Vancouver, June 6, 2017 – 92 Resources Corp. (the “Company”) (TSX.V: NTY) (FSE: R9G2) is pleased to announce that field crews have mobilized to its Golden Frac Sand Property (the “Property”), located approximately 5 km from Golden, BC, Canada. The Property hosts excellent infrastructure with ranch and logging roads present throughout the area, and railhead access in Golden.
Field crews from Dahrouge Geological Consulting Ltd. have now mobilized to site for an approximately 10 day exploration program that will focus on further mapping and sampling of the Mount Wilson Formation, which consists of high-purity, white, quartzite and friable sandstones. The objective of the field program will be to further assess the frac sand potential and collect sufficient information to support an NI 43-101 technical report on the Property.
The Property covers more than 18 km strike length of the Mount Wilson Formation where high-grade silica has been confirmed from samples collected in 2014. The four samples collected average 98.6% SiO2 to peak of 99% SiO2, with low boron (~10 ppm), and low iron (0.28%). Preliminary testing on these samples indicates favourable frac sand characteristics, as well as metallurgical grade silica potential.
The Property is immediately adjacent to the producing Mount Moberly Silica Mine, operated by Heemskirk Canada Ltd, which is currently undergoing a redevelopment towards frac sand production, with commercial operation targeted for the second half of 2017. Recently, in February 2017, Heemskirk was subject to a takeover bid by Northern Silica Corporation. The total transaction is valued at greater than $42.3 million ASD.
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, United States, 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.
According to Adrian Lamoureux, president and chief executive officer of 92 Resources: “The Golden Frac Sand Property represents a significantly undervalued asset given its potential to host a large, high-quality frac sand deposit. Despite fluctuating oil and gas prices, North American demand for frac sand is exceptionally robust and there remains a nearly non-existent domestic supply of high-quality proppant within Canada.”
Management cautions that rock formation and project characteristics on adjacent properties (i.e. Moberly) are not necessarily indicative to the presence of the same characteristics on the Company’s properties (i.e. Golden Frac Sand).
Additional information on the Property and its location may be found on the Company’s website at the link below:
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.
About the Golden Frac Sand Property
The Golden Frac Sand Property includes the original Zim Frac claim group as well as the Expanded Golden Frac Sand claim group, located within western Canada, near the community of Golden, British Columbia. The Property covers more than an 18 km strike length of the Mount Wilson Formation, which consists of high-purity, white, quartzite and friable sandstones. To date, only limited prospecting, sampling, and testwork 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
NI 43-101 Disclosure
Darren L. Smith, M.Sc., 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. Hannah, T. and Lavender, T. (Nov. 26, 2014) Preliminary Economic Assessment Firebag River Sand Property, Norwest Corporation
About 92 Resources Corp.
92 Resources Corp is a modern energy solution company, focused on acquiring and advancing strategic and prospective modern energy related projects. The Company currently holds three principal assets in Canada: the Hidden Lake Lithium Property, NWT, the Pontax Lithium Property, QC, and the Golden Frac Sand Property, BC.
The Hidden Lake Lithium Property is strategically located within the heart of the Yellowknife Pegmatite District with 2016 exploration results returning 1.90% Li2O over 9 m and grab samples up to 3.3% Li2O. The Property is easily road accessible and its proximity to infrastructure provides for numerous development advantages.
The Pontax Property is located within Quebec’s lithium district, and covers several historic pegmatite occurrences that are adjacent to known spodumene bearing pegmatite(s). The underlying geology includes over 20 km strike length of the Pontax Greenstone Belt, which is also a favourable geological environment for gold occurrences.
The Golden Frac Sand Property covers more than a 4 km length of the Mount Wilson Formation, which consists of high purity, white, quartzite and friable sandstones. It’s strategic location in western Canada and proximity to infrastructure, provides competitive access to the oil and gas markets where high-quality frac sand is an essentially input. The adjacent Moberly Silica Sand Mine, owned and operated by Heemskirk Canada Ltd., produces a number of high-purity products and as of February 2017, became subject to a takeover bid by Northern Silica Corporation valued at $42.3 million AUD.
On Behalf of the Board of Directors,
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.