Full size / Geologist inspecting freshly cut core from drill hole KB-3, with the first batch of results reported today.

After market close on Friday, Belmont Resources Inc. reported the next round of lab results from drilling the first hole of 2018 (KB-3) at Kibby Basin in Nevada, a joint venture with MGX Minerals Inc. As per the news-release, the results are – once again – encouraging in the sense that near-by aquifers may also host lithium-enriched brine:

"Lithium values for 20 of the 25 samples exceed 100 ppm Li with seven (7) samples containing greater than 375 ppm Li including another high of 580 ppm Li."

Today’s assays are from the bottom of the hole (428-546 m; 1,403-1,791.50 ft). Core splitting and sampling is now being completed on the entire core section of the hole to give complete assay results for hole KB-3, hence further assays are expected to be announced shortly.

The first section of the hole was drilled by mud rotary method, with similar encouraging assays reported on September 12. The second, lower section of the hole was completed with a core drill starting at 387 m (1,270 ft) until the bottom of the hole at 548 m (1,798 ft). 

Today’s results, in combination with similar results reported 2 weeks ago, are a great indication that the Kibby Basin may also host lithium-enriched brines, as explained in the news-release:

"Ash layers accounted for four < 100 ppm lithium samples, suggesting that initial lithium content may have been leached from the porous ash layers and transported to brines elsewhere in the basin.

The borehole targeted the southern portion of a large robust MT conductor, which still has potential for saturated sediments containing lithium-rich brines.

Based on Quantec MT geophysics the proposed second hole (KB-4, AKA 2018-2) would likely mimic hole 3 with redox boundary (and aquifer) at 900 -1000 ft. depth, and reduced clays with high Li content below 1,000 ft."

With further drill results from KB-3 expected shortly and the next hole (KB-4) already being planned in detail, MGX and Belmont are right on track for a possibly stellar discovery of lithium-enriched brines at Kibby Basin in Nevada.

Full size / Map showing the location of MGX-Belmont’s Kibby Basin, Tesla’s Gigafactory and Albemarle’s Silver Peak Lithium Mine (see map here). 

In light of the encouraging lithium concentrations thus far observed in sediments both in the upper and lower section of the hole, the next few weeks are awaited with great excitement for the potential discovery of lithium-rich brines as MGX may then consider to deploy its award-winning rapid lithium brine extraction technology at Kibby Basin, 50 km north of Albemarle’s lithium evaporation ponds at Clayton Valley (currently North America’s only lithium brine operation) and 230 km south of Tesla’s Gigafactory near Sparks, Nevada. 

The importance of a potential discovery by MGX and Belmont in Nevada, combined with MGX’s rapid lithium extraction technology, cannot be understated. The US needs new lithium production as lithium is on the list of strategic commodities deemed critical to economic and national security. MGX’s new way to extract lithium without solar evaporation would be all the more welcome as the US currently produces only about 4% of global lithium supply, all of it coming from Albemarle’s evaporation ponds at the Silver Peak Mine located 50 km south of Kibby Basin. 

While companies are fighting over water rights in the "overappropriated" Clayton Valley, Belmont has already filed for water rights at Kibby Basin. Another advantage for MGX-Belmont is that they control almost the entire Kibby Basin, making an entry for other companies all the more difficult, especially if drilling encounters lithium-rich brine. 

Click above or here to watch how North America, and especially the location of the Kibby Basin in Nevada, was flooded by the ocean multiple times over the last 600 million years.

The above animation illustrates the geological formation of North America from the latest Precambrian (600 Ma) to the present. In our case, focus on Nevada (and the location of the Kibby Basin) being repeatedly below and above sea level during its geologic history. Over several periods of time, the ocean there was trapped in a giant pan, similar to a salar or a salt flat.

About the Kibby Basin Lithium Brine Partnership

MGX Minerals Inc. (CSE: XMG) is partnered with Belmont Resources Inc. (TSX-V: BEA) on the  2,056 hectares (5,080 acres) Property and currently earning a 50% interest with the goal of forming a 50/50 Joint Venture (the “Joint Venture”) to utilize MGX’s rapid lithium extraction technology. Kibby Basin is located in the western portion of the Great Basin in Nevada. Geologic research of the Kibby Basin has indicated that proximal rhyolitic flows and tuffs surrounding the basin could be a potential source of Li brine in the Kibby Basis Playa. In addition, the Kibby Basin is located within a geothermal cluster at a basin low setting. Regional geophysical signatures in the area reflect similar anomalies comparative to that of Clayton Valley, approximately 50km to the South, location of Albemarle’s Silver Peak Mine, the only North American lithium producer. 

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. This technology is applicable to petrolithium (oil and gas wastewater), natural brine, and other brine sources such as lithium-rich mine and industrial plant wastewater. The technology was recently chosen as winner of the Base and Specialty Metals Industry Leadership Award at the 2018 S&P Global Platts Global Metals Awards, held in London in May ( see MGX press release dated May 18, 2018).

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