92 Resources Corp. said that that field crews have mobilized to its Golden Frac Sand Property, located approximately 5 km from Golden, British Columbia, Canada. The property hosts excellent infrastructure with ranch and logging roads present throughout the area, and railhead access in Golden.
Field crews from Dahrouge Geological Consulting Ltd. will begin an approximately 10-day exploration program that will focus on further mapping and sampling of the Mount Wilson Formation, which consists of high-purity, white, quartzite and friable sandstones. The objective of the field program will be to further assess the frac sand potential and collect sufficient information to support an NI 43-101 technical report on the property.
The property covers more than 18 km strike length of the Mount Wilson Formation where high-grade silica has been confirmed from samples collected in 2014. The four samples collected average 98.6 percent SiO2 to peak of 99 percent SiO2, with low boron (~10 ppm), and low iron (0.28 percent). Preliminary testing on these samples indicates favorable frac sand characteristics, as well as metallurgical grade silica potential.
The property is immediately adjacent to the producing Mount Moberly Silica Mine, operated by Heemskirk Canada Ltd, which is currently undergoing a redevelopment toward frac sand production, with commercial operation targeted for the second half of 2017. In February, Heemskirk was subject to a takeover bid by Northern Silica Corp. The total transaction is valued at greater than $42.3 million ASD.
Given current market conditions for frac sand within Western Canada and the lack of domestic supply that necessitates importation of massive volumes of frac sand from the United States, the company is actively evaluating a number of opportunities to unlock value for the company and increase the shareholders’ value, while continuing to advance its flagship Hidden Lake Lithium Property near Yellowknife, Northern Territories.
According to Adrian Lamoureux, president and chief executive officer of 92 Resources, “The Golden Frac Sand Property represents a significantly undervalued asset given its potential to host a large, high-quality frac sand deposit. Despite fluctuating oil and gas prices, North American demand for frac sand is exceptionally robust and there remains a nearly non-existent domestic supply of high-quality proppant within Canada.”