The Frac Sand Boom

[Oscar]

The Frac Sand Boom

[ http://victorymv.com/wp-content/uploads ... and_LQ.pdf ]

Printed in 2014

The Canadian Oil and Gas Industry Imports roughly 90% of its fracking sand from the United States
Our goal is to produce and supply high quality frac sand to Canadian Oil and Gas companies

Advantages

• Lower shipping cost due to the proximity to end user (majority currently being shipped from Wisconsin by rail)
• Quick to measured resource: production: cash flow
• Operate close to infrastructure and end user
• One of the first players in the Canadian market place
• New market – currently only one producer in Alberta (Canadian Silica Industries, Peace River Alberta)

Frac sand or “proppant”, is a high-purity quartz sand with very durable and very round grains. It is a crush-resistant material produced for the petroleum industry. It is used in the hydraulic fracturing process known as “fracking” to aid in the flow of oil, natural gas and natural gas liquids.

The demand for frac sand has exploded in the past several years as thousands of oil and gas wells are stimulated using the fracking process. One well can require up to several thousand tonnes of sand.

This surge of specialized drilling has created a billion dollar industry in the USA alone in a relatively short period of time. Between 2009 and 2012 the amount of sand used by the Oil and Gas Industry has tripled and continues to rise significantly.

Victory’s near term focus is to acquire, develop and measure known silica quartz deposits suitable for development in Western Canada.

Low CAPEX and OPEX
• Low cost to test quality specifications
• Low cost drilling — near surface, auger type drilling
• Low cost evaluation — calculate 43-101 resource estimate
• Low cost production — standard gravel pit production equipment

Printed in 2014

Recent Price: $0.075 Shares Out: 8.8M Fully Diluted: 13.2M

Major US Players
Energy companies are expected to use 56.3 Billion pounds (25.5 million tonnes) of sand this year. Frac sand use has increased 25% since 2011, according to the consulting firm PacWest — which expects a further 20% increase over the next two years.

US Silica Holdings (SLCA) Hi-Crush Partners LP (HCLP)
US Silica Holdings Inc is a domestic producer of commercial silica, a specialized mineral that is a critical input into a variety of attractive end markets. Hi-Crush Partners LP is a producer of monocrystalline sand. It is engaged in the excavation and processing of raw frac sand for use in hydraulic fracturing operations for oil and natural gas wells

Media Coverage

Energy & Capital: Investing in Frac Sand — Proppants and what they can do for you ( http://bit.ly/MpHm1z )

The Wall Street Journal: In Fracking, Sand Is the New Gold — Energy Boom Fuels Demand for Key Ingredient Used in Drilling Wells; 100 Sand Mines in Wisconsin ( http://on.wsj.com/1jEIzPm )

Alberta Oil: Suppliers aim to cope with the logistical challenges of the frack sand market — Boom times ahead for frack sand suppliers, if they can force their way into the market ( http://bit.ly/1plULaD )

Offering details:
10,000,000 units for proceeds of up to $500,000. Each unit consists of one $0.05 share with ½ warrant at $0.10 for a period of 18 months.

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Victory Mountain Acquires Alberta Frac Sand Property

[ http://victorymv.com/2014/03/victory-mo ... -property/ ]

Posted on March 14, 2014 by Jeff

March 14, 2014: Victory Mountain Ventures Ltd. (TSX-V symbol: VMV) (“Victory”) announces that it has entered into an option agreement (the “Agreement”), subject to the approval of the TSX Venture Exchange, whereby it may earn a 100% interest in 8 Metallic and Industrial Minerals Permits totalling approximately 737 square kilometres (73,728 hectares; the “Property”), which is located west of Fort McKay, in the prolific Fort McMurray area of northeastern Alberta. Frac sand is actively being sought out and mined in Alberta to meet growing demand, with particular interest in abundant silica sand associated with the Paddy and time equivalent Pelican formations in Northern Alberta. The Pelican Formation is known to crop out or underlie the Property as identified in preliminary work.

The property is served by a network of all-weather roads serving the oil and gas industry. Approximately 95 km of all-weather roads link the property to Fort McMurray and an active rail line. Preliminary review of extensive oil and gas well drilling in the Property area has outlined Pelican sand thicknesses of up to 50 plus metres, which will be the focus of exploration. The sand is near to and in some areas exposed at surface, which will facilitate affordable exploration costs and upcoming operational logistics.

MORE

[ http://victorymv.com/2014/03/victory-mo ... -property/ ]

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Who Is Victory Mountain Ventures Ltd.?

[ http://investing.businessweek.com/resea ... ker=VMV:CN ]

Victory Mountain Ventures Ltd. engages in the acquisition, exploration, and development of mineral properties in Canada. The company has interests in copper, gold, silver, molybdenum, and other base metals properties. It principally has interests in the Louise Lake Copper Deposit located to the west of Smithers, British Columbia.

The company was formerly known as North American Gem Inc. and changed its name to Victory Mountain Ventures Ltd. in June 2012.

Victory Mountain Ventures Ltd. is headquartered in Vancouver, Canada.

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Victory Mountain Ventures (TSX-V: VMV) is a Junior Exploration Company based in Western Canada. The Company has interests in Copper, Gold, Silver, Molybdenum and other base metals in Canada.

The Louise Lake Copper Deposit is located 35 km west of Smithers, BC and has excellent access to highway, rail, and electrical infrastructure. In total, 96 holes have been drilled at the Louise Lake property and approximately $3.5m of exploration expenditures have been completed.

Frac Sand — The Company has recently announced that it has developed a business plan that focuses on the acquisition, development and measurement of high-quality silica fracking sand used in the Oil and Gas Industry. Frac sand is a crush resistant material used to increase the flow of oil and gas during hydraulic fracturing of wells.

Click the Image for some exclusive insights:

[ http://victorymv.com/wp-content/uploads ... and_LQ.pdf ]