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Deployment of Wastewater Treatment and Lithium Extraction Systems in Alberta

Stephan Bogner Stephan Bogner, Rockstone Research
0 Comments| July 11, 2018

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Today, MGX Minerals Inc. provided an update on the deployment of its wastewater treatment and lithium extraction systems in Alberta, the stronghold of Canada’s oil and gas industry. Clear and brief, the company reports on the status of 2 systems.

Most importantly, "large-scale trials" and "client acceptance testing" have been completed successfully for the first system. Hence, deployment is scheduled as soon as on-site preparations for installation of this system are completed. The "client acceptance testing" is probably the single most crucial step to commercialization, because it proves that the system is working flawlessly as per the expectations of the client.

MGX and its engineering partner PurLucid Treatment Solutions Inc. are also pleased to report that 2 sea containers containing a second wastewater treatment system have arrived from the pipe and metal fabricator. This system is scheduled for installation at an oil and gas operation in Alberta to treat evaporator blowdown brine. The system, capable of processing high salinity wastewater from SAGD operations, will remove colloidal and dissolved minerals for substantial water reuse, lower cost and reduced environmental liability. These wastewaters contain lithium in the 100ppm range providing an initial commercial platform for this widely applicable technology. This represents the second system built for this purpose.

In this context, referring to recent articles may round off the big picture of what MGX is targeting with its unique technologies, ripe for commercial deployment.

According to an article from Mining.com, the North American oil and gas sector pumps an astonishing 80-100 million barrels of brine each day, making the wastewater treatment industry worth $29 billion a year alone in the Unites States and Canada.

According to an article on BNN-Bloomberg, Alberta’s tailings ponds cover about 97 square miles and hold 340 billion gallons of waste (that’s enough to fill more than half a million Olympic-size swimming pools). “Rather than waiting for that silver bullet and continuing to test things out in the lab, we think that the technologies that exist today should be implemented in full force,” said Jodi McNeill, a policy analyst at the Pembina Institute, an energy researcher in Calgary. Oil-sands companies dispute the notion they’re dragging their feet. Suncor is approaching the cleanup with urgency, investing “significant resources and capital,” spokeswoman Sneh Seetal said.

In an interview with BNN-Bloomberg, Founder and CEO of PurLucid, Preston McEachern, says that if jurisdictions such as Alberta tightened up clean-water standards, it would prompt oil and gas producers and other industrial companies to process wastewater to higher standard and recycle it rather than simply tapping fresh supplies.

Petrolithium Technology

PurLucid water treatment technologies, which purify wastewater and brine, have been integrated with a newly developed lithium recovery process. Combined, this cleantech process reduces the capital cost of recovery compared to traditional solar evaporation as it does not require the investment in large, multi-phase, lake sized, lined evaporation ponds, greatly reducing the physical footprint and enhancing the quality of extraction and recovery across a complex range of brines previously considered un-processable due to complexity or geographical location outside of solar evaporation appropriate zones. This includes 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 earlier this month (see press release dated May 18, 2018). Hosted by S&P Global Platts, a leading global energy, metals and commodities information provider, the annual awards program honored exemplary performance in fifteen categories spanning the entire steel, metals and mining complex.

Technical Perspective

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Updated Chart (15 min. delayed): https://schrts.co/vHgP4v

Company Details

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MGX Minerals Inc.

#303 - 1080 Howe Street

Vancouver, BC, Canada V6C 2T1

Phone: +1 604 681 7735

Email: jared@mgxminerals.com

www.mgxminerals.com

Shares Issued & Outstanding: 122,655,926


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Chart

Canadian Symbol (CSE): XMG

Current Price: $0.92 CAD (07/10/2018)

Market Capitalization: $113 Million CAD

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Chart

German Symbol / WKN (Tradegate): 1MG / A12E3P

Current Price: €0.603 EUR (07/10/2018)

Market Capitalization: €74 Million EUR

Previous Coverage

Report #63 “MGX is Drilling for Solar Grade Silicon Metal in British Columbia“

Report #62 “MGX-ZincNyx Now Ready To Start Commercialization Of Battery Systems For Mass Storage Of Energy“

Report #61 “MGX Minerals Raises $15,5 Million in an Oversubscribed Financing to Speed Up Lithium and Advanced Material Projects“

Report #60 “Sneak Preview of Big Oil Entering the Business of Big Batteries“

Report #59 “MGX Wins Industry Leadership Award from S&P Global Platts“

Report #58 “MGX Nears Commercial Deployment of 4 Petrolithium and Water Treatment Systems in Alberta“

Report #57 “MGX Announces Quadrupling of Power Output of Zinc-Air Fuel Cell Battery“

Report #56 “MGX Sets The Record Date For Its First Dividend“

Report #55 “The First ZincNyx Energy Storage Plant to be Deployed in New York City“

Report #54 “MGX in Final Stages of Commercial Deployment, Second Petrolithium Contract Already in the Making“

Report #53 “MGX-Highbury Accomplish Almost Complete Gasification of Petcoke, Produce High-Grade Vanadium Concentrate“

Report #52 “MGX Set to Alter Lithium Landscape, Partners with Investment Bank Heavyweight Capstone Headwaters“

