Canadian Premium Sand Inc. announced the results of an independent preliminary feasibility study and mineral resource update of Wanipigow Sand Project, on the company’s 100% owned Ordovician silica sand deposit in southeastern Manitoba, Canada.
Key updates include:
• New definition of geological units based on CPS’s 2018 drill program, which included 93 sonic core holes and includes: Lower Black Island (LBI); Upper Black Island (UBI); Black Shale (BS); and Pleistocene Glaciofluvial (Pgf). The PFS resource and reserve estimations and mine plan were developed in consideration of these geological sub-units.
• Definition of measured and indicated mineral resources of 49.6 million tonnes reported for LBI and UBI.
• Definition of an inferred mineral resource of 97.3 million tonnes reported for Pgf and UBI.
• Definition of proven and probable mineral reserves of 30.6 million tonnes.
• Initial 25-year mine life.
• After-tax net present value of CDN$220 million discounted at an 8% discount rate.
• After-tax internal rate of return of 20.2%.
• Initial CAPEX of CDN$220 million and sustaining capital of CDN$110-$115 million.
The analytical work was completed at Turnkey Processing Solutions in Ottawa, Ill., and Stim-Lab in Duncan, Okla. The analytical work was carried out by independent, accredited laboratories. The analytical methods are standard and routine in the field of silica sand, or proppant, test work pursuant to International Organization for Standardization 13503-2, according to the company.