Claim Post Resources Inc. Acquires 51% of Frac Sand Project in Southern Manitoba (Canada) and Options a Permitted Property Su...
26 January 2013 - 8:30AM
Marketwired Canada
Claim Post Resources Inc. (TSX VENTURE:CPS) (the "Company") announces that it
has signed an amendment to its agreement with Char-Crete Ltd. to acquire nine
contiguous silica sand quarry leases, encompassing approximately 428 hectares
(1,050 acres) (see press release dated August 27, 2013). The property is located
3km from a paved highway near Seymourville, 200km North-East of Winnipeg,
Manitoba (Canada) (the "Seymourville Property"). Under the amended agreement,
Claim Post paid $400,000 to Char-Crete and acquired a 51% undivided interest in
the Seymourville Property. Claim Post can acquire the remaining 49% interest by
payment of an additional $300,000 on or before March 31, 2013. In addition, Char
Crete has agreed to grant Claim Post an option to purchase a fully permitted
industrial property in Winnipeg for use as a railroad loading and storage area
for a payment of $400,000 on or before February 17, 2013. If Claim Post chooses
to exercise the option the purchase price of the property will be $2,700,000.
The Seymourville Silica Sand deposit was discovered in 1977 and was drilled by
Manitoba government geologists in 1981 and again in 1989. The deposit is the
Lake Winnipeg Formation on-shore extension of the Historical Black Island silica
deposit. Black Island silica was mined from 1928 to 2003 when it was
incorporated into a park. Black Island sand was used as feed stock to
manufacture glass, fiber glass, foundry sand and early frac sand by the oil
industry.
The President of Claim Post Resources, Charles Gryba, stated: "We are very
pleased to have acquired a 51% interest in the nine quarry leases from
Char-Crete Ltd; we look forward to acquiring the balance of the property in the
coming months. Our first priority will be to start a drilling program and API -
ISO testwork towards completing a NI 43-101 report. The next step would be to
commission an independent Preliminary Economic Assessment of the deposit to
confirm the economics of taking the Seymourville Silica Sand Deposit to
commercial production. A major step forward in de risking the project was
acquiring an option on a permitted property suitable for setting up a frac sand
terminal in Winnipeg with access to rail."
High silica sand deposits are very rare in Western Canada because the glaciers
either destroyed the deposits or mixed in other minerals unsuitable for frac
sand. Horizontal drilling and fracking in the US and Western Canada has been
very successful. The Seymourville deposit has 20 - 40 mesh and 40 - 70 mesh sand
used for the fracking in the Bakkens in Southern Manitoba and Saskatchewan and
also 40 - 70 mesh and 100 mesh sizes suitable for natural gas fracking in the
world class Montney, Horn River and Laird River basins along the Alberta -
British Columbia borders.
Access to rail transportation and being closer to the market are key advantages
required for any successful industrial mineral project. The option to purchase
an industrial site in Winnipeg that has access to both the CN and CP rail
systems is a major advantage. In 2012, the US produced 31 million tons of frac
sand and CN hauled 70,000 rail road cars of frac sand from Wisconsin through
Winnipeg to Western Canada. Claim Post's frac sand is about 1,000 km closer to
the Canadian market.
Claim Post Resources intends to maintain its exploration properties in Timmins,
Ontario which are highly prospective for both gold and base metals. The Company
continues to seek joint venture partners and strategic arrangements with other
companies in the industry to advance the exploration of the large Timmins land
holdings.
Claim Post Resources Inc. is a Canadian based mineral exploration company and a
reporting issuer in Ontario, Alberta and British Columbia. The Company currently
holds a 100% interest in the mineral rights to about 1145 staked claim units and
63 patented claims (approx. 200 km sq. or 72 sq. miles), wholly within the city
limits of Timmins, Ontario. The Company continues to stake ground as it becomes
available and drop lower priority claims from time to time. There are 45,788,831
common shares of the Company 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Claim Post Resources Inc.
Charles Gryba
President and Director
416-801-6366
Claim Post Resources Inc.
Peter Gryba
Corporate Affairs
416-203-3776
www.claimpostresources.com
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