Claim Post applies for Seymourville exploration permit

Jul 8, 2014

CLAIM POST RESOURCES INC. APPLIES FOR MINERAL EXPLORATION WORK PERMIT

Claim Post Resources Inc. has applied for a mineral exploration work permit through Manitoba Conservation, and the mineral resources division of innovation, energy and mines (IEM). The work permit is valid for a one-year period for exploration work such as line cutting, exploration and geotechnical drilling.

Through the application of the mineral exploration work permit, IEM will conduct Crown consultation on the application mainly with the Hollow Water First Nation, and the villages of Seymourville and Manigotagan. Consultation is usually a four- to six-week process. Manitoba views the consultation process as helping build positive relationships between the government of Manitoba, aboriginal communities and companies like Claim Post Resources.

The application for the work permit creates a formal process of aboriginal consultation for mineral exploration activities in the province of Manitoba. IEM will facilitate the Manitoba consultation process and will communicate any requirements or conditions that arise from consultation or from other government departments directly to Claim Post Resources. Consultation will seek input from the communities on concerns regarding potential adverse effects relating to the exploration program and measures to mitigate those concerns.

An effective consultation process will allow the stakeholders to make informed decisions about the potential effects on the exercise of treaty and aboriginal rights without unduly delaying or discouraging investment in Manitoba’s mineral resources, which benefits all Manitobans, including aboriginal people who live and work near the areas of mineral exploration or development.

The president of Claim Post Resources, Charles Gryba, stated: “Over the past 12 months Claim Post Resources has engaged in a number of proactive informal discussions with Hollow Water, Seymourville, cottage owners and a number of Manitoba government departments. In addition, our project engineer lives on the Hollow Water reserve, thus he is continuously meeting with the community members. We are now entering the formal government process of conducting open houses with both the first nations and nearby recreational cottage communities.”

Claim Post has recently posted (SEDAR, June 20, 2014) a preliminary National Instrument 43-101 inferred resource of 25 million tonnes of high-silica sand for the Seymourville project. The market for natural frac sand continues to grow at a high rate in North America (approximately 35 per cent per annum) with production reaching about 42 million tons in the United States in 2013 and an additional Canadian domestic production of about 2.5 million tonnes. Raymond James, in its June 30, 2014, research report estimates a year-over-year increase in proppants of 14.6 million tons in 2014 with a further increase of 10 million tons in 2015.

Claim Post is evaluating a transload facility at the CentrePort site in Winnipeg, which will provide unit train loading with access to Canadian National Railway, Canadian Pacific Railway and the Burlington Northern Santa Fe Corp. railways. In addition, Claim Post will provide bulk truck or container service to the oil industry in Manitoba, Saskatchewan and the U.S. side of the Williston basin. Containers delivered to the well site are very economic within a 600-kilometre range from the Winnipeg transload facility.

Claim Post’s Seymourville frac sand deposit is approximately 1,000 kilometres closer to the Canadian market than the Wisconsin sand deposits; this indicates the potential for significant transportation savings in addition to the Canadian dollar differential. The Canadian oil and gas industry will continue to import natural frac sand for the foreseeable future, thus Seymourville sand will be priced relative to imported sand plus the freight cost from Wisconsin to Canada.

Charles Gryba, PEng, is the company’s qualified person for this press release.

http://www.claimpostresources.com/news.php