TORONTO, ONTARIO--(Marketwired - Oct. 29, 2014) - Victory Nickel Inc. ("Victory Nickel" or the "Company") (TSX:NI) today announced that a fourth crew is now in place at its Seven Persons frac sand plant (the "7P Plant") in Alberta enabling the 7P Plant to operate on a 24-hour-per-day, seven-day-per-week schedule to produce up to 500,000 tons-per-year ("tpy") of 16/30, 20/40, 30/50 and 40/70 Wisconsin northern white frac sand.
"As previously advised, we have been operating below capacity since signing our first take-or-pay contract in August as we wanted to ensure customer demand would warrant adding the fourth and final operating team," said Ken Murdock, CEO of wholly-owned subsidiary Victory Silica Ltd. ("Victory Silica"). "We are seeing good traction in the western Canadian frac sand market and are comfortable that now is the right time to maximize the production capability at the 7P Plant."
About Victory Nickel
Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-compliant nickel resources and a significant frac sand resource at its Minago project. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake in Manitoba, and Lac Rocher in northwestern Québec, and by evaluating opportunities to expand its nickel asset base. Through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel is establishing a presence in the frac sand market prior to commencing frac sand production and sales from Minago.
About Victory Silica
Victory Silica is a wholly-owned subsidiary of Victory Nickel and is charged with a phased plan to establish the Company in the frac sand market. In Phase 1, the Company constructed a 500,000 ton-per-year dry processing plant and has begun processing and selling sand imported from Wisconsin. The 7P Plant is well located in an area populated with fracking companies, its potential customers, and is within only a few hours' trucking distance of major oil or gas play well sites. Phase 2, which includes the construction of a concentrator in Wisconsin, is expected to reduce costs and assure security of sand supply through the control of a frac sand mine in Wisconsin. In Phase 3, the Company intends to construct a larger frac sand plant to process and distribute both imported and domestic sand, which may potentially, but not necessarily, include sand mined as a co-product of development at the Company's Minago project. The Company has already identified a site in Manitoba for this purpose.