Click here to close now.




















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
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.