Rock Products

MAR 2013

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Wisconsin to Appoint Frac Sand Czar The Wisconsin Department of Natural Resources could soon have a specialist that would focus on helping frac sand mines navigate the rules and state processes, said Wisconsin���s governor. With Wood County identified as a prime spot to mine for the sand coveted by natural gas and oil companies, the move could quicken the pace to add local jobs, according to the VOICE of Wisconsin Rapids. ���The (new DNR) staff position that will speed up the process for frac sand oversight and regulation of frac sand mining,��� Gov. Scott Walker said in a press confer��� ence Jan. 17 before he was the keynote speaker during the chamber of commerce���s annual dinner. Elevating frac sand mining to its potential ��� upwards of 1,000 jobs have been estimated ��� is dependent on reliable infrastructure. Walker���s upcoming budget will include key investments into the state���s infrastructure, he said. ���If you have a good roads and bridges with maintenance, that will make it easier when it comes to not only frac sand but also manufacturing sites and dairy farms and anyone else that depends on a reliable transportation in��� dustry,��� he said. Claim Post Resources Inc. Acquires Stake in Canadian Frac Sand Project Claim Post Resources Inc. signed an amendment to its agree��� ment with Char���Crete Ltd. to acquire nine contiguous silica sand quarry leases, encompassing approximately 428 hectares (1,050 acres). The property is located 3 km from a paved highway near Seymourville, 200 km North���East of Winnipeg, Manitoba, Canada. Under the amended agreement, Claim Post paid $400,000 to Char���Crete and acquired a 51���percent undivided interest in the Seymourville Property. Claim Post can acquire the re��� maining 49 percent interest by payment of an additional $300,000 on or before March 31, 2013. The next step would be to commission an independent Preliminary Economic Assessment of the deposit to confirm the economics of taking the Seymourville Silica Sand De��� posit to commercial production. A major step forward in de���risking the project was acquiring an option on a permit��� ted property suitable for setting up a frac sand terminal in Winnipeg with access to rail.��� In addition, Char���Crete has agreed to grant Claim Post an op��� tion to purchase a fully permitted industrial property in Win��� nipeg for use as a railroad loading and storage area for a payment of $400,000 on or before Feb. 17, 2013. If Claim Post chooses to exercise the option the purchase price of the prop��� erty will be $2,700,000. High silica sand deposits are very rare in Western Canada because the glaciers either destroyed the deposits or mixed in other minerals unsuitable for frac sand. Horizontal drilling and fracking in the U.S. and Western Canada has been very successful. The Seymourville deposit has 20���40 mesh and 40���70 mesh sand used for the fracking in the Bakkens in Southern Manitoba and Saskatchewan and also 40���70 mesh and 100 mesh sizes suitable for natural gas fracking in the world class Montney, Horn River and Laird River basins along the Alberta ��� British Columbia borders. The Seymourville Silica Sand deposit was discovered in 1977 and was drilled by Manitoba government geologists in 1981 and again in 1989. The deposit is the Lake Winnipeg Forma��� tion on���shore extension of the Historical Black Island silica deposit. Black Island silica was mined from 1928 to 2003 when it was incorporated into a park. Black Island sand was used as feed stock to manufacture glass, fiber glass, foundry sand and early frac sand by the oil industry. Access to rail transportation and being closer to the market are key advantages required for any successful industrial min��� eral project. The option to purchase an industrial site in Win��� nipeg that has access to both the CN and CP rail systems is a major advantage. In 2012, the U.S. produced 31 million tons of frac sand and CN hauled 70,000 railroad cars of frac sand from Wisconsin through Winnipeg to Western Canada. Claim Post's frac sand is about 1,000 km closer to the Canadian market. The president of Claim Post Resources, Charles Gryba, stated: ���We are very pleased to have acquired a 51 percent interest in the nine quarry leases from Char���Crete Ltd.; we look for��� ward to acquiring the balance of the property in the coming months. Our first priority will be to start a drilling program and API���ISO test work toward completing a NI 43���101 report. Claim Post Resources intends to maintain its exploration properties in Timmins, Ontario, which are highly prospective for both gold and base metals. The company continues to seek joint venture partners and strategic arrangements with other companies in the industry to advance the exploration of the large Timmins land holdings. 18 ROCKproducts ��� MARCH 2013 www.rockproducts.com

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