WHITE SILICA SAND DECEMBER 2019 www.canadianpremiumsand.com www.wanipigowsand.com
Investment Overview Participation Agreement with First Shovel Ready Premium Sand Quarry Nations and other Stakeholders Environmental License granted Unit-Train capability into high- $30 CAD/MT advantage over largest intensity WCSB regions with importer in Western Canada storage at transloads E&P and OFS representation on the Lower logistics carbon footprint Board of Directors relative to Wisconsin supply Decades long mine-life equivalent 37% Insider Ownership in quality to Tier-1 Wisconsin supply Significant Capital Cost Reduction Achieved in last 4 months 2
Wanipigow Resource CPS Deposit Breakdown Average, not incl over/under-size 20/40 Mesh 16% 40/70 Mesh 42% Trucking 70/140 Mesh 42% 160km to Rail API Test Results CPS 50/140 Typical NWS 1 Sphericity 0.7 0.7 – 0.9 Silica Content 99.5% > 99% Acid Solubility 1.0% < 3% (Industrial Silica Distributor) 3 12K 2 K Value 10K – 14K Turbidity (NTU) 10-14 < 250 1. Data gathered from Wisconsin public company disclosures 2. One Lab-washed and attrition scrubbed 50/140 sample test- result from Lonquist Lab in October 2019 of 12K 3. CPS deposit can also be utilized for industrial silica markets, CP, CN, BNSF access in providing an additional revenue source Greater Winnipeg Area 3
Wanipigow Conductivity & Permeability CPS Wanipigow 3 rd Party Conductivity Results are similar to typical Tier-1 Wisconsin Sand Results Tier-1 and Tier-2 are commonly used terms in the industry and are used herein for illustration purposes only Conductivity at 8,000 psi, 150 o F and 2 lb/ft 2 for 50 hours between Ohio Sandstone Permeability at 8,000 psi, 150 o F and 2 lb/ft 2 for 50 hours, between Ohio Sandstone 5 6 350 20 7 6 5 1 Wisconsin (NWS) Wisconsin 1 7 40/70 Range 300 18 (NWS) CPS CPS 40/70 Range 40/70 40/70 4 2 2 3 Tier-1 (NWS) 4 250 16 md-ft Darcy Tier-2 (Regional) 10 8 200 14 Regional Tier-2 8 40/70 Sand 9 Regional Tier-2 10 150 12 40/70 Sand 11 11 9 Graph approximately to scale Conductivity of 40/70 sand Permeability of 40/70 sand StimLab Test Results for two samples from CPS Wanipigow Deposit Based on Wisconsin Sand Suppliers’ published data (Tier-1) Based on regional Alberta and Permian (TX) Suppliers’ published data (Tier-2) 1) US Silica NWS 4) BadgerFrac NWS T4070 7) Wisconsin Proppants LLC (WI) 8) Badger Pure Permian TM 11) Wisconsin Proppants LLC (TX) 9) Black Mountain Winkler White TM 2) Hi-Crush NWS 5) Covia (Fairmont) 3) Superior Silica NWS 6) BadgerFrac NWS FW4070 10) Athabasca Minerals Duvernay 4
Crush Strength Results CPS Wanipigow Crush Strength Test Results, similar to typical NWS 30/50 40/70 50/140 70/140 October 2019 Test Results 5 7K 1 8K 2 11K - 12K 3 10K - 11K 4 API 19C Crush Strength Rating (<10% fines) Lowest % Fines at 8,000 psi 11.77% 8.48% - - Lowest % Fines at 9,000 psi - 11.08% - - Lowest % Fines at 11,000 psi - - - 9.53% Lowest % Fines at 12,000 psi - - 8.03% 13.43% Lowest % Fines at 13,000 psi - - 10.23% - Notes 1. One 30/50 sample tested at 7K, with 11.77% fines at 8K 2. Three 40/70 test samples tested at 8K, with lowest fines of the three samples at 9K testing at 11.08% 3. One 50/140 sample tested at 12K, with 10.23% fines at 13K 4. Three 70/140 test samples resulting in a range of 10K – 11K 5. 95lbs of bulk samples from six different boreholes from the 2018 sampling program at varying depths were sent to Lonquist Lab Preliminary Test Results from Raw Samples that were washed, run through an attrition scrubber and dried at Lonquist Labs in Edmonton, AB. See the Technical Report published by CPS on SEDAR prepared in accordance with NI43-101 for Test Results completed in 2018 at StimLab, which did not include attrition scrubbing as part of the wash process. (Technical Report Section 11 contains test results from 263 tests conducted at TPS, and 14 bulk samples conducted at StimLab) 5
Logistics Advantage Rail access to all parts of Duvernay, Montney, Viking and Bakken activity Potential Unit-train access at 3 rd party transloads in Montney and Duvernay • Access to three Class 1 Railroads in Winnipeg with • Access to three Class 1 Railroads in Winnipeg with full-capacity rail (105 MT payload per car) full-capacity rail (105 MT payload per car) • Access to Western Canada and North Dakota demand • Access to Western Canada and North Dakota demand of over 11 million tonnes (2018 data) of over 11 million tonnes (2018 data) • Unit-train access into Montney & Duvernay 3 rd party • Unit-train access into Montney & Duvernay 3 rd party transloads transloads Lake Winnipeg Wanipigow Area Hub 6
