April 19, 2016 – Vancouver, BC, Canada – Select Sands Corp. (TSXV: SNS, OTC: CLICF) (“Select Sands” or the “Company”) is pleased to advise that it has commenced limited production at the Sandtown deposit, located in Arkansas, US, in order to fulfill purchase orders for its Tier 1 silica sands into the industrial markets.
The Company anticipates purchase orders from the current customer base will be ongoing and is in a position to ramp up production if there is an increase in demand. Additionally, Select Sands will aggressively pursue new customers in the industrial markets, some of which have already requested large bulk samples or tested the variety of products available from the Sandtown Deposit.
President & CEO of Select Sands Rasool Mohammad stated, “We are pleased to be able to deliver a high quality end product for our growing list of industrial customers. We are in a strong financial position with no debt which has enabled us to consider strategic acquisitions of equipment and facilities that will allow us to extract the maximum value from our high quality deposit.”
Select Sands’ goal is to be a premium Industrial/Silica Sand supplier selling into the US Industrial and Specialty and major Oil & Gas markets. According to Freedonia Group(1), the industrial silica sand market is set to reach global demand of 291 million metric tons by 2018, nearing a total value of USD $12.5B which is anticipated to create significant demand drivers for high quality Tier 1 Silica Sands.
Due to the highly competitive nature of the business, details on size, pricing or names of customers will not be disclosed.
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 ‘Ottawa White’ Tier-1 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 near a natural gas pipeline. The property has an active power line on the property 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 a recently completed Preliminary Economic Assessment report by Tetra Tech of Golden, Colorado, USA and Vancouver, BC, Canada, the Sandtown property contains 22 million tons of Indicated resources of silica sand with a pre-tax NPV valued at US $160 million (after-tax NPV at 8% is US$92 million). This mineral resource is contained within 40% of the total property area (See June 10, 2015 News Release).
Cautionary Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability and there is no certainty that this preliminary economic assessment will be realized. The Company advises that the production decision on the Sandtown deposit set forth herein was not based on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will begin as anticipated or at all or that anticipated production costs will be achieved. The Company further cautions that it’s previously disclosed preliminary economic assessment is preliminary in nature. No mining study has been completed. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the preliminary economic assessment will be realized.
The Company also owns Preview SW Gold Project 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).
Douglas Turnbull, P.Geo., a Qualified Person as defined by National Instrument
43-101, has reviewed and approved the scientific and technical disclosure 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. Such statements include statements regarding the anticipated completion of the proposed private placement. 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. The assumptions on which the forward looking statements contained herein rely include the ability to complete the remainder of the financing. 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.