Duvernay Silica Sand
Athabasca County, Alberta
Primary and secondary highway access
AMI Silica, together with our geological partner, has identified a premium quality silica sand resource in the Athabasca region. As identified in the NI 43-101 technical report, there is a large resource of silica sand of 30 million tonnes.
In collaboration with a pending industrial partner, a competitive tender has been issued to five pre-qualified contractors in both Canada and the United States to bid on the Front-End Engineering & Development (FEED). When the project is fully sanctioned and permits are in place, the contract may be converted to an EPC (Engineer, Procure, Construct) contract. The current schedule aims to complete the FEED study in the second half of 2020. Based on the unique synergies with the pending industrial partner, AMI Silica aims at developing the ‘greenest’ silica sand processing facility in North America. Sand products and by-products will serve customer demand in the energy, construction materials and environmental remediation sectors.
In addition, AMI Silica has also secured an offtake agreement with Shell to provide premium quality domestic silica sand from the Duvernay Project. It is anticipated that the Agreement with Shell will serve to commercialize AMI Silica’s in-basin strategy in the Duvernay and Montney plays. The Agreement is underpinned by a committed volume requirement that de-risks AMI’s corporate and project financing options at an improved cost-of-capital.
The Shell Agreement carries a five-year term commencing on the later of mid-2021 or 30 days after the Duvernay Project facility has been commissioned. The Agreement allows Shell to procure a minimum volume of silica sand over five years or up to an annual maximum of frac sand that represents the majority of the Duvernay Project’s stated capacity.