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Technical Report Driftwood Creek Magnesite Property

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Technical Report Driftwood Creek Magnesite Property TECHNICAL REPORT DRIFTWOOD CREEK MAGNESITE PROPERTY Southern British Columbia Canada NTS 82K/15E - BCGS 82K098 50°54' 16” N Latitude 116°34' 34” W Longitude UTM 11 529805E, 5639284N Golden Mining Division Prepared for: MGX Minerals Inc. 303 – 1080 Howe St. Vancouver, B.C., Canada V6Z 2T1 Prepared by: Don MacIntyre, Ph.D., P. Eng. D.G. MacIntyre & Associates Ltd. 4129 San Miguel Close Victoria, B.C., Canada V8N 6G7 Effective Date of Report: July 22, 2014 Technical Report – Driftwood Creek Magnesite Property Page ii Date and Signature Page Effective Date of this Report: July 22, 2014 Date of Signing: July 22, 2014 “D.G. MacIntyre” D.G. MacIntyre, Ph.D., P.Eng. D.G. MacIntyre & Associates Ltd. July 22, 2014 Technical Report – Driftwood Creek Magnesite Property Page iii Table of Contents Title Page ............................................................................................................................................... i Date and Signature Page ...................................................................................................................... ii Table of Contents ................................................................................................................................ iii List of Tables ....................................................................................................................................... iv List of Figures ..................................................................................................................................... iv 1 Summary ........................................................................................................................................ 1 2 Introduction .................................................................................................................................... 3 3 Reliance on other Experts............................................................................................................... 5 4 Property Description and Location ................................................................................................. 5 4.1 Mineral Tenures ..................................................................................................................... 5 4.2 Claim Ownership ................................................................................................................... 7 4.3 Underlying Option Agreement .............................................................................................. 7 4.4 Required Permits and Reporting of Work ............................................................................. 8 4.5 Environmental Liabilities....................................................................................................... 9 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ................................ 10 5.1 Access .................................................................................................................................. 10 5.2 Climate and Vegetation........................................................................................................ 10 5.3 Local Resources ................................................................................................................... 10 5.4 Infrastructure ........................................................................................................................ 11 5.5 Physiography........................................................................................................................ 12 6 History .......................................................................................................................................... 13 7 Geological Setting and Mineralization ......................................................................................... 17 7.1 Regional Geology ................................................................................................................ 17 7.1.1 Structures .................................................................................................................. 20 7.2 Property Geology and Mineral Occurrences ........................................................................ 20 8 Deposit Types ............................................................................................................................... 23 9 Exploration ................................................................................................................................... 24 10 Drilling ......................................................................................................................................... 25 10.1 1990 Diamond Drilling ........................................................................................................ 25 10.2 2008 Diamond Drilling ........................................................................................................ 28 11 Sample Preparation, Analyses and Security ................................................................................. 31 12 Data Verification .......................................................................................................................... 33 D.G. MacIntyre & Associates Ltd. July 22, 2014 Technical Report – Driftwood Creek Magnesite Property Page iv 13 Mineral Processing and Metallurgical Testing ............................................................................. 34 14 Mineral Resource and Mineral Reserve Estimates....................................................................... 35 15 Adjacent Properties ...................................................................................................................... 35 16 Other Relevant Data and Information .......................................................................................... 35 17 Interpretation and Conclusions ..................................................................................................... 35 18 Recommendations ........................................................................................................................ 37 19 References .................................................................................................................................... 38 20 Certificate of Author .................................................................................................................... 40 Appendix A. Summary of analytical results for 1990 and 2008 drill core samples. ......................... 41 List of Tables Table 1. List of Mineral Tenures, Driftwood Creek Magnesite Property as of June 23, 2014 ............ 7 Table 2. Range of values for magnesite analyses (Klewchuk, 2002)................................................. 14 Table 3. List of diamond drill holes, Driftwood Creek property. ...................................................... 25 Table 4. High grade magnesite drill hole intersections from the 1990 drilling program. .................. 26 Table 5. Projected costs, proposed exploration program, Driftwood Creek magnesite property ...... 38 List of Figures Figure 1. Location map, Driftwood Creek Magnesite property, southern British Columbia. ............. 4 Figure 2. Mineral tenure map, Driftwood Creek Magnesite property as of June 22, 2014. Map is in Universal Transverse Mercator projection, NAD 83 Datum, UTM zone 11N. ................. 6 Figure 3. Infrastructure map, Driftwood Creek Magnesite property. ................................................ 11 Figure 4. Location of diamond drill holes, Driftwood Creek property. After Rodgers (1990) and Klewchuk (2008). Map prepared by D.G. MacIntyre, July, 2014. .................................. 12 Figure 5. Rock geochemical sample sites (1989) showing proportional symbols for” dead-burned” MgO value (after Rodgers, 1989). Map produced by D.G. MacIntyre, July 2014. ......... 15 Figure 6. Regional geologic setting, Driftwood Creek magnesite deposit. Geology after Massey et al., 2005. Map created by D.G. MacIntyre, July 2014. .................................................... 16 Figure 7. Stratigraphic column, Mt. Nelson Formation (Pope, 1990) .............................................. 18 Figure 8a. Property geology Western Magnesite. Map prepared by D.G. MacIntyre, July 2014. ..... 21 D.G. MacIntyre & Associates Ltd. July 22, 2014 Technical Report – Driftwood Creek Magnesite Property Page v Figure 8b. Property geology, Eastern Magnesite. Map prepared by D.G. MacIntyre, July 2014. ..... 22 Figure 9. Location of diamond drill holes, Driftwood Creek property. After Rodgers (1990) and Klewchuk (2008). Map prepared by D.G. MacIntyre, July, 2014. .................................. 24 Figure 10. Drill section showing lithology and histogram values for MgO% and SiO2% for drill holes 90-1 and 90-2. See Figure 9 for drill hole locations. .............................................. 27 Figure 11. Graphic log for drill hole 90-4. ......................................................................................... 29 Figure 12. Drill hole section for hole MG-08-2. ................................................................................ 31 Figure 13. Location of check samples collected by the writer, July 16, 2014. .................................. 33 Figure 14. Location of proposed drill holes, Eastern Magnesite deposit. .......................................... 38 D.G. MacIntyre & Associates Ltd. July 22, 2014 Technical Report – Driftwood Creek Magnesite Property
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