Duvernay Silica Sand

Project Details

Location

Athabasca County, Alberta

Access

Primary and secondary highway access

AMI Silica

www.amisilica.com

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.

Technical Reports

Open House Report

November 6, 2019 EDMONTON, ALBERTA. Athabasca Minerals Inc. (“AMI” or the “Corporation”) (TSX Venture: ABM) is pleased to announce that it has filed its Technical Report prepared in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) for the White Rabbit Property associated with AMI’s Duvernay Premium Domestic Sand Project (“Duvernay Project”).

Subsequent to the Press Release dated September 10, 2019 outlining the findings of the NI 43-101 Technical Report for the White Rabbit Property, AMI has received Long-Term Conductivity and Permeability results from Stim-Lab, Inc. (“Stim-Lab”). The results received from Stim-Lab suggest high suitability for use as a hydraulic fracturing proppant and remain encouraging based on positive feedback from several potential customers. This reinforces AMI’s objective to provide local Canadian premium domestic sand.

A breakdown of the associated Permeability and Conductivity results are as follows:

Permeability Mesh Sizes
30 / 50
Mesh
40 / 70
Mesh
40 / 140
Mesh
50 / 140
Mesh
70 / 140 Mesh
Permeability (Darcy) @ 2000 psi 69 36 20 18 13
Permeability (Darcy) @ 4000 psi 53 27 14 14 9.4
Permeability (Darcy) @ 6000 psi 35 20 9.3 9.9 6.5
Permeability (Darcy) @ 8000 psi 20 12 5.6 6.4 4.2
           
Conductivity Mesh Sizes
30 / 50
Mesh
40 / 70
Mesh
40 / 140
Mesh
50 / 140
Mesh
70 / 140 Mesh
Conductivity (md-ft) @ 2000 psi 1285 666 360 328 243
Conductivity (md-ft) @ 4000 psi 971 501 256 251 177
Conductivity (md-ft) @ 6000 psi 622 353 167 179 120
Conductivity (md-ft) @ 8000 psi 352 215 98 113 76

Further to the resource delineation program conducted in Q2-2019 that supports the NI 43-101, AMI completed in October-2019 six additional sonic core holes on the White Rabbit property, ranging from 55 feet to 63 feet in depth. This latest supplemental drilling enables AMI to advance its mine plan, facility design and plant location for an efficient integrated operation.

Also, in late October-2019, AMI completed its first phase of delineation drilling for its proposed Montney in-Basin Premium Sand Project. Subject to analysis of these phase-1 results, the Corporation will proceed with a second phase of delineation drilling and subsequently preparing a NI 43-101 Technical Report in the first half of 2020.

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