92 Resources Corp.: Update on Golden Frac Sand Property
Vancouver - 92 Resources Corp. (the “Company” or “92”) (TSX.V: NTY) (FSE: R9G2) is pleased to provide the following update on recent developments at and near its wholly owned Golden Frac Sand Property (nee: “Zim Frac”), located near Golden, BC, Canada. In summary: - Heemskirk Consolidated Ltd., the owner of the Moberly Silica Sand Mine, was the subject of a February 13, 2017 takeover bid by Northern Silica Corporation. The total transaction is valued at greater than $42.3 million ASD;
- The Moberly Silica Sand Mine, adjacent to and contiguous with 92’s Golden Frac Sand Property, covers a limited portion of the Mount Wilson Formation near Golden, BC. In this area, a friable, mature quartz sand unit 90 to 120 m wide contains well-rounded sand grains with over 99% SiO2;
- 92 has acquired three additional tenures covering 2,404 ha, along an approximately 18 km length, of the favorable Mount Wilson Formation;
- The Company’s total land holdings in the area now total 3,212 ha.
Given current market conditions for Frac Sand within western Canada and the lack of domestic supply that necessitates importation of massive volumes of Frac Sand from the upper Midwest USA, the company intends to initiate fieldwork as soon as conditions allow. Planning for such programs, which will include mapping, sampling and drilling, will begin immediately.
According to Adrian Lamoureux, President and CEO of 92 Resources, “The Golden Frac Sand Property may represent a significantly undervalued asset given its potential to host a large, high-quality frac sand deposit. Domestic or western Canadian Frac Sand deposit with suitable quality would benefit from more advantageous transportation and exchange rate costs over foreign competitors. We believe these to be important factors in the recent takeover of the neighboring Moberly Silica Sand Mine, which is slated for production in 3rd quarter of 2017.”
About Frac Sand
The evolution of hydraulic fracturing of unconventional oil and gas has resulted in a steady increase in the amount of sand volume per average well. High-intensity “Fracs” can dramatically increase the production profile of a well. In Canada, more than 175,000 wells have been stimulated by hydraulic fracturing.
A majority of Canada’s Frac Sand originates from the Upper Midwest USA, where it can be transported distances of 2,500 to 3,000 km or more, from it source to the wellhead. The dominance of the “Northern White” or “Ottawa” sands owe to their exceptional quality measured in terms of purity, roundness, sphericity, grain size and other factors.
The larger volumes of sand used per well have partly offset the drop in demand of Frac Sand, owing to the recent downturn in the price of oil. In 2015, total Frac Sand production was estimated at 67.38 million metric tonnes (USGS) at prices ranging from $70 to $84 US per ton. Within Canada, depending upon quality, Frac Sand (FOB) for the Edson, Alberta area ranged from $155 to $195 CDN per tonne[1].
About the Golden Frac Sand Property
The Golden Frac Sand Property (the “Property”) is located within western Canada, near the community of Golden, British Columbia. The expanded property covers more than 18 km strike length of the Mount Wilson Formation, which consists of high-purity, white, quartzite. To date, only initial prospecting, sampling and testing work have been completed on the Property by the Company; analytical results from the most recent program (2014) include:
Silica Content: 98.3% - 99% SiO2.
Size Fractions: 2 of 4 samples analyzed returned size ranges over 65% in the 40-170 mesh range.
Compression: The 2 adequate size fraction samples passed 6000 PSI compressibility testing, each producing 8.1% fines
To view the graphic in its original size, please click here
Given the long-term growth potential of the global frac sand market and recent developments near the Golden Frac Sand Property, the Company is actively evaluating a number of opportunities to unlock value for the company and increase the shareholders’ value, while continuing to advance its flagship Hidden Lake Lithium Property near Yellowknife, NT.
NI 43-101 Disclosure
Patrick Kluczny, P. Geol., of Dahrouge Geological Consulting Ltd., a qualified person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
[1] Hannah, T. and Lavender, T. (Nov. 26, 2014) Preliminary Economic Assessment Firebag River Sand Property, Norwest Corporation
For further information, please contact Adrian Lamoureux, President & CEO at Tel: 778-945-2950, E-mail: adrian@92resources.com or visit www.92resources.com.
On Behalf of the Board of Directors,
“ADRIAN LAMOUREUX”
Adrian Lamoureux, President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Forward Looking Statements: Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are not historical in nature are intended to be, and are hereby identified as, “forward looking statements”. Forward looking statements may be identified by words including “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward looking statements, including without limitation those relating to the Company’s future operations and business prospects, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward looking statements.