Mar 17 2014
Victory Mountain Ventures Ltd. ("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
Source: http://victorymv.com/