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MGX Minerals Declares Drill Program at Francisco Basin Lithium Project

MGX Minerals Inc. (“MGX” or the “Company”) is pleased to announce that joint venture partner Chilean Lithium Salars (“CLS”) is drilling at the Francisco Basin Project (the “Project”) located 30 kilometres south of the Salar de Maricunga.

The 5-hole program was designed to target the brine aquifer that extends from the Northern Lagoon, where samples in May of 2018 averaged 694mg/L Lithium. (see press release dated September 27, 2018). The drill program is testing lithium mineralization to a depth of up to 300 meters as well as the lateral extent of lithium mineralization.

The 1st hole is located in the center of where the salt lagoon anomaly encountered very high pressure of fresh water and was shut down at 20 meters.

The 2nd hole is located on the western edge of the anomaly (see Figure 2 showing drilling approximate location in red). It has successfully drilled and cased through the fresh water and is now advancing towards a depth of 110 meters where expected to encounter brine as predicted by the electro-magnetic survey.

The Project lease area comprises 12,900 hectares. An electromagnetic geophysical survey was completed in April 2018 and results indicated strong potential for the presence of two highly conductive brines zones where significant thickness and horizontal coverage may exist.

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 Francisco Basin.

Francisco Basin
The Francisco Basin Salar resides within a large, fault-bound, alluvium-filled basin to the immediate south of the Copiapó Volcano. The basin is closed, drains a large area and the Salar appears to be the lowest point within the drainage. The rocks in the drainage surrounding this salar are dominantly volcanic, ranging in age from Eocene to Miocene, juxtaposed with some older rocks. To the west is a Cretaceous sedimentary sequence separated from the volcanic rocks of the Francisco Basin area by the Cerro Guerrita Fault. To the east, an older Oligocene to Miocene volcanic sequence is overlain by the Copiapó volcanic rocks. The Francisco Basin alluvial basin sits at the junction of three catchments. These river systems presumably provide the fill for the basin and are in part, along with the limits of the Salar, structurally controlled. The alluvial fill may be covering post-Copiapó aged faulting.

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