Claim Post Resources Inc. Announces SGS Lakefield Testwork Generates 99.3 Percent Pure Silica Sand


TORONTO, ONTARIO--(Marketwired - May 15, 2014) - Claim Post Resources Inc. (TSX VENTURE:CPS) ("Claim Post" or the "Company") announces that SGS Mineral Services of Lakefield, Ontario has successfully produced 99.3% pure silica sand from the Seymourville sand deposit. This high grade silica sand deposit is located 200 km north-east of Winnipeg, Manitoba just off of paved Highway 304 on the east shore of Lake Winnipeg (the "Seymourville Deposit").

The Seymourville Deposit is being evaluated for use as a natural sand proppant (frac sand) for the oil and gas industry. As part of Claim Post's plan to advance the Seymourville Frac Sand Project to production, 1000 kilograms of sand was delivered to the SGS Lab in Lakefield, Ontario from secure storage in Winnipeg. The sand from 20 sonic drill holes drilled at mainly 100m x 100m centers was composited into a representative sample for bench scale metallurgical testwork.

The current SGS metallurgical program was designed to obtain the following technical data:

  1. The average bulk density of the clay-silica mixture for NI 43-101 Report tonnage calculations was calculated to be 1.73. P&E Mining Consultants Inc. has estimated the Seymourville Project Inferred Resource at 15 million cubic meters or 25 million tonnes at a bulk density of 1.73 over approximately 20% of the project area. (April 29th, 2014 Press Release filed on SEDAR.)
  1. The SGS testwork was structured to give technical information to confirm the preliminary design of the frac sand processing plant. This testwork includes scrubbing times to remove clay, microscope evaluation of how clean the sand is for various size ranges, magnetic separation, detailed assaying etc. The screen analysis of the bulk sample gives an estimation of the tonnage split of sand into each of the frac sand size ranges.

The SGS testwork has shown that we can design a processing circuit that can consistently make a plus 99% pure silica sand that can be screened into standard frac sand size ranges. Claim Post expected that most of the finer material to be mainly clays which would be a challenge to dewater for dry disposal back into the mined out pits. There is 5% or less clay in the composite sample. The remaining 10% is fine to ultrafine silica sand that may be wet processed into saleable products without the capital, operating or environmental costs associated with fine or ultrafine grinding.

The table below shows that 83% of the sand/clay feed to the processing plant can be processed into frac sand size ranges. Fine grained silica products sell for at least as much as frac sand thus additional SGS testwork will be done to evaluate these products.

SGS Screen Analysis Percentage
20-40 Mesh 10%
40-70 Mesh 38%
70-140 Mesh 35%
140-325 Mesh Si02 5%
Minus 325 Mesh SiO2 5%
Kaolinite, clays etc. 5%
Magnetics 2%
Total 100%
  1. Once the initial SGS testwork and the flow sheet is finalized in the coming weeks a number of 1kg samples for each frac sand size range will be made; 20/40, 30/50, 40/70 and 70/140 mesh etc. which will be sent to the PropTester laboratory in Texas for API ISO testwork. The remainder of the sand will be scrubbed and screened at SGS ultimately becoming 1kg samples for marketing frac sand to the oil and gas companies.

The President of Claim Post, Charles Gryba, stated: "We are concentrating on moving the project forward to production and de-risking the project in cost effective steps. The current SGS testwork indicates we can produce sand grading 99.3% SiO2 or better which is the basis of a premium Tier 1 Frac Sand. Initial API testwork by PropTester for Gossan Resources Inc. meet all API Specifications but we will independently confirm the API results using the SGS cleaned sand."

The market for natural frac sand continues to grow at a high rate in North America (approximately 35% per annum) with production reaching about 42,000,000 tons in the US in 2013 and an additional Canadian domestic production of about 2,500,000 tonnes. Claim Post's Seymourville Frac Sand Deposit is approximately 1,000 km closer to the Canadian market than Wisconsin sand deposits; this indicates the potential for significant transportation savings in addition to the Canadian dollar differential.

Claim Post is evaluating a transload facility at the Centre Port site in Winnipeg which will provide unit train loading with access to CN, CPR and the BNSF railroads. In addition Claim Post will provide bulk truck or container service to the oil industry in Manitoba, Saskatchewan and the U.S. side of the Williston Basin. Containers delivered to the well site are very economic within a 600 km range from the Winnipeg transload facility.

Charles M. Gryba P.Eng is the Company Qualified Person for this press release.

Claim Post Resources Inc. is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. The Company is focused on becoming a leading provider of premium white silica sand proppant to oil operations in the Williston Basin (both the Canadian and U.S. sides of the Border), and to the oil and natural gas plays in the Western Canadian Sedimentary Basin from its Seymourville Frac Sand Project, located 200 km northeast of Winnipeg, Manitoba. There are 96,452,164 common shares of the Company currently issued and outstanding.

Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly.

The Company does not assume the obligation to update any forward-looking statement. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the accuracy of this release.

Contact Information:

Claim Post Resources Inc.
Charles Gryba
President and Director
416-801-6366

Claim Post Resources Inc.
Peter Gryba
Corporate Affairs
416-203-3776
www.claimpostresources.com