North America Frac Sand, Inc. (OTCMKTS:NAFS) has recently been fighting through some retractions in press releases obviously driven by the internal legal team. It looks like they released information that was incorrect. I must tell you in my 30 years following these stocks, this is not that unusual. Now, NAFS is building legitimate momentum and volume behind its Eagle Creek Property.
Volume does not appear in shares until at the end of last year, when it was clear NAFS had impactful news on the horizon. To me, it’s funny how the market always tells you what to do in stocks. It seems the volume and price (usually volume first) give the seeds of indication that something is afoot. This makes perfect sense in these smallish stocks because they are the epicenter for paydays and capitalism, and, oftentimes, can be the largest risk/reward in the spectrum. They can also fall terribly flat and leave investors scorched in the process.
North America Frac Sand, Inc. (OTCMKTS:NAFS) is a fracking stock, and if you are going to look at a fracking stock, you need to understand the terminology of a proppant. A proppant is used in the oil and gas industry as a part of the hydraulic fracturing process – a means of increasing flow to the wellhead. A proppant is a solid material, typically sand, designed to keep an induced hydraulic fracture open.
The most recent news about NAFS’ Eagle Creek Property in Saskatchewan, Canada is important. Between 2009 and 2016, a portion of the property was explored by 112 test pits and 104 drill holes, of which 145 pits and drill holes were sampled. The last 38 holes were drilled under the supervision of Norwest in 2016. Following Norwest’s development of the mineral resource model, an in-place sand resource of commonly used frack sand size fractions in the tested area was calculated.
“It is Norwest’s opinion that the drill hole and test pit distribution and obtained assay data of the Eagle Creek Project is sufficient to indicate reasonable potential for economic extraction. Based on all available data, Norwest classifies the mineral resources as Inferred.”
It is important to note that the explored area addressed in Norwest’s report is less than 5 percent of the total acreage under quarrying leases held by NAFS. Norwest made recommendations for the next evaluation work phase, which NAFS is currently evaluating.
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North America Frac Sand, Inc. (OTCMKTS:NAFS) is headquartered in North Vancouver, British Columbia, and has 29 900 acres of fracking sand leases, with intent to prove out the balance of the resource. The Company’s long-term intent is to commence shipments of fracking sand as soon as possible.
The purpose of the report is to evaluate the quantities and quality of the mineral resources on the Company’s fracking sand leases, which are located in Saskatchewan, Canada. Norwest Corporation was chosen because of their expertise to develop and optimize mineral projects. Norwest Corporation takes a comprehensive approach to help clients develop new ventures. They have expertise in all phases of project development from initial project planning through to the delivery of mineral products.
NAFS’ long-term frack sand leases are contiguous and cover over 39,000 acres. As part of the evaluation process, an auger drilling program of 35 drill holes and covering 700 acres, was completed. The samples taken from the drill holes were tested by independent labs. The results of the test samples have been assessed and evaluated and the NI-43-101 report is in the process of being finalized. Upon receipt of the NI-43-101 report from Norwest Corporation, an 8K will be filed and a News Release will disclose this information to the public.
North America Frac Sand, Inc. (OTCMKTS:NAFS) has a $6.44M market cap and provides a proppant used in the oil and gas industry as a part of the hydraulic fracturing process and it is therefore a relatively rare commodity. Shares here become easy to understand once you do the math on the acreage and the ability to extract revenue from them. Tune back here so we can keep you up on this emerging sector. For more news on $NAFS and other fast-moving stocks, please subscribe to OracleDispatch.com below.