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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 
Email: jared@mgxminerals.com
www.mgxminerals.com

Shares Issued & Outstanding: 125,324,075


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


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

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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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COMPANY INFO
Name: MGX Minerals Inc.
Canada Symbol: XMG
Germany Symbol / WKN: 1MG / A12E3P
Shares Issued & Outstanding: 125,324,075
Phone: +1 604 681 7735
Email: jared@mgxminerals.com
Web: www.mgxminerals.com
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