MGX Minerals Inc. [XMG-CSE] said Wednesday September 12 that its joint-venture partner Belmont Resources Inc. [BEA-TSXV, L3L1-FSE] has reported assays of up to 580 ppm lithium in samples taken from the Kibby Basin lithium brine project in Nevada.
Belmont shares advanced on the news, rising 28.57% or $0.02 to 9 cents on volume of over 3 million shares traded. MGX was unchanged at 76 cents.
In a press release Wednesday, MGX said assays are from the first layer of 125 samples taken from the top 1,270 feet section of hole KB-3 at the Kibby Basin property. The highest concentration of lithium occurred between 960 and 1,270 feet, including 1,110 to 1,210 feet, where the overall average was 415 ppm lithium, with a high of 580 ppm lithium.
MGX recently struck a deal with Belmont to earn up to a 50% interest in Kibby Basin.
Once the option is exercised, the companies will become equal partners and Belmont will have access to MGX’s lithium extraction technology.
MGX Minerals is a diversified resource company that is focused on the development of large-scale industrial mineral portfolios in specific commodities and jurisdictions that will fuel the new energy economy.
The company says it is uniquely positioned to pursue this strategy as it holds significant interests in lithium, magnesium, and silicon assets throughout North America.
Under an agreement announced on July 16, 2018, MGX can earn the first 25% interest in the Kibby Basin project by funding up to $300,000 worth of exploration drilling.
The target area is a large well-defined anomaly discovered by a magnetotelluric survey carried out by Belmont in January, 2018.
MGX can earn an additional 25% interest in Kibby Basin by funding another $300,000 worth of drilling.
Brines (in salt ponds) and spodumene (hard rock) represent the two main sources of commercial lithium production.
On Wednesday, MGX said a borehole targeted the southern portion of a large robust MT conductor, which may represent saturated sediments, containing lithium-rich brines. The hole drilled through lacustrine playa sediments-dominantly calcareous clays and silts grading to lithified claystones and siltstones at depth.
Sand and gravel zones, which may represent brine-bearing aquifers were encountered at depths of 150-170 feet, 210-230 feet, and 900 to 920 feet, where a potentially major aquifer in a cobble gravel was intersected.
MGX said final compilation, upon receipt of further assays, and scheduling for the second 2018 drill hole are being prepared. Drills will be mobilized to the second site as soon as possible.
MGX has emerged as a potential joint venture partner at Kibby after Belmont recently said it has initiated discussions with companies in the lithium extraction space that have requested samples from the Kibby Basin property.
Investor interest in this sector is tied to the fact that lithium is a key ingredient in the production lithium-ion batteries used to manufacture electric vehicles.