Oct 19 2012
Victory Nickel today provided an update regarding ongoing initiatives by the Company's subsidiary Victory Silica Ltd. ("VSL").
VSL was created earlier this year to establish Victory Nickel's presence in the frac sand market prior to commencing production of both nickel and frac sand at the 100%-owned Minago mine in Manitoba. The Minago feasibility study envisions production of up to 1.14 million tonnes per year of premium-quality frac sand from the Winnipeg Formation sandstone resource that overlies the Minago nickel deposit. In order to establish Victory Nickel as a premier frac sand supplier today, VSL plans to produce premium-quality Midwest frac sand in Canada by shipping raw or partially processed sand from Wisconsin to an existing sand processing facility in Alberta. Discussions concerning VSL's acquisition of the Alberta plant are well advanced.
At the same time as it is developing this business, VSL is pursuing additional opportunities it has identified to generate near-term cash flow in the frac sand market. VSL is in negotiation with several firms involved in the processing and provision of frac sand and associated products.
"The frac sand market is constantly evolving, and this presents new opportunities to VSL," said VSL CEO Ken Murdock. "High-quality Midwest frac sand remains at a premium, and the relationships we are establishing in the US and Canada today will benefit Victory Nickel in near-term and down the road when Minago financing, mine development and production moves forward."