TSX Mining News: Claim Post (TSXV: CPS) Announces Completion of Initial NI 43-101 Inferred Resource Estimate of 25 Million Tonnes of Silica Sand/Clay Matrix at Seymourville Project on Approximately 20% of the Project License Area
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Toronto, Ontario - (Newsfile Corp. - April 30, 2014) (www.investorideas.com newswire) Claim Post Resources Inc. (TSXV: CPS the Company is very pleased to announce that P&E Mining Consultants Inc. has estimated the Seymourville Project NI 43-101 Inferred Resource Estimate at 15 million cubic meters or at a bulk density of 1.73 tonnes per cubic meter; 25 million tonnes at a composite grade of 94% Si02. The sand composite is a mixture of 99% pure silica sand with a matrix of clay, fine silica, iron minerals etc. which will be removed when processed as frac sand. This high grade silica sand deposit is located 200 km north-east of Winnipeg, Manitoba just off of paved Highway 304 on the east shore of Lake Winnipeg(the "Seymourville Project").
The Seymourville project is being evaluated for use as a natural sand proppant "frac sand" for the oil and gas industry. The initial NI 43-101 resource estimate is the first key step to advance the Seymourville frac sand project to production. Preliminary screening at SGS labs in Lakefield Ontario indicates approximately 80% of the sand/clay matrix is in the frac sand size range of 20 to 140 mesh. SGS testwork will also investigate the recovery of the minus 140 mesh silica and perhaps clay minerals such as kaolinite.
The President of Claim Post Resources, Charles Gryba, stated: "We are very pleased with this report; it confirms that we have a very substantial silica sand resource, which we can grow with additional drilling. The next step in de- risking the project is contracting an independent Preliminary Economic Assessment in order that we can evaluate the potential economics of the project once the SGS - API testwork is completed. Based on the resources delineated in this report, and if one assumes a mine life of 20 years, we are now in a position to evaluate the economics of a mine – processing plant with a production capacity of around 1 million tonnes per year of frac sand."
Claim Post previously announced (March 11th , 2014 Press Release filed on SEDAR) that a 1,000 kilogram representative sample of sand from 20 individual sonic drill holes was delivered to the SGS Lab in Lakefield Ontario for bench scale metallurgical test work which was followed by, API ISO frac sand test work. Ultimately the remainder of the sand was processed into 1 kg samples for test marketing frac sand to oil and natural gas operators.
The market for natural frac sand continues to grow at a high rate. The State of Wisconsin alone produces about 75% of all the US frac sand. U.S. frac sand production has grown from 20 million tonnes in 2011, to 28 million tonnes in 2012 and to about 40 million tonnes in 2013. The Vice President of Union Pacific Railroads at the September 2013 Frac Sand Conference in Minneapolis, based on their extensive studies, forecast that the U.S market will be 67 million tonnes of frac sand by 2017.
Claim Post's Seymourville frac sand deposit is approximately 1,000 km closer to the Canadian market than Wisconsin sand deposits; this indicates the potential for significant transportation savings. Claim Post is evaluating a transload facility at the Centre Port site in Winnipeg which will provide unit train loading and access to CN, CPR and the BNSF railroads plus provide bulk truck or container service to the oil industry in Manitoba, Saskatchewan and the U.S. side of the Williston Basin.
Charles Gryba P.Eng. is the Company Qualified Person for this press release. Eugene Puritch, P.Eng. President of P&E Mining Consultants Inc. and an independent Qualified Person, has reviewed and approved the technical content of this press release.
Claim Post Resources Inc. is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. The Company is focused on becoming a leading provider of premium white silica sand proppant to oil operations in the Williston Basin (both the Canadian and U.S. sides of the Border), and to the entire Western Canadian Sedimentary Basin from its Seymourville Frac Sand Project, located 200 km northeast of Winnipeg, Manitoba. Claim Post also has mineral claims in the Timmins area for gold and base metal exploration. There are 96,452,164 common shares of the Company currently issued and outstanding.
Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly.
The Company does not assume the obligation to update any forward-looking statement. 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.
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