Aiming to deploy its rapid lithium extraction technology right next to the world’s biggest lithium producers

Salinas Grandes, one of the largest salt flats globally, is located in the high plains of the Atacama Desert in Argentinia, where the production of lithium is highly dependent on the weather.

With today’s news, MGX Minerals Inc. ventures the step to enter the world’s largest and richest lithium resources in South America. With the acquisition of a 4,308 hectares large land package from A.I.S. Resources Ltd. (TSX.V: AIS), MGX targets to deploy its award-winning rapid lithium extraction technology head to head with the biggest lithium producers in the world and close to the large production plants from Orocobre and Lithium Americas. In Alberta, Canada, the technology is currently being commercially deployed at several sites, with news expected shortly.  

While lithium has been produced traditionally via solar evaporation – a process that may take as long as 1 or 2 years, depending if weather permits – MGX has developed a technology that promises to extract lithium in a matter of hours. 

At Salinas Grandes, LSC Lithium Corp. has delineated a massive (57 million m3) brine resource with average grades of 795 ppm lithium, translating into an estimate of 239,200 t of LCE (Lithium Carbonate Equivalent). Despite LCE market prices hovering around $15,000 USD/t, LSC Lithium has a current market valuation of around $100 million CAD as it is quite cost-intensive to go into production with such a large resource base. 

What makes Salinas Grandes so special is that the lithium-rich brine occurs very close to surface, making exploration and development all the more attractive, in case a competitive and fast-trackable production method has been presented to the market. MGX plans to now conduct a geophysical resistivity survey on its property, right next to LSC Lithium, in order to define precise targets for subsequent drilling. 

MGX´s newly acquired properties from A.I.S. Resources Ltd. (highlighted in red) in Argentina´s Salinas Grandes basin.

Bottom Line

The strategic decision to now move to the world’s largest and richest lithium resources, home to the biggest lithium producers, demonstrates MGX’s full intention, and readiness, to deploy its rapid lithium extraction in South America. 

Most recently in mid-July, MGX entered into a joint venture with Belmont Resources Inc. in Nevada’s Kibby Basin (see here). Drilling may start any day now and they will find out pretty fast if brine can be intersected near surface. MGX can earn up to 50% of the project and become the operator. The Kibby Basin is probably the most prospective basin in Nevada to host lithium-enriched brine and its sheer size is compelling: One of the best identified aquifers is interpreted to be 6 km long and 3.5 km wide, including a thick (up to 1 km) zone of very low resistivity, thus indicating the potential for high lithium grades. 

With lithium projects in the heart of Canada’s oil and gas hub, currently being commercially deployed with news expected shortly, along with its new joint venture project in Nevada close to Tesla’s Gigafactory and today’s acquisition in Argentina, MGX is expanding in a strategically meaningful fashion to become the leading technology provider in the world’s most important lithium hubs.

The award-winning lithium extraction technology from MGX and its engineering partner PurLucid is not only rapid but also modular, potentially making capital expenditures all the more attractive compared to the classic production method of solar evaporation.

The colossal evaporation ponds and billions of dollars spent for lithium processing facilities in Argentina are set to be challenged by MGX and its rapid lithium extraction technology; below pictures show the Olaroz Lithium Production Facility from Orocobre and Toyota (near the Salinas Grandes Property, of which MGX can earn an interest of up to 80% from A.I.S. Resources Ltd., which company is headed by the infamous Martyn Element who enjoys exceptionally strong ties to the mining and finance industry). 

Technical Perspective

Updated Chart (15 min. delayed):

Company Details

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

Shares Issued & Outstanding: 122,655,926


Canadian Symbol (CSE): XMG
Current Price: $0.88 CAD (07/24/2018)
Market Capitalization: $108 Million CAD


German Symbol / WKN (Tradegate): 1MG / A12E3P
Current Price: €0.57 EUR (07/24/2018)
Market Capitalization: €70 Million EUR 

Previous Coverage

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 #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“

Cover Picture Source 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 and here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in MGX Minerals Inc. and Belmont Resources Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in MGX Minerals Inc. and Belmont Resources Inc.

Write a comment

13.08.2018 13:49:38
Evaporation ponds are a waste of time, money, space, and water, and lithium producers would be wise to lose them

by Cory Groshek on July 30, 2018
Likes | 51
Dislikes | 0
Name: MGX Minerals Inc.
Canada Symbol: XMG
Germany Symbol / WKN: 1MG / A12E3P
Shares Issued & Outstanding: 122,655,926
Phone: +1 604 681 7735

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