MGX Minerals
Inc.
Technology,
Industrial, Mining, Energy
CSE: XMG, OTC: MGXMF,
Frankfurt: 1MG
www.mgxminerals.com
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Prices |
Share: C$1.61 |
MCap: ~C$152M |
On: February
15, 2018 |
History |
52-Week: C$1.96–C$0.73 |
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Prices |
Shares O/S:
~95M |
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MGX
Minerals Inc. is a diversified Canadian resource company with
interests in advanced material and energy assets. MGX is also a
clean technology company focused on accelerating emerging energy
and energy commodity technologies that disrupt the status quo.
The Company is at the initial phase of commercialization with
their Petrolithium technology targeting the extraction of
lithium from oilfield brine and wastewater, and is advancing
innovative regenerative zinc-air flow battery technology that is
immune to the growth of zinc dendrites which have traditionally
plagued zinc-air flow batteries. |
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Listed below are some of the key business lines
of MGX Minerals, each unique and ripe with potential
catalysts:
1) Petrolithium/Lithium
Brine Technology
- The Oil and Gas sector
discards more lithium than anyone in the world produces,
MGX Minerals has Petrolithium solution.
MGX Minerals proprietary/patented
brine processing technology gives the Company a
significant advantage in the marketplace having solved
the problem of magnesium (Mg) in lithium (Li) laden
brine, able to deal with very complex/dirty brines. Up
until now rich complex Li brine projects with high Mg:Li
ratios have been passed over as technology did not exist to
economically separate the two. MGX's technology
now positions scores of complex lithium brine projects (previously
untouchable) across the globe ripe for production, with better
economics than solar evaporation. MGX Minerals Inc. is also
positioned technology-wise to commercially exploit the mineral rich
brine that is a residual by product of geothermal power generation.
MGX is looking to bring the first 750bpd wastewater brine plant in
Alberta in production this Q1-2018. The Company's first major contract
will be for a contract with a major oil sands company, for a 1,200m3
(7500bpd) per day, $45/m3 revenue agreement. Initially the
commercial operation is expected to represent a modest,
roughly $500,000/year revenue stream, or about $3/b --
costs, however, are less than $1/b (information source:
recent CEO interview). MGX Minerals has
recently
announced improved refinement of its nanofiltration lithium
technology, and has commenced initial design of a 2400 cubic meter
per day (~13,000 barrels) plant.
Petrolithium processing involves
capturing oil, natural gas, and minerals from oil & gas
industry brine, leaving cleaner water behind. MGX
Minerals is deploying the only technology that can deal
with ultra-high total dissolved solids plaguing the oil
& gas industry. The process involves complex floatation
and nano-filtration technologies which use reagent
coated filters each designed to pull a specific element
(NOTE: MGX is not limited to Lithium, it can target a
wide range of elements, including gold and silver if
present). The following excerpt is from the Company's
February 12, 2018 news release entitled 'MGX
Minerals Announces Advancement in Nanofiltration Lithium
Technology; Commences Initial Design of 2400 Cubic Meter
Per Day Plant'; "The System utilizes a highly
charged Replaceable Skin Layer (RSL™) membrane related
to the nanofiltration and High Intensity Froth Flotation
(HiFF) system, known as nanoflotation, which
collectively have demonstrated performance superiority
over other processes typically used to remove
contaminants. The technology allows ultra-high
temperature water treatment (up to 700°C) at 10-30 times
the efficiency of existing ultrafiltration systems and
offers numerous environmental water purification and
mineral extraction benefits, including contaminant
removal, mineral recovery, reduced energy demand, and
small footprint."
This February-2018 the CEO of MGX Minerals provided an
interview update in which he stated "Regarding
the demonstration contracts, 90% is completed, 2 or 3 from 12 are
being followed up at the moment. MGX is looking for projects with
scale. One of the follow up contracts the company is closing in on,
is a 5,000bpd agreement with Chesapeake Oil, which has wastewater
containing 200ppm Li which is very high in wastewater terms. MGX
foresees about $3.4M in LCE revenues, and about $7M in water
treatment revenues, together generating $6.7M in profits. MGX is
still within the demonstration contract on this one, bulk samples
are ongoing, more testing has to be done, could take another 6
months for a decision."
Additionally, this week
The company has commenced lithium brine testing in Chile on multiple
projects, with MGX's brine processing technology standard economic grade brines of
say 500-600mg/L Li are NOT necessary; half of this would provide
interesting/potentially very lucrative outcomes.
Video:
MGX's Mass Energy Storage Zinc-Air
Battery Solutions
(2 min.15 sec.)
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2 )
Mass Energy Storage Zinc-Air Battery
MGX Minerals has positioned
itself as a leader in mass energy storage solutions with tech that
is cost-effective, easily scalable, and eliminates all short-term energy
downtime. MGX is advancing innovative
modular energy storage batteries through
proprietary (100%-owned)
patented zinc-air technology via its wholly owned subsidiary ZincNyx Energy Solutions Inc.