WCSB Frac Sand Demand CPS quality and finer mesh sand are ideally-suited to serve WCSB and CPS Target Markets 2018 Well Count 2018 tonnes placed Bakken’s growing needs: Montney 1,200 3,000,000 • Proppant intensity increasing at ~CAGR of 25% Duvernay 2,100,000 750 • High-intensity wells drilled increasing annually at ~CAGR 30% (incl. E Duv. & Deep Basin) • 100 mesh usage is steadily rising in WCSB with Duvernay basin Viking & Shaunavon 1,500 500,000 leading the way Bakken (ND) 5,400,000 1,150 • Viking, Shaunavon and Bakken use mostly Northern White Sand as no regional mines are within economical trucking distance Total 11,000,000 4,600 • Duvernay wells near Whitecourt reaching intensities of over 10,000 tonnes/well • 2019 Consumption is expected to be ~25% lower y/y but NWS Montney Duvernay (incl. Deep Basin) Bakken (ND) Other WCSB demand is still strong 6,000 High Intensity Wells Drilled 4 Proppant Intensity per Well 4 (tonne/well) 5,000 CAGR ~25% 4,000 CAGR ~30% 3,000 2,000 1,000 NWS - 2016 2017 2018 2016 2017 2018 Montney Duvernay (incl. Deep Basin) Bakken (ND) 4. Data gathered from AccuMaps Frac Module, FracFocus, ShaleProfile and market studies; Compounded Annual Growth Rate (CAGR); y/y Year-over-Year 7
WCSB NWS Demand Duvernay NWS Technical Need 5 Montney NWS Technical Need 5 Total NWS Consumption in CPS Target Markets 7 < 2mm MT Regional 16% Regional NWS 46% 54% > 9mm MT NWS NWS 99% 84% Majority of Proppant in WCSB is placed in wells with average treatment pressure higher than 8,000 psi 5 CPS Target Markets’ NWS Demand > 9 million MT Regional Sand quality ranges from 6,000 psi (minimum API spec) to Based on 2018 demand, which is expected to grow significantly in 7,000 psi crush strength, making it technically unsuitable for high- 2020 and onwards pressure wells in Montney and majority of wells in Duvernay CPS target markets provide substantial demand for our sand NWS Quality Benefits • 84% of all proppant used in CPS target markets is Northern White Sand 7 • Produces less fines over time resulting in 2x • conductivity 6 Viking, Shaunavon and Bakken ND use mostly Northern White Sand as • no regional mines are within economical trucking distance Less harmful to pumping equipment (less angular in shape) • Current supply into Western Canada comes from Wisconsin via CN (approx. 70%) and lower quality regional mines on trucks (approx. 30%) 5. Calculated using reported average well treatment pressures of over and under 8,000 psi, most low-quality regional sand can not meet higher than 7,000 psi crush strength; data gathered from AccuMaps, FracFocus, ShaleProfile and internal market studies in Q2 2019 6. Stim-Lab data 7. Data shows current consumption trends from various sources and market studies for CPS target markets of Montney, Duvernay, Viking, Shaunavon and North Dakota Bakken 8
Timeline PEA Government 2014 NI 43-101 Drill Testing Assessment Consultation New Board Metallurgical First Nations 2015-17 Lease Capture Management & Gold Assets Sold Test Work MOUs Recapitalization Updated Updated Drill Name Change & Permit FN Participation 2018 Metallurgical Program Share Consolidation Applications Agreement Test Work Environmental Capital Leadership Transportation 3 rd Party Sales 2019 Permits & Pre- Optimization Team Study Feasibility Study Review Site Selection Development & Achieve 3 rd Plan for mid Wanipigow Plant 2020 and Plant Permit Process Party Sales 2021 Wanipigow Construction Design Initiated Targets Start-up 2018-2019 Milestones Met I. Participation Agreement with Hollow Water First Nation II. Environmental Permits granted III. Pre-Feasibility Study Complete and updated Technical Report showing a larger resource than 2014 study IV. Leadership team appointed and preliminary Business Plan developed V. Achieved First Sales from Wisconsin mine into Western Canada to generate revenue while Wanipigow design is being finalized VI. Alternative transportation option being developed to reduce road-traffic and operating cost 9
Recommend
More recommend
