CPS Announces Shift in Business Strategy to Focus on Sustainable Float Glass Manufacturing
CALGARY, Feb. 03, 2021 - Canadian Premium Sand Inc. ("CPS" or the "Company") (TSXV: CPS) is pleased to announce a shift in the direction of the Company's business strategy to focus on developing its Wanipigow silica sand deposit into a sustainable float glass manufacturing and coating facility. This facility would be designed to utilize the best available technology with a focus on sustainability initiatives such as waste heat recovery and optimizing use of Manitoba's abundant and inexpensive renewable electricity to set a new standard for low-carbon footprint glass manufacturing. The greater Winnipeg area presents an opportunity for significant long-term manufacturing cost and logistics advantages for a float glass facility focused on energy efficient architectural glass or solar glass.
The shift in business strategy is the result of an internal review of the various applications for the Company's silica sand deposit which identified float glass manufacturing as a high potential application for which the Company's silica sand is ideally suited. Float glass manufacturing has shown better overall project economics and market stability compared to Wanipigow proppant production. This internal review is supported by an independent business study commissioned by the Company and conducted by an independent international glass markets focused consulting group, GlassGlobal Consulting GmbH ("GlassGlobal"). A full summary of the revised strategy and information on the business opportunity can be viewed at www.wanipigowglass.com.
"Today there is not a single float glass manufacturing facility in Canada," stated Glenn Leroux, President and CEO of CPS. "Every pane of glass utilized in this country is imported. Based on the business study and market projections completed by GlassGlobal, current dynamics in North America show a manufacturing supply deficit demonstrating the requirement for up to four additional float glass facilities by 2025 for North America to be self-sufficient. Establishing a float glass facility in Canada using responsibly sourced local raw materials and responsibly produced Canadian energy creates a unique opportunity to provide much needed sustainably manufactured float glass to Canadian, North American and international markets in an environmentally responsible manner."
Float glass is a broad industry term for an established and proven method of producing flat panes of glass. Numerous products begin their useful life as float glass including glass with specialized energy efficient coatings for architectural applications, glass for solar panels, automobile glass, tempered and safety glass. Energy consumption by buildings is a significant source of Canada's overall greenhouse gas emissions. Use of energy efficient architectural float glass in residential homes and commercial buildings is a key component of emissions reduction strategies as outlined by the federal department of Environment and Climate Change Canada in 'Canada's Buildings Strategy' document. The demand for solar glass to manufacture solar panels is expected to accelerate in the coming years as a result of global electricity grid de-carbonization and net-zero climate action plans. Energy efficient architectural glass and solar glass are both carbon-negative products based on a life-cycle carbon assessment as they save or avoid more energy consumption and associated emissions after installation of end use products than is consumed during manufacturing.
Preliminary test work shows that the Wanipigow Lower Black Island Formation (LBI) sand at the test site has potential for use in the manufacture of ultra-clear, energy efficient architectural float glass as well as solar glass for use in solar panels. The testing of a small subset of the Company's silica sand was conducted by an independent ISO/IEC 17025:2018 accredited laboratory specializing in glass and raw materials analysis, the IGR - Institut f?r Glas- und Rohstofftechnologie (Institute of Glass and Raw Material Technology - IGR). Three individual samples were collected from archived drill cores for test work and focused on a portion of the overall Wanipigow sand deposit within the deposit's LBI sub-unit. The test work was performed in accordance with standard testing of oxidic raw materials for glass (DIN 51086-2) and included sieving, ICP-OES analysis, beneficiation tests followed by additional ICP-OES analysis, and melt tests. The preliminary results demonstrate that the LBI sand at this locale: i) contains high calculated silica (94.1% to 97.2% SiO2) with low detrimental elements such as iron, ii) is easily beneficiated to higher calculated silica (99.3% to 99.5% SiO2) using standard methods such as a bumping table and a magnetic separator, and iii) melt tests yielded no microscopic relics of un-melted grains.
