North America Frac Sand, Inc. (OTCQB: NAFS) is engaged as a frac sand supplier and leaser, which is used in hydraulic fracturing or “fracking.” The company says they have 29,900 acres of frac sand deposits across Canada. Shares of the frac sand company are sky-rocketing 126.67%, through early trading on Tuesday, May 30, 2017. Over the past month, North America Frac Sand, Inc. has seen average daily volume of 90,816 shares. However, volume of 5.54 million shares or dollar volume of $329,630, has already exchanged hands on Tuesday.
Shares of North America Frac Sand, Inc. are surging today, after the company announced it has completed its initial technical report, or NI43-101 report, for its Eagle Creek project, which is a Saskatchewan-based frac sand deposit. Here are the details regarding the initial technical report for the Eagle Creek property and plans for next evaluation phase:
North America Frac Sand, Inc. Press Release:
NORTH VANCOUVER, BRITISH COLUMBIA–(Marketwired – May 30, 2017) – North America Frac Sand, Inc. (“NAFS” or the “Company”) (OTCQB:NAFS) (www.NAFSINC.ca) is pleased to announce that on May 25, 2017, the Company received its initial “Technical Report” addressing its Eagle Creek Property in Saskatchewan, Canada.
The Technical Report was prepared in accordance with the requirements of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) by Norwest Corporation (Norwest) of Calgary, Alberta, and covers exploration to date on a portion of NAFS’ leased areas (approximately 12,100 hectares [29,900 acres]). Between 2009 and 2016 a portion of the property was explored by 112 test pits and 104 drill holes, of which 145 pits and drill holes were sampled. The last 38 holes were drilled under the supervision of Norwest in 2016.
Following Norwest’s development of the mineral resource model, an in-place sand resource of commonly used frac sand size fractions in the tested area was calculated. A bulk density of 1.5 g/cm3 was used. Totaling 7,799 K Tonnes, (8,597 K Tons) the inferred mineral resource for each size fraction is:
- 20/40: 3,758 K Tonnes (4,142 K Tons);
- 40/70: 3,155 K Tonnes ( 3,478 K Tons);
- 70/140: 886 K Tonnes ( 977 K Tons).
“It is Norwest’s opinion that the drill hole and test pit distribution and obtained assay data of the Eagle Creek Project is sufficient to indicate reasonable potential for economic extraction. Based on all available data, Norwest classifies the mineral resources as Inferred.”
It is important to note that the explored area addressed in Norwest’s report is less than 5 percent of the total acreage under quarrying leases held by NAFS.
NORWEST has made recommendations for the next evaluation work phase, which NAFS is currently evaluating.
On behalf of the Board of Directors of North America Frac Sand Inc.
David Alexander, Chief Executive Officer
Further information about the Company is available on our website at www.nafsinc.ca or under our profile on EDGAR at www.sec.gov.
About Frac Sand: Frac Sand is a proppant used in the oil and gas industry as a part of the hydraulic fracturing process – a means of increasing flow to the wellhead. Frac sand must have particular characteristics including achieving certain levels of crush resistance, sphericity, and roundness. It is therefore a relatively rare commodity.
About North America Frac Sand, Inc.
North America Frac Sand, Inc. (OTCQB:NAFS) is headquartered in North Vancouver, British Columbia, Canada. With our 29 900 acres of frac sand leases, the Company’s short-term intent is to prove out the balance of our significant resource. The Company’s long-term intent is to commence shipments of frac sand as soon as possible.
Forward-Looking Information: This news release contains certain forward-looking information. All information, other than information regarding historic fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this news release includes, but is not limited to, the ability of the Company to continue selling frac sand in the future, on a spot basis or otherwise. The forward-looking information contained in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. With respect to the forward-looking information contained in this news release, the Company has made assumptions regarding, among other things, future prices for frac sand and by-products, future demand for processed frac sand and the ability of the Company to restructure its debts. The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including the general volatility of frac sand and by-product prices and demand, geological, technical, drilling and processing problems, future currency and interest rates, an unwillingness of the Company’s lenders to refinance the Company’s debts on terms favorable to the Company or at all and the ability of the Company to continue selling frac sand. Additionally, if the Company is unable to obtain additional financing, the Company may be required to curtail activities and/or liquidate its assets or the Company’s creditors may seek to seize its assets. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.