VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 4, 2015) - Select Sands Corp (TSX VENTURE:SNS)(OTC PINK:CLICF) (the "Company") is pleased to announce that land clearing is complete and the Company has requested USA-based contractors to submit bids for a test mining and processing at Sandtown project in Arkansas, USA. Company management will be meeting with various contractors during the week of September 14 to select the contractors to commence the work right away.
Test mining will include rock fracturing, crushing, and screening using a US based contract mining company which has experience producing similar products sold in oil & gas and industrial markets.
The Company is in advanced negotiations with various processing plant operators, in the area, to produce finished products (finer-mesh, high-purity "Ottawa White" sand of 40/70 and 100 meshes). The processing plants will be used on a rental and/or lease basis with little to no capital expenditure required. Test mining and third-party plants (on rental and/or lease basis) will lead to production start as early as the Q4 2015.
The Company is also preparing to drill test the remaining 60% of the property. As per recently completed report by Tetra Tech of Golden, Colorado, USA and Vancouver, BC, Canada, 40% of the Sandtown property contains 22 million tons of Indicated resources of silica sand with a pre-tax NPV valued at US $160 million (See June 10, 2015 News Release). Road building on the 60% of the property has begun and drilling commencement will be announced soon.
The Company has more than enough capital to achieve the milestones stated above.
Finer mesh, high-purity silica is in high demand in both industrial and energy markets. Major US silica sand producers have announced in their Q2 2015 Earnings calls that they are expanding their finer-mesh silica sand mines to meet the demands from both industries. Oil and gas companies are using 'high intensity completion' methods which use up to 10,000 tons of sand per well to get a 75 percent jump in cumulative oil production over 180 days for wells that used the enhanced completion methods.
The Company has closed the financing originally announced on July 15, 2015, cancelling the second tranche and raising gross proceeds of $2,690,000 or 6,725,000 Units in its non-brokered private placement. The Units at a price of $0.40 per Unit were comprised of one common share of the Company and one-half of a share purchase warrant, with a whole warrant exercisable to purchase a further common share of the Company at a price of $0.60 for a period of 3 years after closing.
"The Arkansas advantage of mining business friendly jurisdiction, proximity to major markets, and year- -around operation makes Sandtown a potential low-cost producer," commented Select Sands CEO Rasool Mohammad. "We look forward to drill testing the balance of Sandtown to further enhance the valuations of this asset."
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 near a natural gas pipeline. The property has an active power line on the property 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 recently completed report by Tetra Tech of Golden, Colorado, USA and Vancouver, BC, Canada, 40% of the Sandtown property contains 22 million tons of Indicated resources of silica sand with a pre-tax NPV valued at US $160 million (See June 10, 2015 News Release).The Company also owns high-grade gold deposits in the La Ronge Gold Belt, northern Saskatchewan.
Cameron Bartsch, M.Sc., P.Geo., of Tetra Tech, a Qualified Person as defined by National Instrument 43-101, has reviewed 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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FORWARD-LOOKING INFORMATION
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.