Claim Post Resources Inc.
TSX VENTURE : CPS

Claim Post Resources Inc.

September 25, 2014 14:00 ET

CLAIM POST RESOURCES INC. Announces that the Seymourville Frac Sand Project Test Samples Significantly Exceeds Industry Standards for Frac Sand

TORONTO, ONTARIO--(Marketwired - Sept. 25, 2014) - Claim Post Resources Inc. (TSX VENTURE:CPS) (the "Company" or "Claim Post") is pleased to announce that PropTester Inc. API testing has achieved 10,000 psi compressive strength for 50/140 frac sand, 11,000 psi compressive strength for 70/140 mesh frac sand and 8,000 psi compressive strength for 40/70 mesh frac sand. The sand samples were from Claim Post's Seymourville Frac Sand Project located approximately 200km NE of Winnipeg, Manitoba.

The API ISO PropTester testwork was done on samples processed by SGS from a representative sample of sand generated from 25, 3.5 inch diameter sonic drill holes drilled largely on a 100m x 100m drill pattern. The API compressive strengths for the 40/70 and 70/140 mesh frac sand are plotted as red dots on the chart below which shows the cross plot of the sand compressive strengths versus mesh size. Many of the Western Canadian natural gas company's use a slightly coarser 50/140 sand thus a red dot for 50/140 was plotted on the 40/70 - 100 mesh axis. The SSS symbol is sand from Emerge Energy's 100% owned Superior Silica Sand mine. To view the sand usage graph, please visit the link below:

http://media3.marketwire.com/docs/claim_post_resources_graph_sept25.pdf

Charles Gryba, President and CEO of Claim Post Resources Inc. stated, "The PropTester API test results have confirmed the excellent quality of the Seymourville Frac Sand as compared to Northern White Tier 1 sand produced mainly in the States of Wisconsin and Minnesota and has allowed us to finalize the flow sheet for the PEA. Our next step is processing approximately 200kg of sand at SGS to allow us to generate a complete range of frac sand size ranges; 20/40, 30/50, 40/70, 50/140 and 70/140 for both API and conductivity testwork plus generate additional 1kg samples for initial market studies."

Claim Post has recently announced an initial NI 43-101 Inferred Mineral Resource Estimate of 25,000,000 tonnes of high quality silica sand on 20% of the Project Lease Area for the Seymourville Frac Sand Project (Sedar, June 20th 2014.) Claim Post also recently posted (Sedar, September 3rd, 2014 that it had contracted a Preliminary Economic Study (PEA) to be completed by the 4th Quarter of 2014.

Claim Post Resources PropTester Inc. ISO 13503 API Results:
Sand Size 40/70 mesh
Claim Post Resources Results Minimum API Standards
Size 40-70 40-70
Turbidity 16 <250
Clusters 0 <1
Roundness 0.8 >0.6
Sphericity 0.8 >0.6
Acid Solubility 1.1 <3.0
Bulk Density 2.56
ISO Crush Analysis (PSI) 8,000 4,000
Sand Size 50/140 mesh
Claim Post Resources Results Minimum API Standards
Size 50-140 50-140
Turbidity 25 <250
Clusters 0 <1
Roundness 0.8 >0.6
Sphericity 0.8 >0.6
Acid Solubility 1.7 <3.0
Bulk Density 2.59
ISO Crush Analysis (PSI) 10,000 4,000
Sand Size 70/140 mesh
Claim Post Resources Results Minimum API Standards
Size 70-140 70-140
Turbidity 18 <250
Clusters 0 <1
Roundness 0.8 >0.6
Sphericity 0.7 >0.6
Acid Solubility 1.6 <3.0
Bulk Density 2.61
ISO Crush Analysis (PSI) 11,000 4,000

About the Frac Sand Market

The market for natural frac sand continues to grow at a high rate in North America (approximately 35% per annum) with production reaching about 38,000,000 tonnes in the US in 2013. Raymond James Ltd., in their June 30th 2014 Research Report, estimates a year-over-year increase in proppants of 13,200,000 tons in 2014 and ~ 60m tons by 2016. The Raymond James August 19th 2014 North American Sand Rush Research Report updated the estimates the consumption of frac sand to ~ 78,000,000 tons by 2016; substantially higher than the June report estimate. The Canadian market is about 10% of the North American market.

Claim Post's Seymourville Frac Sand Deposit is approximately 1,000 km closer to the Canadian market than the Wisconsin sand deposits; indicating the potential for significant transportation savings in addition to the Canadian dollar differential. The Canadian oil and gas industry will continue to import natural frac sand for the foreseeable future, thus Seymourville sand will be competitively priced relative to imported Tier 1 sand plus we should be able to capture some the freight cost savings from Wisconsin to Canada.

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 plans to 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 Gryba, P.Eng. Supervised the SGS and PropTester testing program and is the Company's Qualified Person for approving the scientific and technical content of 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 entire Western Canadian Sedimentary Basin from its Seymourville Frac Sand Project, located 200 km northeast of Winnipeg, Manitoba. Claim Post also has mineral claims in the Timmins area for gold and base metal exploration. There are 118,019,160 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