VANCOUVER, BRITISH COLUMBIA–(Marketwired – Feb. 10, 2016) – Select Sands Corp. (TSX VENTURE:SNS)(OTC PINK:CLICF) (the “Company”) is pleased to announce the completion of an updated mineral resource estimate for the Company’s permitted Sandtown Project located in northeast Arkansas, USA (“Sandtown” or the “Project”). Tetra Tech of Vancouver, BC, Canada completed the update. The indicated silica sand resource of 22.0 Million Tons (20 Million Tonnes) reported in the Company’s June 10, 2015 Press Release has nearly doubled to 41.98 Million Tons (38.08 Million Tonnes). The breakdown by pit is given in the table below:
|Total Pit constrained resources||17,309,000||2.2||38,080||3.2||41,976||Indicated|
“The near double tonnage increase further enhances the Project’s economic and mine life potential,” commented Select Sands CEO Rasool Mohammad. “Our high purity, white silica sand project is favourably located to major markets in the U.S., with potential year-round operations. With no debt, and ability to deliver on purchase orders received from the industrial market, Select Sands is strongly positioned to become a tier one provider of high quality sands in 2016.”
Mineral Resource Summary
The mineral resource estimate was completed by Tetra Tech Vancouver. Resources were estimated by modelling the extent of the targeted St. Peter Sandstone on the Sandtown property using a total of 41 vertical drill holes completed by Select Sands during 2014 and 2015. The model was constructed utilizing Aranz Geo’s Leapfrog 3D modelling software and involved the construction of mesh solids for each of the predominant lithological units identified from drilling. The results of the modelling indicate that the St. Peter Formation underlies much of the northern and central parts of the property, with the thickest portions occurring along the northern boundary and gradually thinning to a discontinuous veneer in the south. Previous testing on composite samples from the St. Peter Formation collected by Select Sands during drilling indicate a grain size distribution of approximately 13% 30/50 mesh, 22% 40/70 mesh, and 58% of 100 mesh (Refer to News Release Feb. 19, 2015 ). Please visit the Company’s website at http://www.selectsandscorp.com/projects/silica-sand-project/ for the maps and other details about the Project.
Exclusions for a power line right of way and allowances for property boundaries and pit slopes have been factored into the estimates presented above. The total Indicated Mineral Resource of 42 Million short tons comprises the portion of the St. Peter Formation that was determined to have reasonable prospects for economic extraction constrained by the open pits.
The Preliminary Economic Assessment (the “PEA”) completed by Select Sands in June 2015 was done on a portion of the St. Peter Sandstone that remains within the updated resource area. Economic considerations have not been applied to newly defined resources and, as such, the existing PEA remains current and will be summarized in the supporting NI 43-101 technical report for the resource update. Readers are cautioned that mmineral resources for the Sandtown Property are not mineral reserves and do not have demonstrated economic viability and there is no certainty that this preliminary economic assessment will be realized.
About Select Sands Corp.
Select Sands’ Sandtown property, located in northeast Arkansas, USA, is underlain by the Ordovician St. Peter sandstone formation, which is a major source of ‘Ottawa White’ Tier-1 frac sand/industrial 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. The property has an active power line on the property with a nearby gas line and is located approximately 14.7 miles from the nearest rail system (see December 4, 2014 News Release). Compared to competitive sand mines located in Wisconsin owned by the largest US frac sand producers, Sandtown has a competitive location advantage as it is approximately 650 rail miles closer to the Texas/Louisiana oil/gas plays as well as the Houston port and industrial hub.
As per the June 2015 completed PEA report by Tetra Tech of Golden, Colorado, USA and Vancouver, BC, Canada, the Sandtown property has a pre-tax NPV valued at US $160 million and a post-tax NPV valued at US $92 million. This NPV is of 40% of the total property area (See June 10, 2015 News Release). The Company would like to remind investors that mineral resources for the Sandtown Property are not mineral reserves and do not have demonstrated economic viability and there is no certainty that this PEA will be realized.
The Company also owns a high-grade gold deposit in the La Ronge Gold Belt, northern Saskatchewan. The Preview SW Gold Project hosts indicated resources containing 158,300 ounces of gold (2.61 million tonnes grading 1.89 g/t Au) and inferred resources containing 270,800 ounces (5.70 million tonnes grading 1.48 g/t Au) based on a 0.50 g/t Au cut-off grade (See October 31, 2013 News Release).
Cameron Bartsch, P.Geo., a Qualified Person as defined by National Instrument 43-101, has approved the scientific and technical information disclosed in this news release.
For more information about Select Sands Corp., please visit www.selectsandscorp.com.
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This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold within the United States absent such registration or an applicable exemption from such registration requirements.