Heemskirk eyes Development of Frac Sand Operation

A recently completed Feasibility Study supports the development of a frac sand operation at Heemskirk Consolidated's Moberly Project.

Heemskirk Consolidated has reported the key outcomes from a recently completed Feasibility Study supporting the development of a frac sand operation at its Moberly Project in British Columbia, Canada.

Melbourne (VIC), Australia – The study confirmed the commercial and technical viability for a long life operation. At a capital cost estimate of CAD 20 million the project is designed to produce around 300 000 tonnes of saleable frac sand per year at full production (year 3 onwards). Time to completion is estimated to be 12 months from a development decision.

The capital expenditure estimate of CAD 20 million is based on the redevelopment of the current Moberly operation. The mine needs little further development, the haul road would be upgraded for the additional tonnage and the plant site would be modified to accommodate the new infrastructure. Heemskirk already has a rail siding at the plant site and this would be upgraded. The site is adjacent to the main Canadian railway line and the Trans-Canadian Highway. The Board has given approval to move to the Detailed Engineering Stage, review potential marketing arrangements and present funding options for the Project. This is targeted for completion late in the first quarter of calendar 2012. Once completed, the Board will assess the project development options before a final decision is taken.