Report #51 “Congratulations! MGX Nominated in 2 Categories as a Finalist for the S&P Global Platts Metals Awards“

Report #50 “MGX Gets Serious About Magnesium, Engages Hatch for Magnesium Metal Scoping Study“

Report #49 “MGX to Acquire and Commercialize Clean Technology for Extraction of Lithium and Aluminum from Spodumene“

Report #48 “MGX Minerals Issues PEA for a World-Class Magnesium Project in British Columbia“

Report #47 “High-Grade Battery Metals From Dirty Petcoke“

Report #46 “Big Times Ahead For Several Joint Ventures from MGX Minerals“

Report #45 “MGX Partner Broadcasting on US Television“

Report #44 “The Big Rethinking Begins: Multiple Lithium Projects in Chile Test the Rapid Lithium Extraction Technology from MGX“

Report #43 “Global Lithium Dominance? MGX Doubles Performance of Lithium Extraction Filters“

Report #42 “Scores of Tail Winds for MGX becoming a Leader in the New Energy Economy“

Report #41 “MGX Goes Big, Develops Utility-Scale Battery Storage System“

Report #40 “Positioned to Profit from Transition to New Energy Economy“

Report #39 “MGX Assembles Dream Team For California Lithium Strategy“

Report #38 “MGX: The Next GreenTech Energy Giant“

Report #37 “MGX Partners with Highbury Energy to make Petroleum Coke more Clean“

Report #36 “Technological Breakthrough in the Mass Energy Storage Industry“

Report #35 “Eureka! MGX Starts Developing Silica Projects after Acquisition of Mass Storage Battery Technology“

Report #34 “MGX Going Big on Petrolithium: The first large-scale integrated petroleum and lithium project ever developed“

Report #33 “Driving into the Realms of Tesla & Co: MGX Acquires Mass Storage Battery Technology from Teck Resources“

Report #32 “Backed by Private and Institutional Heavyweights: MGX cashes up for Lithium Extraction and Exploration“

Report #31 “MGX Revolutionizes the Lithium World - Commissions First Rapid Lithium Extraction System“

Report #30 “Full Steam Ahead: MGX Engages Senator Polanco (Ret.) to Head California Lithium Brine Strategy“

Report #29 “MGX to Target Geothermal Market for Extraction of Lithium and Gold“

Report #28 “MGX Minerals Commences Development of the World‘s First Petrolithium Field“

Report #27 “Canadian Government Backs MGX Minerals‘ Petrolithium Cleantech“

Report #26 “MGX Minerals Solves the Magnesium Problem of the Lithium Industry“

Report #25 “Hard-Rock Lithium Exposure for MGX“

Report #24 “One of the Largest Initial Oil Estimates in US History“

Report #23 “MGX starts Petrolithium pilot plant to deliver hard facts for strategic partners“

Report #22 “Time to bet: Sprott takes a position in MGX“

Report #21 “Petrolithium: First Come First Served“

Report #20 “Successful Independent Verification of the MGX Lithium Extraction Technology“

Report #19 “MGX to Drill the World‘s First PetroLithium Well in Utah“

Report #18 “MGX Reports Upgrading of Lithium Brine from 67 to 1600 ppm Lithium“

Report #17 “MGX technology nominated for prestigious Katerva Award, the Nobel Prize of Sustainability“

Report #16 “Unconventional oil play legend Marc Bruner to take MGX and PetroLithium to the next level“

Report #15 “Total Conviction: MGX forms PetroLithium Corp. to expand into the US oilfield brine markets“

Report #14: “MGX Extracts Lithium from Oil Wastewater - Begins Monumental Integration with Big Oil“

Report #13 "MGX Partners with Oil Major on Lithium Brine, New Energy Industry Facing Fundamental Shift“

Report #12 "Game Changing Potential: MGX Minerals‘ Pilot Plant for Rapid Production of Lithium Nears Completion“

Report #11 "MGX assays 34 g/t gold from surface sampling in British Columbia“

Report #10 “Official: MGX owns magnesium worth multi-billions of dollars and starts pilot plant shortly“

Report #9 “One of the world‘s largest lithium resources on the horizon?“

Report #8 “Ready for significant lithium brine work in Alberta“

Report #7 “At the forefront of Alberta‘s lithium brine riches“

Report #6 “Pioneering Lithium in Alberta: MGX Minerals Teams Up“

Report #5 “Time to Put a Lithium Production Process in Place“

Report #4 “MGX Minerals Taps Into Canada‘s Potentially Largest High-Grade Lithium Resources“

Report #3 “MGX Minerals Receives Mining Lease for 20 years (in British Columbia!)“

Report #2 “MGX Minerals Accelerates Towards Production“

Report #1 “MGX Minerals Plans To Enter The Magnesium Market“

Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research and MGX Minerals Inc. cautions investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the MGX´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the MGX´s profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in MGX Minerals Inc. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in MGX Minerals Inc. Note that neither MGX Minerals Inc. nor Zimtu Capital Corp. have reviewed all of the content prior to publication and may not agree with statements made herein.

FULL DISCLOSURE: MGX Minerals is a paid client of Stockhouse Publishing.



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