The Company expects to engage a Front-End Engineering and Design (FEED) contractor during the first quarter of 2021 to work on site selection, facility design, site layout, and potential capital and operating costs. The Company will also initiate offtake discussions in concurrence with the FEED study and add glass industry expertise to the management team to develop a robust business plan to achieve a final investment decision.
The Company's silica sand deposit is extensive as detailed in a National Instrument 43-101 ("NI 43-101") compliant Technical Report dated March 20, 2020. This report was based primarily on silica sand for the oil and gas industry. Based on the typical silica sand requirements of a single float glass plant, the Company has ample silica sand supply to also pursue other industrial market opportunities.
Technical Disclaimer
The Company advises and wishes to make clear that it is not basing any future decision to produce trial or commercial glass products from the Lower Black Island Formation sand on a current economic analysis in a Preliminary Economic Assessment ("PEA") or mining study (Pre-Feasibility or Feasibility Study) to demonstrate the economic and technical viability of the project. Accordingly, there is increased uncertainty and specific economic and technical risks of failure associated with any production decision. These risks, among others, include areas that are analyzed in more detail in a PEA or Feasibility Study, such as applying economic analysis to resources or reserves, more detailed metallurgy, and a number of various specializing studies.
Mr. Roy Eccles P. Geo., a "Qualified Person" within the meaning of NI-43-101, has reviewed and approved the scientific and technical content associated with this News Release and who by reason of education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, fulfills the requirements of a Qualified Person as defined in NI 43-101, and he is independent of the Company applying all of the tests in Section 1.5 of NI 43-101CP.
About Canadian Premium Sand Inc.
The Company is an exploration stage company which is developing its Wanipigow silica sand deposit in Manitoba and evaluating markets to support the basis for a commercial operation. The Company is a reporting issuer in Ontario, Alberta and British Columbia. Its shares trade on the TSX Venture Exchange under the symbol "CPS".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION:
Canadian Premium Sand Inc.
Glenn Leroux
President and Chief Executive Officer
glenn.leroux@cpsmail.com
Investor Relations
IR@cpsmail.com
587.355.3714
www.wanipigowglass.com
www.canadianpremiumsand.com
Forward Looking Information
Certain statements contained in this press release constitute forward-looking statements relating to, without limitation, expectations, intentions, plans and beliefs, including information as to the future events, results of operations and the Company's future performance (both operational and financial) and business prospects. In certain cases, forward-looking statements can be identified by the use of words such as "expects", "estimates", "forecasts", "intends", "anticipates", "believes", "plans", "seeks", "projects" or variations of such words and phrases, or state that certain actions, events or results "may" or "will" be taken, occur or be achieved. Such forward-looking statements reflect the Company's beliefs, estimates and opinions regarding its future growth, results of operations, future performance (both operational and financial), and business prospects and opportunities at the time such statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or circumstances should change. Forward-looking statements are necessarily based upon a number of estimates and assumptions made by the Company that are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Forward-looking statements are not guarantees of future performance. In particular, this press release contains forward-looking statements pertaining, but not limited, to: the plan to develop a robust advancement plan for the Company and the Project and the benefits to be derived therefrom; projections about future improvements in market conditions and silica sand pricing; future development plans; industry activity levels; industry conditions pertaining to the silica sand industry; the ability of and manner by which the Company expects to meet its capital needs; and the Company's objectives, strategies and competitive strengths.
By their nature, forward-looking statements involve numerous current assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from those anticipated by the Company and described in the forward-looking statements.
Any financial outlook and future-oriented financial information contained in this press release regarding prospective financial performance, financial position, IRR or cash flows is based on assumptions about future events, including economic conditions and proposed courses of action based on management's assessment of the relevant information that is currently available. Projected operational information contains forward-looking information and is based on a number of material assumptions and factors, as are set out above. These projections may also be considered to contain future oriented financial information or a financial outlook. The actual results of the Company's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. Actual results will vary from projected results. Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein.
The forward-looking information and statements contained in this document speak only as of the date hereof and the Company does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.