Stikine -- Initial Process Testwork Yields Positive Results for Nonda Quartzite
Stikine's process evaluation testwork to produce various frac-sand products has been ongoing since October 2009. Dozens of early tests resulted in the production of small quantities of sand that were assessed visually by the Company and led to refinements in process methods. By December 2009, a sufficient quantity of sand was produced to send for proppant testing by Stim-Lab of Oklahoma (a Core Laboratories Company specializing in proppant testing).
The results of Stikine's process evaluation testwork successfully demonstrates that processed sand can be readily produced from Nonda quartzite utilizing a high-yield, low-cost process option. The Company continues to conduct process evaluation and will be submitting further processed sand samples for proppant testing over the coming months.
Background
Lab-scale process evaluation testwork is necessarily a time-consuming and iterative procedure requiring the use of small-scale process equipment and the assessment of many variables to observe results. Prior to the baseline Stim-Lab results presented below, the Company had assessed liberation and roundness results by visual qualitative assessment only. Early processing options that were assessed included simple crushing, grinding and tumbling to produce liberated silica grains. However, the combination of extremely hard quartzite rock and the small size of the lab-scale process equipment created a narrow window of opportunity to properly assess grinding options without over-working the individual grains.
Over-working the quartzite has been observed to damage individual grains by causing micro-fractures and crushing. This results from excess energy exerted by the lab-sized equipment when trying to breakdown the hard rock. Visual assessment of early process results using grinding mills demonstrated the equipment's sensitivity and inherent difficulty in limiting excess grain damage while trying to achieve maximum liberation with lab-scale mills. This is a common challenge in the metallurgical testing industry when evaluating process options at a lab-scale, especially with hard rocks. However, the evaluation testwork led to consideration of a wide variety of process equipment, not all of which is readily available at a lab-scale.
By mid-December 2009 the Company was able to obtain a scrubber device under rental agreement for evaluation. Scrubbers work by particle-on-particle shear forces in a slurry, and not directly through more destructive hardened metal contacts that occur in a grinding mill. The Nonda quartzite process evaluation work showed that the scrubber results produced excellent liberation, minimized grain damage and produced higher yields when visually compared with previous methods.
While the lab-scale equipment used in this method is also small, scrubbing provided average yields (or recoveries) of approximately 65% with demonstrable liberation of grains and improvement to particle shape. Further testing at a variety of densities and durations were also carried out resulting in the baseline sample being sent to Stim-Lab and the results summarized below.
Baseline Proppant Results
Two recently processed Nonda sand fractions (40/70 and 70/120) commonly used in the Horn River Basin were sent to Stim-Lab in December of 2009. The results indicate that excellent liberation and required grain sphericity was achieved relative to the recommended ISO /API procedure.
Stim-Lab conducted the following ISO 13503-2/API RP19c analyses and measurements;
Test |
Sample: -40+70 |
Sample: -70+120 |
Section 6: Sieve Analysis |
59.0% reports as 40/70 |
95.5 reports as 70/120 |
Section 7: Sphericity and Roundness |
0.7 and 0.5 (recommended >0.6) |
0.7 and 0.5 (recommended >0.6) |
Section 8: Acid Solubility |
1.8% (recommended max = 3.0%) |
1.9% (recommended max = 3.0%) |
Section 9: Turbidity test |
9 (recommended max = 250 FTU) |
14 (recommended max = 250 FTU) |
Section 10: Bulk Density and S.G |
1.23 g/cm3, 2.62 g/cm3 |
1.24 g/cm3, 2.64 g/cm3 |
Section 11: Proppant Crush test |
12.3% (suggested max =8%) |
11.7% (suggested max =6%) |
All basic API/ISO measurements and tests were achieved for the two size fractions with the exception of Section 7: Roundness and Section 11: Proppant Crush Test. Future scrubber trials will focus on improving roundness of the overall samples. Both the 40/70 and 70/120 fractions exceeded the suggested maximum fines resulting from the crush tests. This result is believed to be substantially due to an excess of fines in the original sample and an excess of unsorted particle shapes remaining in the sample. The Company believes these values will be significantly reduced after a cleaning process, a step that was not carried out for the baseline sample material.
The scrubber demonstrated that no grinding is required to achieve particle liberation and that beneficial shaping can also result in this process option. The combined results of the first phase of tests are positive and show that the Company is on the threshold of defining a process for making commercial frac sand products from Nonda quartzite.
