March 17, 2016, Vancouver, BC, Canada – Select Sands Corp. (TSXV: SNS, OTC: CLICF) (the “Company”) announces that it is evaluating its options to unlock the value of its non-core gold asset described as the Preview SW Gold Project (the “Project”) located in northern Saskatchewan, Canada. A special committee of the Company’s Board of Directors will be formed to assess how best to create shareholder value from this asset.
The Project is situated in the La Ronge gold belt, about 60 km southwest of the Claude Resources Inc., which is proposed to be taken over for CAD$337MM, and 100 km south of the permitted Jolu Gold Mine and Mill complex. The Project hosts indicated resources containing 158,300 ounces (oz.) of gold (Au) (2.61 million tonnes grading 1.89 grams per tonne (g/t) Au) and inferred resources containing 270,800 ounces (5.70 million tonnes grading 1.48 g/t Au) based on a 0.50 g/t Au cut-off grade (see the Company’s October 31, 2013 news release).
The metallurgical test work on the Project returned flotation recoveries ranging from 90% to 93% in the flotation concentrate, and gravity concentrates captured 52% to 72% of the free gold (see the Company’s June 3, 2013 news release).
The last drilling on the Project took place in 2013 when 7,000 metres were drilled which tested numerous new targets and extensions of the deposit. The drilling results from the new targets and extensions of the deposit were not included in the October 2013 resource estimate. For more details about the project please visit: http://www.selectsandscorp.com/projects/sk-gold-project/
Selected drilling highlights from the new targets and extensions of the deposit that were not included in the resource estimate include:
- PR13-150 drilled 76 g/t Au over 12.59 m starting at 164.90 m, including 12.35 g/t Au over 4.24 m starting at 164.14 m
- PR13-151 drilled 61 g/t Au over 4.08 m, including individual assays of 5.14 g/t Au over 0.77 m, 13.03 g/t Au over 0.90 m, and 4,279 g/t Au over 0.60 m
- Drill hole PR13-163, located 2,620 m northeast of the Preview SW gold deposit, intersected the following three new near-surface gold zones (see the Company’s April 8, 2013 news release):
- 98 g/t Au over 5.71 m starting at 10 m below surface
- 96 g/t Au over 5.66 m starting at 19 m below surface
- 88 g/t Au over 21.26 m starting at 29 m below surface
Rasool Mohammad, President and CEO of Select Sands, states, “We remain committed to delivering commercial production and profitability to our shareholders through production at the Sandtown project in Arkansas. This requires that our capital and manpower be focused as such. We also want to unlock the gold asset value for the benefit of our shareholders and our long-term corporate objectives of being a high-purity commercial silica producer.”
Recognizing the recent upward movement of gold and gold production, the Board of Directors is of the opinion that the gold assets owned by Select Sands may have a yet to be realized value to the shareholders. A special committee of the Company’s Board of Directors will analyze the best economical path forward for the gold asset. The committee will report back to the Board with its findings.
About Select Sands Corp.
Select Sands’ Sandtown property, located in northeast Arkansas, USA, is underlain by the Ordovician St. Peter sandstone formation, which is a major source of high-purity commercial silica used as frac sand/industrial sand selling into major US oil and gas basins as well as industrial and speciality end markets. The Sandtown property is located 3.1 miles from Highway 167. The property has an active power line on the property with a nearby gas line and is located approximately 14.7 miles from the nearest rail system (see December 4, 2014 News Release). Compared to competitive sand mines located in Wisconsin owned by the largest US frac sand producers, Sandtown has a competitive location advantage as it is approximately 650 rail miles closer to the Texas/Louisiana oil/gas plays as well as the Houston port and industrial hub.
As per the June 2015 completed PEA report by Tetra Tech of Golden, Colorado, USA and Vancouver, BC, Canada, the Sandtown property has a pre-tax NPV valued at US $160 million and a post-tax NPV valued at US $92 million. The PEA was completed on a portion of the resources comprising approximately 40% of the total property area (see the Company’s June 10, 2015 news release). The Company would like to remind investors that mineral resources for the Sandtown Property are not mineral reserves and do not have demonstrated economic viability and there is no certainty that this PEA will be realized. The Sandtown property has a total of 41.98 Million Tons Indicated Resources (see the Company’s February 10, 2016 news release).
The Company also owns a high-grade gold deposit in the La Ronge Gold Belt, northern Saskatchewan. The Preview SW Gold Project hosts indicated resources containing 158,300 ounces of gold (2.61 million tonnes grading 1.89 g/t Au) and inferred resources containing 270,800 ounces (5.70 million tonnes grading 1.48 g/t Au) based on a 0.50 g/t Au cut-off grade (See October 31, 2013 News Release).
Cameron Bartsch, P.Geo., a Qualified Person as defined by National Instrument
43-101, has reviewed and approved the scientific and technical information disclosed in this news release.
For more information about Select Sands Corp., please visit www.selectsandscorp.com or contact:
Rasool Mohammad, B.Sc. (Mining), President & CEO.
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 adequacy or accuracy of this Release.
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Such statements include statements regarding the proposed review of the Project by the special committee and the ability of the Company to deliver commercial production and profitability at the Sandtown project. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold within the United States absent such registration or an applicable exemption from such registration requirements.