Rainmaker Resources Ltd. Announces Start of Peace River Field Program
03 Giugno 2014 - 2:00PM
Marketwired
Rainmaker Resources Ltd. Announces Start of Peace River Field
Program
CALGARY, ALBERTA--(Marketwired - Jun 3, 2014) - Rainmaker
Resources Ltd. ("Rainmaker") (TSX-VENTURE:RMG) is pleased to
announce that the first phase of field work on its Peace River
option will commence on Friday June 5, 2014. Rainmaker has entered
into a Purchase Option Agreement with Zimtu Capital Corp. and
877384 Alberta Ltd to acquire 100% of four metallic and industrial
minerals permits in northwestern Alberta, totaling approximately
24,363 hectares. The permits have the potential to host deposits of
silica sand suitable for hydraulic fracturing, and are immediately
adjacent to a current producer.
This first phase of testing will consist of mapping and sampling
sandstone outcrops on the property, in order to prioritize targets
for the next phase of work. The field program will be carried out
by Dahrouge Geological Consulting of Edmonton, Alberta.
Peace River Option Agreement:
The terms of the acquisition are:
- $10,000 on signing the LOI;
- Issuance of 750,000 common shares on TSX-V acceptance of the
agreement;
- $10,000 on completion of a successful exploration program on or
before September 15, 2014;
- Issuance of 750,000 common shares on completion of a successful
exploration program on or before September 15, 2014;
- The Vendors retain a 2% royalty on production, 1% of which can
be purchased for $1,000,000.
Rick Patmore, President and CEO of Rainmaker commented: "It is
very exciting for the Rainmaker management and shareholders that
this project is finally under way. The potential to develop an
economic resource on this property is considered to be excellent.
This is the first project under our newly branded company;
Rainmaker Resources Ltd. and the potential results could be
stellar. We are right next door to a frac sand producing property
that has proven there is a significant amount of quality sand in
the area. We are targeting projects which have the potential to
produce a minimum of 1,000,000 tonnes per year of frac sand, with
at least a 20-year mine life."
Peace River project:
The property is located north of the community of Peace River,
adjacent to the Peace River Frac Sand Quarry, which is owned and
operated by Canadian Silica Industries. The Quarry extends for
approximately 40 km along the Peace River, straddling both the East
and West banks where the target unit is exposed. Within the region,
the Lower Cretaceous Paddy Member of the Peace River Formation is
currently mined for frac sand. The Paddy Member is a friable sand
unit representing a shoreline facies deposited in a fluvial
environment, with a thickness up to 16.5 m (7.7 m average). The
sand grains are almost entirely colorless quartz and beds are
dominantly uncemented, which is ideal as a frac sand proppant in
hydraulic fracturing.
The Peace River Frac Sand Quarry reportedly has a total annual
capacity of 500,000 tonnes of silica sand. Rainmaker is encouraged
by this acquisition given its proximity to infrastructure such as
rail and roads, and location near the community of Peace River.
Additionally, it is located in close proximity to the Horn River,
Montney, and Cardium basins, and is central to the Frac Sand market
within northwestern Alberta.
High priority exploration targets have been identified along the
river banks from historic reports and maps. Rainmaker is commencing
exploration on the property with an extensive channel sampling
program. Sample results will be used in conjunction with historic
data and public information such as well logs, reports, drill core
and cuttings, to develop a follow-up drilling program with the
objective of identifying locations with the best combination of
quality, mesh size distribution, thickness, tonnage and
accessibility.
Chris M. Healey, P.Geo., Director and Geological Consultant,
Rainmaker, is the qualified person responsible for the technical
content of this release.
On behalf of the Board of Directors
Rick Patmore, President and CEO
Rainmaker Resources Ltd.
The TSX Venture Exchange Inc. has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release."
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the adequacy or accuracy of the content
of this News Release. WARNING: The Company relies on litigation
protection for `forward looking" statements. Actual results could
differ materially from those described in the news release as a
result of numerous factors, some of which are outside the control
of the Company. This news release does not constitute an offer to
sell or a solicitation of an offer to sell any of the securities in
the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act') or any state securities laws
and may not be offered or sold within the United States or to U.S.
Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such
registration is available.
Rainmaker Resources Ltd.Damien LowryCorporate
Developmentnews@rainmakerresources.cawww.rainmakerresources.ca
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