CALGARY, Alberta, Feb. 11, 2016 (GLOBE NEWSWIRE) -- North America Frac Sand Inc. (“NAFS” or the “Company”) (OTCQB:NAFS) (www.NAFSINC.ca). The current owner of North America Frac Sand(CA) Ltd. is Canadian Sandtech Inc. (“CSI”). We will be closing the acquisition of North America Frac Sand(CA) Ltd. on or before February 29, 2016. There has been significant exploration activity on 1,680 acres of the 30,000-acre property. Since 2008, CSI has drilled 173 holes on these mineral leases. All holes were 300-foot spacing, except for 7 drill holes and 17 backhoe holes, which were 600-foot spacing. The average sand thickness per hole was 10.5 feet and the size of the tested area was approximately 12.9 million square feet. With respect to frac sand, there are approximately 75 lbs of frac sand per cubic foot. It should be noted that there was one drill hole which was drilled through the 1-meter thickness of clay prominent after 10.5 meters. This hole encountered frac sand of unknown the depth or quality. Future exploration activity is planned on this deeper zone of frac sand.
Drilling activity to date is as follows:
|Date||Description of activities|
|Aug-Oct 2008||CSI recognized the sand qualities on the leased property and the fact that these sands warranted further testing. This lead to CSI entering into lease agreements.|
|Jun 2009||CSI tested 107 holes backhoed under the supervision of Independent Engineer Green Engineering Ltd. ("GEL) and determined that significant quantities of suitable sand were present and that additional testing from an Independent engineer was required.|
|Nov-Dec 2009||CSI core drilled 66 holes under the supervision of Independent Engineer GEL and began lab testing of core samples.|
|June 2010||Saskatchewan Government confirmed CSI’s sand deposit (frac sands) fall under “Sand and Gravel” and are the property of the surface right holder. No disposition under the Quarry Regulations, 1957 was required to exploit the frac sand deposit.|
|Nov 2010 – Jan 2013||Further laboratory testing was conducted by SGS & Met Solve Labs and results determined the sands tested passed American Petroleum Industry (API) standards.|
|Jan 2013 - Current||CSI began gathering production data, plant design and cost, financial data and compiled other data to assist in the preparation of a NI 43-101 report required for additional financing.|
About Frac Sand: Frac Sand is a proppant used in the oil and gas business as a part of the hydraulic fracturing process – a means of increasing flow to the wellhead. Frac sand must have particular characteristics including achieving certain levels of crush resistance, sphericity and roundness, and it is therefore a relatively rare commodity.
About North America Frac Sand, Inc.
North America Frac Sand, Inc. (OTC QB:NAFS) is headquartered in Calgary Alberta. With our 30,000 acres of leases and lease options, it is our short term intent to prove out the balance of our significant resource. It is our long term intent to commence shipments as soon as possible.
CONTACT: North America Frac Sand, Inc. (OTCQB:NAFS)
Please visit the Company’s website at www.nafsinc.ca.
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Forward-Looking Information: This news release contains certain forward-looking information. All information, other than information regarding historic fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this news release includes, but is not limited to, the ability of the Company to continue selling frac sand in the future, on a spot basis or otherwise. The forward-looking information contained in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. With respect to the forward-looking information contained in this news release, the Company has made assumptions regarding, among other things, future prices for frac sand and by-products, future demand for processed frac sand and the ability of the Company to restructure its debts. The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including the general volatility of frac sand and by-product prices and demand, geological, technical, drilling and processing problems, future currency and interest rates, an unwillingness of the Company’s lenders to refinance the Company’s debts on terms favourable to the Company or at all and the ability of the Company to continue selling frac sand. Additionally, if the Company is unable to obtain additional financing, the Company may be required to curtail activities and/or liquidate its assets or the Company’s creditors may seek to seize its assets. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Source:North America Frac Sand Inc.