Select Sands Corp. announced receipt of an unconditional Authorization to Quarry with respect to its Sandtown quarry site, located in Independence County, Ark. The Authorization to Quarry, which is dated May 1, 2015, was issued by the Arkansas Department of Environmental Quality (ADEQ) pursuant to the Arkansas Quarry Operation, Reclamation and Safe Closure Act for a five-year period ending April 30, 2020.
The company has engaged Tetra Tech Inc. to complete a mineral resource estimate and preliminary economic assessment (PEA) prepared in accordance with NI 43-101 and based on the recently completed drill program.
The PEA will be based on the initial resource estimate and provide a conceptual development plan and economic analysis from which the necessary parameters will be derived to complete a full Feasibility Study. The PEA will include a projected Net Present Value Internal Rate of Return, taking into account current pricing and marketing options related to the silica sand industrial and specialty products markets (glass, construction and sports/recreation) as well as the frac sand market
The company expects the report to be completed and released this month. The company has completed a drill program on 200 acres of its 520-acre property. The St. Peter Sandstone formation intersected in the drilling to date remains open to the north and south. Tetra Tech Inc. recently completed similar studies on industrial sand projects located in northern British Columbia, Canada, and Nevada.