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Drilling Starts at Salinitas Lithium Project in Argentina

MGX Minerals Inc. (“MGX” or the “Company”) reports that joint-venture partner A.I.S. Resources (“A.I.S.”) has commenced drilling at the Salinitas lithium project (“Salinitas” or the “Project”) in Argentina.

Samples recovered thus far from a 43-meter interval show a porous coarse sand which is conducive to the transmission of brines. The trenching program completed in October confirmed the presence of these porous sands. Resistivity of these sands is expected to be encountered at depth. The objective of the drill program is to test two geophysical anomalies generated from the previously completed TEM (Transient Electromagnetic Survey) survey. These anomalies represent potential aquifer structures based on interpretation of the geophysical profiles. Brines will be sampled down to 400m, with specific yield and other porosity tests. Subject to brine composition and flow rate, one well will commence a 30-day pump test.

Salinitas Lithium Brine Project

The Salinitas tenements are located in the lithium triangle at the Salar de Salinas Grandes, in the Province of Salta. The 4,308 hectare contiguous land package resides in the Puna region of northwest Argentina near the border of Chile, an area renowned for its lithium and potassium rich brine.  Salinas Grandes has been explored with positive results reported in 2013 by Orocobre and is currently being explored by other lithium exploration companies.

Rapid Lithium Brine Extraction Technology

MGX has developed a rapid lithium extraction technology eliminating or greatly reducing the physical footprint and investment in large, multi-phase, lake sized, lined evaporation ponds, as well as enhancing the quality of extraction and recovery across a complex range of brines as compared with traditional solar evaporation. MGX is prepared to mobilize a rapid lithium extraction system to the Salinitas project.

Salinitas Partnership Property Agreement

MGX has partnered with A.I.S. Resources on the Project and is currently earning an undivided 80% interest by incurring total exploration expenditures of US$1.2 million and by making payments totaling US$3.2 million by May 31, 2020.

Qualified Person

Andris Kikauka (P. Geo.), Vice President of Exploration for MGX Minerals, has prepared, reviewed and approved the scientific and technical information in this press release. Mr. Kikauka is a non-independent Qualified Person within the meaning of National Instrument 43-101 Standards.

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