Victory Mountain Acquires Alberta Frac Sand Property
March 14 2014 - 1:05PM
Marketwired
Victory Mountain Acquires Alberta Frac Sand Property
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Mar 14, 2014) -
Victory Mountain Ventures Ltd. (TSX-VENTURE:VMV) ("Victory")
announces that it has entered into an option agreement (the
"Agreement"), subject to the approval of the TSX Venture Exchange,
whereby it may earn a 100% interest in 8 Metallic and Industrial
Minerals Permits totalling approximately 737 square kilometres
(73,728 hectares; the "Property"), which is located west of Fort
McKay, in the prolific Fort McMurray area of northeastern Alberta.
Frac sand is actively being sought out and mined in Alberta to meet
growing demand, with particular interest in abundant silica sand
associated with the Paddy and time equivalent Pelican formations in
Northern Alberta. The Pelican Formation is known to crop out or
underlie the Property as identified in preliminary work.
The property is served by a
network of all-weather roads serving the oil and gas industry.
Approximately 95 km of all-weather roads link the property to Fort
McMurray and an active rail line. Preliminary review of extensive
oil and gas well drilling in the Property area has outlined Pelican
sand thicknesses of up to 50 plus metres, which will be the focus
of exploration. The sand is near to and in some areas exposed at
surface, which will facilitate affordable exploration costs and
upcoming operational logistics.
Consulting Geologist Mike Dufresne commented, "Future evaluation
of the frac sand potential of the Property is warranted given: the
proximity of several Steam-Assisted Gravity Drainage operations in
the Property area; the developing infrastructure associated with
oil sands growth adjacent to and on the Property; and an increasing
number of tight oil and gas plays in Alberta and neighboring
provinces/territories."
Director Patrick Morris commented, "The shale gas industry in
Western Canada is in its infancy. We are very pleased to take the
first step towards becoming one of the first TSX-V listed companies
to become suppliers of frac sand in Canada. Currently 90 percent of
frac sand used in the Canadian oil and gas industry (approximately
3.5 million tons per year) comes from the Midwestern United States.
We believe there is a strong economic future in this sector, and
therefore for our shareholders in producing a domestic supply in
Canada."
"Frac sand" is high-purity quartz silica sand with very durable
round grains. It is a crush-resistant material produced for the
petroleum industry. It is used in the hydraulic fracturing process
known as "fracking" to aid in the flow of oil, natural gas and
natural gas liquids. Frac sand is also referred to as a
"Proppant" because it props the fractures open to allow easier
flow of oil and gas.
Pursuant to the terms of the Agreement, Victory will pay a
cumulative amount of $40,000 cash, issue 2,500,000 common shares
and incur a minimum of Exploration Expenditures of $350,000 over a
two year period. The Property will also be subject to a 1% gross
overriding royalty. Finder's fees, as allowed pursuant to the
policies of the TSX Venture Exchange, may be payable in connection
with this acquisition.
Victory Mountain Ventures Ltd. (TSX-VENTURE:VMV) is a Junior
Exploration Company based in Western Canada. The Company has
interests in Frac Sand, Copper, Gold, Silver, Molybdenum and other
base metals in Canada.
Technical information in this
news release has been prepared and/or revised by Mike Dufresne,
P.Geol., a qualified person as defined in NI 43-101.
On Behalf of the Board of Directors
VICTORY MOUNTAIN VENTURES LTD.
Charles Desjardins, President and Director
"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."
Cautionary note:
This report contains forward looking statements. Resource
estimates, unless specifically noted, are considered speculative.
Any and all other resource or reserve estimates are historical in
nature, and should not be relied upon. The production rate and
mine-life projections have been made without support of a
feasibility study, there is no certainty the proposed operations
will be economically viable. By their nature, forward looking
statements involve risk and uncertainties because they relate to
events and depend on factors that will or may occur in the future.
Actual results may vary depending upon exploration activities,
industry production, commodity demand and pricing, currency
exchange rates, and, but not limited to, general economic factors.
Cautionary Note to US investors: The U.S. Securities and Exchange
Commission specifically prohibits the use of certain terms, such as
"reserves" unless such figures are based upon actual production or
formation tests and can be shown to be economically and legally
producible under existing economic and operating conditions.
Victory Mountain Ventures Ltd.Charles DesjardinsPresident and
Director604-683-5445604-687-9631info@victorymv.comwww.victorymv.com
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