Not even a week after MGX Minerals Inc. announced its expansion into the multi-billion-dollar sector of energy mass storage via the aquisition of low-cost battery developer ZincNyx Energy Solutions from mining giant Teck Resources, the company today made an announcement that fits like a glove. MGX owns 3 silicon properties in British Columbia, which it will now start to develop. Now, last week‘s acquisition makes even more sense. Eureka!
One of the primary uses of silicon is in solar panels, which sector has seen a massive growth around the globe over the last decade. With solar panels being broadly used globally, the sector´s focus is now directed toward storing all the energy that is generated by solar panels. As Business in Vancouver said so aptly: "Energy storage solutions have increasingly become a holy grail of sorts for tech companies."
The booming energy mass storage sector is driven mainly by jurisdiction such as the "Sunshine State", California (official state motto: Eureka!), where the utility regulator has mandated that renewable-energy suppliers start develop certain amounts of storage capacity. The EU is also experiencing large amounts of renewable energy coming into the system that can overwhelm their grids.
Energy storage is already a billion dollar market with worldwide applications. MGX is now both developing energy and advanced material commodity projects expecting to commence lithium brine extraction in Q1 2018 and advancing its 43% grade 8 million tonne (M+I) magnesite (magnesium) deposit while rapidly acquiring advanced energy and cleantech technologies.
High grade silica is the feedstock used in industrial silicon metal and solar silicon metal applications.
British Columbia Silicon
MGX owns the Longworth and Wonah Silicon Properties in addition to the Kootenay Silicon Project, all of which are located in southeastern British Columbia, Canada. What makes these projects so interesting is not only its high purity quartzite mineralization (similar to other producing silica mines) right at surface (potentially amenable to open-pit mining) but also being located adjacent to superb infrastructure in an established mining district (access to electricity, rails, road, and labor).
Most interestingly, there are currently no silicon producers in western North America. MGX will now start working on these 3 silicon projects, evaluating the economic viability of producing silicon metal frm high-purity quatzite. A metallurgy program has been designed to test for suitability of upgrading to silicon metal and solar grade silicon. A bulk sample requirement of 2 tonnes has been requested by the evaluation laboratory, which is qualified to complete process and plant design should the silica be found suitable for upgrading to silicon metal.
Longworth is listed as one of the top silica occurrences in the Province by the BCGS (Simandl, 2014). Mineralization to date has been traced across a 7 km strike length and outcrop sampling has shown consistent high grades of ~99% SiO2 (silicon dioxide).
Wonah has potential to host a high-purity quartzite-type silica deposit similar to the other quartzite deposits of the Mount Wilson Formation in southeastern British Columbia. Wonah consists of 2 mineral claims located in the Fort Steele Mining Division. The main target includes the ridge where steeply dipping Ordovician age quartzite is exposed over a strike length of approximately 850 meters. Geological mapping, geochemical sampling, and surveying identified a series of white quartzite outcroppings (Wonah Quartzite Formation) that form 2 lenses, the ‘Central Zone’ that has been traced for approximately 500 m, and ‘South Zone’ traced for 350 m along strike. The Central and South Zones consist of a highly competent quartzite unit that trends N to NNE, is approximately 50 meters in width, and has a steep east dip. There is an ESE trending fault between the Central and South Quartzite Zones that has an approximate 200 m sinstral, horizontal displacement. A total of 11 rock chip quartzite samples (15WONAH-1 to 15WONAH-11) were taken from the Central & South Zones by MGX VP Exploration Andris Kikauka (P. Geo.) shortly after acquisition in 2015. Rock chip samples were analyzed by ALS Minerals, North Vancouver, BC, using Li Borate fusion, whole rock analysis ME-XRF-06 (XRF26), results of significant elements are summarized by percentage as follows:
Kootenay ("Koot") is a high-grade silica project, with mineralization consisting of high-purity SiO2 occurring along a 400 m strike zone that remains open in all directions. Exploration design and permitting activities have commenced. Archaeological assessment (AOA) is expected to commence shortly, followed by site assessment (AIA). Infrastructure assessment is currently underway including assessment of the bulk commodity load out facility at Canal Flats, inclusive of 10 railcar siding, previously used for gypsum loading. The property was previously drilled by COMINCO with a total of 477.16 meters of NQ core with 8 holes drilled from 7 different locations in 1981. The Kootenay property consists of a total area of 165.7 hectares (409.4 acres). Fieldwork was performed in 2015, shortly after the acquisition of the property by MGX Minerals, by VP of Exploration Andris Kikauka (P. Geo.) which consisted of geochemical sampling and geological mapping. Geochemical sampling was carried out on exposed surface bedrock located in close proximity to historic diamond drilling performed by Cominco. A total of 8 rock chip samples were collected from surface outcrop near previous drilling, and rock chip samples were analyzed by ALS Minerals, North Vancouver, BC, using Li Borate fusion, whole rock analysis ME-XRF-06 (XRF26). Highlights of significant results from Koot North, Middle and South Zones are listed by percentage:
Exploration and Development Plan
Both the Wonah and Kootenay Properties are located near infrastructure and centralized loadout facility. MGX is prepared for an immediate 10 hole drill program at each property followed by small bulk sample for metallurgical testing. Upon completion of suitable metallurgy, infill drilling is planned for the purpose of generating a NI43-101 Resource Estimate. The properties are generally suited for quarry type operation. Development strategy is largely dependent on the outcome of metallurgy. Evaluation of potential strategic partnerships within the silicon metal and solar sectors is underway which would play a significant role in development plan should silica be found suitable for the targeted applications in the silicon metal industry.
Driving into the Realms of Tesla & Co: MGX Acquires Mass Storage Battery Technology from Teck Resources
MGX to Disrupt the Energy Storage Sector with Acquisition of ZincNyx Technology
While Tesla is taking aim at mostly the consumer market, ZinkNyx is pushing for solutions to the energy storage problem for commercial markets. Energy storage is becoming more relevant to large businesses. (Sourced from Business Vancouver)
Last week, MGX Minerals Inc. announced to have signed a definitive agreement to acquire 100% of ZincNyx Energy Solutions Inc., a Canadian company that was founded in 2012 to develop a modular energy storage system (ESS). The company´s owner is mining giant Teck Resources Ltd., a $13 billion USD market cap. company that trades on the NYSE. Read the full article here.
MGX Minerals Inc.
#303 - 1080 Howe Street
Vancouver, BC, Canada V6C 2T1
Phone: +1 604 681 7735
Shares Issued & Outstanding: 77,782,417
Canadian Symbol (CSE): XMG
Current Price: $1.09 CAD (15/08/2017)
Market Capitalization: $85 Million CAD
German Symbol / WKN (Frankfurt): 1MG / A12E3P
Current Price: €0.73 EUR (15/11/2017)
Market Capitalization: €57 Million EUR
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 #16 “Unconventional oil play legend Marc Bruner to take MGX and PetroLithium to the next level“
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: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author hold 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.