(a private company acquired from the
mining giant Teck Resources in December 2017). Think Tesla's Powerwall and Powerpack but
without lithium, powerful, quick charging, and low cost;
this innovative regenerative zinc-air flow battery
technology is designed for energy storage in the 5 kW to
1 MW range for extended periods of time. The tech allows
for low cost mass storage of energy, and can be deployed
into a wide range of applications, including
utility-scale storage and power grid load stabilization,
long term backup power for industrial, commercial, and
military facilities, remote location off grid and micro
grid applications, and diesel generator replacement or
hybridization.
MGX's innovative regenerative
zinc-air flow battery technology is immune to the growth
of zinc dendrites which have traditionally plagued
zinc-air flow batteries, and the Company has begun
commercial development for the mass production of its
scalable 20kWh capacity zinc-air mass storage battery.
Unlike conventional batteries, which have a fixed
energy/power ratio, MGX’s technology uses a fuel tank
system that offers flexible energy/power ratios and
scalability. The storage capacity is directly tied to
the size of the fuel tank and the quantity of recharged
zinc fuel, making scalability a major advantage of the
flow battery system. In addition, a further major
advantage of the zinc air flow battery is the ability to
charge and discharge simultaneously and at different
maximum charge or discharge rates since each of the
charge and discharge circuits is separate and
independent. Other types of standard and flow batteries
are limited to a maximum charge and discharge by the
total number of cells as there is no separation of the
charge and discharge components.
Fig. 1 (above) Principles of operation
Zinc-Air Battery.
The key difference between the Tesla Powerwall
versus MGX's ZincNyx Fuel Cell Battery is the ZincNyx storage
capacity is much larger; in order to increase storage simply
increase the size of the fuel tank and add more fuel (zinc in this
case). To increase storage of a Tesla battery you have to add both
output and storage capacity. This decoupling of output power and
storage is key and makes the ZincNyx system much cheaper in terms of
storage capacity. So the real question is how much energy can you
store, not just what is the rated output capacity. In terms of size,
the system will be about the same size from 5kW to 20kW, as
everything is shrinking in size in the production design phase at
the moment with the exception of the fuel tank itself. A standard
5kW system will have 40kWh storage, the new 20kW system will have
160kWh storage. The target price, like others in this space, has
been US$250/kWh for an 8 hour backup system. This would result in $10,000
for the 5kW system and $40,000 for the 20kW system. Depending on the
application and configuration, the price can be significantly higher
or lower. The fuel cells, needed for output, are the expensive part
of the battery. With economies of scale, prices would go down.
MGX Minerals is targeting mid-2019 for large
scale manufacturing of its ZincNyx Fuel Cell Battery and already has
manufacturing partners in place.
Recent related news:
3) Industrial Minerals
Project, in Invermere, BC, Canada
The Driftwood Property contains a valuable magnesium
deposit, a significant asset of the Company that is
expected to have a PEA published this Q1-2018 (targeting
the end of February). This project originates from MGX
Minerals early days, before the Company began advancing
next generation energy technologies. The magnesium
deposit is a strategic holding that MGX will look to
have its JV partner advance. We understand MGX Minerals
has employed extensive test milling and is looking at a
capex of ~$100M, with a daily throughput of ~1,100 tpd,
a total production of ~2.7Mt MgO, there will be the
option to mill it on site, or alternately MGX could ship
a 25% concentrate across the border for double revenues
for magnesium metal.
4 )
Numerous Lithium Holdings
MGX Minerals has amassed a
sizeable portfolio of lithium holdings (too numerous to
list here for the sake of brevity).
MGX is the largest holder of Li brine holdings in North America,
it has ~2 million acres under staking options under a variety of
arrangements. Below is a synopsis of two projects of
significance, that are currently being meaningfully
advanced:
•
110,000 acre Petrolithium project in the
Paradox Basin of Utah
-- The first large scale integrated
petroleum and lithium exploration project in
the United States. The Project is located
next to the Lisbon Valley oilfield located
within the Paradox Basin, Utah which has
shown historical brine content as high as
730 ppm lithium (Superior Oil 88-21P) and
past production of oil exceeding 50 million
barrels. MGX recently completed 3D seismic
geophysics to outline subsurface geological
formations and structures favorable for
accumulations of oil and gas as well as
lithium brine bearing formations. The survey
included ~9,000 source points. |
•
MGX Minerals’ Joint Venture Partner Power
Metals is advancing the Case Lake Lithium
Property
-- encountering exceptional grades /
quality intercepts; ie...
- 1.79% Li 186ppm Ta (Tantalum) Over 6m,
- 2.07 % Li2O and 213.96 ppm Ta Over 18.0
m,
- Samples up to 7.14% Li2O on Surface,
- 26.0 Metres of 1.94% Li2O and 323.75
ppm Ta |
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