Windsurfer:
A review of Select Sands (SLSDF on the OTC or SNS on the Canadian markets) indicates that they have the following:
Approximately 42,000,000 tons of good quality silica sand. Although, upon closer examination of this number, it appears that this is not booked as reserve, but only identified as "indicated resource" in their 43-101. I could be wrong about this.
They are producing and are set up to have 600,000 tons a year.
They recently announced their first sale of sand to an oil company for 7000 tons.
They have close to 70,000,000 shares outstanding
They went from 16 cents (US) to a high of $1.55 (US) from last summer. They currently are at about $1.44 (US).
This is how NAFS may compare from all indications (this is strictly information that appears to be likely. NAFS has yet to confirm and once the 43-101 is released, more details can be verified, but for now this may at least provide a guideline on what the future may hold.)
If the current drill program verifies 6,000,000 tons on 700 acres and the balance of the land holds similar resource, then your calculation of 335,000,000 plus or minus makes NAFS a potential monster.
Even if there is only half of that amount, say 150,000,000 tons and they produce a 1,000,000 a year, they would have a 150 year project life. Wow!
Information from the website, in the past indicated that the sand was close to the surface and could be excavated year round. Reclamation costs were identified as being low.
NAFS had approximately, 55,000,000 shares outstanding, with about 38,000,000 used to purchase the asset and restricted. As discussed earlier, it appears that their trading float is in the range of 9,000,000 shares.
If you run some numbers to compare the 2 companies, (this is based on the assumption that NAFS 43-101 comes in with the verification of the data that was previously indicated on their website from the original drill program), here are some thoughts:
NAFS has potentially 4 - 8 times the resource that SLSDF has identified
NAFS has less shares outstanding at present with a small trading float
It appears that NAFS could trade easily in $ range once the 43-101 is completed and if it is eventually proven that there is 100,000,000 tons plus, the value of this company will explode.
I am going to do some research on what the market is like for franc sand demand in the Balkan, Saskatchewan, and Alberta. I will post the results.
I hope there is some time to accumulate a position at these prices before the 43-101 comes out.
