Welcome!

News Feed Item

Rainmaker Resources Ltd. Acquires Bray Frac Sand Property, Arkansas; Receives Highly Encouraging Test Results

CALGARY, ALBERTA -- (Marketwired) -- 06/19/14 -- Rainmaker Resources Ltd. (TSX VENTURE:RMG) ( "Rainmaker") is pleased to announce that it has entered into a binding Letter Agreement with Arkansas Silica LLC ("ASL") to acquire an Option to Purchase the 304-acre Bray Frac Sand property, located in NE Arkansas. ASL has entered into an Option to Purchase Agreement (the "Option") with the landowners, dated May 30, 2014. This Option gives ASL the right to purchase the property outright for US$1,100,000 on or before January 5, 2015.

Highly encouraging results have been received from testing on sand samples obtained during a preliminary test drill program.

Prior to negotiating the terms, Company management and technical representatives visited the property on several occasions to test and sample the property. This included a two day drill program, using an inexpensive water well rig, to drill three test holes. The three drill holes demonstrated sand thicknesses of 80 ft., greater than 90ft. and greater than 120 ft. respectively. Analytical work on two composite samples yielded results that were better than the industry standard recommended values for all parameters. Details are presented below.

The Company will now commence a comprehensive sonic drill program with the objective of completing an NI 43-101 compliant resource estimate.

Test Drilling:

The drilling consisted of three mud-rotary holes to test the thickness of the sand formation, and to collect sand material for subsequent testing. The three holes were all collared in sand, and intersected sand as follows:


Hole B-1  depth to base of sand 80 feet                                     
Hole B-2  hole stopped at 120 feet, still in sand                           
Hole B-3  lost circulation at 100 feet, still in sand at 90 feet.           

Two composite sand samples were prepared from the drill cuttings, and were submitted to Stim-Lab, Inc in Duncan, Oklahoma. The samples were dried, weighed and washed through a 200 mesh screen. The two composites were then tested for sphericity, roundness, acid solubility, bulk density, apparent density and crush resistance (K-value). The procedures followed were as stated in ISO 13503-2:2006/API RP19C:2008.

The sieve test yielded the following results:


                   Percentage of sand within size fraction                  
                                                                            
Size fraction                        Composite 1                 Composite 2
----------------------------------------------------------------------------
20/40                                        6.1                         5.7
30/50                                       28.4                        26.2
40/70                                       58.0                        56.2
70/140                                      33.0                        35.3

Note - these percentages add up to more than 100% because the ranges of the size fractions overlap.

It was decided that the full testing would proceed on the 30/50 size for Composite 1, and on the 40/70 size for Composite 2. Results as are follows:


----------------------------------------------------------------------------
                                                                            
API test                                                                    
results                                                                     
----------------------------------------------------------------------------
                     Comp 1         Comp 2                                  
                 30/50 size     40/70 size                             Notes
----------------------------------------------------------------------------
Sphericity              0.8            0.7   minimum recommended value = 0.6
----------------------------------------------------------------------------
Roundness               0.7            0.7   minimum recommended value = 0.6
----------------------------------------------------------------------------
Acid                                           maximum recommended value for
 solubility           1.45%          1.30%    30/50 = 2.0%, for 40/70 = 3.0%
----------------------------------------------------------------------------
Bulk density     1.45 g/cm3     1.42 g/cm3                                  
----------------------------------------------------------------------------
Apparent                                                                    
 density         2.63 g/cm3     2.64 g/cm3                                  
----------------------------------------------------------------------------
                                          highest stress value generating no
K-value                  6K             8K    more than 10% crushed material
----------------------------------------------------------------------------

Director of Rainmaker, Alan Young, P.Eng, commented, "This sand is an excellent quality frac sand that exceeds all the key attributes as outlined by the ISO/API standards referenced above, for the specified sand sizes. These attributes will make the sand a solid technical contender for use in either US or Canadian fracture stimulation applications. We are confident that the additional delineation wells will serve to prove up the extent and potential value of the play."

Letter Agreement:

ASL will assign its interest in and to the Option in consideration of payment of $175,000 and the issuance of 2,500,000 shares of Rainmaker's capital stock, payable in five installments over a four year period from the effective date of the agreement. In addition, Rainmaker will pay ASL a royalty of $1.00 per short ton of frac sand extracted, processed, sold and delivered.

Bray Property:

The Bray Frac Sand property is located in Izard County, north-central Arkansas, and has excellent access from State highways. The property is approximately 30 miles north of the city of Batesville, AR. Rail access is available in Batesville, with several potential loading sites present. The currently operating Bluebird Sand LLC frac sand operation is located approximately 5 miles southwest of the Bray property.

The property is underlain by the St Peter Sandstone, of Ordovician age, and is homogeneous pure quartz sand. The St Peter sandstone (also known as the Ottawa sand in commercial operations) is considered to be a major source of frac sand within the United States, especially in Wisconsin. The Arkansas Geological Survey reports that in the nearby Mt. Pleasant area the sand ranges from 135 - 150 feet in thickness. On the Bray property, drilling by Rainmaker has demonstrated thicknesses in excess of 120 feet. Bluebird Sand LLC produces frac sand from the same formation.

Rainmaker President and CEO, Rick Patmore commented, "The Bray Frac Sand property is ideally situated to service the Eagle Ford, Fayetteville and New Albany shale plays. The Ottawa sands are of a top pedigree of frac sand in this industry. We look forward to briskly moving this project toward development for the benefit of all shareholders. With Mexico now lifting their moratoriums this is another avenue Rainmaker could have for a client base. We are very excited about this opportunity as we believe that the size of this property could turn Rainmaker into a real contender in this arena for years to come."

The transaction is subject to acceptance by the TSX Venture Exchange.

Chris M. Healey, P.Geo, a Director of 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, sha...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
CloudJumper, a Workspace as a Service (WaaS) platform innovator for agile business IT, has been recognized with the Customer Value Leadership Award for its nWorkSpace platform by Frost & Sullivan. The company was also featured in a new report(1) by the industry research firm titled, “Desktop-as-a-Service Buyer’s Guide, 2016,” which provides a comprehensive comparison of DaaS providers, including CloudJumper, Amazon, VMware, and Microsoft.
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, attendees learned about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how ...
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, discussed what every business should plan for how to structure their teams to delive...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...