Stikine - Nonda 100 Mesh Conductivity Results
Stim-Lab carried out duplicate evaluations for Nonda +70-140 processed sand, and continuously monitored conductivity and permeability at 150F for 50 hours for closure stresses of 2000, 4000, 6000 and 8000 psi, respectively. The following table summarizes the results;
Table 1: Measured conductivity results in milliDarcy--ft (md-ft)
| Sample | 2000 psi | 4000 psi | 6000 psi | 8000 psi |
| Nonda 70/140 | 320 | 217 | 130 | 74 |
| Nonda 70/140 duplicate | 302 | 220 | 135 | 75 |
API/ISO Testing of Lab-scale Samples Demonstrates High Quality
The Nonda 100 mesh results are approximately 10% higher in conductivity than that predicted for an Ottawa sand, with similar grain size distribution. Ottawa-type sands are generally recognized as higher quality and are used as a bench mark for comparing various frac sands. However, producers in the Horn River Basin (HRB) in northeast British Columbia are some of the only users of 100 mesh frac sand in North America, and very few other suppliers have committed their materials to conductivity testing to date.
As reported previously, Nonda +40-70 ("40/70") sand also delivered excellent conductivity results. The primary proppants used in the HRB are 40/70 and 100 mesh frac sands with estimated demand of 300,000 tonnes in 2010. This amount is anticipated to increase dramatically as the basin approaches full-scale development in the coming years. Stikine's Nonda project is located within 150km of the western edge of the HRB and has a significant transport cost advantage over other sand supply to the area.
500 tonne Sampling Now Completed for Pilot Testing
Stikine is proceeding quickly to pilot plant testing to make Nonda 40/70 and 100 mesh for the first time at an industrial scale. The planned 500 tonnes of Nonda quartz-pure arenite (sandstone) samples have now been transported to a staging area adjacent to the Alaska Highway and will be delivered to the pilot plant shortly. Operation of the pilot plant will help to define operating parameters, yield and capital/operating costs for the project.
Corporate Name Change
To reflect its strengthening commitment to the energy sector, the Company also announces its intention to change its name to Stikine Energy Corp., subject to approval by the TSX Venture Exchange
Scott Broughton, P.Eng. is the qualified person as defined by national instrument 43-101 responsible for the preparation of this news release.
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
Neither the 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.
Stikine -- Frac Sand Pilot-scale Sampling Commences at Nonda
Pilot-scale process testing will commence as soon as possible, to help define operating parameters, yield and capital/operating costs for the Nonda Frac Sand project. Nonda +40-70 and 100 mesh processed sand samples have demonstrated high quality by API/ISO proppant testing methods and high yields from lab-scale process trials.
Scott Broughton, P.Eng. is the qualified person as defined by national instrument 43-101 responsible for the preparation of this news release.
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
Neither the 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.
Stikine Announces Closing of $3,100,000 Private Placement
Each whole Warrant is exercisable into one additional common share (the "Warrant Share") of the Company until December 17, 2011, at an exercise price of $0.25 per Warrant Share, provided however, that in the event that the closing sale price of the common shares of the Company on the TSX Venture Exchange is greater than $0.50 for a period of 20 consecutive trading days at any time after the closing, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof, and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
In consideration for their services, the Company paid to the Agents a cash commission of 7% of the gross proceeds and common share purchase warrants (the "Agents' Warrants") to purchase up to 7% of the number of FT Shares and Units issued. Each Agents' Warrant will entitle the Agents to purchase one common share (the "Agents' Warrant Share") of the Company until December 17, 2010 at an exercise price of $0.25 per Agent's Warrant Share.
All securities issued pursuant to the Private Placement have a hold period expiring on October 18, 2010.
The proceeds from the sale of the Units will be used for general working capital and corporate purposes. The proceeds from the sale of the FT Shares will be used for furthering exploration of the Company's silica projects in northeastern British Columbia.
STIKINE GOLD CORPORATION
"David Skerlec"
David J. Skerlec -- Chief Financial Officer
"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
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 have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the 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.
Stikine - Nonda 100# (Mesh) Sand Exceeds Frac Sand Specs
As previously announced, Nonda +40-70 sand samples have demonstrated continuous quality improvements with incremental lab process refinements. New test results show the Company has also perfected the lab-scale processing of +70-140 ("100 Mesh") sand. Processed sand testing by Stim-Lab (a Core Laboratories Company specializing in proppant testing) has been focused on crush resistance and a recent sample of +70-140 sand produced only 2.7% fines at 5,000psi (ISO 13503-2/API RP19c, Section 11 "Proppant Crush Test"), well below the suggested maximum of 6%.
Stim-Lab is now commencing an extended conductive-permeability test on the +70-140 Nonda sample; on June 1, 2010 the Company reported exceptional conductivity results for Nonda +40-70 sand. These tests provide a benchmark for downhole conductivity at various stress levels.
The +70-140 Nonda sand also produced the following test results;
| ISO 13503-2/API RP19c: Test | Nonda V6 +70-140 | Recommended |
| Section 6, Sieve Analysis | 92.6% in size | n/a |
| Section 7, Sphericity, Roundness, Clusters | 0.6, 0.5, none | 0.6, 0.6, n/a |
| Section 8, Acid Solubility | 2.2% | 3.0% max. |
| Section 9, Turbidity Test | 141 FTU | 250 FTU max. |
| Section 10, Bulk Density, SG | 1.40 g/cm3, 2.67 g/cm3 | n/a |
Preparations are underway for larger samples to be obtained from the Nonda project and to deliver these samples to a pilot plant-scale test in the summer of 2010. This work will help to define operating parameters, yield and capital/operating costs for the project.
Scott Broughton, P.Eng. is the qualified person as defined by national instrument 43-101 responsible for the preparation of this news release.
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 - Nonda Sample Yields Exceptional Conductivity Results
The results include an average conductivity of approximately 600 millidarcy-ft (md-ft) at a closure stress of 6000psi, or approximately 50% higher conductivity than typically specified in the industry (400 md-ft at 6000psi) for Horn River Basin ("HRB") well completions. Stim-Lab carried out duplicate evaluations for Nonda +40-70 processed sand, and continuously monitored conductivity and permeability at 150F for 50 hours for closure stresses of 2000, 4000, 6000 and 8000 psi, respectively. The following table summarizes the results;
Table 1: Measured conductivity results in milliDarcy-ft (md-ft)
Sample |
2000 psi |
4000 psi |
6000 psi |
8000 psi |
Nonda 40/70 |
1447 |
1027 |
583 |
241 |
Nonda 40/70 duplicate |
1467 |
1146 |
618 |
270 |
A review of sand supply from various sources indicates that some of the better commercially available materials have conductivity results up to 570 md-ft at 6000psi, and therefore the Nonda processed sand sample ranks among the best compared to commercially available frac sands in North America.
Stikine's Nonda project is located within 150km of the western edge of the HRB and has a significant transport advantage over other sand supply to the area. Planning is underway for larger samples to be obtained from the Nonda project and to deliver these samples to a pilot plant-scale test in the summer of 2010. This work will help to define operating parameters, yield and capital/operating costs for the project.
Scott Broughton, P.Eng. is the qualified person as defined by national instrument 43-101 responsible for the preparation of this news release.
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: info@stikinegold.com
Web: www.stikinegold.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.