Stikine Successfully Completes Initial Frac Sand Field Work



    SKY:TSX.V

    VANCOUVER, Aug. 18 /CNW/ - Stikine Gold Corporation (SKY:TSX.V)
("Stikine" or the "Company") announces that it has successfully completed an
initial field program at a number of its 100% owned quartzite properties in
north eastern British Columbia (NE BC).
    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


    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    





For further information:

For further information: Investor Relations, Tel: (604) 684-1900, Fax:
(604) 684-2902, Email: info@stikinegold.com, Web: www.stikinegold.com

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Stikine Energy Corp.

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