Select Sands Announces 20 Million Tonnes (22 Million Tons) Indicated Resources of Silica Sand With a Pre-Tax NPV Valued at US $160 Million
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/10/15 -- Select Sands Corp. (TSX VENTURE: SNS)(OTC PINK: CLICF) (the "Company") announces the completion of an independent Preliminary Economic Assessment ("the Study" or the "PEA") for the Company's permitted Sandtown Project located in Northeast Arkansas, USA ("Sandtown" or the "Project"). Tetra Tech of Golden Colorado and Vancouver, BC, Canada completed the PEA. The current Study comprises approximately 40% of the property (200 acres/520 acres).
"The pre-tax internal rate of return (IRR) of 45% and the pre-tax net present value of $US160 million on 40% of the property demonstrate a good economic potential," commented Select Sands CEO Rasool Mohammad. "Our high purity, white silica sand project's closer proximity to major markets in the U.S. is one of its desirable attributes. The Project economics can be enhanced further with testing on the potential on the remaining 60% of the Project and improved oil and gas prices."
Highlights of PEA:
Granular Silica Sand Target markets include oil & gas and industrial products like glass, architectural and solar glass applications, foundry and building products.
Ground Silica (silica powder) is used in plastics, rubber, polishes, cleansers, paints, glazes, textile fibreglass, precision castings, premium paints, specialty coatings, sealants, silicone rubber, and epoxies.
Mineral Resource Summary
The mineral resource estimate was completed by Cameron Bartsch, M.Sc., P.Geo of Tetra Tech Vancouver. Resources were estimated by modelling the extent of the St. Peter Sandstone on the Sandtown property identified from drilling completed by Select Sands in 2014/2015 and applying preliminary pit constraints. A total of 33 million short tons of St. Peters formation has been identified on 40% of the property of which 11 million tons has been excluded from the mining plan due to drainages, power lines right of way and allowances for pit slopes. The total Indicated Mineral Resource of 22 million short tons includes the portion of the St. Peters Formation that was determined to have reasonable prospects for economic extraction constrained by the open pit.
Results from the work done by Stim-Lab indicate an average sand grade comprised of 13% of 30/50 mesh, 32% of 40/70 mesh, and 58% of 100 mesh (sum is greater than 100% due to overlap).
Mineral Resource are not Mineral Reserves and do not have demonstrated economic viability.
Mark Horan, M.Sc., P.Eng, of Tetra Tech, a Qualified Person as defined by National Instrument 43-101, has reviewed the scientific and technical information disclosed in this News Release. The QP has prepared, supervised the preparation or approved the scientific and technical disclosure in the news release.
About Select Sands Corp.
Select Sands Sandtown property, located in Northeast Arkansas, USA, is underlain by the Ordovician St. Peter sandstone formation, the source of 'Ottawa White' Tier-1 frac sand/industrial silica sand selling into major US oil and gas basins as well as industrial and speciality end markets. The Sandtown property is located 3.1 miles from Highway 167, is near a natural gas pipeline, has an active power line on the property, and is about 14.7 miles away from the nearest rail system (See December 4, 2014 News Release). Sandtown has a competitive location advantage of 650 rail miles closer to Texas/Louisiana oil/gas plays and Houston port and industrial hub over Wisconsin sand mines.
The Company also owns high-grade gold deposits in the La Ronge Gold Belt, northern Saskatchewan.
Neither 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 Release.
It is the conclusion of the Qualified Persons (QP) that the PEA summarized in this technical report contains adequate detail and information to support a potentially positive economic result. The PEA proposes the use of industry standard equipment and operating practices. To date, the QP's are not aware of any fatal flaws for the Project.
The most significant potential risks associated with the Project are changes in regulatory environments, environmental compliance, operating and capital cost escalation, ability to raise Project financing, and silica sand pricing. These risks are common to most mining projects, many of which can be mitigated through adequate engineering, planning, and proactive management.
The PEA is preliminary in nature and there is no certainty that the PEA will be realized. Please see the important disclosure under "Cautionary Note Regarding the PEA" below.
FORWARD-LOOKING INFORMATION
Forward Looking Statements: Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to proposed exploration and development activities and their timing, resource estimates and potential mineralization, the PEA, including estimates of capital and sustaining costs, anticipated internal rates of return, mine production, estimated recoveries, mine life, estimated payback period and net present values, opportunities to enhance the value of the Sandtown and other plans and objectives of Select Sands Corp. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, among others and in addition to those described elsewhere in this release, delays in obtaining or inability to obtain required government or other regulatory approvals, permits or financing, the risk of unexpected variations in mineral resources, grade or recovery rates, of failure of plant, equipment or processes to operate as anticipated, of accidents, labor disputes, and unanticipated delays in completing other development activities, the risk that estimated costs will be higher than anticipated and the risk that the proposed mine plan and recoveries will not be achieved, equipment breakdowns and bad weather, the timing and success of future exploration and development activities, exploration and development risks, mineral resources are not as estimated, title matters, third party consents, operating hazards, metal prices, political and economic factors, competitive factors and general economic conditions. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: required approvals, permits and financing will be obtained; the proposed exploration and development will proceed as planned; with respect to mineral resource estimates, the key assumptions and parameters on which such estimates are based; that the proposed mine plan and recoveries will be achieved, that capital costs and sustaining costs will be as estimated, and that no unforeseen accident, fire, ground instability, flooding, labor disruption, equipment failure, metallurgical, environmental or other events that could delay or increase the cost of development will occur, and market fundamentals will result in sustained metals and minerals prices. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
The Company has concluded it has a reasonable basis for providing the forward-looking statements included in this announcement. The detailed reasons for that conclusion are outlined throughout this announcement and in particular under the headings "Preliminary Economic Assessment Parameters - Cautionary Statement" The Company confirms that it is not aware of any new information or data that materially affects the information included in the announcements and that all material assumptions and technical parameters underpinning the resource estimates continue to apply and have not materially changed.
Contacts:
Select Sands Corp.
Rasool Mohammad, B.Sc. (Mining)
President & CEO
604-639-4533
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Datum: 10.06.2015 - 15:23 Uhr
Sprache: Deutsch
News-ID 399590
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Oil & Gas
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