NRNews Release - Monday, July 11, 2011
Frac Sand Pilot Plant Schedule Update =======================================================================
Vancouver, British Columbia: Stikine Energy Corp. (TSX.V: SKY) ("Stikine" or the "Company") announces the following update on its pilot plant operations located in Abbotsford, British Columbia.
At the end of June 2011, the Company's process consultants installed four new attrition scrubbers at Stikine's frac sand pilot plant and completed plumbing and electrical alterations to facilitate their operation. However, after several trials of the new equipment and plant configuration, it became clear that the scrubber motors were underpowered and not capable of processing any sand. As a result the plant has not produced any new frac sand samples at this time.
The delays at the plant relate to the design of a new and untested size of the pilot plant scrubbers from the manufacturer. More powerful electric motors have now been ordered to remedy these shortcomings and management is confident that sand processing and testing will commence shortly.
Stikine is focused on becoming a dominant frac sand supplier to British Columbia's developing shale gas industry. The Horn River, Liard and Montney Basins are large-scale gas plays led by major producers who currently rely on frac sand transported over great distances. Stikine's Nonda project is located in close proximity to the Horn River and Liard Basins and the Angus project lies in close proximity to the Montney Basin. The projects were identified in 2009 through a systematic search for raw material sources possessing the different frac sand sizes used in each basin and the potential for large-scale resource development.
Stikine is currently completing resource estimates, engineering and baseline environmental work in addition to community consultation for both projects.