VANCOUVER, June 28, 2011 /CNW/ - Stikine Energy Corp. (TSXV: SKY) ("Stikine" or the "Company") announces the following updates on
work-in-progress for its two frac sand projects; Nonda and Angus.
These activities include substantial advancement of its pilot plant
operations, exploration and geology, engineering and preliminary
economic assessment, environmental baseline and community engagement
Sepro Services Corp. is currently installing the new attrition scrubbers
at Stikine's frac sand pilot plant operation located in Abbotsford,
BC. The scrubbers are expected to provide greater efficiency than the
original units and have produced excellent lab-scale results from this
manufacturer, including; ISO/API 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.
During the month of June 2011, the plant was readied to receive the new
equipment in order to expedite commissioning of the entire process
operation. New pilot plant samples will be generated by the end of
this week and sand testing will be completed by Stim-lab, as previously
described. After confirming initial results from the new plant and
equipment, the remainder of the Nonda sample will be processed and
tested. Also, much of the 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.
Engineering and Preliminary Economic Assessment
The Company's engineering consultants, including; Wardrop (a Tetra Tech
company) of Vancouver, BC and Sepro Services Corp. of Langley, BC, are
preparing a preliminary economic assessment for the Nonda frac sand
project. The team includes mining, process, access, infrastructure,
financial analysis and cost estimating professionals. Independent
market assessments are also being completed to provide input to the
size and pricing of delivered frac sand to northeast British Columbia,
and broader markets in North America. The various components to the
study will be completed and reported in July 2011.
Environmental Baseline Studies and Permitting
Ecosystems North, a subsidiary of Wildlife Infometrics Inc. of
Mackenzie, B.C., has commenced environmental assessment and baseline
studies for the Nonda project. The fieldwork component to this has
focused on aquatic, terrestrial, climate, noise, social and other
aspects of the project environment. Recent fieldwork includes; water
quality and stream flow measurements, ongoing vegetation sampling, and
the collection of climate data. Because the Nonda site has had little
prior assessment or review, Ecosystems North has also deployed 35
caribou collars to determine caribou range, conducted caribou calving
surveys, established hair traps for grizzly/wolves/wolverines, and
commenced a bird and butterfly inventory.
Stikine intends to file the Nonda Project Description and to begin the
project permitting process shortly after receiving the engineering and
design information from its engineers. The Company has met with
various government and regulatory staff to discuss the Nonda project
prior to the submission of the Project Description to the BC
Environmental Assessment Office.
Stikine is committed to seeking First Nation input and advice into the
Nonda Project and is working with First Nations on designing and
planning the environmental, socio-economic, and cultural aspects of the
Project. The engagement will also help to identify and secure economic
opportunities at an early stage so that communities benefit directly
from the economic activity generated by the Project.
The Company has recently announced an agreement with the Kaska Dena
Council and is in project discussions with the Fort Nelson First Nation
and the Acho Dene Koe First Nation. Stikine has also made
presentations to the Northern Rockies Regional District located in Fort
A small quantity of the Angus pilot plant sample was processed in June
using the original attrition scrubbers installed at the plant. It was
observed that the operations successfully produced -20+40, -40+70 and
100 mesh sizes, samples of which were sent for testing at Stim-lab.
The initial results from that work indicate that the samples were
approaching the recommended specifications for crush tests. Management
has elected to wait to continue process trials for the Angus material
using the new scrubbers, currently planned for July, rather than spend
additional time and energy to optimize the original process equipment.
Diamond Drilling and Geology
Radius Drilling Corporation of Prince George has now completed 10
diamond drillholes (in excess of 1500m) of a planned 11-hole program.
The drill program is expected to be completed by June 30, 2011 and
results will be used to generate a resource estimate for the Angus
The drill program covers a strike length of approximately 2500 m by
approximately 400 m wide with hole depths of up to 200m. Core logging
and sampling has been carried out concurrently with drilling and will
also be completed shortly. Drilling has successfully intersected
massive to thickly bedded quartz sandstone with occasional thin silty
interbeds. Surface mapping has also continued and will be used to
update geological maps of rock types and structures in the project
Engineering and Scoping Level Studies
The Angus and Nonda projects have many similarities and the Company's
engineering consultants are preparing scoping level studies for the
project. Similar teams include; mining, process, access,
infrastructure, financial analysis and cost estimating professionals.
Once a resource estimate has been completed (see diamond drilling
above) the Scoping Level work will be transitioned into a Preliminary
Environmental Baseline Studies and Permitting
Ecosystems North has also commenced environmental assessment and
baseline studies for the Angus project. Similar to Nonda, the work will
focus on aquatic, terrestrial, climate, noise, social and other aspects
of the project environment. Recent fieldwork includes; water quality
and stream flow measurements, ongoing vegetation sampling, and the
collection of climate data. The Angus site benefits from a substantial
historical environmental record and database. Caribou have been
extirpated in the area according to the Provincial records and there is
no requirement for studying that species in the project area.
Similar to the Company's approach for Nonda, Stikine intends to file the
Angus Project Description and to begin the permitting process shortly
after receiving the engineering and design information from its
engineers. The Company has met with various government and regulatory
staff to discuss the Angus project prior to the submission of the
Project Description to the BC Environmental Assessment Office.
The Angus project is within the traditional territories of the McLeod
Lake Indian Band, the West Moberly First Nations and is in close
proximity to the neighboring Lheidli T'enneh Nation. Stikine is
committed to seeking their input and advice into designing and planning
the environmental, socio-economic, and cultural aspects of the Angus
Project and to identify and secure economic opportunities at an early
stage so that communities benefit directly from the economic activity
generated by the Project. The Company is engaged in project
discussions with all of the First Nations listed above.
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
Neither the TSX Venture Exchange nor its Regulation Services Provider
(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