Athabasca Minerals Inc. Montney In-Basin Project Frac Sand Test Results
Positioning Athabasca as Leading In-Basin Frac Sand Supplier for Canadian Energy Market
January 11, 2019 EDMONTON, ALBERTA. Athabasca Minerals Inc. (“AMI” or the “Corporation”) (TSX Venture: ABM) announces initial test results for the Montney In-Basin frac sand project (“MIB Project”).
STIM-LAB Inc. and Loring Laboratories Ltd. completed testing on a 70/170 fraction size domestic sand, which had sphericity of 0.7, roundness of 0.6, acid solubility of 2.3%, Silicon Dioxide (SiO2) content of 98.5%, and a crush value of 8K. These preliminary results indicate that the MIB Project sand aligns with API Standard 19C, which provides the specifications for sands used in hydraulic fracturing. The Montney basin represents over 50% of the entire frac sand demand in Canada.
Robert Beekhuizen, CEO of Athabasca Minerals, and President of AMI Silica Inc stated; “AMI continues to make progress toward its strategic goal of becoming the leading in-basin supplier of premium domestic frac sand for the Canadian energy market. With the growing trend in the United States of in-basin frac sand displacing Wisconsin sand, we believe an equivalent trend is on the fore-front in Canada. In due course, a shift in our current dependence on 70% American frac sand supplying Canadian operations is possible. AMI aims to be the pace-setter in Western Canada in providing in-basin premium domestic frac sand with efficient logistical delivery solutions that bring both value and reliability to the development and production programs of energy companies, specifically operating in the Montney and Duvernay regions.
Upcoming resource delineation for the MIB Project will include an initial 6-hole confirmation drilling program, followed by a 20-hole drilling program. Drilling will focus on previously identified highly prospective zones, and on lands with logistical advantages. A National Instrument 43-101 resource estimate is planned for completion in Q2-2019 to be followed by a Preliminary Economic Assessment (“PEA”) in Q3-2019.
Al Turner, MSc. P.Geol. of Stantec Inc., in accordance with National Instrument 43-101, is the Qualified Person responsible for the technical content of this release and has reviewed and approved it accordingly. Mr. Turner is an independent consultant contracted by the Corporation.
The Corporation also announces the granting of 275,000 stock options (“Options”) with an exercise price of $0.28 to officers and employees. The Options will have a five-year term and are subject to a vesting schedule in accordance with the Corporation’s Stock Option Plan. This option grant is subject to TSX Venture Exchange approval.
About Athabasca Minerals
The Corporation is an integrated aggregates company involved in resource development, aggregates marketing and midstream supply-logistics solutions. Business activities include aggregate production, pit management services, sales from corporate-owned and third-party pits, acquisitions of sand and gravel operations, and new venture development. Athabasca Minerals is also the parent company of Aggregates Marketing Inc. – a midstream business providing integrated supply and transportation solutions for industrial and construction markets; AMI Silica Inc – an in-basin supplier of premium domestic frac sand for Alberta and NE British Columbia; and joint venture owner of the Montney In-Basin Frac Sand Project. The Corporation also has industrial mineral land exploration licenses that are strategically positioned for future development in industrial regions of high potential demand.
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