Claim Post Resources Inc.
TSX VENTURE : CPS

Claim Post Resources Inc.

September 03, 2014 15:00 ET

Claim Post Resources Inc. Retains P&E Mining Consultants Inc. to Complete a Preliminary Economic Assessment of the Seymourville Frac Sand Project

TORONTO, ONTARIO--(Marketwired - Sept. 3, 2014) - Claim Post Resources Inc. (TSX VENTURE:CPS) (the "Company" or "Claim Post") is pleased to announce that the Company has signed an Engagement Letter with P&E Mining Consultants Inc. ("P&E") to complete a Preliminary Economic Assessment ("PEA") on the Company's Seymourville Frac Sand Project located approximately 200 km north east of Winnipeg, Manitoba. P&E will be retaining Consultec Ltd. ("Consultec") to assist in the preparation of the PEA. Claim Post has also retained Robert Ober & Associates ("Robert Ober") to provide technical input into the frac sand plant material handling design plus complete a preliminary design of a transload facility in Winnipeg. The PEA will be prepared according to the guidelines set out in National Instrument 43-101. P&E is a firm of consultants, independent from the Company, recognized for its expertise in mining geology, exploration and engineering.

Claim Post has recently reported 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 PEA Technical Report forms an integral part of the Company's business plan and will be used by the Company to support financing activities or decision making processes regarding further economic analysis and development plans of the Project. The Company expects the PEA to be completed by the fourth quarter of 2014.

Charles Gryba, President and CEO of Claim Post Resources Inc. stated, "The PEA is a major step forward in evaluating the economics of the Seymourville Frac Sand Project. To date we have not been able to project the capital and operating costs of the project thus the independent PEA results will be of substantial interest to all our stakeholders."

About P&E Mining Consultants Inc.

P&E Mining Consultants Inc., incorporated in 2004, with a group of 22 professional geologists and engineers has undertaken over 200 projects worldwide including Mineral Resource Estimates, Preliminary Economic Assessments, Pre-feasibility Studies and jointly collaborated with major consulting firms on Feasibility Studies. Their projects have been both open-pit and underground covering gold, silver, platinum, palladium, nickel, copper, cobalt, molybdenum, bismuth, tungsten, tin, lead, zinc, uranium and diamonds.

Eugene Puritch, P.Eng. President of P&E stated, "P&E mining Consultants Inc. has worked recently with Claim Post in a collaborative effort to develop a Mineral Resource Estimate NI 43-101 Technical Report. The timely delivery of appropriate and accurate data by Claim Post expedited the compilation of that Technical Report and P&E looks forward to a similar experience on the upcoming Preliminary Economic Assessment."

About Consultec Ltd.

Since 1975, Consultec has provided innovative technical excellence and exceptional client service on industrial and minerals processing projects for major corporations around the world. The Consultec approach to Integrated Engineering enables it to transform clients' ideas into successful capital investments that exceed expectations.

Consultec experience with process, mechanical, civil, structural, electrical, and automation engineering combined with an extensive track record in project management, procurement and construction management has made it the go-to firm for over 2000 international projects many in the cement – industrial minerals business.

As innovators of Integrated Plant Design, Consultec executes mechanical, civil and electrical engineering plans through a common 3D data-centric platform. This collaborative approach yields numerous project benefits including improved schedule, bill of material generation and overall clear visualization for all project participants.

Alex Ochrym, President of Consultec stated that "We are excited to have won the opportunity to work with Claim Post, P&E Mining Consultants and Robert Ober and Associates, to develop the Seymourville Frac Sands Project. This partnership is a natural fit that will add significant value for all stakeholders."

About Robert Ober & Associates;

Robert Ober & Associates, Inc. is a privately held San Antonio, Texas-based corporation, which acts as a specialty design-build firm employing industrial designers, industrial architects, systems- and material-handling engineers, and project management personnel in the role of owner's representatives and consultants.

The company and its related divisions were launched on August 1, 2006 on the promise of delivering full-service EPC (engineering, procurement, construction) solutions to clients in the concrete, mining, and energy sectors. With over three decades of experience and utilizing a diverse team of internal engineers, architects, consultants, and skilled labor, Robert Ober strategically approaches each project with extensive knowledge and creativity from concept to completion. It builds more than just superior turnkey facilities, but rather puts its client's ideas into action. The firm's implementation of the design-build process is one centered on client satisfaction, open communication, and the ability to lower costs and successfully manage construction schedules for every project.

Through the firm's group of companies, it perform all aspects of the industrial design-build process in the role of owner's representatives and consultants. Its core markets are:

  • Industrial design & consulting
  • Specialty & retrofit contracting
  • Bulk storage & handling systems including many Frac Sand Transload facilities
  • Frac sand drying, storage & management solutions

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 production mainly located in Wisconsin could be in the order of 60,400,000 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 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 priced relative to imported sand plus the freight cost 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 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