #54 “MGX in Final Stages of Commercial Deployment, Second Petrolithium Contract Already in the Making“

Report #53 “MGX-Highbury Accomplish Almost Complete Gasification of Petcoke, Produce High-Grade Vanadium Concentrate“

Report #52 “MGX Set to Alter Lithium Landscape, Partners with Investment Bank Heavyweight Capstone Headwaters“

Report #51 “Congratulations! MGX Nominated in 2 Categories as a Finalist for the S&P Global Platts Metals Awards“

Report #50 “MGX Gets Serious About Magnesium, Engages Hatch for Magnesium Metal Scoping Study“

Report #49 “MGX to Acquire and Commercialize Clean Technology for Extraction of Lithium and Aluminum from Spodumene“

Report #48 “MGX Minerals Issues PEA for a World-Class Magnesium Project in British Columbia“

Report #47 “High-Grade Battery Metals From Dirty Petcoke“

Report #46 “Big Times Ahead For Several Joint Ventures from MGX Minerals“

Report #45 “MGX Partner Broadcasting on US Television“

Report #44 “The Big Rethinking Begins: Multiple Lithium Projects in Chile Test the Rapid Lithium Extraction Technology from MGX“

Report #43 “Global Lithium Dominance? MGX Doubles Performance of Lithium Extraction Filters“

Report #42 “Scores of Tail Winds for MGX becoming a Leader in the New Energy Economy“

Report #41 “MGX Goes Big, Develops Utility-Scale Battery Storage System“

Report #40 “Positioned to Profit from Transition to New Energy Economy“

Report #39 “MGX Assembles Dream Team For California Lithium Strategy“

Report #38 “MGX: The Next GreenTech Energy Giant“

Report #37 “MGX Partners with Highbury Energy to make Petroleum Coke more Clean“

Report #36 “Technological Breakthrough in the Mass Energy Storage Industry“

Report #35 “Eureka! MGX Starts Developing Silica Projects after Acquisition of Mass Storage Battery Technology“

Report #34 “MGX Going Big on Petrolithium: The first large-scale integrated petroleum and lithium project ever developed“

Report #33 “Driving into the Realms of Tesla & Co: MGX Acquires Mass Storage Battery Technology from Teck Resources“

Report #32 “Backed by Private and Institutional Heavyweights: MGX cashes up for Lithium Extraction and Exploration“

Report #31 “MGX Revolutionizes the Lithium World - Commissions First Rapid Lithium Extraction System“

Report #30 “Full Steam Ahead: MGX Engages Senator Polanco (Ret.) to Head California Lithium Brine Strategy“

Report #29 “MGX to Target Geothermal Market for Extraction of Lithium and Gold“

Report #28 “MGX Minerals Commences Development of the World‘s First Petrolithium Field“

Report #27 “Canadian Government Backs MGX Minerals‘ Petrolithium Cleantech“

Report #26 “MGX Minerals Solves the Magnesium Problem of the Lithium Industry“

Report #25 “Hard-Rock Lithium Exposure for MGX“

Report #24 “One of the Largest Initial Oil Estimates in US History“

Report #23 “MGX starts Petrolithium pilot plant to deliver hard facts for strategic partners“

Report #22 “Time to bet: Sprott takes a position in MGX“

Report #21 “Petrolithium: First Come First Served“

Report #20 “Successful Independent Verification of the MGX Lithium Extraction Technology“

Report #19 “MGX to Drill the World‘s First PetroLithium Well in Utah“

Report #18 “MGX Reports Upgrading of Lithium Brine from 67 to 1600 ppm Lithium“ 

Report #17 “MGX technology nominated for prestigious Katerva Award, the Nobel Prize of Sustainability“ 

Report #15 “Total Conviction: MGX forms PetroLithium Corp. to expand into the US oilfield brine markets“ 

Report #14: “MGX Extracts Lithium from Oil Wastewater - Begins Monumental Integration with Big Oil“

Report #13 "MGX Partners with Oil Major on Lithium Brine, New Energy Industry Facing Fundamental Shift“

Report #12 "Game Changing Potential: MGX Minerals‘ Pilot Plant for Rapid Production of Lithium Nears Completion“

Report #11 "MGX assays 34 g/t gold from surface sampling in British Columbia“

Report #10 “Official: MGX owns magnesium worth multi-billions of dollars and starts pilot plant shortly“

Report #9 “One of the world‘s largest lithium resources on the horizon?“

Report #8 “Ready for significant lithium brine work in Alberta“

Report #7 “At the forefront of Alberta‘s lithium brine riches“

Report #6 “Pioneering Lithium in Alberta: MGX Minerals Teams Up“

Report #5 “Time to Put a Lithium Production Process in Place“

Report #4 “MGX Minerals Taps Into Canada‘s Potentially Largest High-Grade Lithium Resources“

Report #3 “MGX Minerals Receives Mining Lease for 20 years (in British Columbia!)“

Report #2 “MGX Minerals Accelerates Towards Production“

Report #1 “MGX Minerals Plans To Enter The Magnesium Market“

Disclaimer: This report 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. Rockstone Research and MGX Minerals Inc. cautions investors that any forward-looking information provided herein 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 MGX´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the MGX´s profile on SEDAR at www.sedar.comPlease read the full disclaimers for both featured companies within the full research reports as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in MGX Minerals Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in MGX Minerals Inc.

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Name: MGX Minerals Inc.
Canada Symbol: XMG
Germany Symbol / WKN: 1MG / A12E3P
Shares Issued & Outstanding: 125,324,075
Phone: +1 604 681 7735

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