One Of The Largest Frack Sand Deposits Lies Just North Of The Bakken; Will Help Relieve Wisconsin's Frack Sand Mining Industry; May Cut Down On Frack Sand By Rail; Great News For Truckers -- October 16, 2015

This should make the NIMBYs in Wisconsin who oppose frack sand mining happy. The press release:

From North America Frac Sand Inc.: on September 9, 2015 we announced the acquisition of North America Frac Sand (CA) Ltd. and its 30,000 acres of leases that are estimated to contain 6.4 million tonnes of recoverable reserves of frac sand, and potential reserves of at least 66 million tonnes.

After the successful sale of their sand deposits in Lloydminster, Alberta; Ray and Dwight Newton began testing some optioned acreage approximately 30 miles east of Saskatoon Saskatchewan. Expenditures of approximately $3 million for exploration, drilling, and analysis later, the testing has proved out 6.4 million tonnes of recoverable reserves of frac sand. Subsequent testing, will prove out a substantial portion of the 100 million tonnes identified.

The three challenges of discovering new frac sand reserves are:

• meeting all of the API specification with respect to size and shape of the frac sand deposits. Our frac sand deposit contain the three most common sizes 20-40,30-50, 40-70 & 70-140 all of which meet API standards.
• sufficient contiguous volume and value to be economical. Our frac sand deposit is both of sufficient volume and quality to be economic. We have minimum overburden; we have our mining permits; we are ready to continue to prove up our resource, build our plant, and start shipping.
• in close proximity to either, oil and natural gas reservoirs, or at least to rail, for cost efficient transportation.
• are truck-able distance to the major Bakken reservoir in North Dakota, Montana, Alberta and Saskatchewan; as well as the Duvernay, Horn River, Montney, Viking and Cardium reservoirs of Western Canada. Annual requirements are in the millions of tonnes for new drilling and recompletions.

We are strategically located to replace a significant portion of the 70% of the frac sand currently being imported into Canada from Wisconsin.

By trucking directly to our customers, not only do we save 1,500 km shipping costs, we by-pass the current bottlenecks of the supply chain, which are rail car availability; lack of trans-loading facilities and sand storage infrastructure; and improving last mile deliveries.

Additionally, in this short term period of low price oil, we provide a cost efficient solution to deliver the frac sand exactly when and where the drillers require the frac sand.

For the Wisconsin folks who don't like mining in their state, this is exceptionally good news.