Having achieved this result, Stikine is moving quickly to evaluate the use of larger scrubbers with additional focus on final cleaning and sorting. Testwork at a new facility will commence as soon as possible using larger scrubbers to produce higher volumes of processed sand. New samples will be further cleaned and classified prior to proppant testing. Larger sample production will allow the Company to distribute individual sample specimens to potential customers, clients and well-completion service companies in the Horn River Basin. Planning is ongoing for a larger bulk sample(s) and ultimately planning feasibility-level process studies to define costs for the project.
The Nonda Frac Sand Project is located in north eastern British Columbia (NEBC) and lies approximately 150 km west of the Horn River Gas Basin. Stikine is evaluating the potential to supply high-quality processed frac sand to the unconventional gas market in NEBC.
Scott Broughton, P.Eng., is the qualified person responsible for the preparation of this news release under National Instrument 43-101.
STIKINE GOLD CORPORATION
"Scott Broughton"
Scott Broughton, P.Eng. -- President and CEO
"Scott Broughton"
Scott Broughton, P.Eng. -- President and CEO
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.
Stikine - Drilling Outlines Impressive Quartzite Continuity and Quality at Nonda
The initial drilling program commenced in September 2009 on part of the Nonda quartzite belt known as Ghost Ridge, which lies in the northern half of the belt. Prospecting and mapping on the project indicates that the north-trending belt of quartzite is exposed at or near surface over approximately 11.5km.
The initial drilling comprises three rows of holes spaced over a strike length of approximately 2.2km. Each row included three drill holes effectively testing the quartzite over a width of up to 900m. All of the holes were collared in, and ended in quartzite, with hole depths ranging from 70m to 168m. The quartzite encountered in all of the holes demonstrated impressive continuity and quality, similar to that observed in surface samples. A total of 934m of HQ drilling was completed and the target belt remains open in all directions.
The Nonda Frac Sand Project is located in North Eastern British Columbia (NEBC) and lies approximately 150km west of the Horn River Gas Basin. Stikine is evaluating the potential to supply high-quality processed frac sand to the unconventional gas market in NEBC.
Bob Lane, P.Geo. is the qualified person who supervised the diamond drill program and prepared the summary of geological information included above. Scott Broughton, P.Eng. is the qualified person responsible for the preparation of this news release under National Instrument 43-101.
The Company also announces that 5 million warrants set to expire on October 14, 2009 have been exercised for proceeds of $750,000.
STIKINE GOLD CORPORATION
"Scott Broughton"
Scott Broughton, P.Eng. -- President and CEO
For further information contact:
Investor Relations
Tel: (604) 684-1900
Fax: (604) 684-2902
Email:
Web: www.stikinegold.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Stikine to Commence Drilling at Nonda Frac Sand Project
Following the successful identification and ranking of priority quartzite projects, and receipt of required Notice of Work permit, Stikine's next step is a focused assessment of the Nonda property. Nonda's quartzite occurrence covers an impressive 11,500m by 1,000m area extent lying approximately 150km west of the Horn River Gas Basin.
The purpose of the upcoming work is to assess the thickness and potential variability of the quartzite in 12 diamond drill holes totaling approximately 1,400 m of HQ diamond drill core. Drill core samples will be sent for petrography to confirm the grain-size and quartzite quality and to establish the basis for a resource estimate. Also, additional surface samples will be taken and used for larger bench-scale processing tests. A sufficient quantity of frac sand will be produced from this work to submit for API RP19C (American Petroleum Institute) / ISO 13503-2 (International Standards Organization) tests, in addition to proppant conductive permeability tests for potential customers. Based on previous processing trials it is the Company's expectation that positive results will be readily achievable from Nonda samples.
Scott Broughton, P.Eng., is the qualified person responsible for the preparation of this news release under National Instrument 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:
Web: www.stikinegold.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Stikine Successfully Completes Initial Frac Sand Field Work
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
"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.
Stikine Closes Private Placement
2 million units have been issued, each consisting of one common share and one common share purchase warrant, with each warrant entitling the holder to acquire an additional common share until August 13, 2010 at a price of $0.15. All securities issued in connection with this financing are subject to a hold period expiring on December 14, 2009.
Proceeds from the private placement will be used for working capital and an initial evaluation of the Company's recently staked mineral claims covering silica occurrences in north eastern British Columbia.
"David Skerlec"
David J. Skerlec - Chief Financial 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.