VANCOUVER, May 17 /CNW/ - Stikine Energy Corp. (TSXV: SKY) ("Stikine" or the "Company") announces the following updates on pilot
plant operations and exploration activities for the Company's two Frac
Sand projects: Nonda and Angus.
Sepro Services Corp. has continued equipment optimization trials at
Stikine's frac sand pilot plant operation located in Abbotsford, BC.
The plant has successfully demonstrated steady-state operations and
production of Nonda 100 mesh sand that readily achieves API suggested
Ongoing trials and testing of the Nonda -40+70 sand product has
continued to improve the quality with small deviations from the
recommended specification for that product size. The work has
highlighted that the pilot plant's existing attrition scrubbing units
are limiting the plant's overall effectiveness and its ability to
produce the desired -40+70 sand. As a result, more efficient scrubbers
have recently been ordered from an alternative manufacturer. This new
equipment will be delivered in early June 2011 and the remaining Nonda
material will be processed and tested once it is installed. Also, much
of the processed sand already bagged at the site will be re-processed
to generate as much API/ISO spec material as possible from the Nonda
pilot plant operation.
Changing the pilot plant's attrition scrubbing units is expected to
result in better products across the range of sand sizes, including
Nonda -40+70 sand. Management is encouraged that recent lab-scale
testing (off site) of the new scrubbers resulted in a crush fines
contents of 7.8%, 7.2% and 7.6% for the Nonda -40+70 sand -
consistently passing the suggested maximum value of 8% at 5,000 psi.
The Angus pilot plant sample (~500 tonnes) has now been crushed using
the primary crushing circuit at the Abbotsford site. The pilot plant
will continue to operate with the existing attrition scrubbers until
the new units described above are delivered. Pilot process trials
commenced on May 16, 2011 using the Angus material and sand is
currently being produced in -20+40, -40+70 and 100 mesh sizes. Once
operating at steady-state, samples will be examined and sent for
API/ISO testing. The Angus material has historically demonstrated lab
trial results that show it is easier to liberate than the Nonda
A planned drilling program at Angus will mobilize on Wednesday May 18,
2011 and drilling will commence soon after. Diamond drill pads have
already been constructed at the initial Angus drill sites. A total of 9
to 12 holes will be drilled to test the quality, consistency and
thickness of the Angus sandstone unit. Some of the sites selected are
road accessible while others require heli-support to provide access.
All sites are close to the community of Bear Lake, north of Prince
Stikine is focused on becoming a dominant frac sand supplier to British
Columbia's developing shale gas industry. The Horn River, Liard and
Montney Basins are large-scale gas plays led by major producers who
currently rely on frac sand transported over great distances. Stikine's
Nonda project is located in close proximity to the Horn River and Liard
Basins and the Angus project lies in close proximity to the Montney
Basin. The projects were identified in 2009 through a systematic search
for raw material sources possessing the different frac sand sizes used
in each basin and the potential for large-scale resource development.
Stikine is currently completing resource estimates, engineering and
baseline environmental work in addition to community consultation for
Scott Broughton, P.Eng. is the qualified person as defined by national
instrument 43-101 responsible for the preparation of this news release.
STIKINE ENERGY CORP.
Scott Broughton, P.Eng. - President and CEO
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(as that terms is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Stikine Energy Corp.
For further information:
Tel: (604) 684-1900
Fax: (604) 684-2902