Claim Post Resources Inc.
TSX VENTURE : CPS

Claim Post Resources Inc.

October 21, 2014 12:30 ET

Claim Post Resources Inc. Granted Work Permit by Manitoba Government for Line Cutting and Sonic Drilling

TORONTO, ONTARIO--(Marketwired - Oct. 21, 2014) - Claim Post Resources Inc. (TSX VENTURE:CPS) (the "Company" or "Claim Post") is pleased to announce that the Company has received a work permit from the Manitoba Government that allows the Company to engage in exploration activities on the quarry leases covering the Seymourville Frac Sand Project located 200km northeast of Winnipeg, Manitoba. The work permit is valid for one year.

Claim Post Resources is commencing a work program that includes 30 km of line cutting plus the drilling of 80 sonic drill holes. The program will be completed in several phases starting with the Gossan Property. Three line cutting crews of Seymourville and Hollow Water First Nation members are in the process of being hired. First aid and Safety training programs have been scheduled and the line cutting program is expected to start within 2 weeks.

Sonic drilling will be scheduled to start several weeks after line cutting commences. Approximately 60 sonic holes will be drilled on 400m by 400m centers with the goal of defining a global indicated resource tonnage for the entire property. An additional 20 sonic drill holes will be used to detail drill the initial 10 year mining area plus gather geotechnical and groundwater data. Geological consultant and sonic drill contractor quotes are being finalized.

Drilling at a rate of one 25 meter deep sonic drill hole per shift, requires a total of only about 40 days of actual drilling time. Claim Post will update the NI 43-101 resource tonnage as sonic drilling proceeds. The final resource figure will be used in the Production Permitting - Mine Closure process with the Manitoba Government as well as to update the PEA currently in progress.

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 approximately 20% of the Project License Area for the Seymourville Frac Sand Project (Sedar, June 20th 2014). The initial resource was based on 71 historical holes drilled mainly by Gossan Resources Inc. and the Government of Manitoba with the sand averaging 10.1m thick in the area drilled by sonic drilling.

Claim Post has also recently announced that the Seymourville Frac Sand Project has significantly exceeded API ISO Tier 1 Frac Sand Specifications for 40/70, 50/140 and 70/140 frac sand (Sedar September 25th 2014) with, for example, the PropTester 50/140 sand achieving a 10,000 psi compressive strength plus a roundness and sphericity of 0.8 and 0.8 respectively. A 120 kg sample bench scale test is currently in progress to produce a complete set of frac sand size ranges for API ISO test-work with a focus on the coarser 20/40, 30/50 and 40/70 sized material. Conductivity testwork on the September 25th samples is also currently in progress.

Charles Gryba, President and CEO of Claim Post Resources Inc. stated, "We are very encouraged by the progress made to date on the Seymourville project. The metallurgical testwork indicates that we are on track to produce a premium quality Tier 1 frac sand and perhaps the best quality frac sand in Canada. The 80 hole sonic drill program will give the global resource tonnage for the project. The quarry - processing plant engineering design plus the completion of the PEA in the 4th Quarter will give Claim Post investors and oil analysts a good snapshot of the initial production rate, mine life, Capex and operating cash flows."

Charles Gryba, P.Eng. is the Company's Qualified Person for approving the scientific and technical content of this press release.

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 tonnes in 2014 with a further increase of 9,000,000 tonnes in 2015. By 2016 the frac sand production located mainly in Wisconsin could be in the order of 60,000,000 tonnes. 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; this indicates the potential for significant transportation savings. The Canadian oil and gas industry is expected to continue to need to import Tier 1 natural frac sand for the foreseeable future. The Seymourville project stands to benefit from the transportation advantages plus favorable exchange rates plus the Tier 1 quality will allow direct substitution of imported Wisconsin sand.

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 Gryba, P.Eng. is the Company's 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 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