DNI METALS INC. (DNI : TSX-Ven)(DG7 : Frankfurt)
TORONTO, July 11, 2014 /CNW/ - DNI Metals Inc.
(DNI:TSX-Ven)(DG7:FSE) announces that it has recently concluded
acquisition of additional metallic and industrial mineral permits
over 61,440 hectares adjoining its Alberta SBH Property to secure
strategic locations over exposures of the Pelican sandstone
Formation which is known elsewhere in Alberta to contain sections of sand suitable
for use as a natural sand proppant (fracsand) by the oil/gas
industry.
Compelled by growing demand in fracsand to supply fast growing
tight oil/gas plays in western Canada, and the scarcity of local deposits,
DNI has decided to test the Pelican Formation sandstone on its
Property for suitability as fracsand. DNI's field program to sample
and test this Formation on the Property will start shortly.
The Pelican Formation sandstone contains poorly cemented, hard,
clean white coarse sand with relatively smooth round grains.
Fracsand is currently being produced from the stratigraphic
equivalent of this Formation in the Peace River region, in
west-central Alberta. In addition,
high silica (98%+) coarse and smooth grained sand sections have
been reported by others from exposures of the Formation from
locations adjacent to the Property which are being evaluated as a
source for fracsand. Similar outcrop exposures on DNI's Property
have not yet been sampled and their suitability as fracsand has not
been determined.
DNI's subsurface geological and stratigraphic database, based
on nearly 600 oil/gas wells drilled over its Property by
others, confirms that the Pelican Formation sandstone extends under
the entire Property with thicknesses typically ranging 30m-60m.
Downhole geophysical logs from a random selection of the wells
confirm the presence of porous clean sand sections within the
Formation.
The Pelican Formation is under thin overburden cover throughout
most of the eastern parts of the Property, and it is intermittently
exposed in valley walls along the 100km trace marking erosional
edge of the Birch Mountains on the Property. This Formation is
eroded away to the east of the Property. The Pelican Formation is
poorly consolidated and would lend itself well to free-dig
extraction.
Four large areas have been identified on the Property offering
~1km-2km long outcrop exposures of the Pelican Formation some of
which are accessible by road. These areas provide primary targets
for sampling.
DNI has been exploring metal enriched zones in polymetallic
black shales at its SBH Property since 2007 and has successfully
delineated two mineral resources at the Property, one of which (the
Buckton Deposit) has advanced through a Preliminary Economic
Assessment for the production of base metals, Uranium and REE
(announced in December 2013). The
Pelican sandstone Formation at the Property lies beneath the
flat-lying metal enriched black shales, and offers new targets with
potential to add further value to the Property. DNI's planned
exploration program to test this Formation will be an adjunct to
its ongoing work to continue advancing its polymetallic shale
resources toward pilot demonstration.
The Alberta SBH Property previously consisted of 2,720 sq km
held under 36 permits, and provided coverage over six mineralized
areas. Through ongoing rationalization of its land position, DNI
allowed a large portion of its prior land position, being
non-strategic areas over remote lower priority permits, to lapse in
March 2014. These permits contained
three early stage blind targets, namely; the McIvor West and North
Lily Anomalies, and the Eaglenest Target Area. These targets are
challenged by remote field access, lack of outcrop exposures and
seasonal field activity constraints. DNI has not previously carried
out any work on these areas other than compilation of historic
work, and has instead prioritized the eastern parts of the Property
where the shales are accessible and exposed.
DNI recently acquired additional permits 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 in the oil/gas industry.
The SBH Property currently comprises 1,812 sq km held under 25
permits, and contains three drill-tested polymetallic mineralized
zones or resources, namely; the Buckton Deposit, the Buckton South
mineral resource and the Asphalt Zone. The foregoing comprise DNI's
black shale hosted strategic polymetallic assets.
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.