Victory Mountain Secures Frac Sand Permits
- Published: Thursday, 20 March 2014 16:29
Victory Mountain Ventures Ltd. has entered into an option agreement, subject to the approval of the TSX Venture Exchange, whereby it may earn a 100 percent interest in eight Metallic and Industrial Minerals Permits totaling approximately 737 sq. km located west of Fort McKay, Alberta, Canada, in the Fort McMurray area of northeastern Alberta.
Frac sand is actively being sought out and mined in Alberta to meet growing demand, with particular interest in abundant silica sand associated with the Paddy and time equivalent Pelican formations in Northern Alberta. The Pelican Formation is known to crop out or underlie the property as identified in preliminary work.
The property is served by a network of all-weather roads serving the oil and gas industry. Approximately 95 km of all-weather roads link the property to Fort McMurray and an active rail line. Preliminary review of extensive oil and gas well drilling in the Property area has outlined Pelican sand thicknesses of up to 50+ m, which will be the focus of exploration. The sand is near to and in some areas exposed at surface, which will facilitate affordable exploration costs and upcoming operational logistics.
Consulting Geologist Mike Dufresne commented, “Future evaluation of the frac sand potential of the property is warranted given: the proximity of several Steam-Assisted Gravity Drainage operations in the property area; the developing infrastructure associated with oil sands growth adjacent to and on the property; and an increasing number of tight oil and gas plays in Alberta and neighboring provinces/territories.”
Director Patrick Morris commented, “The shale gas industry in Western Canada is in its infancy. We are very pleased to take the first step toward becoming one of the first TSX-V listed companies to become suppliers of frac sand in Canada. Currently 90 percent of frac sand used in the Canadian oil and gas industry (approximately 3.5 million tons per year) comes from the Midwestern United States. We believe there is a strong economic future in this sector, and therefore for our shareholders in producing a domestic supply in Canada.”