President of MGX Minerals (XMG:CSE), Jared Lazerson, shares how this company is taking advantage of the large magnesium market.
MGX Minerals is in the industrial minerals mining space. Our primary project is the Driftwood Creek magnesium project and we look to produce magnesium oxide shortly, ideally by the end of 2016.
Currently in North America, there are two producers of magnesium oxide, both privately held so we will be the only publicly traded magnesium oxide player or mine in North America. Our off-take strategy revolves around existing customers that we’ve developed a relationship with, they are very interested in replacing their imports from supply from North America.
The Magnesium oxide markets are quite diverse. There’s traditional markets in the industrial space, steel making, fertilizer, but we’re very focused on growth markets one of which is magnesium oxide wallboard which is a replacement for sheetrock. The other one is in the environmental application which is by far the largest market for this certain type of magnesium oxide, which is wastewater treatment as a replacement for Lyme. Both the wallboard and the environmental markets have the potential to be huge.
Our plans for the rest of the year focus around permitting and engineering and completing our bulk sample. We’ve currently received our mining lease so we’re well into the permitting phase as well we’ve completed two drill programs and we believe we have a substantial enough resource to move towards production.