DNI METALS INC. (DNI : TSX-Ven)(DG7 : Frankfurt)
TORONTO, Aug. 7, 2014 /CNW/ - DNI Metals Inc.
(DNI:TSX-Ven)(DG7:FSE) announces that initial reconnaissance
sampling recently completed over two of the fracsand targets on its
Alberta SBH Property (see press July 11,
2014) has confirmed sections within the Pelican sandstone
Formation containing coarse clean sand of good roundness and
sphericity with potential to meet fracsand specifications. The
presence of high quality sands within this Formation had previously
only been interpreted from downhole geophysical information from a
random selection of oil/gas wells in the area.
The Pelican sandstone Formation is known to contain poorly
cemented, hard, clean white coarse sand with smooth round grains,
and has been shown to be suitable for use as fracsand elsewhere in
Alberta and at locations adjacent
to the Property. The two areas sampled represent only a small part
of a broader sand bearing corridor across the Property over this
Formation which is intermittently exposed in valley walls along the
100km trace marking the erosional edge of the Birch Mountains on
the Property. The Formation is under progressively thicker
overburden to the west and eroded away to the east of the Property.
Five additional large fracsand project areas have been designated
over the Property comprising a portfolio of seven contiguous
properties with collective potential as a new fracsand district in
northeast Alberta adjacent to oil
sands operations in the Fort
McMurray area.
Twenty-two 1kg-5kg trenching and grab samples were collected
from large exposures of the Pelican sandstone Formation at the Tar
River and Asphalt Creek valleys located at the southern parts of
the Property which are nearest road access. The two areas sampled
comprise 200m-300m long scarp exposures of the Formation surrounded
by other similar outcrops on-strike 1km-2km away whose sampling was
deferred. A single scarp was sampled at Tar whereas two scarps, 1km
apart, were sampled at Asphalt. The Pelican Formation continues
beyond the areas sampled under talus rubble, and extends under the
entire 1,812 square kilometre SBH Property with a thickness
typically ranging 30m-60m as demonstrated by DNI's subsurface
stratigraphic database based on nearly 600 oil/gas wells
drilled by others over the SBH Property. The downhole geophysical
information also shows presence of 20m-30m thick sections of porous
clean sand in the Formation. The current sampling confirmed
presence of these sections at the locations sampled.
The current sampling confirmed sections in the lower Pelican
Formation of high quality coarse clean sand of moderate to high
roundness and sphericity at both the Tar River and Asphalt Creek
exposures. Samples of this section measuring 20m+ thick at the Tar
River reveal clean sands with smooth surfaces ranging in sphericity
from moderately oblong to perfect spheres. Photographs of typical
samples of the lower Pelican sections are posted on DNI's website
(http://www.dnimetals.com/fracsand-pics.htm). The website also
includes a new section describing DNI's new fracsand projects.
Subsamples from the material collected were sieved by DNI under
field conditions to enable review of the various size fractions.
Initial results, currently regarded as a guideline only, show
yields upward to 66%, 96% and 80% for the 20/40 mesh, 16/70 mesh
and 16/140 mesh grain size fractions (US mesh). Detailed review of
the samples is in progress to select samples for analysis and for
more rigorous fracsand testing to quantify krumbein shape factors,
crush profile and conductivity, among others.
The Tar River and Asphalt Creek fracsand project areas are
sufficiently large enough that they each hold realistic potential
for hosting sand deposits of reasonable dimensions suitable as a
long term source of fracsand. They have, accordingly, been
designated distinct fracsand properties located approximately 20km
apart. The sampling program examined only a small fraction of the
Pelican sandstone Formation at the SBH Property, and sampling of
several other similar large areas identified on the Property were
deferred to be completed in the course of a broader field sampling
program with a view to advancing toward drilling and resource
definition as soon as possible. These include the Buckton Creek,
the Gos Creek, the Mid Creek, the Pierre River and the Joslyn Creek
fracsand project areas. The projects collectively represent a
portfolio of seven fracsand properties which are located some
10km-20km apart along a 100km long corridor across the Property
where the Pelican sandstone Formation is intermittently exposed in
valley walls.
DNI has not yet explored permits recently acquired adjoining the
northeast and southeast parts of the SBH Property to secure
localities over new targets which have potential for hosting large
volumes of sand which might be suited for use as fracsand.
Additional project areas might be identified on these through field
reconnaissance.
Based on encouraging results from the current sampling, DNI has
decided to expand its fracsand field program to sample the Tar
River and Asphalt Creek fracsand properties in greater detail, in
addition to reconnaissance sampling of the other fracsand project
areas on the SBH Property before winter. DNI is seeking financing
or third party collaboration to complete these programs.
DNI's Qualified Person in respect of its Alberta polymetallic black shale projects, and
this announcement, is Mr. Shahé F.Sabag
P.Geo., President and CEO of DNI.
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.
DNI - TSX Venture
DG7 - Frankfurt
Issued: 74,857,022
SOURCE DNI Metals Inc.