Full size / Petcoke is an environmentally harmful and burdensome waste product from the petroleum industry – and is almost free for the taking. (Source)

Today, MGX Minerals Inc. announced astoundingly high-grade lab assay results from the gasification of petcoke samples from Alberta‘s Fort McMurray mining and upgrading operation ("Upgrader Petcoke") as well from the Edmonton Refinery ("Refinery Petcoke").

The gasification was performed by MGX‘s technology partner, Highbury Energy Inc., utilizing a proprietary gasification method to concentrate metals from raw petcoke. 

The results speak for themselves and impressively demonstrate that Highbury is on the right track with its novel gasification method, and that it was another genius move by MGX to partner with Highbury so that innovative processes can be jointly created in order to enter an untapped market with tremendous magnitude. 

In a nutshell

(1) Highbury‘s gasification process reduced the weight of the raw petcoke samples by more than 90%. The resulting ash of the burned petcoke was weighed and then compared to the raw petcoke weight: Ash content of the Upgrader Petcoke samples averaged 2.73% wt and 0.32% wt for the Refinery Petcoke. Although the total reduction in weight was enormous in both cases, the Upgrader Petcoke had about 9 times as much ash as the Refinery Petcoke with only 0.32%. 

(2) The ash content was analysed to determine the metal concentrations. The ash from the Refinery Petcoke contained 45% vanadium pentoxide (V2O5), i.e. almost half of the ash is composed of vanadium, so the question immediately arises why not just send this ash to a smelter to get the vanadium out. Alternatively, MGX-Highbury may find a way to extract the vanadium themselves. Assuming the vanadium can be extracted completely, the ash would be further reduced by 45%, leaving less than 0.2% of the original Refinery Petcoke, whereas the vanadium could be sold as a highly sought-after battery-metal. The rest of the ash is mainly composed of rather unproblematic, naturally occurring compounds:

Full size

Turning Toxic Waste into Green Battery Tech

According to the Alberta Energy Regulator, petcoke inventories are estimated to have reached 106 million tonnes in 2016. For illustration purposes onlyAssuming MGX-Highbury were to gasify all of these petcoke inventories, the weight could theoretically be reduced to 2.9 million tonnes (2.73% wt. if equal to the Upgrader Petcoke) or 339,200 tonnes (0.32% wt. if equal to the Refinery Petcoke). Assuming MGX-Highbury were capable to extract all of the 45% vanadium pentoxide contained in the ash (as with the Refinery Petcoke), this would result in the production of 152,640 tonnes of vanadium pentoxide, which would have a market value of $5.1 billion USD at the current price of $15.15 USD/lb. The residual waste product (ash) would now weigh only 186.560 tonnes (down from 106 million tonnes, or -99.8%).  

Previous Coverage on Petcoke

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

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

Company Details

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

Shares Issued & Outstanding: 101,573,656


Canadian Symbol (CSE): XMG
Current Price: $0.97 CAD (03/28/2018)
Market Capitalization: $99 Million CAD


German Symbol / WKN (Frankfurt): 1MG / A12E3P
Current Price: €0.629 EUR (03/28/2018)
Market Capitalization: €64 Million EUR 

Previous Coverage

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 #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: 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 disclaimer within the full research report 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: 101,573,656
Phone: +1 604 681 7735

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