Brilliant Sands Inc. announced results for its second quarter, ended June 30, 2015. In its second quarter, Brilliant Sands posted a net loss of approximately $971,552, with basic and diluted loss of $0.03 per share. Exploration costs in the quarter totaled $202,290, up from $30,068 in the first quarter of 2015 as the company finalizes the work needed to file its NI 43-101 exploration reports on each of its three mining sites ¬¬– McClelland, Washow and Alberta.
Similarly, payroll and consulting costs related to site development and the company’s exploration reports rose sequentially, coming in at $180,212, compared with $99,704 in the first quarter.
Non-operating reported results were hampered somewhat by a continuing decline in the cost of gold and its impact on existing investments in gold mining properties. In the second quarter the company recorded a $211,827 charge to reflect the cost of abandoning its interest in the Fisher Canyon gold mine project. Separately, the company posted a loss of $305,007 on its existing investment in Teras Resources, a junior gold mining company.
Brilliant Sands’ President and CEO Marc J. Andrews commented, “Development work continues on schedule at all three of our frac sand properties and we expect to have our exploration reports completed by the third quarter of 2015, with our primary economic analysis finalized in early 2016. Once the exploration reports are finalized, the company will be able to market its findings and sign pre-sale contracts with potential customers.”
Andrews continued, “Low oil prices and the use of higher quantities of sand in fracking wells have put a profit squeeze on oil and gas producers. Canadian companies by and large have not cut their capital expenditures and continue to drill wells. As a result, Canadian oil and gas producers are especially eager to identify lower cost/high quality frac sand contracts. We believe that our exploration expenditures in the near-term will position the company to benefit from this increasing global demand.”