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Canada

Driftwood Creek Project

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Overview

Mine TypeOpen Pit
StagePreliminary Economic Assessment
Commodities
  • Magnesium
Mining Method
  • Truck & Shovel / Loader
Mine Life... Lock
SnapshotThe PEA for the Driftwood Creek Magnesium project, dated 2018, presumes a conventional quarry pit operation with a process plant and a furnace/kiln combination to produce a saleable dead burn magnesium oxide (DBM) product. The plant will also have the ability to produce caustic-calcined magnesium oxide (CCM) as a separate saleable product.

In November 2021, MGX Minerals Inc. announced a review of the conceptual engineering study conducted by Hatch Engineering in 2018 due to rising magnesium prices and new specialized applications, such as its use in solid rocket fuel. This report remains confidential for competition related reasons. A confidential prior study by Hatch Consulting (Canada) for MGX, identified a potentially profitable price of magnesium metal based on prior exploration and engineering work at its Driftwood Magnesium deposit.

In July 2023, MGX Minerals Inc. delisted from the CSE. Since then, no new official announcements regarding project progress have been released.

Owners

SourceSource
CompanyInterestOwnership
MGX Minerals Inc. 90 % Direct
MGX Minerals Inc. owns a 90% interest in the Driftwood Property.

Contractors

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Deposit type

  • Stratabound

Summary:

The Driftwood Creek and Brisco magnesite occurrences are classified as Sparry Magnesite deposits (E09) by the B.C. Ministry of Energy and Mines (Simandl and Hancock, 1998). This deposit type is characterized by stratabound and typically stratiform, lens-shaped zones of coarse-grained magnesite mainly occurring in carbonates but also observed in sandstones or other clastic sediments. Magnesite exhibits characteristic sparry texture.

Reports by Morris (1978), Rodgers (1989), and Simandl and Hancock (1992) provide the best available geologic information on the Driftwood Creek magnesite deposit. Klewchuk (2002) provides additional detail for the Eastern Magnesite area.

According to Simandl and Hancock (1992), magnesite and sparry carbonate form stratabound lenses and pockets within the “white marker beds” subdivision of the “middle dolomite” unit of the upper Mount Nelson Formation at the Driftwood Creek property. This middle unit is called unit Hmn1, with the lower part, Hmn1A, describing the buff to light grey dolomite horizon. The upper part, Hmn1B, is applied to the magnesite.

The magnesite is either white, pale grey, or beige, and weathers buff. The unit is characterized by coarse to sparry crystals, and locally contains light green interbeds less than 1 cm in thickness. The interbeds are either regular or disrupted by growth of sparry magnesite crystals within the coarsest magnesite-rich zones (Simandl and Hancock, 1992). Vestiges of hemispherical stromatolites are observed locally in finer-grained magnesite-bearing rocks. Chert, quartz veinlets, and dolomite are the most common impurities especially within the lower part of the deposit. Calcite, pyrite, and talc are typically present in trace amounts. The abundance and proportion of impurities change irregularly, both along strike and across bedding (Simandl and Hancock, 1992).

Magnesite weathers prominently, and the Driftwood Creek deposit is well exposed as an isolated ridge within relatively low valley bottom topography, at an elevation of 1,250 m (Klewchuk, 2010). Numerous cliff exposures are present, with some cliff walls greater than 15 m (50 ft) high.

Magnesite has been mapped over a strike length of 1,900 m and maximum width of about 220 m (Klewchuk, 2010). The magnesite occurs at surface in two discrete bodies; a larger “West Zone” and the smaller “East Zone”.

Texture of the magnesite is variable, ranging from fine- and medium-grained to very coarse-grained. Most of the deposit is of medium- and fine-grained texture, with irregular patches of more coarsegrained texture. Areas of coarse-grained magnesite appear to be irregularly developed within the area of exposed magnesite, and are not obviously related to any structure.

Thin quartz veins are irregularly distributed through the magnesite, in a near-ubiquitous manner, although the concentration of quartz veins does vary. There are areas with no apparent quartz, but these are not extensively developed. The more prominent quartz veins and quartz vein swarms tend to be oriented from N15°E to N60°E. Similar quartz veins are present in the host dolomite (seen mainly to the south of the Eastern Magnesite), indicating that these quartz veins are not related to development of the magnesite. It is possible that they are related to intrusives noted during drilling. These intrusives may have also introduced a second population of Fe2O3 that may be considered a potential impurity in the recovery of magnesite.

All the magnesite deposits in the Brisco and Driftwood Creek area are located within the upper half of the Mount Nelson Formation. Most are lenticular and seem to form chains, as illustrated by the Driftwood Creek deposits. All deposits are stratigraphically associated with red to purple dolomites, cherty dolomites, stromatolitic dolomites, dissolution breccias, and other rocks containing dolomite pseudomorphs after halite and lenticular gypsum crystals. Locally, stromatolitic textures are preserved, even within magnesite-bearing rocks. According to Simandl and Hancock (1992), most of the above features are indicative of the evaporitic depositional environment.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsAvg. AnnualLOM
Magnesium Oxide kt 1703,055

Operational metrics

Metrics
Daily ore mining rate 1,200 t *
Daily production capacity 547 t of magnesium oxide *
Daily processing rate 1,200 t *
Daily processing capacity 1,300 t *
Hourly processing rate 50.7 t *
Hourly processing capacity 55.8 t *
Annual ore mining rate 440,000 t *
Annual production capacity 186,700 t of magnesium oxide *
Annual processing rate 400,000 t *
Annual processing capacity 440,000 t *
Stripping / waste ratio 2.4 *
Waste tonnes, LOM 19,174 kt *
Ore tonnes mined, LOM 7,843 kt *
Total tonnes mined, LOM 27,017 kt *
Tonnes processed, LOM 7,843 kt *
* According to 2018 study.

Production Costs

CommodityAverage
All-in sustaining costs (AISC) Magnesia 351 / t *  CAD
Assumed price Magnesia 600 / t *  USD
* According to 2018 study / presentation.

Operating Costs

CurrencyAverage
OP mining costs ($/t mined) CAD  ....  Subscribe
OP mining costs ($/t milled) CAD  ....  Subscribe
Total operating costs ($/t milled) CAD  ....  Subscribe
* According to 2018 study.

Project Costs

MetricsUnitsLOM Total
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Sustaining CapEx $M CAD  ......  Subscribe
Working capital $M CAD  ......  Subscribe
Closure costs $M CAD  ......  Subscribe
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OP OpEx $M CAD  ......  Subscribe
Transportation (haulage) costs $M CAD 344.7
Total OpEx $M CAD  ......  Subscribe
Total Taxes $M CAD  ......  Subscribe
EBITDA (LOM) $M CAD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M CAD  ......  Subscribe
After-tax Cash Flow (LOM) $M CAD  ......  Subscribe
Pre-tax NPV @ 5% $M CAD  ......  Subscribe
After-tax NPV @ 5% $M CAD  ......  Subscribe
After-tax NPV @ 10% $M CAD  ......  Subscribe
After-tax NPV @ 8% $M CAD  ......  Subscribe
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After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
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Aerial view:

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