RE: Competition - Company named Silica North British Columbia Property
Silica North's Golden Property will be mining, producing and selling frac sand to major consumers in north eastern British Columbia, and northern Alberta.
The primary size of frac sand produced from this project will be 40/70 and 100 mesh, which are commonly used in hydraulic fracturing of shale or tight natural gas formations. The two largest target markets for the sand will be the Montney Formation and the Horn River Basin. There is also a potential market in other resource plays (Duvernay and Deep Basin)
This property provides the end user with premium white silica sand that is able to tolerate high pressures when pumped downhole. It has a large reserve potential which will make this property one of the largest suppliers of frac sand in Canada. Golden is currently an operating property that requires minimal infrastructure and property upgrades. With an existing rail spur to help reduce transportation costs and the quality of our sand, this resource will become a top supply of frac sand and will be hard to beat by competitors.
Some of the strengths for our project are as follows;
- Sand in this deposit is premium sand that exceeds API specifications
- Currently an operating property with permits in place
- Rail is on site reducing the transportation cost to get the sand to the consumer
- There is limited competition in Canada
- We have fewer barriers to production than other potential competitors
- Location is within a reasonable proximity to sized population
- Our Board and Advisers have key contacts with major oil and gas companies from past projects allowing us to market to key industry players
Horn River Basin Project
Silica North's Horn River Basin ("HRB") project will be mining, producing and selling frac sand to major consumers in north eastern British Columbia, northern Alberta and southern Northwest Territories.
One of the largest shale gas plays in North America is located in Northern BC, namely the Horn River Basin. It is estimated that the Horn River Basin contains 500 tcf of natural gas reserves.
It is this market that we are focusing on. If only a small portion of the projections achieve reality, the market is substantial. The HRB project is located approximately 103 KM north of the development core of the Horn River Basin. The greatest cost to the consumer of frac sand in the Horn River Basin is transportation.
Some of the strengths for our project are as follows;
- Our location is ideal, we will be the closest frac sand producer to the Horn River Basin
- Access to our location is already available via an existing road
- There is limited competition in Canada
- We have fewer barriers to production than other potential competitors
- Our Board and Advisers have key contacts with major oil and gas companies from past projects allowing us to market to key industry players.
Alberta Property
Silica North's Alberta Property will be mining, producing and selling frac sand to major consumers in northern and central Alberta.
The primary size of frac sand produced from this project will be 20/40, 40/70 and 100 mesh, which enables this project to supply all types of resource plays (shallow/ deep/ oil/ natural gas). The current target markets for the frac sand will be the Montney, Cardium, Viking, and the Duverney resource plays.
This property provides the end user with a diverse size of quality frac sand. This is an alluvial deposit that requires minimal processing. The location of this property is what makes this stand out from others. It is in close proximity to major resource plays with significant activity. This resource is a pre-existing quarry operation with permits already in place.
Some of the strengths for our project are as follows;
- Sand in this deposit meets or beats API specification for frac sand
- This deposit is an alluvial deposit that requires minimum processing
- Pre-existing quarry operation
- Rail is in close proximity to property and client base is within trucking distance
- There is limited competition in Canada
- We have fewer barriers to production than other potential competitors
- Location is within a reasonable proximity to sized population
- Our Board and Advisers have key contacts with major oil and gas companies from past projects allowing us to market to key industry players