ALBERTA – In a departure from base metals, Victory Nickel of Toronto is set to begin development of the Seven Persons frac sand plant at Medicine Hat. The Alberta Energy Regulator (the successor to the Energy Resources Conservation Board) has given the necessary approval to the project.
The development approval was given to BG Solutions, the company selling the facility to Victory Nickel. A payment of $300,000 to BG has been made as the approval was a condition of sale. Victory announced in January 2013 that it intended to buy the Seven Persons facility for a total of $710,000 and expand it into a 400,000 t/y frac sand processing plant.
To sell frac sand to northern markets, Victory Nickel established Victory Silica. Feed for the Seven Persons facility will come first from Wisconsin mine and wet plant. Later, Victory plans to build a larger frac sand plant near Winnipeg to process imported frac sand and that from its Minago mine in Manitoba.
More information is available in the Victory Silica factsheet posted at VictoryNickel.ca.
Comments
Canuckelhead
This is not a “departure” from base metals by Victory Nickel, but rather, it is a lead-in to base base metals by removing the overburden of frac sand on its massive Ni-Cu deposit! The overburden has been exactly that, a burden in trying to convince the frac sand can be profitable along with the massive but low grade deposit to prospective j-v partners with deep-pockets to develop the project. In addition, there is no “mine” at Minago as mentioned, but if/when the frac sand proves profitable, and the nickel prices improve, then the prospective j-v partners will be interested. Scratch a little deeper for the truth!