| Tue Aug 18, 2009 Stikine Successfully Completes Initial Frac Sand Field Work | |
| Vancouver, British Columbia: Stikine Gold Corporation (SKY:TSX.V) ("Stikine" or the "Company") announces that it has successfully completed an initial field program at a number of its 100% owned quartzite properties in north eastern British Columbia (NE BC). The purpose of the program was to conduct a preliminary assessment of the Company's 17 properties, now totaling almost 83,000 hectares of mineral claims covering prospective quartzite zones. Based on that preliminary work, Stikine has determined that several of the properties meet the criteria for raw silica sources that could potentially be used in the production of frac sand. Frac sand is an indispensable component in the development of 'unconventional' or 'tight shale' gas wells. Significant quantities of frac sand are currently being imported over great distances to the Horn River and Montney shale-gas basins in NE BC. As development of these shale-gas resources continues, increasing volumes of frac sand will be required. It is estimated that in 2009 approximately 300,000 tonnes per annum (tpa) will be required in the Horn River Basin alone, and that up 2 million tpa will be required when that gas field is developed over the coming years. Costs in 2009 for delivered frac sand have averaged approximately C$300/tonne, with an estimated 80% of the current cost associated solely with shipping, handling and logistics to the area. The focus of field activities in June and July 2009 was to locate and define raw quartzite sources proximal to the NE BC shale-gas fields. Work to date indicates that the Nonda, Beav, Crow, Pet and Angus properties represent good opportunities to develop frac sand operations, subject to further testwork. Sampling and mapping at the Nonda property highlight its very large-scale potential over an impressive 11,500m by 1,000m area. Petrographic analysis of samples collected from Nonda indicate the rocks are very pure with up to 98% quartz comprised of variably sized grains that fall within the required range for commercial frac sand. While the insitu quartzite samples from Nonda and Stikine's other properties have generally angular grains, the Company has completed preliminary laboratory tests that indicate simple crushing, tumbling and polishing can produce rounded silica sand grains in appropriate fractions, as required for commercial frac sands. Process development and laboratory trials are at an early stage and are ongoing; test results will be provided as they become available. The Company has submitted a Notice of Work for diamond drilling and sampling to acquire additional samples at Nonda with the Ministry of Energy, Mines and Petroleum Resources and anticipates returning to the property in September 2009 to conduct that follow up work. Robert (Bob) Lane, P.Geo., is the qualified person responsible for the geological content of this news release under National Instrument 43-101. Scott Broughton, P.Eng. is the qualified person who prepared this news release under NI 43-101. STIKINE GOLD CORPORATION "Scott Broughton" Scott Broughton, P.Eng. -- Chief Executive Officer For further information contact: Investor Relations Tel: (604) 684-1900 Fax: (604) 684-2902 Email: info@stikinegold.com Web: www.stikinegold.com The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. | |